The U.S. government has created SBA disaster loans for companies who are in need of financial assistance during this pandemic. This allows qualifying companies to access working capital. Also, many states and banks have come up with grants and loans to help the qualified companies. The purpose is to provided business owners with capital that they immediately need in order to keep their business running. For the companies that do not qualify, there are other financing relief options.
SBA Disaster Loans
The SBA Economic Injury and Disaster Loan is available to all the states throughout the country for business needing access to capital to cover needs brought by the Coronavirus pandemic. For those businesses that qualify, this loan is a great option as it has no upfront fees or early payment penalties and the repayment term is set depending on the current ability of the business to repay the loan. Another important factor to mention is that the interest rate will not exceed 4% per year. For those interested in more information, check out our small business relief financing for Coronavirus guide.
For companies that do not want to take another loan or do not qualify for a state grant, there are other financing relief options available. Some companies whether they qualify for an SBA loan or state grant, do not need large amounts of capital and are looking for smaller financing options to help increase sales and revenue.
For those interested in applying, you can submit an online application.
Financing Relief Options
Program that assists local customers purchase gift cards to local restaurants.
$100M in cash grants and ad credits from Facebook for up to 30,000 small businesses.
Facebook will be opening “Workplace,” its online workplace communication tool, to governments and emergency services for free during the next 12 months.
The program is for Zoho’s small business customers with 25 employees or fewer who are being severely impacted by the economic disruption. Must be a current Zoho clients to apply. Potential for three months of free services for all current app subscriptions.
The COVID-19 Response Fund will provide grants to organizations helping at-risk populations, like workers who can’t take sick leave, people without health insurance, low-income workers and healthcare workers.
Grants to small businesses in Seattle and Bellevue with fewer than 50 employees or less than $7million in revenue.
GoFundMe is launching a relief program to support local businesses facing financial loss during the COVID-19 pandemic. As part of the Initiative, the Small Business Relief Fund will be issuing $500 matching grants to qualifying businesses that raise at least $500 on GoFundMe.
For more information on the program or required qualifications please visit the FAQ page.
If you have an existing brick & mortar business that has been negatively effected by the COVID-19 outbreak and you launch a capital raise on Mainvest, you may be eligible to receive a $2,000 zero-interest loan. Then through your capital raise, you can receive over $100,000 of investment from your community.
Resources for Restaurants and Workers Coping with the COVID-19 Emergency.
Yelp is offering different programs for restaurants and bars affect by COVID-19 such as free ads.
Information as to how Bank of America is helping its small business customers affected by COVID-19.
Information as to how Citi Bank is helping its small business customers affected by COVID-19.
Information as to how Truist Bank is helping its small business customers affected by COVID-19.
Information as to how Wells Fargo Bank is helping its small business customers affected by COVID-19.
Information as to how First National Bank is helping its small business customers affected by COVID-19.
Information as to how PNC Bank is helping its small business customers affected by COVID-19.
Information as to how Chase Bank is helping its small business customers affected by COVID-19.
Information as to how Capital One Bank is helping its small business customers affected by COVID-19.
Information as to how US Bank is helping its small business customers affected by COVID-19.
Seated launched a hotline for restaurant owners to get advice from finance and law experts in the hospitality industry.
The National Restaurant Association Educational Foundation announced the Restaurant Employee Relief Fund that will provide grants on a first-come first-served basis to restaurant owners and employees in need.
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. Applications available on April 2, 2020.
WeFunder is an investment crowdfunding platform. WeFUnder launched a Coronavirus Crisis Loans program enabling small businesses to crowdfund loans of $20,000 to $1 million from supporters.
Honeycomb Credit, an investment crowdfunding platform, announced a small business relief loan program that’s providing $10,000 to $50,000 in working capital to qualifying businesses.