The MSP business model, by its very nature, can be resilient. But that doesn’t mean the COVID-19 pandemic hasn’t affected the financial health of managed service providers — some more than others.
In early April, the Small Business Administration launched the Paycheck Protection Program (PPP). The aim of the program was to help small businesses facing pandemic-related financial challenges meet payroll expenses, with loans 2.5 times a business’s average monthly payroll costs. In addition to payroll, applicants could use the loan for rent, mortgage interest or utility payments
Many MSPs fit the criteria for PPP loans and needed the help, especially if their customers couldn’t meet payment obligations.
In addition to applying for PPP, many MSPs took other steps to improve their financial prospects. Here, we delve into how industry experts think the pandemic affected the IT services industry, where government assistance could and could not help, and what’s been learned over the last few months. Experts also provide tips to help keep MSPs in business now and in the future.