The Coronavirus pandemic has caused a significant dent in the world economy. However, the economic consequences of the coronavirus pandemic are far-reaching compared to well established players. Due to latest health advisories, a number of small businesses and enterprises have laid-off their staff or in some cases have closed their gates.
To curb the consequential economic effect of the pandemic, US Congress has passed a stimulus package of $2 trillion. The Government has earmarked $349 billion of that for small businesses and SMEs. This fund will be dispensed in the form of loans, grants and payroll-tax deferments.
In the same light, the Internal Revenue Service has deferred the tax-filing deadline to July 15 for many filters. For more information on the same, click on the link below:
To help business owners and employers find the financial help which is much needed in this situation, we have compiled a list of funds available in the United States.
The Federal Government of the USA has released a $2trillion stimulus package. This includes a special package of $367 billion for small businesses which continue to make normal payroll during the pandemic.
US Small Business Administration (SBA)
The SBA is extending financial support of $2 million per small business under the Economic Injury Disaster Loans. These loans can be used to pay any fixed debts, payrolls, other bills or accounts payable which might have been affected due to the pandemic. The agency will directly work with the state Governors to provide low-interest, targeted disaster recovery loans.
Apart from the above mentioned financial help, SBA also has other resources which will be dispensed by the state as mentioned above. The SBA also has a Paycheck Protection Program which will provide direct incentive for small businesses and SMEs ro keep their workers on payroll. If all employees are kept on payroll by the business for eight weeks, the SBA will forgive a portion of loans used. Under the same, upto hundred percent of loan is forgivable. For more information, click on the link below:
The Main Street Emergency Grant Program
The grant will let SMEs and other small businesses including self-employed individuals and non-profit organizations to apply for grants through the Treasury Department to cover fixed costs, including payrolls during COVID-19 pandemic. The MSEGP was introduced by Senator Chris Murphy (D-Conn.), Jeff Merkley (D-Ore.) and Chris Van Hollen (D-Md.). For more information, click on the link below:
Funds allocated by Local/State Governments:
Apart from the relief funds extended by the Federal Government of the USA, a number of state/local governments have also extended a helping hand to SMEs and small businesses.
The state has released a Birmingham Strong Emergency Loan Fund. This will allow small business owners to apply for a zero-interest, 180-day loan for upto $25,000 to prevent staff reductions, offset losses and help companies pay for sick leaves. The businesses applying must have less than 50 employees. For complete information, refer to the links provided below:
Governor JB Pritzker, DCEO is working on launching emergency funds and assistance programs for small business owners of Illinois state. The initiative will cover a wide range of business in the state. For more information, click on the link given below:
Furthermore, Mayor Lightfoot has announced a $100 million relief package for small business owners of the City of Chicago amid the pandemic. For further information, click on the link given below:
Governor Jared Polis has announced a financial relief grant of $7.5 million which will provide grants to needy organizations for up to $25,000 each. The grant will be awarded to community-based organizations which include nonprofits, local governments, small businesses and school districts. For more information and application, click on the link given below:
Denver has also announced Initial Economic Relief package for Businesses. The city is creating an initial relief fund of $4 million to support small businesses and SMEs during the pandemic. Denver based small business owners can apply for grants upto $7,500. For more information, click on the link below:
Local Government of Wisconsin has launched a $5 million relief program to support small businesses called Small Business 20/20. The grant will provide $20,000 to companies with less than 20 employees. For more information, visit the link below:
Governor Tom Wolf has announced a $60 million fund to lend money to small businesses affected by the COVID-19 pandemic. The government has launched a COVID-19 WOrking Capital Access Program under which businesses under 100 employees can apply for loan up to $100,000. For more information, click on the link below:
The local government of Philadelphia has also launched a program concerning the same, Philadelphia COVID-19 Small Business Relief Fund. Under the program, small businesses and SMEs will be given grants and loans affected by the pandemic. For more information, click on the link given below:
Small businesses located in Jade District or Old Town Chinatown can receive financial support from the $190,000 emergency fund. The business owners from Asian and Pacific backgrounds will be prioritized in the process. For more information, click on the link below:
Governor Tim Walz has authorized the Minnesota Department of Employment and Economic Development (DEED) to create a loan program to help small business owners. Under the program, companies can apply for loans ranging from $25,000 to $35,000 as per the financial injury caused. These loans will be interest free and Partial forgiveness may be available.
To know more, click on the link below:
The Michigan Economic Development Corp. has launched a Michigan Small Business Relief Program. The program will provide $20 million in form of grants and loans. The companies applying must show income loss due to COVID-19 and must have less than 50 employees. For more information about the same, click on the link given below:
The Baker-Polito administration has announced $10 million funds for small businesses and SMEs affected by the pandemic. The program will provide emergency capital up to $75,000 to state’s business owners with upto 50 full-time or part-time employees.
The state govt has launched a Florida Small Business Emergency Bridge Loan Program. The program will provide short-term, interest-free working capital loans up to $50,000 to eligible small business owners. These loans can go upto $100,000 in special cases with a term of 1 year.
For complete information, click on the link given below:
The Governor Kim Reyolds announced a special program, Iowa Small Business Relief Program. Under the same, the small business owners can apply for loans between $5,000 to $25,000. Moreover, businesses can also apply for tax deferrals. For more informations, click on the link below:
In the state of California, a number of financial help resources are available according to cities.
Sacramento: The city of Sacramento has established a $1 million economic relief fund to help businesses affected by COVID-19. Click on the link below for more information: http://www.cityofsacramento.org/covid19-relief
Los Angeles: Microloans ranging from $5,000 to $20,000 with 0% to 3% interest rates are available to small business owners of the area. For more information, click on the link below:
San Diego: A Small Business Relief Package will offer microloans from $10,000 to $20,000 to local small business owners. For more information click on the link below:
San Francisco: The city has launched a Small Business Resiliency Fund. The program offers help to businesses with up to 25 employees and $2.5 million gross receipts. For more information, click on the link below:
There are two different initiatives taken by the Department of Commerce targeted to help SMEs and small businesses.
The Maryland Small Business COVID-19 Emergency Relief Loan Fund: It is a $75,000 fund allocated to offer interest-free loans with principal payment for upto 12 months. The interest will be imposed as the payment period extends. For more information, click on the link given below:
The Maryland Small Business COVID-19 Emergency Relief Grant Fund: It is a $50 million fund which will offer grants up to $10,000 to affected SMEs and small businesses. For more information, click on the link below:
There are two major relief programs provided by the state.
New York City Employee Retention Grant Program: The program is open for businesses within the five boroughs of NYC. To get the benefit, businesses must show at least 25% decrease in revenue. For more information, click on the link below:
New York City Small Business Continuity Loan Fund: Under the program, businesses with fewer than 100 employees who went through at least 25% decrease in sales are eligible for interest-free loans upto $75,000. For more information, click on the link below:
The above list of funds available will be updated as we discover new sources.
Both, the Federal Government and Local Governments are taking steps in all the possible directions to curb the effect of Coronavirus. As a responsible citizen it is our part of the story to cooperate and follow the guidelines suggested by the authorities.