Resources from federal, state and local governments to help small businesses weather COVID-19

Summary

A Thumbtack blog post dated March 31, 2020, marked "Updated 4/13/2020", that compiles resources for small businesses and self-employed professionals during COVID-19. The federal section describes Paycheck Protection Program loans, which include forgiveness of up to 8 weeks of payroll, and SBA Economic Injury Disaster Loans of up to $2 million. It also covers paid-leave tax credits, a student loan payment suspension through September 30, and federal income tax filings moved from April 15, 2020 to July 15, 2020. State and local sections list programs such as the Illinois Small Business Emergency Loan Fund of up to $50,000 and a $100 million Chicago Small Business Resiliency Fund.

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Resources from federal, state and local governments to help small businesses weather COVID-19.

March 31, 2020 by Thumbtack Leave a Comment

In light of COVID-19, the federal government and many state and local governments have introduced economic relief programs for small businesses and self-employed professionals.

We’ve compiled a list of these resources for you here. The situation changes day-by-day and we’re doing our best to keep this list updated. Check with your state and local governments to confirm eligibility and to see what other resources may be available to you.

Updated 4/13/2020

Federal Resources:

Paycheck Protection Program Loans – This program will provide cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency. If employers maintain their payroll, the loans would be forgiven. Paycheck Protection Program loans include forgiveness of up to 8 weeks of payroll based on employee retention and salary levels, no SBA fees, and at least six months of deferral with maximum deferrals of up to a year. Small businesses (with under 500 employees), individuals who operate a sole proprietorship, independent contractors, and eligible self-employed individuals can apply for these loans. The application is currently online and lenders are accepting applications starting on April 3, 2020.

Small Business Administration Economic Injury Disaster Loans – The U.S. Small Business Administration is offering states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19. SBA’s Economic Injury Disaster Loans offer up to $2 million in disaster loans and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing. Small business owners in all U.S. states and territories are currently eligible to apply for a low-interest loan due to COVID-19.

Paid Leave – Small businesses can now claim two new refundable payroll tax credits to reimburse them, dollar-for-dollar, for the cost of providing employee leave related to the COVID-19 outbreak. You can find more information on details and eligibility from the IRS .

Student Loans – Following passage of the CARES Act, the U.S. Department of Education will suspend payments on all student and parent loans held by the federal government through September 30. During the payment suspension, no interest will accrue and missed payments will be reported to credit bureaus as if they were made. This does not include federal Perkins loans or loans made by private institutions. For more information visit StudentAid.gov/coronavirus for details.

Federal Tax Deferments – The U.S. Treasury Department and Internal Revenue Service announced that the tax filings and payments for all federal income taxes (including self-employment tax) due on April 15, 2020, regardless of amount, will now be due on July 15, 2020. Taxpayers are not required to file any documentation to take advantage of this delay, and no interest or penalties will be assessed in connection with this extension. Many states have also extended the filing and payment deadlines for state taxes. You should check with a tax professional to determine the best course for your tax situation, and check with your state tax authority for any state-level extensions.

State Resources

Health Insurance – Several states have reopened enrollment for health insurance through their state marketplaces. If you live in California , Colorado , Connecticut , Maryland , Massachusetts, Nevada , New York , Rhode Island , Vermont and Washington and currently do not have health insurance, you may be able to purchase coverage during this period and may be eligible for subsidies to help with the cost of premiums. Check with your state marketplace or healthcare.gov to see what your options are.

California – The California State Treasurer has put together a list of state and local programs for small businesses in the state. In addition, the California Infrastructure and Economic Development Bank is providing disaster loans of up to $1 million for small business borrowers as well as $500 to $10,000 loans for low-wealth entrepreneurs in declared disaster areas. Small businesses will also be eligible for interest free deferral of sales/use tax up to $50,000 for businesses with less than $5 million in taxable sales.

Delaware – The state has created the Hospitality Emergency Loan Program (HELP) to provide financial relief for restaurants, bars and other hospitality industry businesses. The no-interest loans are capped at $10,000 per business per month. The funds can cover rent, utilities and other unavoidable bills but cannot be used for personnel costs.

Florida – The Florida Small Business Emergency Bridge Loan Program is currently available to small business owners located in all Florida counties statewide that experienced economic damage as a result of COVID-19. These short-term, interest-free working capital loans are intended to “bridge the gap” between the time a major catastrophe hits and when a business has secured longer term recovery resources, such as sufficient profits from a revived business, receipt of payments on insurance claims or federal disaster assistance.

Illinois – The state is establishing the Illinois Small Business Emergency Loan Fund to offer small businesses low interest loans of up to $50,000. Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply. Successful applicants will owe nothing for six months and will then begin making fixed payments at a below market interest rate for the remainder of a five-year loan term. In addition, the state is creating a Downstate Small Business Stabilization Program to offer small businesses of up to 50 employees the opportunity to partner with their local governments to obtain grants of up to $25,000 in working capital.

Iowa – Iowa has set up a fund to support Targeted Small Businesses (TSB) with zero employees that have been economically impacted by the COVID-19 pandemic.

Maine – The Finance Authority of Maine (FAME) has created the COVID-19 Relief Business Direct Loan Program to provide FAME Direct Loans of up to $50,000 with special terms available to Maine-based businesses experiencing interruption or hardship due to COVID-19.

Maryland – Maryland has authorized $130 million in loan and grant funding for small businesses and manufacturers that have been negatively impacted by COVID-19. This emergency assistance provides interim relief and proceeds that can be used to pay cash operating expenses including payroll, suppliers, rent, fixed debt payments and other mission critical cash operating costs.

Massachusetts – The Commonwealth has created a $10 million Small Business Recovery Loan Fund that will provide up to $75,000 to businesses with fewer than 50 employees that are experiencing an economic injury from COVID-19. Loans are immediately available to eligible businesses with no payments due for the first six months.

Michigan – The Michigan Small Business Relief Program will provide up to $20 million in support for small businesses negatively impacted by COVID-19. The funding is divided between $10 million in small-business grants and $10 million in small-business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce.

Minnesota – The state has established a Small Business Emergency Loan program to assist small businesses directly and adversely affected by COVID-19 and in impacted industries. Loans will be interest free and range from $2,500 to $35,000.

New Jersey – The New Jersey Small Business Emergency Assistance Grant Program will provide up to $5,000 to NJ-based small businesses that have between 1–10 full-time-equivalent employees. The grant funding is targeted as unrestricted payroll and working capital support, and cannot be used for any capital expenses, including construction.

New Mexico – The state Economic Development Department has created a program to assist businesses seeking emergency loans or lines of credit to deal with negative economic impacts from COVID-19. NMEDD can guarantee a portion of a loan or line of credit up to 80% of principal or $50,000. Loan proceeds are flexible and can be used for (and not limited to) the following: working capital, inventory and payroll.

Pennsylvania – The Pennsylvania Industrial Development Authority (PIDA) has created a COVID-19 Working Capital Access (CWCA) Program to provide critical working capital financing to small businesses located within the Commonwealth that are adversely impacted by the COVID-19 outbreak. The zero percent interest rate loan will be administered by local certified economic development organizations.

Utah – The Utah Governor’s Office of Economic Development is offering the Utah Leads Together Small Business Bridge Loan to Utah-based small businesses with 50 or fewer employees impacted by the COVID-19 pandemic. Loan amounts range from $5,000 to $20,000 with 0% interest for up to a 60-month period. Loan amounts shall not exceed three months of demonstrated operating expenses. Loan payments are deferred for 12 months. GOED will use up to 25% of the funding for rural Utah businesses.

Washington – The state is offering a new Working Washington Small Business Emergency Grant program to assist small businesses with up to 10 employees impacted by the COVID-19 outbreak. Up to $5 million in funds are provided through the Governor’s Strategic Reserve Fund and administered by the State Department of Commerce. The grant program will provide a limited number of businesses in Washington’s 39 counties with a grant up to $10,000.

Wisconsin – Wisconsin created the Small Business 20/20 Program to provide funds to Wisconsin-based Community Development Financial Institutions (CDFIs) to make grants to existing loan clients to mitigate short-term cash flow issues and protect jobs and public health. Approved CDFIs and collaboratives will make program grants available to for-profit businesses that are current loan recipients in good standing as of 3/1/20 with the approved CDFI and/or its collaborating CDFIs. These businesses must have 20 or fewer full-time or part-time employees and greater than $0 but less than $2 million in annual revenues.

Local Resources:

Albuquerque – The City of Albuquerque Economic Development Department is developing a $500,000 Micro-Business Relief Program to provide economic relief to small businesses. The City is offering small businesses with fewer than 5 employees a grant of up to $5,000 to support day-to-day operating expenses only of the business, such as payroll or losses due to destabilizing events.

Atlanta – To ensure the viability of city businesses and to help sustain employment, Invest Atlanta has established a Business Continuity Loan Fund (BCLF) with $1.5 million of funding from the City of Atlanta. The fund will offer small businesses zero-interest loans to address a lack of working capital and cash flow as a result of reduced consumer demand, the ability to fulfill product or service orders and other economic conditions.

Baltimore (Prince George’s County), MD – The Prince George’s County COVID19 Business Relief Fund is a $15M fund established to provide financial assistance to businesses affected by the COVID-19 crisis. The Relief Fund can be used to support cash operating expenses including payroll, suppliers, rent, fixed debt payments and other business critical cash operating costs.

Berkeley, CA –The city has approved up to $3 million in emergency relief grants for small businesses, nonprofit arts organizations and worker rent support

Boulder – The goal of the Small Business Relief Fund is to expedite financial support for temporary relief for small for-profit and nonprofit businesses facing unexpected expenses, which are extra challenging to cover during this period of business inactivity due to the COVID-19 response. Grants up to $2,500 per business will be available to meet these one-time needs. Grant applicants must be authorized representatives of small businesses defined as enterprises of between 2 – 50 employees, with principal place of business in the City of Boulder.

Chattanooga – The City has started the COVID-19 Small Business Stabilization Fund (CSBSF) to provide short-term working capital to businesses that are facing sudden and severe revenue shortfalls because of stay at home orders.The City has committed $2.5 million to set up grant and loan programs that can help businesses in different ways — short-term rental assistance, continued payroll for displaced workers, or larger business expansion needs.

Chicago – The City is establishing a $100 million Chicago Small Business Resiliency Fund , which will help to provide small businesses with emergency cash flow during this immediate health crisis. Funds will be provided to eligible businesses as low-interest loans.

Columbia, SC – The City of Columbia has set up a Small Business Stabilization Fund to issue loans of up to $10,000 at zero interest in an effort to mitigate losses experienced by our small business community. The loan is for a period of 2 years with 50% of the original loan forgiven annually at the anniversary of the origination of the loan.

Colorado Springs – The city announced a small business relief program called Survive & Thrive COS . Small businesses with 2-25 employees located in El Paso County are eligible for recovery funding in the form of low-interest loans of up to $25,000, mentorship and other resources to support resiliency and continue building healthy businesses.

Denver – The city is working on a new small business grant program that addresses the most immediate needs of the business community. The program prioritizes those industries who are most impacted by the pandemic, such as the food industry, nail salons, barbershops, home childcare providers, and retail shops. By providing up to $7,500 in cash grants to those most vulnerable, this program is designed to assist eligible small businesses that may have had to temporarily close, have difficulty paying their rent and utilities, or have had to lay off staff.

Detroit – The Detroit Economic Growth Council, Detroit City Council and Economic Development Corporation of the City of Detroit approved a $3.1 million COVID-19 Grant Relief Fund for Detroit Small Businesses . This brings the total funding pool to $4.7 million, which Detroit and Wayne County will administer through a single unified team. Applications will be accepted and awards will be made on a rolling basis subject to availability of funds. First payments are expected to be processed by April 10, 2020.

Hillsboro, OR – The City has committed up to $500,000 in grants to help small businesses and entrepreneurs immediately offset some of the economic impacts due to the COVID-19 pandemic. Small businesses in the City of Hillsboro can apply to receive up to $3,000 in emergency grant funding during a second round of applications on Tuesday, April 7, between 9 am and 4 pm.

Indianapolis – The City and the Indianapolis Chamber of Commerce are partnering to establish a Rapid Response Loan Fund to offer an affordable option for loans of $1,000-$25,000. These could be used to pay employee salaries, insurance premiums, or as a bridge loan until additional funding kicks in from your bank or from the SBA.

Jacksonville – The City of Jacksonville has created a COVID-19 RESPONSE Business Community Relief Loan program to provide critical aid to local businesses. The initiative will provide low-cost loans with less stringent underwriting requirements and flexible repayment terms to Duval County small businesses in need.

Los Angeles – The City of Los Angeles established a Small Business Emergency Microloan Program to provide the financing needed to strengthen small business enterprises. The loans can be used for reasonable and eligible working capital expenses.

New York City – The Department of Small Business Services says it will offer financial assistance to small businesses in the form of loans and grants. Businesses with fewer than 100 employees who have seen sales decreases of 25% or more will be eligible for zero-interest loans of up to $75,000 to help mitigate losses in profit. The City is also offering small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months (an average of $6,000) to help retain employees.

Oklahoma City – The city has created the Small Business Continuity Program to provide cash incentives, no-interest loans, low-interest loans and technical assistance for small businesses. Applications open on April 6 and close April 17, 2020 and the target date for disbursement of funds via ACH deposit is May 1, 2020.

Pawtucket, RI – Pawtucket Business Development Corporation has created the COVID-19 Emergency Loan Program to provide interim relief to small Pawtucket-based businesses with 25 or fewer employees, who can demonstrate a loss of revenue caused by the virus crisis. The loan can be used to pay operating expenses for day-to-day business operations, which include, but are not limited to, payroll and rent.

Philadelphia – The Philadelphia COVID-19 Small Business Relief Fund offers microenterprise grants of $5,000 to Philadelphia small businesses impacted by the COVID-19 pandemic.

Pittsburgh – The Pittsburgh Urban Redevelopment Authority has created the COVID-19 Small Business Assistance Loan Program . Eligibility for this loan program is limited to existing businesses within the City of Pittsburgh that have been affected by the COVID-19 outbreak. Eligible use of funds include: rent, insurance, payroll, and other fixed assets. There is currently a waitlist for this program .

Portland, OR – The Portland Small Business Relief Fund will provide grants and no interest loans to support Portland small businesses experiencing hardships related to COVID-19. The goal of the fund is to provide immediate relief by helping business owners retain their businesses and their employees as a bridge of support before additional state and federal resources become available in the coming months.

Rochester, NY – Rochester has started a Business Emergency Retention Grant Program . Grants may be utilized towards working capital to pay business expenses to continue operations and retain employees. Average grant awards are $2,000. Working capital expenses may include: Payroll, insurance, utility expenses, inventory and other similarly related short-term debt and operating expenses necessary to continue operations.

Rockford, IL – The City of Rockford and Winnebago County have launched a COVID-19 Small Business Emergency Loan Fund . Loans are available through the fund for businesses with fewer than 100 employees and range from $5,000-$50,000, which can be used for working capital and to help make ends meet during the COVID-19 pandemic.

San Francisco – The city has created a Small Business Resiliency Fund allowing small businesses impacted by COVID-19 to access up to $10,000 for employee salaries and rent. Applications are currently closed but may reopen if additional funds become available. The city is also allowing businesses to defer taxes and fees in some circumstances.

Santa Clara, CA – The city has approved a Small Business Assistance Grant Program and committed up to $500,000 in one-time funds. The program will offer grants of up to $5,000 or $10,000 for qualified independently owned and operated small businesses, located in Santa Clara, with at least one and no more than 25-full-time employees. Applications will be accepted starting April 13.

St. Petersburg, FL – To provide relief to small businesses impacted by local COVID-19 orders, the City of St. Petersburg has created the Fighting Chance Fund – an emergency grant for St. Pete’s negatively impacted locally owned and independently operated small businesses. The fund is expected to provide critical support to about 1,000 restaurant, bar, retail, and service-based businesses and their more than 3,000 eligible employees.

Tulsa – In partnership with Tulsa Economic Development Corporation (TEDC), the City of Tulsa is dedicating $1.1 million in funds for zero interest loans to provide financial assistance to small business owners and entrepreneurs affected by COVID-19. TEDC will begin accepting loan applications from local businesses immediately. To qualify as a small business, applicants must have fewer than 50 full-time equivalent (FTE) employees, have 2019 revenues that did not exceed $5,000,000 and have experienced a decrease in revenue of at least 25 percent between February and March 2020 due to COVID-19.

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