Financial Resources Small Businesses May Not Know About!
As states across the nation feverishly work to approve emergency funding for struggling small businesses, many are cutting staff while others ponder shuttering their doors altogether. However, help for small businesses doesn’t start and end with the government’s SBA loan program. So, where else can small businesses get financial help right now? If you’re in need of help, here’s a growing list of resources that you may NOT be aware of that could benefit your business – right now!
SBA Disaster Assistance
OK, so we’ve all heard of the U.S. Small Business Administration (SBA) which is working directly with state governors to offer disaster assistance loans. These loans have low-interest rates: the rate for small businesses is 3.75%; the rate for nonprofits is 2.75%. These business disaster loans are provided through the SBA’s Economic Injury Disaster Loan program (EIDL), which offers up to $2 million to small businesses in assistance. Additionally, loans provided to qualifying businesses may be used to fund payroll, accounts payable, and other related operating costs. You may apply for a disaster assistance loan through the SBA website.
GoFundMe Small Business Relief Initiative
GoFundMe, the world’s largest social fundraising platform, has partnered with Yelp to introduce small business owners to the Small Business Relief Initiative, a program to offers microgrants and fundraising tools to qualifying small businesses that have been adversely affected by COVID-19. As part of the Small Business Relief Initiative, GoFund, Yelp, and accounting software provider Intuit Quickbooks have pledged to donate up to $1.5 million to the Small Business Relief Fund. Once that fund has been depleted, GoFundMe will continue to give $500 in matching grants to any qualifying business. This allows small businesses to keep raising sorely needed funds while inspiring community members to contribute and make donations.
Amazon’s Neighborhood Small Business Relief Fund
If you’re a business in Seattle, you may qualify for Amazon’s $5 million Neighborhood Small Business Relief Fund. This fund was created to provide cash grants for businesses impacted by COVID-19.
Eligible businesses must have fewer than 50 employees or less than $7 million in annual revenue. Other eligible businesses include those with a physical presence a few blocks away from Amazon’s office buildings, that are open to the general public and are reliant on nearby foot traffic for customers.
Facebook Small Business Grants Program
Facebook is offering $100 million in cash grants for small businesses impacted by the coronavirus.
They are (at this time) still ironing out details on eligibility and application status. However, a few key steps that the program is known and are providing businesses the following:
- The fund is available in the 30 countries where Facebook operates. The $100 million in cash grants and ad credits will be available for 30,000 eligible small businesses.
- The program, in addition to helping with rent costs and covering operational expenses, will allow small businesses to connect with even more customers and maintain a strong workforce.
- Facebook has launched a Business Resource Hub for small businesses and entrepreneurs.
Federal Tax Filing Deadline Extension
April 15 is no longer! Well, at least for this year. If you’re concerned you won’t be able to make the cutoff time with your small business, you now have an extra 30 days to file. July 15, 2020 is the new deadline. This new date applies for individual and business tax filing for tax payments of up to $10 million.
State Emergency Relief
In addition to existing disaster and relief programs available in each state, new programs are also being launched.
In California, for example, the city of Sacramento has started a fundraising campaign called Donate4Sacramento. Donors can contribute to small businesses impacted by COVID-19, or they can direct their donations to the homeless, nonprofits, or struggling families in the area.
Check with your local state to see what programs may be applicable to your small business. It’s also recommended that you look out for any new fundraisers and initiatives that may pop up. So, if you’re a small business, take advantage of any help you may qualify for until that day (that can’t come soon enough) when things get back to normal.