You are operating a business in one of the most turbulent times in our country’s history. According to a recent survey, 87% of small business owners stated their business is hurting due to the coronavirus pandemic. Social distancing and State closures or restrictions are making it difficult for you to operate a profitable business.
To get through this difficult time your business needs cash. Small businesses need funding now more than ever before. Unfortunately getting additional working capital is turning out to be a challenge.
Why is Funding Difficult to Get During Pandemic?
Just as the coronavirus pandemic is causing a great deal of uncertainty for the future of your business, it is also causing unease for many lenders. Prior to the coronavirus, you may have been able to get approved for funding from multiple lenders. But lenders are wary to fund specific industries because they’re unsure when or if your business will be able to repay the loan.
The other issue small businesses are running into is demand. There are Federal and State programs available, but the demand for small business funding is so high that these programs are quickly running out of money.
Coronavirus Pandemic Funding Solutions
Given the difficultly getting funding during COVID-19, as a small business owner, what options do you have?
There are several programs currently available to help get funding for your small business during the coronavirus pandemic. We’ve put together a list of some of those programs. However, given the overwhelming demand for additional working capital, some of those programs may be closed or closing soon.
Federal Funding Relief Programs for Small Businesses
Paycheck Protection Program
Type: Business Loan (but may be forgiven if specific conditions are met)
Who’s Eligible: Most small business with fewer than 500 employees without reference to gross revenues.
Funding Limit: up to $10 million (you are eligible for the lesser of 2.5 times your average monthly “payroll cost” for the past 12 months or $10 million)
Terms: Principal loan amounts not forgiven will turn into a 2-year loan at an interest rate of 1%. You will not have start making payments on your loan for 6 months, however interest will accrue during this time.
For Additional Details: https://www.smallbusinessfunding.com/paycheck-protection-program-details/
Economic Injury Disaster Loan Emergency Advance
Type: Business Loan
Who’s Eligible: Most small business with less than 500 employees (including sole proprietorships, independent contractors and self-employed persons), private non-profit organization or 501(c)(19) veterans organizations affected by COVID-19.
Funding Limit: up to $10,000
Terms: The interest rate is 3.75% and the loan term can be as long as 30 years
For Additional Details: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance
SBA Express Bridge Loans
Type: Business Loan
Who’s Eligible: Small businesses located in declared disaster areas under the
Presidential Disaster Declaration or in any Contiguous Counties. Or for the COVID-19 Emergency Declaration, small businesses located in any state, territory and the District of Columbia that have been adversely impacted by the COVID19 emergency.
Funding Limit: up to $25,000
For Additional Details: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans
General Grants Available for COVID-19
Verizon Small Business Recovery Fund
Who’s Eligible: Small businesses owned by minorities, women, or other enterprises in historically under-served areas
Information: Offer relief to small businesses due to the financial impact COVID-19 is having on small businesses, specifically to entrepreneurs of color, women-owned businesses and other enterprises in historically under-served places who don’t have access to flexible, affordable capital.
Funding Limit: up to $10,000
For Additional Details and to Apply: https://www.lisc.org/our-stories/story/verizon-and-lisc-fire-25-million-small-business-covid-19-recovery-fund
Business For All Grant
Who’s Eligible: Business must be located in the United States. Must not be engaged in illegal activities.
Information: Supports business growth by providing grants to help small businesses in crisis, specifically during emergencies such as COVID-19
Funding Limit: $10,000 – $50,000
For Additional Details and to Apply: https://businessforall.helloalice.com/
James Beard Foundation Food and Beverage Industry Relief Fund
Who’s Eligible: An independently owned restaurant with 100 or less employees as of February 15, 2020
Information: The James Beard Foundation recognizes the dire situation the food and beverage community is in due to the COVID-19 pandemic. So they created this relief fund to support the restaurant industry during this difficult time.
Funding Limit: $15,000
For Additional Details and to Apply: https://www.jamesbeard.org/relief-fund-application
NOTE: Due to the overwhelming demand this program is not accepting any more applications but additional funds may become available so keep checking back.
State Grants and Loans Available due to COVID-19
Your State and municipalities have loan and grant programs to support small businesses and your employees during the coronavirus pandemic. We’ve highlighted some of those States and programs below. There are other State and local resource guides which you can find online.
California
San Francisco Hardship Emergency Loan Program (SF HELP)
Type: Business Loan
Who’s Eligible: For-profit businesses in San Francisco with a total annual revenue under $2.5 million. Must demonstrate a 25% drop in revenue since January 1, 2020 and have three years remaining on your lease if location dependent.
Funding Limit: up to $50,000
Terms: 0% interest up to six-year term
For Additional Details and to Apply: https://mainstreetlaunch.org/about-us/loan-inquiry/
Los Angeles City Small Business Emergency Microloan Program
Type: Business Loan
Who’s Eligible: For-profit and tax-exempt businesses in the City of Los Angeles with 100 or fewer employees that have been negatively impacted by the COVID-19 outbreak
Funding Limit: $5,000 – $20,000
Terms: 0% for a term of up to 18 months, 3% for a term of up to 5 years
For Additional Details and to Apply: https://ewddlacity.com/index.php/microloan-program
Connecticut
Connecticut Recovery Bridge Loan Program
Type: Loan
Who’s Eligible: Businesses and nonprofits with less than 100 employees that have been negatively impacted by the coronavirus pandemic
Funding Limit: the lesser of – up to $75,000 or three months of operating expenses
Terms: 0% interest up to 12-month term
For Additional Details and to Apply: https://portal.ct.gov/DECD/Content/Coronavirus-Business-Recovery/CT-Recovery-Bridge-Loan-Program
This program is currently not accepting applications, but you can check back as they may open it back up.
Delaware
Delaware Hospitality Emergency Loan Program (HELP)
Type: Loan
Who’s Eligible: Businesses in the hospitality industry that have been in business at least 1 year, have an annual revenue of under $2.5 million
Funding Limit: up to $10,000 per month. May be eligible for up to $50,000 per month if your mortgage or lease payments exceed $10k.
Terms: 0% interest 10-year term with payments deferred for nine months
For Additional Details and to Apply: https://business.delaware.gov/wp-content/uploads/sites/118/2020/04/HELP-Eligibility-Requirements_UPDATED.pdf
Illinois
Chicago Small Business Resiliency Fund
Type: Loan
Who’s Eligible: Businesses with less than 50 employees, 50% of whom are Chicago residents. Annual gross revenues must be less than $3 million pre-COVID-19. Your business has suffered revenue decreases of at least 25% due to COVID-19. And been in business at least 1 year with your location in the City of Chicago.
Funding Limit: 3 months average monthly revenues before the COVID-19 outbreak, up to $50,000
Terms: Proceeds are required to be used for working capital with at least 50% of proceeds being applied toward payroll. The applicant must also make a commitment to maintain its workforce at 50% or more of pre-COVID-19 levels for at least 6 months.
Up to 60 month with 1% interest rate for first 18 months, rate increases to 5.75% for duration of the loan.
For Additional Details and to Apply: https://www.connect2capital.com/partners/chicago-small-business-resiliency-fund/
Downstate Small Business Stabilization Program
Type: Grant
Who’s Eligible: Private for-profit small retail and service businesses, or businesses considered non-essential by the Governor’s Executive Order without the ability for employees to work remotely. Businesses must also employ 50 people or less.
Funding Limit: 60 days of verifiable working capital up to a grant ceiling of $25,000
For Additional Details and to Apply: https://www2.illinois.gov/dceo/CommunityServices/CommunityInfrastructure/Pages/DownstateSmBizStabilizaition.aspx
Kentucky
Southeast Kentucky Downtown Business Stimulus Fund
Type: Grant
Who’s Eligible: Small businesses that are locally owned and operated in the following counties: Bell, Breathitt, Clay, Clinton, Estill, Floyd, Harlan, Jackson, Johnson, Knott, Knox, Laurel, Lee, Leslie, Letcher, Martin, Owsley, Perry, Pike, Powell, Whitley, and Wolfe. And must be a restaurant or experience retail that includes the arts, tourism, accommodations, and entertainment.
Funding Limit: up to $3,000
For Additional Details and to Apply: https://uky.az1.qualtrics.com/jfe/form/SV_1EKJoRcLjWgQ3yZ
River Counties Kentucky Downtown Business Stimulus Fund
Type: Grant
Who’s Eligible: Small businesses that are locally owned and operated in the following counties: Ballard, Carlisle, Fulton, and Hickman. And must be a restaurant or experience retail that includes the arts, tourism, accommodations, and entertainment.
Funding Limit: up to $3,000
For Additional Details and to Apply: https://uky.az1.qualtrics.com/jfe/form/SV_bvaq6SRjNu9rbgx
Louisiana
Louisiana Loan Portfolio Guaranty Program
Type: Loan
Who’s Eligible: Small businesses with less than 100 workers
Funding Limit: up to $100,000
Terms: Repayment period would be at least one year, but could be longer depending on business functionality during the length of the emergency period and would be anticipated to be no more than 5 years. Interest rate would be fixed up to 3.5 percent (lower rates subject to lending institution).
No payment or interest accrued for first 6 months of loan.
For Additional Details and to Apply: https://www.ledbizloan.com/#About-The-Program
Michigan
Dream Maker Small Business Emergency Relief Fund
Type: Grant
Who’s Eligible: Small businesses registered in Jackson County, Michigan with 50 or fewer employees
Funding Limit: up to $5,000
For Additional Details and to Apply: https://www.dreammakerfund.org/
New Mexico
New Mexico Recovery Fund
Type: Loan
Who’s Eligible: New Mexico businesses with 40 or more employees that demonstrate an intent to retain as many employees as possible, can show negative COVID-19 impact and can commit to spending at least 80% of the loan proceeds in New Mexico.
Funding Limit: up to $50,000
Terms: Interest rates will be between 3% and 10% based on credit attributes of the company and payback period will be two to four years.
For Additional Details and to Apply: https://sunmountaincapital.com/new-mexico-recovery-fund/
North Carolina
North Carolina COVID-19 Rapid Recovery Lending program
Type: Loan
Who’s Eligible: Small business located in North Carolina which has been affected by COVID-19. And been in business no later than March 23, 2020
Funding Limit: up to $50,000
Terms: Six months of no interest and no payments, followed by 48 months of principal and interest payments at 5.5% interest.
For Additional Details and to Apply: https://ncrapidrecovery.org/
Pennsylvania
COVID-19 Working Capital Access Program (CWCA)
Type: Loan
Who’s Eligible: Small businesses of 100 employees or less within the Commonwealth of Pennsylvania.
Funding Limit: up to $100,000
Terms: 0% interest rate (except for agricultural producers in which case the rate is 2%). Payback is 3 years with no payments due the first year. A balloon payment will be due at the end of the third year.
For Additional Details and to Apply: https://dced.pa.gov/programs/covid-19-working-capital-access-program-cwca/
Emergency Ag Assistance Grants
Type: Grant
Who’s Eligible: Small businesses of 250 employees or less involved in growing, making, or processing food within the Commonwealth of Pennsylvania.
Funding Limit: up to $15,000
For Additional Details and to Apply: https://teampa.com/giant-ag-grants/
Texas
AssistHer Emergency Relief Grant
Type: Grant
Who’s Eligible: Woman-owned businesses (at least 51% directly owned and controlled by one or more women who are U.S. citizens) within the state of Texas. Must be a for-profit corporation, partnership, LLP or LLC, or sole proprietorship. Business must be suffering an economic hardship due to COVID-19. All property taxes must be current (if applicable). All sales taxes, payroll taxes and other taxes must be current. The business, business owner and applicant must not be involved in any pending or current litigation and must not have any felonies or conviction of a crime of dishonesty or breach of trust.
Funding Limit: $10,000
For Additional Details and to Apply: https://twu.edu/center-women-entrepreneurs/assisther-emergency-relief-grant/
Virginia
VA 30 Day Fund
Type: Grant
Who’s Eligible: Small businesses in Virginia that employ 3 to 30 people. In operation for at least 1 year. Owner is a VA resident.
Funding Limit: $3,000
For Additional Details and to Apply: https://va30dayfund.com/about/
Wisconsin
Small Business 20/20 program
Type: Grant
Who’s Eligible: Wisconsin
CDFIs with a minimum organizational loan portfolio of at least $4 million, or a collaborative of CDFIs with a combined organizational loan portfolio of at least $4 million.
Funding Limit: up to $20,000
For Additional Details and to Apply: https://wedc.org/programs-and-resources/small-business-2020/
How Small Business Funding Can Help
As the coronavirus curve starts to come down and businesses slowly start opening their doors, the need for funding will still be prevalent.
Your cash flow may be at a level where you can’t make payroll, purchase inventory, market your product or service, and more. Even if you were able to secure a Federal or State loan or grant, with little to no revenue being generated, that funding is being used to pay your employees and keeping your business from closing.
To start generating revenue once your State and local officials remove any quarantine restrictions, you may need access to quick working capital. This is where Small Business Funding can help.
Our Funding Managers are ready to answer your questions and help you secure funding for your business. All you need to do is call us at 800-742-2995 or complete our funding request form.
