Resources for Small Businesses affected by COVID-19
As small business owners, uncertain times like this are scary. They also require us to put our big girl (or guy) pants on and determine how to make our businesses sustainable until things pick back up. If you need a low-interest loan or a small business grant, this list of resources for small business owners will help you find financial relief. (I’ll add to this blog as the situation develops, so check back for updates.)
CARES Act (Coronavirus Aid, Relief, and Economic Security Act)
As part of the Senate’s $2 trillion coronavirus stimulus bill passed on March 25, 2020, taxpayers who have filed taxes in 2018 and/or 2019 with an income up to $75,000 each ($150,000 for couples filing jointly), or $112,500 for single parents will receive a one-time direct payment of $1,200; with that payment decreasing for incomes above the cap. You’ll also get $500 per child. If you haven’t filed taxes for 2018 or 2019 yet, you should do that ASAP to take advantage of the stimulus package.
Unemployment benefits are also being extended to all workers, so if you’re self-employed and think unemployment benefits don’t apply to you, think again. The federal government has amended the unemployment requirements to cover those who have lost income as a result of the Coronavirus crisis. This benefit is open to full time, as well as part-time, independent contractors and gig workers. It also covers loss of income of 50% or more. How much you get depends on what state you live in and will be calculated based on your previous income. Check out your state’s unemployment program here.
For small business owners, emergency grants of up to $10,000, short-term forgiveness on new loans, and a payroll tax credit to help retain employees are all available. The Paycheck Protection Program (PPP) could help you retrieve lost wages if you’re a sole proprietor, independent contractor, gig economy, or self-employed.
The PPP application is available to solopreneurs and those that receive 1099 income. The application will be opening up for those of you around April 10. Learn more and apply here on April 3.
Update: as of April 16, 2020, new applications are not being accepted for PPP based on available appropriate funding.
Low Interest Loans
Working capital loans up to $2 million to small businesses
3.75% interest for small businesses; 2.75% for nonprofits
Offering 0% interest loans of up to $15,000 for small businesses
New borrowers may access a new, longer grace period of up to 6 months for greater financial flexibility
Small Business Grants
Bumble will be granting a number of small businesses up to $5k to help during this trying time. To apply, fill out this form.
See more details above and learn about PPP here.
Facebook Small Business Grants Program
$100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where Facebook operates. Sign up for updates.
Freelancers Relief Fund will offer financial assistance of up to $1,000 per freelance household to cover lost income and essential expenses not covered by government relief programs, including:
Food/food supplies
Utility payments
Cash assistance to cover income loss
100% of all donations will be distributed directly to freelancers in need. Applications for funding will open on April 2, 2020.
The GoFundMe.org Small Business Relief Fund will provide one-time matching grants to qualifying small businesses negatively impacted by the COVID-19 pandemic. To qualify for a matching grant from the Small Business Relief Fund, the GoFundMe fundraiser must raise at least $500 and verify that your small business has been negatively impacted by a government mandate due to the COVID-19 pandemic. GoFundMe, Yelp, and Intuit QuickBooks have pledged to donate up to $1.5 million in donations into the GoFundMe.org Small Business Relief Fund, and additional companies are expected to contribute to this Fund in the coming weeks. There are two ways to apply:
Claim your fundraiser. Many small businesses will have a fundraiser automatically created for them through the Yelp platform. To claim this fundraiser and donations made to it, you can submit a request through the form above.
Start a new fundraiser. If you do not have a fundraiser already created for your business, you can start one now. In your fundraiser description, add the hashtag #SmallBusinessRelief. Then fill out this form to confirm your small business.
$100,000 to help small creative-based businesses owned and operated by minorities and women. Fill out this form to be considered for a donation.
$1 million Small Business Relief Program to help small businesses make the most of this difficult time. As of April 28, 2020, half of the fund has been exhausted, but there is still 500,000 left and they extended the deadline to May 8th. You can also nominate up to 3 small businesses to recieve the grant.
$10,000 grants for four, women-owned U.S. small busiensses. Apply here before April 7.
$1M assistance program for businesses to heavily impacted people who meet some combination of these criteria: You work in a business with 10 employees or fewer, or you're a solo entrepreneur, your business is privately owned, your business is impacted by "social distancing" in an outsized way (the tourism, food service, hospitality, salon and spa, fitness, and education industries are some examples), and you're a paying Zapier customer as of 3/20/2020. Small businesses in need can qualify for a free 3-month credit for a starter plan. To apply, fill out this form.
Regional Grants
Amazon Neighborhood Small Business Relief Fund
To be eligible for a grant, recipients must have fewer than 50 employees or less than $7 million in annual revenue and be based in Seattle or Bellvue, Washington. To apply, fill out this form.
Two $5,000 grants for an Austin-based, female-owned brick-and-mortor business. To apply, fill out this form.
For more information to get you through this difficult time, consider this Small Business Relief Tracker compiled by Forbes and this article by Honeybook detailing exactly how the stimulus package affects the self-employed.
And if you were in my virtual workshop Let’s Power Through: creative strategies for small business owners, then you’ll understand how handy this tool is. Faire has developed an online tool to help you crunch your hard and soft costs pre- and post-Coronavirus. Use it to help you understand where you sustainable numbers fall so you can plan and move foward.
Better days are ahead. Navigate these not-so-great ones with knowledge and intention.
Do you want even more guidance and motivation? Apply to work with me 1:1 for business coaching. I help creative business women reach new goals and create a more sustainable business model through vision clarity, evolved marketing strategies, and steady guidance.