We are regularly updating this story as more program details become available. Last update: March 21, 2020.

Small businesses and Startups have been hit hard by mandatory business closures and safety measures required to slow the spread of the coronavirus (COVID-19).

Reports indicate the Airline industry may lose up to $100 billion, the National Restaurant Association estimated that the restaurant industry alone would lose $225 billion over the next four months which will lead to the loss of millions of jobs. Many other industries are experiencing suffering as well.

There are many resources that have become available for relief including business loan deferment, eviction, and emergency funding. Particularly banks have been encouraged by the FDIC to provide assistance for both personal and business finances during these times.

As we gather updates we will share them:

Corporate Assistance Programs

1. Facebook Small Business Grants Program

Facebook has committed to offering up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. The grants will be provided to businesses in more than 30 countries.

How to Apply

Information is limited, but sign up to get more details from Facebook when they become available.

Federal Coronavirus Small Business Assistance

If you need cash to offset the lose of revenue and help keep your business open, the programs below can help.

The U.S. Small Business Administration (SBA) coronavirus resource page provides a list of relief programs, as well as offering guidance to small business owners during this crisis.

1. SBA Economic Injury Disaster Loan Program

The SBA is providing low-interest working capital loans of up to $2 million to small businesses and nonprofits affected by the coronavirus in presidential and SBA-declared disaster areas. State governors must request access to the Economic Injury Disaster Loan program for businesses located in their states.

SBA Disaster loans carry an interest rate of:

  • 3.75% for small businesses
  • 2.75% for nonprofits

    Loan repayment terms vary by applicant, up to a maximum of 30 years. 

SBA Disaster loans can be used for:

  • Cover accounts payable
  • Debts
  • Payroll
  • Other bills the coronavirus has affected your ability to pay

Eligibility

  • Arizona
  • California
  • Colorado
  • Connecticut
  • Delaware, District of Columbia
  • Florida
  • Georgia
  • Illinois
  • Indiana
  • Louisiana
  • Maine
  • Maryland
  • Massachusetts
  • Michigan
  • Montana
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • New York
  • North Carolina
  • Ohio
  • Pennsylvania
  • Rhode Island
  • South Carolina
  • Tennessee
  • Utah
  • Virginia
  • Washington
  • West Virginia

How to Apply

Apply online and select “Economic Injury” as the reason you’re seeking assistance. You will need supporting documentation, which includes:

  • The business’s most recent tax returns
  • Personal financial statement
  • Schedule of liabilities that lists all your current debts.

Call the SBA Disaster Assistance Customer Service Center at 1-800-659-2955 for help with your application.

2. Federal Income Tax Filing and Payment Deadline Extension

The federal tax return filing deadline has been moved to July 15, 2020. For tax payments of up to $10 million, the IRS has also extended the deadline for both individuals and businesses to July 15, 2020.

The estimated tax payments for 2020 originally due on April 15 will now be due on July 15.

Important to note that many State tax agencies are still sending updates on their changes. Check with your state tax agency to find out if your business has more time to file or more time to pay state and local taxes this year as a result of the coronavirus. Several states have already aligned their tax filing and payment deadlines with the new federal deadline. States also may waive or reduce penalties on late tax payments.

State Coronavirus Small Business Assistance

States and local municipalities are adding new programs each day. It’s recommended to check your governor’s website for up-to-date information about relief available in your area.

The National Governors Association offers a list of Governors’ websites.

New York

1. New York City Employee Retention Grant Program

Small businesses can apply for the grant for up to $27,000 that covers 40% of payroll costs over the course of two months. Refer to New York City’s coronavirus resource page for small businesses for more information.

Eligibility

  • Businesses must be located in one of New York City’s five boroughs
  • 1-4 employees
  • Show that you lost 25% of your revenue due to the coronavirus
  • Operating for six months minimum
  • Have no current tax liens or legal judgments

How to Apply

Apply online through the New York City Department of Small Business Services website. You’ll submit financial documentation showing your revenue decrease and how it compares to this time last year, plus payroll records and bank account information.

2. New York City Small Business Continuity Fund

Interest-free loans for New York City based business with fewer than 100 employees, can get up to $75,000 from the city to cover revenue losses.

Eligibility

  • Must be located in one of the five boroughs
  • Have experienced at least a 25% reduction in revenue
  • Must have no tax liens or legal judgments against you
  • Must prove a loss in revenue and that you are able to repay the loan

How to Apply

Applications aren’t yet open, but fill me out an interest form on the New York City Department of Small Business Services website to get more information when it’s available. In the meantime, gather documents that show your decrease in revenue including 2019 tax returns, bank statements and point-of-sales reports.

California

1. San Francisco COVID-19 Small Business Resiliency Fund

Businesses with 1-5 employees can apply for up to $10,000 in emergency funding to help cover rent and employee salaries.

Additionally, the City of San Francisco has initiated a moratorium on evictions for small and medium-sized businesses whose revenue has been affected by the coronavirus. It’s effective for 30 days starting March 17, and the mayor has the capability to extend it for another 30 days. 

Link: https://oewd.org/covid-19-small-business-resiliency-fund

Eligibility

Businesses who show:

  • Loss of 25% or more of revenue
  • Less than $2.5 million in gross receipts
  • Properly licensed to operate in San Francisco.

How to Apply

The fastest way to apply is to fill out an online application and email it to [email protected]. You’ll need to attach proof of payroll costs and lost revenue.

2. City of Los Angeles Small Business Emergency Microloan Program

Businesses in Los Angeles that are responsible for providing low-income jobs can get an emergency microloan of $5,000 to $20,000. Loans with repayment terms of six months to one year carry an interest rate of 0% and five-year loans have interest rates of 3% to 5%.

Los Angeles has instituted a moratorium on evictions of businesses impacted by the coronavirus through March 31, and the mayor has the capability to extend it for another 30 days. 

Eligibility

To get a loan, you must meet requirements including:

  • Having “reasonable and responsible” individual credit history
  • Commit to using the loan for working capital only
  • Ensuring your business is located within the City of Los Angeles.
  • If you own 20% or more of the business, you must guarantee the loan.

How to Apply

Apply online and provide supporting documentation including business and personal tax returns, three months of bank statements and business and personal financial statements.

Colorado

1. Denver Small Business Emergency Relief

This program offers cash grants of up to $7,500 to businesses in industries particularly hard-hit by the coronavirus.

Eligibility

 Small businesses that have lost the ability to operate, including:

  • Restaurants
  • Retail shops
  • Barbershops
  • Nail salons

How to Apply

Grants will be distributed monthly, and the first applications will be due March 31. Details are sparse, but fill out an interest form to get more information from the city.

Illinois

1. Chicago Small Business Resiliency Fund

Starting March 31, small businesses in Chicago can apply for low-interest loans of up to $50,000 with repayment terms of up to 5 years. The amount of the loan you’ll qualify for depends on your revenues before the business was affected by the coronavirus.

Eligibility

You must demonstrate:

  • 25% drop in revenue
  • Have less than $3 million in revenue
  • Fewer than 50 employees
  • Have no current tax liens or legal judgments.

How to Apply

Apply online and include your most recent:

  • Tax return
  • Bank statements going back to October 2019
  • Photo ID

Michigan

1. Michigan Small Business Relief Program

Michigan will provide both grants and loans to small businesses affected by the coronavirus. The program will start in the first week of April.

Grants will be available in amounts of up to $10,000 to help cover working capital.

Loans will be available in amounts from $50,000 to $200,000 at interest rates of 0.25%.

Eligibility

Companies can qualify for Grants:

  • 50 or fewer employees
  • Can show business income loss

Companies can qualify for loans:

  • 100 employees or less
  • Unable to get credit elsewhere
  • Can show business income loss

How to Apply

Applications aren’t yet available, but check Michigan Economic Development Corporation for updates.

Ryan Hickman

Ryan Hickman

Technology-centric leader specializing in frontier technology and digital transformation. Partner at EpicAi, Helping companies build and grow products.

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