- The COVID-19 pandemic is hitting small businesses especially hard as customers practice social distancing, events get canceled, and states begin to reopen after forced closures.
- As a result of the pandemic, 22% of businesses closed permanently, including 41% of Black-owned and 35% of Hispanic-owned businesses, the National Bureau of Economic Research found.
- Here is a list of emergency funding resources available right now from public and private sources for small businesses suffering economic disruption due to the coronavirus.
- Visit BI Prime for more stories.
More than 99% of all American businesses are small businesses, and they employ more than half of the workforce.
According to US government research, natural disasters typically cause 40% of small businesses to fail, while one in five businesses have already closed permanently due to the COVID-19 pandemic. Among those closed businesses are 41% of Black-owned and 35% of Hispanic-owned businesses.
In addition to the immediate public health crisis, the global pandemic kicked off a recession in February that is further impacting the survival of small businesses.
Continue reading to see a list of emergency-funding resources available right now from public and private sources for small businesses suffering economic disruption due to the coronavirus.
This post was last updated on August 21, 2020.
Options available to small business owners
Two types of federal financing:The SBA just reopened applications for a loan program that offers immediate grants up to $10,000. Here's how business owners can apply, whether or not you received PPP money
How to know if you qualify:Use this guide to check if your company is a 'small business' so you can qualify for crucial funding ahead of a possible recession
Use this plan to avoid getting stuck in the chaos:6 steps entrepreneurs should take right now to keep their business open and stay financially secure instead of waiting for the government to take action
You could be entitled to money from your insurance company:An attorney explains why struggling businesses should apply for money from their insurance companies right now — and how to do it
How to take advantage of tax credits:This overlooked tax credit might be better for your business than a PPP loan — and you could even apply for a cash advance. A CPA explains how to decide
Small Business Administration
Website: sba.gov/page/disaster-loan-applications
Economic Injury Disaster Loan
Financing type: Emergency loans with 3.75% interest and a maximum period of 30 years.
Funding Limit: $150,000
Who it's for: US small businesses, non-profits, independent contractors, freelancers/self-employed, and limited types of franchise affiliates that have been in business since January 31, 2020.
Express Bridge Loans
Website: sba.gov/LenderMatch
Financing type: Quick turnaround advance on an Economic Injury Disaster Loan
Funding Limit: $25,000
Who it's for: US small businesses and non-profits waiting to receive a Disaster Loan
Brooklyn Chamber of Commerce
Website: bringbackbrooklyn.org
Bring Back Brooklyn Fund
Financing type: Zero-interest loans
Funding limit: Expected to be $30,000; currently raising funds with a goal of $500,000
Who it's for: Small businesses in Brooklyn that have been hurt by the pandemic, shut out of other loan programs, and plan to reopen. The majority of loans are for minority- and women-owned businesses, and funding will only begin after the economy begins to re-open.
San Francisco City Hall
Website: oewd.org
Business taxes and fees
Financing type: Deferral
Funding limit: Quarterly tax payments deferred nine months, license fees deferred three months
Who it's for: Businesses with less than $10 million in revenue
African American Small Business Revolving Loan Fund
Financing type: Loans
Funding limit: $50,000 with 0% interest; repayments deferred by 12 months, and up to 20% of the loan may be forgiven
Who it's for: Black-owned businesses with annual revenue below $2.5 million
Paid Sick Leave
Financing type: Payroll assistance
Funding limit: 40 hours additional paid sick leave time beyond the city's existing Workers and Families First program
Who it's for: Businesses with 50 or fewer employees
City of Denver
Website:www.denvergov.org
Small Business Emergency Relief Program
Financing type: Cash grants
Funding limit: $7,500
Who it's for: The program prioritizes those industries who are most impacted by the coronavirus pandemic, such as the food industry, nail salons, barbershops, home childcare providers, and retail shops.
The program completed its fourth round on July 10 and is currently reviewing applicants. It plans to have additional rounds.
State of Maine
Website: www.famemaine.com/business
Financing type: Loan (WSJ Prime rate, minus 1%)
Funding limit: $50,000; total fund has $5,000,000 in reserves.
Who it's for: 12-month term loans for Maine-based businesses who have exhausted other funding sources
City of Irving, Texas
Website: https://www.cityofirving.org/3634/Business-Funding
Irving's Emergency Business Assistance Program
Financing type: Forgivable loans as long as the company stays in business for at least four months. Additionally, the company must retain at least 60% of its full-time payroll.
Funding limit: Up to $50,000.
Who it's for: Irving, Texas-based businesses that were founded by Feb. 1, 2019, have fewer than 100 employees, and have lost at least 25% of income due to the pandemic.
Topeka and Shawnee County
Website: visit.topekapartnership.com/host-relief
HOST Relief Program
Financing type: Grants
Funding limit: Up to $5,000
Who it's for: Privately held small businesses experiencing economic injury located in Topeka and Shawnee County, Kansas.
MainVest
Website: mainvest.com/main-street-initiative
The Main Street Initiative
Financing type: Zero-interest cash advance
Funding limit: $2,000
Who it's for: Brick-and-mortar businesses seeking future long-term community investment through MainVest's licensed crowdfunding portal for small businesses
JPMorgan Chase
Website: impact.jpmorganchase.com
Entrepreneurs of Color Fund, Ascend, and Community Development Financial Institution partners
Financing type: Loans and interest-rate reductions
Funding limit: TBD, total donation is $8 million
Who it's for: Underserved and underrepresented entrepreneurs and small businesses in the US and globally
Uber Eats
Website: www.uber.com/us/en/coronavirus/
Free delivery
Financing type: Waived delivery fees, same-day payouts
Funding limit: N/A
Who it's for: Independent restaurants in US and Canada.
Kiva
Website: kiva.org/borrow
Small business loans
Financing type: Zero-interest loans
Funding limit: $15,000
Who it's for: Small businesses seeking community-based lending, as opposed to traditional financial institutions
GoFundMe
Website: www.gofundme.com/f/smallbusinessrelieffund
Small business relief fund
Financing type: Donation-matching micro-grants
Funding limit: $500, total fund is more than $2.4 million
Who it's for: Independently owned and operated small businesses with GoFundMe campaigns to offset negative impacts from the COVID-19 pandemic
Hello Alice
Website: www.covid19businesscenter.com
COVID-19 Business for All Emergency Grants
Financing type: Grants
Funding limit: $10,000
Who it's for: Applicants must have 50 or fewer employees and have been affected by the coronavirus pandemic.
Local Initiatives Support Corporation
Website: www.lisc.org/covid-19
Rapid Relief & Resiliency Fund
Financing type: Grants
Funding limit: $5,000 to $20,000
Who it's for: Small businesses and enterprises affected by Covid-19 across the country, especially those in underserved communities, including entrepreneurs of color, women- and veteran-owned businesses that often lack access to flexible, affordable capital.
The fifth round of relief grants is closed, but LISC is launching the sixth round August 31.
The Spanx by Sara Blakely Foundation
Website: www.globalgiving.org/redbackpackfund/
The Red Backpack Fund
Financing type: Grants
Funding limit: $5,000
Who it's for: Majority-women owned and led businesses and nonprofits in the US.
The next round of applications is Aug. 3-10.
Assistance from these organizations is now ended or on hold until further notice
New York City Hall
Website: nyc.gov/covid19biz
Downtown Alliance New York
Website: downtownny.com/RentAssistGrant
City of Seattle
Website: seattle.gov/office-of-economic-development
City of Philadelphia
Website: phila-uyims.formstack.com
Salt Lake City
Website:www.slc.gov/ed/elploan/
Website: facebook.com/business
Amazon
Website: smallbusinessrelieffund.com
FedEx
Website: fedex.com/en-us/support-small-business-grants
Grubhub
Website: blog.grubhub.com/covid-19
Yelp
Website: blog.yelp.com
Vistaprint and the US Chamber of Commerce Foundation
Website: savesmallbusiness.com
City of San Francisco
Resiliency Fund
Financing type: Grants
Funding limit: $10,000
Who it's for: Microbusinesses (fewer than 10 employees) able to show recent loss of revenue
Neighborhood Small Business Mini Grants
Financing type: Grants
Funding limit: $1,000 to $10,000
Who it's for: Small independently owned businesses in underserved commercial corridors.
Website: support.google.com
Google Ad credits
Financing type: Advertising credits
Funding Limit: Total fund is $340 million
Who it's for: Small and medium businesses, who advertise directly with Google or its partners around the world with active accounts since the beginning of 2019.