Small Business Assistance Programs Available During the Pandemic

The COVID-19 pandemic has disrupted various businesses worldwide, and small businesses are the most vulnerable. Many small enterprises shut down last year, while a few others have managed to survive.

It’s good that government institutions provide small business assistance programs at a federal, state, and local level. The same is true for corporate and financial entities as they offer small business loans and relief programs.

Let’s look at some small business assistance programs offered in the pandemic. 

Federal Level

The Small Business Administration (SBA) has been providing small business assistance programs to boost the economy. This autonomous government agency offers SBA loans to small businesses looking to grow and expand. It has also provided relief programs in the wake of the COVID-19 pandemic. Here are government programs enacted at a federal level and offered through SBA:

• Paycheck Protection Program (PPP): Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, PPP assures emergency SBA loans of up to $10 million. The program applies to small businesses consisted of 500 or fewer employees. These include sole proprietorships, independent contractors, and self-employed individuals. This program is a forgivable loan as long as your business uses this for eligible expenses and maintains payroll.

• Economic Injury Disaster Loan (EIDL): In line with the SBA’s disaster assistance program for small businesses affected by the pandemic, the EIDL program offers working capital loans of up to two million dollars. The loan has a payment term of up to 30 years with an interest rate of 3.75 percent. Also, you can defer the payments for up to four years in the wake of the COVID-19 crisis.

• Shuttered Venue Operators (SVO) Grant: Authorized by the Consolidated Appropriations Act (CAA), the SVO program consists of $15 billion in grants to shuttered venues. The SBA’s Office of Disaster Assistance is the one responsible for disbursing the funds. Qualified applicants can get 45 percent of their gross earned revenue up to $10 million. These include live venue operators, theatrical producers, museum operators, and talent representatives, among others.

• SBA Debt Relief: This debt relief program pays for SBA loans (principal, interest, and fees) for six months. Know that the SBA government agency guarantees the payments under the 7(a), 504, and Microloan programs. It covers businesses from hard-hit sectors such as food service, education, entertainment, and clothing industries.

State and Local Levels

Amid the pandemic, state and local governments have implemented small business programs to benefit their constituents. Of course, the type of COVID relief programs varies from one state to another. Therefore, it’s best to check your local government’s website to see what they have to offer.

Some programs include the San Francisco Hardship Emergency Loan Program (SF HELP), Denver Small Business Emergency Relief program, New York City Small Business Continuity Fund, and Rapid Recovery Loans in North Carolina. For your reference, check the National Governors Association list of governors’ websites.

Corporate Entities

Top corporations have taken action toward helping small businesses. They may be experiencing the impact of the COVID-19 pandemic on their revenues. However, they are willing to help small and medium-sized enterprises (SMEs). Let’s take a look at two small business assistance programs:

• Facebook Small Business Grants: The most popular social media platform has committed to helping about 30,000 small businesses in over 30 countries. Facebook offers $100 million in Facebook advertising credits and cash grants to these impacted businesses. If you’d like to take advantage of this, sign up for further details.

• Amazon Neighborhood Small Business Relief Fund: Amazon allocates a $5 million fund as grants for small enterprises. However, this fund applies to Bellevue, Wash, and the South Lake Union of Seattle. If your business is in one of these areas, apply online for a grant.

Financial Institutions

Business banking is paramount, especially for small businesses amid the pandemic. It’s good that banks have provided business loans and offered deferment and forbearance options to borrowers. Most importantly, these lenders have come up with some relief programs during the pandemic. Below are some business loan options offered to small enterprises:

• Term Loan: As the most common type of small business loan, you’ll get a lump sum of money and repay it in the long run. You’ll have a fixed term, interest, and monthly payment. You can use this loan for launching a startup or expanding your small business.

• Business Lines of Credit: This loan has a revolving line of credit, which works the same as a credit card. As such, you’ll have a credit limit. From there, you can withdraw some money, use it for your business expenditures, and repay it.

• Commercial Real Estate Loans: This loan is a commercial mortgage. Whether investing in a new commercial property or pursuing building construction, you can seek financing from a lender.

The pandemic doesn’t have to shut your small business for good. Thanks to small business assistance programs offered at federal, state, and local levels. That is not to mention corporate entities and financial institutions that have been providing loans to small businesses. Be sure to consider all the valuable information discussed above. Ultimately, see what the best option is for your small business.

Meta title: Need Business Financial Assistance in the Pandemic? Here Are Small Business Assistance Programs
meta desc: The pandemic can be difficult for small businesses. It’s good that government institutions offer assistance programs at federal, state, and local levels. Even corporate and financial institutions are ready to help.