The recent uncertainty surrounding COVID-19 has left many small businesses worried about the future of their operations as well as the economy at large.
Despite mandated closures and shelter in place regulations, small businesses of every kind have come up with innovative ways to stay relevant. From breweries producing hand sanitizer instead of beer to restaurants pivoting to delivery-only models, small businesses remain resilient.
To keep this momentum going, we’ve compiled a list of small business resources that will help you weather the storm of what’s to come.
Small business resources for COVID-19
1. Economic injury disaster loan program
Provided by the national Small Business Administration (SBA) agency, the Economic Injury Disaster Loan Program is a low-interest loan intended to support American small businesses through the COVID-19 pandemic.
With up to $2 million available per company, the goal of this loan is to help small businesses cover expenses like payroll and accounts payable during COVID-19.
Focused on giving small businesses time to recover, the repayment period can be up to 30 years and interest rates for the loan remain low at 3.75%.
To be considered for this program you must not have any alternatives for credit.
To apply, you will need to provide your 2019 business tax return and 2020 YTD financials among other documentation.
You can submit your application for this business loan here.
2. Facebook’s small business grants
Facebook is pledging $100M in cash grants and ad credits to 30,000 small businesses around the world. The purpose of the initiative is to help small businesses:
- Cover rent and operating expenses
- Continue to support and pay their teams
- Expand their customer base
3. JPMorgan’s small business resources
JPMorgan is putting forth $5 million worth of loans to help small businesses in the U.S. overcome challenges related to COVID-19. This loan program is focused on supporting small businesses through slower times as well as in the transition to remote work.
The small business resources JPMorgan is offering include low or zero-interest loans and interest rate buydowns. This program is intended to help entrepreneurs of color as well as other underrepresented business owners.
4. Kiva’s interest-free loans
In its commitment to helping small businesses survive the COVID-19 pandemic, Kiva and its lenders are giving 0% interest loans to American entrepreneurs. As a direct response to COVID-19, Kiva is offering a grace period of up to 6 months on loan repayment.
With loans of up to $15,000 available, Kiva wants to help keep small businesses running across the country – even if their doors are temporarily closed. You can apply for your interest-free loan here.
5. Google’s small business resources
Google is offering $340 million worth of Ad credits to small and medium-sized businesses to help stimulate their growth during COVID-19. Redeemable until the end of 2020, these credits are available to small and medium-sized businesses who have been actively advertising with Google since 2019.
In addition to these credits, Google is pledging $15 million to non-profit organizations so they can provide small business resources and loans to companies in need.
6. PayPal’s COVID-19 support
PayPal, a payment gateway many of our small business customers rely on, is a platform that’s ingrained into the small business community.
Recognizing this, PayPal CEO Dan Schulman has offered its 300+ million business accounts alternative financing options as well as free professional consulting during COVID-19.
7. The coronavirus stimulus package
The coronavirus stimulus package provided by the U.S. Federal Government under the CARES Act offers American companies the following small business resources:
- $377 billion in small business loans and grants
- 50% refundable tax credit on payroll during COVID-19
- Additional tax and interest deductibles
The CARES Act is noted as the first wave of small business resources the U.S. Federal Government hopes to provide the business community with, as they plan to provide additional stimulus plans to support business and economic development.
8. Business for all grants
Presented by Hello Alice and Verizon, the Business for All program supports small businesses with grants of up to $50,000. The program is open to small businesses across the US, except for Puerto Rico, and aims to empower new majority business owners including:
- Women
- People of color
- LGBTQ+ individuals
- Military personnel
- People with disabilities
You can apply for the Business for All program here.
Wrap Up
Considering that 50% of small businesses have only 2 weeks worth of cash buffer, it’s smart to get ahead of cash flow problems related to COVID-19 — especially as more entrepreneurs start to take advantage of these small business resources.
“50% of small businesses have less than 15 days of cash buffer”
JPMorgan, 2019
In addition to the small business resources above, there are many grants and loans being offered by local municipalities and states. You can look for more small business resources in your area here as well as on your local governor’s website.
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