Today’s investors can not only invest in what they know but also in accordance with their conscience. Is there a company you’d like to support because of its positive impact on the community?
Supporting small businesses has long been a vital component of local economies. However, it’s more necessary than ever due to COVID-19. It is no longer just a matter of David competing with Goliath; it is now David trying to survive while having to either radically alter operations or avoid shutdown altogether.
This dire situation affords investors the opportunity to extend lifelines to companies that would flourish under better circumstances. Through self-directed IRAs, Solo 401(k)s, or Health Savings Accounts, investors can issue private loans to help companies stay afloat by covering short-term expenses or by purchasing private equity in these businesses themselves.
Although the effects of COVID have slowly begun to subside, there is still plenty of need among the small businesses. You can help by giving these businesses your patronage, but you can also create a mutual benefit by investing.
Credit: NDTCO, 02/26/2021