manage high-interest debit

How To Manage High Interest Debt

Financial barriers and struggles are no stranger to small businesses. These challenges can many times have devastating impacts on these businesses leading to closures, downsizing, and restructuring. One of the most harmful financial issues for small businesses is high-interest debt that comes in the form of loans, credit cards, or merchant cash advances (MCA’s).

These high-interest rate options end up costing business owners more than they are worth. For example, MCA companies will “advance” future credit card receivables to the business and then take a percentage of the daily credit card sales. While this might seem like a great, quick short-term solution to access money faster, the reality is that the fees associated with MCA’s end up adding to 20-25% of a business’s daily sales volume to pay back the advance.

This adds up to a significant chunk of change which results in a high loss for the business. Which often leaves already struggling businesses in a more significant financial crisis than they were before. The same can be true for high-interest loans and credit cards. Many business owners are often left feeling like they have little to no options when it comes to accessing capital, especially during difficult times like the pandemic, which is why they end up turning to these options.

The reality is there are many alternative financing options available to small business owners in need of cash. While quick options like merchant cash advances might seem like a convenient, fast way to secure funds, it’s also one of the most expensive. We recommend doing your research and doing the math to explore other less risky options to shore up to make sure you and your business can thrive and succeed for the long haul.

Contact Prestamos to explore some of our financing options available to small businesses. Our loan options come with more than financial benefits; we also offer technical assistance, coaching, and mentoring to help your business succeed. We invite you to visit our website,, to learn more about our efforts and find an option that works for you and your business.

manage high-interest debit

City of NLV logo black on white background

City of North Las Vegas announces four new COVID-19 relief programs for residents, businesses


City of NLV logo black on white backgroundFROM THE OFFICE OF THE CITY MANAGER
MEDIA CONTACT: Patrick Walker, Public Information Officer

North Las Vegas, Nevada – The City of North Las Vegas is pleased to announce four new programs aimed at providing relief for City residents and businesses experiencing hardships related to the COVID-19 pandemic.

The City hopes to expand these efforts with CARES Act funding and continues to work with the Governor’s Office and State and Federal elected officials to secure North Las Vegas’ fair share of funding.

For residents, the City is teaming up with local non-profits to provide the following programs:

Temporary Rental and Utility Assistance
Emergency Food Assistance
Social Seniors Meals 2 You Program
For Temporary Rental and Utility Assistance, the following eligibility requirements apply:

  • Must have a gross annual household income that is at or below the maximum income limits. For short-term assistance, the Area Median
  • Income (AMI) limit is 80%; for long-term assistance, the AMI limit is 50% (chart).
  • Must be a city of North Las Vegas resident and reside in a property located within the city limits of North Las Vegas.
  • Must have a delinquency notice from landlord or mortgage company and documentation of financial hardship due to COVID-19 (i.e., loss of income, reduced hours, layoffs, etc.).
  • Must show a lack of assets or savings to pay rent/mortgage.
  • Anyone currently receiving a subsidy from another rental assistance program or living in public housing is ineligible.

To qualify for the Emergency Food Assistance and Social Seniors Meals 2 You programs, you must be a North Las Vegas resident and have a gross annual income that is at or below the 80% Area Median Income for your household size.

Additionally, the City of North Las Vegas has created a Small Business Stabilization Forgivable Loan Program. North Las Vegas-based businesses with 20 or fewer employees may qualify for forgivable loans of up to $25,000 at zero interest in an effort to mitigate losses experienced by our small business community. Learn more about the program here.

The City is able to provide all four programs using Community Development Block Grant and Emergency Services Grant funding from the U.S. Department of Housing and Urban Development (HUD). For more information about the programs, please click here.

“These programs are a great start and will be very beneficial to the residents of our City,” Mayor Pro Tem Isaac Barron said. “However, there is a much greater need for financial relief for the residents of Ward 1 and North Las Vegas — Nevada’s largest minority-majority city and one of the municipalities hardest hit by COVID-19 — which is why equitable funding for our community is so critical.”

North Las Vegas was one of only four cities left out of the state’s plan to distribute Coronavirus Aid, Relief, and Economic Security (CARES) Act Coronavirus Relief Fund (CRF) dollars it received from the U.S. Treasury to Nevada’s cities and counties with populations under 500,000.

“Being left out of the distribution has created an even greater and more glaring disparity for our communities of color, which have already been subjected to systemic inequality for far too long,” said Councilwoman Pamela Goynes-Brown, who represents Ward 2. “That includes under-funding programs and a lack of equal access to economic opportunities. Our residents deserve and demand more.”

The coronavirus has had a disproportionate effect on communities of color. According to the Centers for Disease Control and Prevention, African Americans are five times more likely to be hospitalized for COVID-19, and Latinos are four times more likely. Additionally, at the onset of the pandemic, two-thirds of the people who died from complications related to COVID-19 in North Las Vegas were African American.

Nationwide, a Brookings Institute analysis shows that African Americans are twice as likely to die from COVID-19 as Caucasians, and when adjusted for age, those rates soar even higher for both African Americans and Latinos.

Additional resident and business relief programs are crucial during and after this pandemic so that we may provide ongoing critical support services to help residents and business owners with rent, child care, utilities, payroll, PPE, and other essential needs.

Texst: fast and forgivable. With man & woman standing in business' doorway.

More PPP Funds – Another $10 Billion Dedicated Exclusively to CDFI’s

In efforts to respond to the COVID-19 pandemic and the impact on the small business community, the SBA and Treasury Department have announced $10 Billion in additional funding. This additional funding will be exclusively for Community Development Financial Institutions (CDFI’s) to provide funding for small businesses participating in the Paycheck Protection Program (PPP).

The purpose of a CDFI is to expand economic opportunity in low-income communities by providing access to financial products and services for local residents and businesses. As a CDFI, Prestamos will continue working to expand its work on providing economic opportunity to the communities we serve through the PPP. By providing small businesses with access to financial resources and services, we are able to help provide them relief through the uncertainty.

Texst: fast and forgivable.  With man & woman standing in business' doorway.

The PPP is a forgivable financial loan meant to provide assistance to businesses to help retain their workforce and remain in operation. Throughout the funding phases, Prestamos has already provided $10,623,689.73 in direct PPP services to 302 local businesses in Arizona, New Mexico, and Nevada. This funding has helped to preserve 1,644 jobs and keep businesses open. As is known with Prestamos, our services go beyond financial products. We are dedicated to creating opportunities for business owners to inform themselves on best practices and solutions for success.

Knowing that the PPP is a forgivable loan, Prestamos has worked closely with our team to ensure that businesses have what they need to navigate the process. From the application phase to life after the loan, we have equipped borrowers with the information they need to make sure their loan is forgiven. This information has helped prepare these businesses with tools to ensure they are following protocol and are in compliance to get the loan forgiven, if applicable.

At Prestamos CDFI, we are here to help you with any needs your small business has. We offer a variety of loan products and business consulting programs to help your business grow and succeed.