COVID-19 Relief Programs for Your Business
COVID-19 Relief Programs for Your Business
When you first started your business, you probably never thought there would be a time that the government would mandate you to close your business to customers for any period of time. No one would have. Except for maybe Leslie Knope from Parks and Rec, she would have definitely had a binder for a time like this. So, if you don’t have a contingency plan for dealing with the COVID-19 pandemic, you are not alone. Thankfully, there is a plethora of government and charitable relief programs made available to the business owners who are suffering right now. Here are just a few of the amazing programs that you can apply for to help your business maintain and recover after this worldwide pandemic comes to an end.
Paycheck Protection Program
The Paycheck Protection Program (PPP) is a part of the CARES Act that the federal government signed into effect on March 27, 2020. This plan will provide low interest rate loans for cash flow assistance for small businesses to keep their workers on payroll. Employers can borrow up to 2 and ½ times their average monthly payroll for 2019. There are no payments for a minimum of 6 months and up to a year. The SBA will forgive the portion of the loan spent on payroll, rent, mortgage interest and utilities over an 8-week period after obtaining the loan. There are a few stipulations for loan forgiveness and proper use of funds. You should consult your accountant on the forgiveness rules along with other stipulations. Applications are now being accepted by most banks and credit unions and will be available through June 30, 2020.
Economic Injury Disaster Loan
The U.S. Small Business Administration is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus. The Economic Injury Disaster Loan (EIDL) offers up to $2 million in assistance to support your business during this time. In addition to this loan, you can apply for the Economic Injury Disaster Advance Loan. This is an additional $10,000 to provide relief during your temporary loss of revenue. These funds will be available within three days of a successful application and this loan advance will not have to be repaid. If you obtain an EIDL, you can also apply for a PPP Loan, but your loan amount will be reduced by the amount of the EIDL.
The Small Business Relief Fund
GoFundMe has partnered with Yelp, Intuit, QuickBooks, GoDaddy, and Bill.com to create the Small Business Relief Initiative and Fund to provide small business owners with the financial support and resources needed to continue to run their business during and after the coronavirus outbreak. To receive a grant from this fund you must raise at least $500 through a GoFundMe fundraiser and verify that your business has been negatively impacted by a government mandate due to the COVID-19 pandemic. The funds must be used to help care for your employees or pay ongoing business expenses.
Facebook’s Small Business Grants Program
Facebook has put together a Small Business Grants Program that is offering $100 million in cash grants and ad credits to help small businesses. To be eligible you must have between 2 and 50 employees, have been in business for over a year, have experienced challenges from COVID-19 and be in or near a location where Facebook operates. This money can be used to keep your workforce going strong, help with your rent costs, connect with more customers, or cover operational costs.
State Programs
Many state governments are creating their own relief programs for the businesses impacted in their state. Here is a great list of programs by state that are currently available.
Opportunity Fund
The Opportunity Fund specializes in lending money to small businesses owned by women, immigrants and people of color. They have put together a coronavirus relief fund that will provide grants and low-interest rate loans to business owners in need. If you fit into one of these categories, you may want to see what they have to offer.
We know times are hard right now. Maybe you’ve had to lay off or furlough employees, you’re seeing a huge decline in sales, or you’re just not sure what next steps you need to take to keep your business afloat. No matter what your situation is, there is help available. Stay strong and stay positive. You will get through this. We all will, together.