The global coronavirus pandemic and also the resulting loss of consumer demand is placing unprecedented stress on small businesses that have needed to either cut back or turn off completely. Other businesses in select industries might be experiencing and enjoying the opposite: They have so much demand that they are can not meet it under emergency conditions. There’s no way to sugarcoat it: Rough times are ahead, but don’t assume that means your company is doomed.
At time of writing, the federal government is still shaping its response to the unfolding coronavirus pandemic and the accompanying economic fallout, so lots of questions remain concerning what kind of relief will ultimately be accessible. Meanwhile, there are several resources you can immediately tap that can either directly extend credit to you or help guide you to definitely it.
5 Small Business Organizations That Can Help You Get A Loan
The Sba (SBA)
In the very best of times, the SBA works as a loan guarantor, making it easier for smaller businesses to get approved for high-quality loans originated by other lenders. It'll continue to do so throughout the COVID-19 crisis, but during periods of disaster, the SBA offers some additional help.
Economic Injury Disaster Loans
The noticably program is available in the form of Economic Injury Disaster Loans. Unlike typical SBA loans, these loans are federally issued, offering low-interest cash infusions to businesses within designated disaster zones. Regarding COVID-19 particularly, including states whose governors have requested aid underneath the Coronavirus Preparedness and Response Supplemental Appropriations Act. All 50 states, the District of Columbia, and US territories are now eligible.
Economic Injury Disaster Loans provide as much as $2 million in funds to affected businesses. They may be accustomed to pay debts, accounts payable, and other bills that can’t be paid because of disaster conditions. The loans have a 3.75% rate of interest for small businesses and a 2.75% interest rate for nonprofits.
You may also obtain a loan advance of as much as $10,000 should you prefer a smaller amount of cash urgently. If you have access to an SBA Express Lender, you may also apply for an SBA Express Disaster Bridge Loan, which has a faster turnaround some time and can deliver up to $25,000.
Note: if you’re calling the SBA’s 1-800-659-2955 number to evaluate your EIDL, make sure to request the Tier 2 option, because this pertains specifically to the COVID-19 program.
Paycheck Protection Program
The SBA has started implementing the Paycheck Protection Program (PPP), which is made to help smaller businesses keep their workers on the payroll. This program is going to be available through June 30, 2022, and will begin processing applications on April 3, 2022.
The PPP can be obtained to businesses with fewer than 500 employees (some exemptions apply), including independent contractors, the self-employed, and sole proprietorships. Nonprofit organizations and 501(c)(19) veterans organizations qualify as well. Qualifying businesses, obviously, need to reveal that they’ve been affected negatively by COVID-19. You can apply through lenders that offers SBA 7(a) loans.
While technically a loan, the SBA will forgive the entirety from the principal, provided all workers are retained for 8 weeks, and also the money is employed for payroll and overhead. Forgiveness is also dependent on maintaining current salaries and will be reduced if headcounts decline or wages and salaries decrease.
The loan has a term length of 2 yrs and a 0.5% interest rate.
Note that the SBA isn’t directly making these loans. You’ll need to go via a third-party lender. Unfortunately, these lenders may impose additional hurdles to the process, so be prepared to navigate through a large amount of bureaucracy.
You can locate a PPP lender with the SBA’s search tool.
SBA Debt Relief
Businesses with existing SBA 7(a) loans will be receiving a break underneath the SBA Debt settlement program, meaning that:
- The SBA pays the principal and interest of current 7(a) loans for six months.
- The SBA pays the principal and interest of recent 7(a) loans issued before September 27, 2022.
Community Development Banking institutions (CDFIs)
Many CDFIs, for example credit unions, offer low-interest loans and other types of financial assistance during disasters. These programs tend to be dependent on federal funding, so keep close track of stimulus relief bills being proposed in the federal level. If you aren’t sure if there's one in your area, you are able to download a list of certified CDFIs through the US Department of Treasury site.
Once you’ve found your local CDFI(s), check their websites to determine what types of programs they offer. As well as the aforementioned loans, many will offer advice and consultation to businesses undergoing disaster conditions.
SCORE
SCORE is the largest network of business advisors in america. During normal times, they offer mentoring, webinars, courses when needed, along with a library of online resources. The good thing is that most of those things can continue to happen during quarantine, and, aside from in-person events, they are still.
While they can’t directly receives a commission to your hands, they are able to counsel you around the best course to obtain money as soon as possible. If you’re feeling lost by what to do and you’re stuck at home, SCORE is a great resource you are able to tap without stepping foot outside. They’re currently creating a large amount of coronavirus-related content on their website and updating frequently, so park your browser there for new developments because the crisis unfolds.
Internal Revenue Service
So, okay, you’re probably not getting financing from the IRS, however, you might have suddenly found yourself that has a lot less money to satisfy your tax obligations. Luckily, it looks like the IRS is going to be cutting you a break:
Following President Donald J. Trump’s emergency declaration pursuant to the Stafford Act, the U.S. Treasury Department and Internal Revenue Service (IRS) today issued guidance allowing all individual along with other non-corporate tax filers to defer as much as $1 million of federal income tax (including self-employment tax) payments due on April 15, 2022, until July 15, 2022, without penalties or interest. The guidance also allows corporate taxpayers an identical deferment of up to $10 million of federal income tax payments that might be due on April 15, 2022, until July 15, 2022, without penalties or interest. This guidance does not alter the April 15 filing deadline.
Additionally, the CARES Act reduces the tax burden on businesses affected by COVID-19. This includes:
- A 50% tax credit on as much as $10,000 in wages per employee for companies that had to suspend or partially suspend as a result of shutdown order if gross receipts declined by more than 50% in the same quarter of the previous year.
- Social Security tax for 2022 may be deferred and paid over the next 2 yrs.
- Businesses that will receive the alternative minimum tax credit after 2022 will get them early.
- Business interest expense deductions will be expanded for 2022 and 2022 taxes to 50% of taxable income (from 30%).
- Excise taxes on alcohol will be waived, provided it's accustomed to produce hand sanitizer in 2022.
Paid Sick Leave
Self-employed individuals can qualify for a tax credit that’s intended to function something similar to paid sick leave. The loan can be obtained with the end of 2022 and could be claimed for approximately Ten days. To be eligible, you have to be in an area susceptible to a quarantine or isolation order associated with COVID-19, been advised to self-quarantine with a doctor for reasons pertaining to COVID-19, or are experiencing COVID-19 symptoms and are seeking a medical diagnosis. You have to also not be able to work remotely.
Eligible employers could also be eligible for a a sick leave credit for workers. The tax credit is perfect for the employee’s regular rate of pay or $511 each day, whichever is lower. The credit might be claimed for up to Ten days per employee.
I’d recommend checking along with the government site’s coronavirus page from time to time to maintain developments. It also provides links to other resources that may be of use to you.
State-Level Grants, Relief Programs & Guides
As states round the country deal with the business fallout in the virus, many have begun to offer some form of relief to businesses that take a success. Keep in mind that assistance can also be provided at the municipal level, especially if you’re inside a hard-hit city. For rural areas, check with regional development agencies to ascertain if they’re providing assistance.
Departments Of Labor/Unemployment Insurance
Unemployment insurance has been expanded to pay for some groups that aren’t usually included. Of particular interest to the readership could be the proven fact that it now covers the self-employed…a minimum of in theory. The exact process for trying to get UI varies by state, even with the government expansion, as will the number you will be presented. The minimum benefit is one-half of your state’s average unemployment payment.
Alabama
Alabama has consolidated its COVID-19 related online learning resources to a site called altogetheralabama.org. While there aren’t that many state-level programs, make sure to browse the local company resources, as cities for example Birmingham and Auburn, in addition to regional initiatives, are providing assistance in some form.
Alaska
Alaska has formed the Alaska Economic Stabilization Team (AEST) to actively address the economical fallout from COVID-19. The governor’s six-point plan includes 100% state-guaranteed loans to Alaskan businesses and a proposed $2 million employment training course.
Arizona
You can remain up-to-date on Arizona’s COVID-19 business resources through its Arizona Together site. Their state has approved a $50 million Coronavirus Relief Package that allows the governor to allocate funding to numerous support programs around the state. You will find a list of actions the governor has taken on the governor’s website.
Arkansas
Arkansas’s A quick response Loan Program will lend qualifying companies up to $250K, with priority to businesses that have been in the supply chain of essential products or services. The state is also creating to $12 million available in Community Development Block Grants.
California
You can remain up-to-date on California’s COVID-19 business resources through its response site. California happens to be deferring sales and employ taxes for up to $50,000 for small businesses with less than $5 million in taxable sales. It’s also offering a 90-day extension for businesses filing a return for less than $1 million in taxes.
Finally, the state is offering the California Small Business Loan Guarantee Program to businesses that don’t qualify for federal funding. Qualifying businesses may have less than 750 employees. California guarantees up to 95% from the loan for a term as high as seven years. The borrowed funds has been offered through IBank.
Colorado
Stay up-to-date on Colorado’s COVID-19 business resources with the state’s Choose Colorado site. Of particular interest may be the list of nonprofit lenders they connect to.
Connecticut
Connecticut provides the $50 million Connecticut Recovery Bridge Loan Program for businesses and nonprofits with less than 100 employees. These are zero-interest loans of up to $75,000 or three months of operating expenses, whichever is lower. The loans is going to be administered on a first-come, first-serve basis. The first round of funding happens to be closed, however, you will keep up-to-date on it along with other programs through the state’s coronavirus response site.
If you’re overwhelmed, you may want to take advantage of the COVID-19 Business Emergency Response Unit, which can fix how you can navigate the state’s business resources. You are able to give them a call at 860-500-2333.
Delaware
Delaware has launched an emergency loan program for smaller businesses that fall under the hospitality umbrella. They are no-interest loans of up to $10,000 with a 10-year term. Qualifying businesses will have under $1.5 million in annual revenue and have been operating with revenue not less than annually. You are able to follow further developments through Delaware’s business resources page.
Florida
Florida’s Small company Emergency Bridge Loan will be open to businesses impacted by COVID-19. These financing options are interest-free, but they are not designed to be a primary supply of assistance.
You’ll also learn more concerning the Rebuild Florida Loan Fund, which could provide up to $500K from the state’s Business Loan Fund for companies that were impacted by the crisis to assist them to rebuild or expand. Eligible businesses will be in industries targeted by the state essential for strategic growth. These financing options can be used for:
- Inventory purchases
- Construction or renovation
- Working capital needs
- Capital start-up loans
- Machinery and equipment purchases
- Equipment financing
Georgia
You can stay up-to-date on Georgia’s reaction to COVID-19 on its government page.
Hawaii
You can remain up-to-date on Hawaii’s reaction to the pandemic on its COVID-19 page.
Idaho
You can find helpful information on businesses on Idaho’s novel coronavirus information page.
Illinois
Illinois is generating than $90 million in emergency assistance readily available for small businesses, which includes grants and loans. Programs include:
- Illinois Small company Emergency Loan Fund: Provides loans as high as $50K for smaller businesses without any payments for six months, after which it will end up a five-year loan at 3% interest.
- Downstate Small company Stabilization Program: Offers grants of up to $25K to smaller businesses with DCEO’s Office of Community Development.
- Hospitality Emergency Grant: A $14 million grant program that provides as much as $25K to eligible bars and as much as $50K for eligible hotels.
You can keep up-to-date on new developments on Illinois’ coronavirus response page.
Indiana
You can remain up-to-date on developments within Indiana on its coronavirus response page.
Iowa
You can stay up-to-date on developments within Iowa in the novel coronavirus section.
Kansas
You can stay current on Kansas’s reaction to the pandemic through the Kansas Department of Commerce site.
Kentucky
You can stay up-to-date on Kentucky’s initiatives on its Team Kentucky COVID-19 page.
Louisiana
You can stay current on Lousiana’s response to the pandemic through its government page.
Maine
The Finance Authority of Maine (FAME) provides some relief for businesses with the state. Including FAME Direct Loans and approval of OLA loans at 50% of the regular insurance rate. You'll find more information on that and other responses by Maine’s government through its COVID-19 response page.
Maryland
Maryland is providing financial help for businesses impacted by COVID-19 with the following programs:
- Maryland Small company COVID-19 Emergency Relief Loan Fund: A $75 million loan fund without any payments for the first 12 months before converting right into a 36-month term loan at 2% interest.
- Maryland Small company COVID-19 Emergency Relief Grant Fund: A $50 million grant program that offers as much as $10,000 to businesses.
- Maryland COVID-19 Emergency Relief Manufacturing Fund: A $5 million fund to assist Maryland manufacturers produce personal protective gear.
Unfortunately, as of April 6th, applications of these programs are closed. It’s unclear whether you will see additional rounds of funding. You can read more about these programs along with other virus-related business issues around the state’s coronavirus information for businesses page.
Massachusetts
You can remain current on Massachusett’s reaction to the pandemic through its COVID-19 resource page. Their state happens to be offering tax relief and extensions.
Michigan
Michigan is offering financial help to small businesses through the following programs:
- Michigan Small company Relief Program: A grant program administered by a number of nonprofit economic development organizations. You’ll apply through whichever organization serves your local area.
- PMBC COVID-19 Emergency Access & Retooling Grants: These are grants of up to $150K available to businesses looking to rapidly convert to manufacturing personal protective gear.
Minnesota
Minnesota is offering assistance with the following initiatives:
- Small Business Emergency Loans: Offers loans as high as $35K, interest-free according to economic injury. These will have five-year terms, with payments deferred for six months.
- Minnesota Small company Loan Guarantee Program: The state will guarantee loans from partnered lenders for various uses. This program will provide an 80% guarantee up to a maximum of $200,000. A charge of 0.25% on the guarantee loan principal is going to be charged for every loan signed up for this program.
Applications are closed as of 4/14/20. It’s unclear whether you will see additional rounds of the program.
Mississippi
Mississippi happens to be trying to assist businesses that are able to manufacture or supply personal protective equipment. Mississippi is also offering some tax relief to businesses.
Missouri
You can remain current on Missouri’s response to the pandemic through its government page.
Montana
You can remain up-to-date on Montana’s reaction to the pandemic through its COVID-19 page.
Nebraska
You can remain current on Nebraska’s response to the pandemic through its government page.
Nevada
You can stay current on Nevada’s reaction to the pandemic through its health response page.
New Hampshire
New Hampshire is currently offering some tax relief for businesses. Read more about might other coronavirus updates on New Hampshire’s COVID-19 business resources page. The brand new Hampshire Business Finance Authority (BFA) provides a handful of state-level options for businesses.
- The Capital Access Programs (CAP) provides banks with incentives to make loans and contours of credit to smaller businesses in amounts as much as $200K. Qualifying businesses should have annual revenues under $5 million.
- The BFA also provides direct loans for approximately $200K. It has flexible amortization schedules but should be approved by the NH Executive Council.
New Jersey
New Jersey supplies a FAQ for businesses looking for specifics of coronavirus initiatives. They likewise have a handy eligibility wizard, which can help you save a while. Programs that can help businesses affected by COVID-19 include:
- New Jersey Economic Development Authority (NJEDA) Small Business Emergency Assistance Loan Program: This is a direct loan as high as $100K to Nj businesses that will be in business not less than annually and have under $5 million in annual revenue. Eligible businesses should have had at least a 20% decline in revenue. These loans have 10-year terms, 0% interest for that first 5 years, along with a maximum of 3% interest during the last five. Repayments are deferred for that first year. As of 4/13, this program is “oversubscribed.” You can still apply, however it sounds like your application could get rolled over to future rounds of funding.
- NJ Entrepreneurship Guarantee Program: This program supplies a guarantee of an investor loan for approximately 80% of the total investment amount, not to exceed $200K.
- Emergency Assistance Grant Program: This program provides up to $5K for payroll and dealing capital expenses.
New Mexico
You can remain up-to-date on New Mexico’s coronavirus initiatives around the state’s economic development department site. Boise state broncos has greenlit the New Mexico Recovery Fund, which is available to businesses with more than 40 employees that may demonstrate they experienced losses because of COVID-19. These loans derive from 2022 operating expenses and can't exceed $10 million. APRs will vary from 3%-5%, and the term lengths will be between two and 4 years.
New York
New York City has some programs specifically for businesses operating inside the five boroughs. These include:
- NYC Employee Retention Grant Program: Businesses which have seen a loss of at least 25% in revenue and have been in operation for at least 6 months with no tax liens or legal judgments can be eligible for a a grant to cover 40% of payroll expenses (capped at $27,000) for 2 months.
- NYC Small company Continuity Loan Fund: Interest-free loans of up to $75K are for sale to businesses with less than 100 employees that have were built with a loss of a minimum of 25% in revenue.
Small businesses in the city and the remaining state should keep an eye on the coronavirus FAQ for businesses for brand new developments.
North Carolina
You can remain up-to-date on North Carolina’s coronavirus initiatives on the state’s COVID-19 informational page for businesses.
North Dakota
Keep an eye on North Dakota’s COVID-19 FAQs for new developments. Your company may be eligible for a a North Dakota Development Fund Loan. These come in three forms:
- Primary Sector Businesses: Loans of up to $1 million that can be used for working capital, equipment, or property.
- Childcare Loan Program: Up to $100K at 2.5% interest for certified daycares.
- Rural Growth Incentive Program Emergency Loans: Loans for “essential service companies” in communities with less than 2,500 people.
Ohio
Ohio has launched a frequently updated coronavirus informational site.
Oklahoma
Oklahoma has a COVID-19 resources page for businesses that’s worth keeping track of.
Oregon
Business Oregon, a state agency, presents helpful information on COVID-19 affected businesses. The state-specific programs appear to be centered on nonprofits at the moment, by means of the Oregon Small company Stabilization Fund. Observe that the second doesn't directly lend to small businesses but provides funds to nonprofit organizations which do. Their state can also be delaying tax and payment deadlines.
Pennsylvania
Pennsylvania recently exhausted its COVID-19 Capital Access Program; it’s unclear whether you will see additional rounds in the future. The Pennsylvania Department of Community and Economic Development has links to business-related coronavirus resources.
Rhode Island
Rhode Island provides Forty-five minutes of free tech support via teleconference to businesses. The state also intends to provide relief to small businesses through its judicial Business Recovery Plan, that will provide supervised protections. You can stay up-to-date on Rhode Island’s business-related responses around the Rhode Island Commerce site.
South Carolina
You can remain current on South Carolina’s reaction to the pandemic through its COVID-19 page.
Tennessee
Launch Tennessee has collected lots of useful links (expand the company Continuity section) for small businesses on the way to navigate the crisis.
Texas
Texas is providing tax relief for impacted businesses through the Comptroller’s Office, suspending the 60-day deadline for businesses to contest audit results. You’ll want to contact work to create individual arrangements, however. You can keep up-to-date on new developments on the Texas Economic Development coronavirus page.
Utah
Salt Lake City is offering 0% interest loans of up to $20,000 to affected businesses through its Salt Lake City Emergency Loan Program. These loans have five-year terms, with repayment deferred for 90-days following the mayor drops the present “Proclamation Declaring a nearby Emergency.”
Round 2 of the Utah Leads Together Small Business Bridge Loan program is accepting applications until 4/16. This round is perfect for nonprofits, but for-profit companies that used in the very first round and weren't successful will automatically be considered for round 2 funding. Utah Leads Together Small company Bridge Loans vary from $5,000 to $20,000 with 0% interest for up to 5 years. Loan repayments are deferred for 12 months.
You can explore other resources on Utah’s coronavirus site.
Vermont
Vermont provides relief to businesses that owe Meals and Rooms Tax or Sales and employ Tax until further notice by waiving penalties and interest for late submissions. The state can also be offering support to companies that require technical assistance. More information is available around the state’s response page.
Virginia
Virginia is providing rapid response funding with the Workforce Innovation and Opportunity Act for businesses that remain open. These funds can be used to clean facilities or support emergency needs. Impacted businesses may also request deferments on sales tax for Thirty days.
Washington
You will find a summary of business-related coronavirus links on Washington’s coronavirus page. Businesses impacted by the coronavirus can use for a Working Washington Small Business Emergency Grant of up to $10,000, you need to be conscious that numerous counties in the state have suspended applications at this time because of the overwhelming volume.
West Virginia
You can stay up-to-date on West Virginia’s responses towards the pandemic on their COVID-19 site. The West Virginia Development Office also looks after a useful list of small company resources.
Wisconsin
Wisconsin is providing support to smaller businesses through the Small Business 20/20 program. These are grants as high as $20K to existing CDFI clients to assist with cash-flow problems. You can find information on might coronavirus updates on the Wisconsin Economic Development Corporation site.
Wyoming
You can remain up-to-date on Wyoming’s business-related responses to the pandemic on their COVID-19 site. There are also some resources around the Wyoming Small company Development Center Network site.
What To complete If you want Fast Funding
On the other hand, if you’re a business that is experiencing higher-than-normal demand during the COVID-19 crisis, you might be dealing with a different of problem. Maybe you need to get ahead of your inventory or purchase equipment to deal with the increased stress on your business. If so, you are able to probably take a more mundane route to get funding.
While there will no doubt be instability within the lending marketplace for the near future, lenders are often a few of the first institutions to get federal relief in these times. Appetite for risk will vary through the lender, however, many will probably be looking for borrowers who appear to be a secure investment. Note, I’d strongly caution companies that have had to scale back or temporarily shut down operations against seeking high-interest lending options at this time; the expense can quickly balloon out of control if you’re unable to maintain payments. Collectors are the thing you don't want to increase your plate at this time.
If you need a loan quickly, I’d recommend taking a look at our top-ranked small company lenders for 2022. Be aware that some might be lending as always at this time.
A simpler option for short-term financing, particularly right now, may well be a business credit card. While the rates of interest on charge cards can be extremely punishing, if you repay your balance every month, you’re effectively obtaining a “free” extremely short-term loan. This is often helpful for smoothing your cash flow and making direct purchases. Many are available with lucrative rewards programs that can allow you, should you play your cards right, to really save money using a business credit card. Take a look at our guide to instant approval business charge cards for more information. And browse about How To make use of (& How To Avoid Using) Business Credit Throughout the Coronavirus Pandemic.
If you’re falling behind on charge card payments at this time because of diminished business from the pandemic, our guide about how you can get the aid of creditors might be useful.
Learn About Small Business Loans From your Resources
Finally, there exists a large amount of content on this website that are responsible for how to find and apply for loans under various circumstances. A lot of it'll be relevant throughout the COVID-19 crisis (and you may expect us to carry on updating and adding to it as circumstances change as well as other federal relief packages begin to come online).
If you’ve didn't have to try to get a company loan before, we are able to take you step-by-step through the process of where to look and how to apply. Given the volatility of the moment, you most likely also want to size up whether you really can afford a small business loan. We can also help you work out how strong your business application for the loan is.
And make sure to check back in with us within the following weeks once we try to bring you the best, most current information about how your online business can weather the storm.
is currently offering a hub of resources and knowledge for small businesses throughout the coronavirus pandemic. Find out about taking your company online or accepting payments online moving forward, figure out how your restaurant can survive the pandemic, and browse some suggestions from our remote team about working from home with kids.
