Government Assistance Programs for Small Businesses During the COVID-19 Outbreak
What is currently experienced in the world due to COVID-19, is a situation that has generated a lot of uncertainty, especially in the economic sphere and especially for small business owners.
Fortunately, many government agencies are announcing programs that support small businesses to solve the problems that affect them economically due to the pandemic.
National government assistance programs for small businesses
For the benefit of small businesses affected by COVID-19, the federal government is creating a rescue package that includes support funds to help raise the financial statements of these commercial entities.
In turn, the federal tax submission deadline has been postponed until 15 July, evidence-term respite to companies and individuals.
The SBA has the Economic Injury Disaster Loan program, which provides loans of up to $ 2 million to all businesses in designated disaster areas.
The rates they offer are 3.75% and a maximum period of up to 30 years. To qualify, the state must have a disaster claim from the federal government.
State government assistance programs for small businesses
Florida has developed Bridge Loan Programs for small businesses. This program is open to any business throughout Florida that has suffered economic damage due to COVID-19. The loans do not require any interest and have a term of 1 year, they also lend up to $ 50,000.
The bridge loan program is intended to be a primary assistance project, they simply implement business support while waiting for federal aid or assistance from their financial institution.
Details and application information are available on the Florida disaster loan site.
Iowa has arrived with a recent small business support program affected by the COVID-19 outbreak. The program provides loans ranging from $ 5,000 to $ 25,000. You can find more information about this program here.
In Maryland, some ideas are being promoted to support small businesses while the pandemic lasts. The government began to facilitate the $ 50 million Emergency Loan Fund that offers grant amounts of up to $ 10,000 for companies with fewer than 50 employees.
In turn, the $ 75 million Emergency Relief Loan Fund is being implemented and will provide companies with loans of 50 employees or less up to $ 50,000. You can visit the following link to request your loan at Maryland OneStop .
In the state of Massachusetts, the initiative was taken to launch the Small Business Recovery Loan Fund. Said fund seeks to provide capital to those qualified Massachusetts companies with less than 50 employees. Providing loans of up to $ 75,000 with 36-month terms and no payments for the first 6 months. You can visit the following link to request information here.
The Michigan Small Business Assistance Program will provide grants and loans to small businesses that COVID-19 has hurt. This program is expected to be able to offer funds in early April. You can visit the following link to request information here.
An interest-free Emergency Loan Program from $ 2,500 to $ 35,000 is being promoted by the Minnesota Department of Employment and Economic Development to businesses that have been affected by the coronavirus outbreak. You can visit the following link to request information here.
The new programs launched by the New Jersey Economic Development Authorities are designed to provide all the necessary support to companies and workers who have had to face a difficult economic situation due to the COVID-19 outbreak. In addition, this initiative also includes benefits and financing programs for entrepreneurs. You can visit the following link to request information here.
New Mexico also joins the protective measures for small businesses, which is why it has created the COVID-19 Commercial Loan Guarantee Program, which guarantees a portion of a loan or line of credit of up to 80% of the capital or $ 50,000 helping small businesses in an emergency situation. You can visit the following link to request information here.
The Small Business 20/20 program has been launched in Wisconsin to award grants of up to $ 20,000 to support small businesses that have been involved in a financial emergency in the face of the coronavirus. Such funds are expected to be made available through approved community development financial institutions.
The state of Wisconsin is trying to increase access to this type of financing program as more resources become available. You can visit the following link to request information here.
Local government assistance programs for small businesses
At the call of the authorities in the city of Atlanta, a $ 7 million Coronavirus Emergency Fund was approved to allocate $ 1.5 million to small businesses at risk from the pandemic. See the City of Atlanta page COVID-19 for more information.
Small businesses that have been affected by Covid-19 will have help from the state. For this reason, those companies with a number of employees less than 100 who have visualized the decrease in their income by more than 25% will be eligible for an interest-free loan of up to $ 75,000.
Similarly, New York City supports small businesses with fewer than 5 employees, with a subsidy that can cover 40% of payroll costs to avoid layoffs. You can visit the following link to request information about it here.
Economic injury disaster loan program
The CARES Act makes many arrangements in the Economic Injury Disaster Loan Program as stated in column 7 of the Small Business Act and is also outlined in Alerts previously issued. All those alerts are free.
All EIDL loans are available to small businesses in declared disaster locations to cover all economic downturns.
EIDL loans are available for a maximum total of $ 2 million, have an interest rate of 3.75 percent and have a maximum term of 30 years. You can visit the following link to request more information here.
Streamlined Process Requirements
The SBA is collecting information requested to make a loan under the SBA’s Disaster Loans and Economic Injury project to qualified entities that act upon requests from companies that are affected by the Coronavirus (COVID-19).
Such notice will be used to determine whether the applicant is eligible for a financial damages loan. You can visit the following link to request more information here.