The small business community has been especially hit hard by the spread of the Coronavirus. Health and safety measures, along with the quarantine, have taken their toll on business owners and their employees across the country. Businesses have a growing number of resources and relief programs to turn to, including many new provisions including the stimulus package enacted by Congress.
Here is a compiled list of helpful resources:
The U.S. Small Business Administration (SBA) offers a list of coronavirus relief options with details on each program. You can also get in touch with your local SBA office to see if they have any additional resources specifically designed for business owners in your area.
Paycheck Protection Program
The U.S. Small Business Administration (SBA) will guarantee loans of up to $10 million to eligible businesses, and the loans will be provided by lenders including banks and credit unions. Paycheck Protection Program loans can be forgiven if businesses maintain payroll for eight weeks at employees' normal salary levels and use the loan proceeds for qualifying expenses.
The program exhausted the first round of funding with unprecedented speed. On Thursday, April 23, the House passed a bill, previously passed by the Senate, to add another $484 billion worth of funding for coronavirus relief. A total of $310 billion of that is going to the Paycheck Protection Program. The president signed the bill into law on Friday, April 24. Read more about the U.S. Small Business Rescue Program.
U.S. Small Business Administration Disaster Loan Assistance
As part of its disaster assistance program, the SBA is providing working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus. These loans carry an interest rate of 3.75% for small businesses and 2.75% for nonprofits. Loan repayment terms vary by applicant, up to a maximum of 30 years. The stimulus updated the program so that sole proprietors and businesses with fewer than 500 employees qualify, and applicants don’t need to provide a personal guarantee on loans under $200,000. Payments can also be deferred for up to four years.
Emergency grant of $10,000 to SBA applicant for an Economic Injury Disaster Loan: Even if your business is denied a loan, you can still access this grant, which can be used to provide employee sick leave, maintain payroll or meet other needs like paying rent.
Facebook Business Resource Hub
Facebook created a free Business Resource Hub with resources for businesses struggling to navigate the COVID-19 outbreak. Through the program, Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses.
Yelp Support for Local Businesses
Yelp created a $25 million fund to provide relief to independently-owned restaurant and nightlife businesses and franchisees with fewer than five locations in the form of waived advertising fees and free advertising, products, and services during this period.
Small Business Relief Initiative
Intuit Quickbooks teamed up with GoFundMe and Yelp to launch the Small Business Relief Initiative to provide small business owners with the financial support and resources needed to continue running their businesses during and after the coronavirus crisis.
Each company has donated $500,000 to start the fund, which will provide grants to small businesses across the United States, starting with the hardest hit areas. The fund will also issue $500 matching grants to qualifying businesses that raise at least $500 on GoFundMe.
For more information on how Consolidated can help your business stay competitive, please visit our Business Resource Center.