A brief guide to coronavirus relief and assistance programs
Navigating our current times can be hard, but we have a brief guide to coronavirus relief and assistance programs.
SBA disaster assistance program
The SBA’s disaster assistance program isn’t unique to the current pandemic. The SBA offers disaster assistance to small businesses in the wake of natural disasters. SBA loans can help business owners cover expenses for real estate, personal property, economic injury, machinery and equipment, inventory, and other business assets. Disaster assistance loans are available up to $2 million and include low-interest rates and long terms.
When is it available?
SBA disaster assistance loans for businesses in select states affected by the coronavirus became available on January 31, 2020. Other qualifying events include tornadoes, drought, and snowstorms. In addition, Congress passed the Coronavirus Preparedness and Response Supplemental Appropriations Act. The law added $20 million to the SBA disaster assistance program. And in his March 11 address to the nation, President Donald Trump asked Congress to increase funding for SBA assistance by $50 billion. If Congress passes legislation to increase such funding, the president can sign it into law.
Who is eligible?
Businesses, renters, and homeowners located in regions affected by declared disasters can apply for SBA disaster assistance. Those interested can apply through the SBA’s three-step process:
Check eligible disaster areas.
Apply online if your business is eligible.
Check your application status.
The SBA aims to review applications and disburse funds to qualified businesses within three weeks of application submission. To apply, you’ll need to produce the following documents:
Business loan application (SBA Form 5)
IRS form 4506-T
Your most recent federal income tax returns
A personal financial statement (SBA form 413)
A schedule of liabilities listing all fixed debts (SBA form 2202)
Local government relief funds and grants
Small Business Interruption Loans
So far, Congress has passed two economic stimulus packages. A third stimulus package, setting aside $300 billion in aid for small businesses, is making its way through legislation. If passed, it will have the biggest impact on small businesses.
Under the current proposal, small businesses would be able to apply for loans provided by U.S. financial institutions. The U.S. government would back loans 100%. These loans would help small business owners avoid layoffs and continue to pay employees.
To meet eligibility requirements, employers must employ fewer than 500 workers. And they must sustain 100% of payroll for all employees for up to eight weeks, following the distribution of the loan.
Loans would cover 100% of payroll for six weeks, with a cap of $1,540 per employee, per week. That’s close to the average salary of someone making $80,000 a year. Lenders would be responsible for verifying that employers made payroll six weeks before to the loan distribution and eight weeks after. The Treasury Department would issue all relevant terms and conditions, including appropriate interest rates and loan maturity.
Small business assistance options from other businesses
In addition to government assistance, companies like Amazon and Facebook have pledged to help businesses weather the pandemic and its fallout.
Amazon’s Neighborhood Small Business Relief Fund
Amazon’s Neighborhood Small Business Relief Fund pledges $5 million in assistance. Qualifying businesses have fewer than 50 employees or less than $7 million in annual revenue. And they must rely on foot traffic and be located within a few blocks of Amazon’s Regrade, South Lake Union, and Bellevue offices. To help distribute funds equitably, Amazon is asking applicants to anticipate expected losses associated with the coronavirus.
Facebook’s $100 million pledge
Facebook COO, Cheryl Sandberg, announced Facebook’s pledge of $100 million to small businesses impacted by the coronavirus. Facebook will distribute funds to 30,000 small businesses across the 30 countries where Facebook employees work.
Grubhub Community Relief Fund
Grubhub announced efforts to help small businesses in Chicago, New York City, San Francisco, Boston, and Portland. The Grubhub Community Relief Fund is collecting donations raised through their Donate the Change program. Officials in each of the five cities will help Grubhub identify organizations and small businesses that need help.
Other options to explore
Many companies, federal agencies, and private organizations offer grants for small businesses. Fundera has compiled a list of 107 small business and startup grants offered across the country. Each has its own eligibility criteria, and some include contests. Research each grant to determine if your business qualifies.
Covid-19 relief loans for Churches
The CARES Bill just passed Congress and is making its way to the President to be signed. The money will be available to churches almost immediately. However, the funds are limited to a first-come, first-served basis. Approximately $350 Billion is allotted for this program. The CARES Bill (Coronavirus Aid, Relief, and Economic Security Act) is designed to help our nation's businesses and non-profit organizations survive the pandemic. The critical parts of the Bill for churches to understand are this: 1. No collateral needed for the loan. 2. No tax returns or other significant documentation is needed. 3. The money will be available in as little as seven days. 4. No personal guarantees are needed. (Your credit and the church's credit do not matter) 5. There are no payments until 2021. 6. The interest rate is fixed for ten years and will be about 3.5% 7.100% of the loan is forgivable. Important details apply.
To apply for the loan, learn about how 100% of the loan is forgivable, and how much your church qualifies for by entering your email address, we will send you a report along with a form to help you calculate the maximum loan amount. Enter your email address to receive the full details: here
We will keep you informed as we become more aware of relief programs
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