The COVID-19 virus has caused catastrophic damage, amassing tens of thousands of casualties around the world. In addition to the tragic loss of life, the global economy continues to suffer a violent disturbance as millions of people are ordered to stay home and have little contact with others, much less frequent their favorite businesses and shops.
As a result, many small businesses have suffered a disastrous loss of revenue, with little hope for recovery. Some may survive the outbreak, but a larger amount may have to shut operations for good.
Despite the outbreak’s implications on small businesses, there is hope and help available for those going through the tremendous stress and calamity of these uncertain times.
Do note that the programs mentioned below are evolving at a rapid pace, based on current need and the spread of the pandemic. Get in contact with them to confirm that these programs are offering what you need. Also, continue to stay informed about the outbreak with reputable agencies such as the Centers for Disease Control and Prevention, the World Health Organization, and your state government’s website.
Here are some of the COVID-19 resources available for your small business today
- Co-Op Emergency Loans – If COVID-19 has caused any disruption or closed your cooperative business, you can apply for an emergency loan through Shared Capital Cooperative.
- Flexibility With Unemployment Benefits – The federal government is offering unemployment benefits on very flexible conditions for every state in the country. You would need to contact your state unemployment agency for more information. You can also visit the American Action Forum website to learn more about the various COVID-19 response packages currently available, especially the Coronavirus Aid, Relief, and Economic Security (CARES) Act.
- Facebook Small Business Grants Program – Facebook announced that it is offering up to 30,000 businesses $100 million in the form of cash grants and Facebook advertising credits. This offer is available to businesses in more than 30 countries.
- SBA Debt Relief For Small Businesses – In this program, the U.S. Small Business Administration (SBA) is offering to pay both the principal and interest of any new 7(a) loans that were issued before September 27, 2020. It also offers to pay both the principal and interest of any current 7(a) loans for a total of six months.
- Extension for Federal Income Tax Filing and Payment Deadline – The filing for the federal tax return has been extended to July 15, 2020. This new deadline is also applicable to individuals and businesses that owe tax payments up to $10 million. Any estimated tax payments due on April 15 are now due on July 15.
Always check with your state tax agency to ensure you have more time to both file and pay state and local taxes due to the outbreak. Some states may even have provisions in place that may waive or reduce penalties on any late tax payments.
- Emergency Grant of $10,000 for applicants of SBA Economic Injury Disaster Loan – This grant can be used for employee sick leave, providing payroll, and meeting other financial obligations, such as paying the rent. In the event that you are denied a loan, this grant is still accessible to you.
- Paycheck Protection Loans – The Small Business Administration (SBA) is offering loans with interest rates of up to 4%, for terms as long as 10 years, if businesses employ less than 500 people. They can qualify for as much as $10 million. Lenders will include banks and credit unions. Qualifying businesses can receive loan deferments from six months to a year. Loans can be potentially forgiven if businesses keep its payroll for eight weeks, maintaining the employees’ regular salary.
- SBA’s Economic Injury Disaster Loans – The SBA is offering “working capital” loans of up to $2 million for both small businesses and nonprofits. The interest rate for small businesses is 3.75% and 2.75% for nonprofits. Repayment terms will vary, but it offers a maximum of 30 years. Applicants don’t need a personal guarantee for loans less than $200,000. There is also a payment deferment for up to four years.
Troubling times require connection and support
It is without question that we are living in very disturbing times both for you and your business. The best solution is to seek help and resources from trustworthy organizations. Don’t forget to connect with other small businesses, albeit online, to support and weather the storm together.