Financial Support for Small Businesses
Financial Support for Small Businesses
Affected by COVID-19 (Coronavirus) | updated March 31, 2020
As we weather the storm of this global pandemic, many of us are needing to shut our doors for quarantines and government-mandated business closures. To help, we’ve compiled a list of some resources here to help you receive aid and support.
Coronavirus Aid, Relief, and Economic Security (CARES) Act
This bill was passed by Congress on March 27 to assist business owners with whatever needs they have right now. A. complete guide issued by the US Senate Committee on Small Business and entrepreneurship outlines these important feature:
Paycheck Protection Program offers capital to cover the cost of retaining employees, for businesses with less than 500 employees. If employers maintain their employees, this essentially acts as a grant, offering loan forgiveness for up to 8 weeks of payroll with a $100,000 annualized cap on each employees' salary.
Emergency Economic Injury Grant provides an emergency advance of up to $10,000 and does not need to be repaid. More information on this can be found here.
Small Business Debt Relief Program. Through this program, the Small Business Administration (SBA) is waiving loan payments on certain loans, including principal, interest, and fees, for six months
Finally. the SBA is offering free, quality counseling through their resource partners.
You can find out more about these programs, and others available to you personally or for your business at Benefits.gov.
Business-to-Business (B2B) Financial Relief
Now more than ever, you’ll need enhanced public communications. Yelp has reserved 25 million dollars to offer in advertising fees and premium profile features. If your business is on Yelp, check out how you can take advantage of these free offerings. If you are not, reach out to us and we’d be happy to help you create your profile.
Facebook is issuing grants and ad credits to up to 30,000 small businesses around the world. To receive updates and information on how to apply for a Facebook grant, visit their blog and sign up for notifications.
Financial Support for Individuals in the US
One of the most discussed topic among Americans relating to the COVID-19 economic slowdown is the $1,200 check from the government. This stimulus aid will be issued to all eligible Americans based on their 2018 tax filings. You do not need to sign up to receive this check. As long as you filed your 2018 taxes, this check should be sent directly, without any need to apply on your part. The IRS will remit the funds according to the direct-deposit information provided on the last tax return you filed.
If you did not file 2018 taxes, the IRS gives instructions for a simple filing here.
For most Americans, the stimulus check will not be enough support while facing indefinite furloughs or layoffs. The Consumer Financial Protection Bureau has a more holistic approach on how to protect your personal and business finances during the crisis.
Identifying Your Needs in Business, and in Life
While we are waiting for the U.S. government to execute these crisis relief plans, take some time to evaluate all of your needs, for your business and for yourself. You may be eligible for specific types of help with utility bills, rent payments and other personal or professional expenses additional to the universal stimulus funds.
Help is also available at the state and local levels. Check your local municipality for possible aid. Many state-level government officials are working diligently in New York to create emergency assistance funds for small businesses which include legislation to suspend fees and extend tax deadlines.