It’s COVID-19 check-in time. How are all our small business owners doing? Hello to our friends outside the US! Don’t worry, we see you. Even if we can’t visit you any time soon. Luckily information doesn’t need to be quarantined. Governments and organizations around the world have put together their own relief programs to help out businesses of all sizes.
Here in the States, it’s now been more than 6 weeks since the President signed a whopping $2 trillion relief bill (it’s yuge). It turns out that small businesses will receive a collective 19% slice of that pie. Most of us have signed up for PPP, but so far only a small percentage have actually received any money.
Being told to “hang on in there” feels as though you’re stuck in nose-to-tail highway traffic. Knowing small business owners as we do, we suspect you’re itching to DO something, anything to proactively tackle this situation.
So first thing’s first. Let’s check that you’re up to speed on all the small business relief programs you may be eligible for. Select a section below to choose the information you want to read:
Germany: A €750 billion package has been signed off to aid the country through the disaster. This includes 100 billion in loans to struggling businesses from public sector bank KfW and a €50 billion program to help self-employed and small businesses facing bankruptcy as a result of the pandemic.
UK: Salesforce.com have put together a great list of resources for small businesses in Britain. It includes links to official health advice, advice from the business sector and from the British government about short-term aid available.
Australia: The Australian government has created a comprehensive resource on state and territory information, grants and assistance.
Paycheck Protection Program (PPP)
As we’ve already mentioned, the majority (70%) of small businesses have already applied for a PPP loan. If you haven’t applied yet, don’t worry, you haven’t missed the boat! As of May 7, there was still over $100 billion of funds available through PPP, so it’s not too late.
Eligible businesses can receive up to $10 million of low-interest, forgivable loans for payroll, rent, utilities, and some other expenses.
Sure, the wait is long. But if you are eligible, you deserve all the financial help allocated to you, even if the timing isn’t optimal.
Find out how you can join the queue by visiting the Small Business Association Website. Search for an approved lender near you using their ZIP code search bar.
Economic Injury Disaster Loan and Advance (EIDL)
Agricultural businesses with less than 500 employees that are experiencing temporary difficulties can receive up to $10,000 of relief with this loan advance. You can apply here.
“Wait a minute, only agricultural businesses?” At the minute, sadly, yes. The SBA has been overwhelmed with applications. While they work through the backlog, they’ve limited new applications to agricultural businesses only. But watch this space, there’s a chance they might get more funding, and you’ll want to be the first to hear about it.
Express Bridge Loans
This one’s for you if you already had a business relationship with an SBA Express Lender. Loans of up to $25,000 are being handed out to help cover temporary loss of revenue due to COVID.
Don’t take the decision to apply for this loan lightly. The turnaround is fast and meant as a short-term solution. Interest will be charged, and your lender might also charge fees.
Talk to your current bank or lender to find out if you’re eligible and what their specific terms are.
There’s no need to apply for this one, it’s already automatically been done for you… by the SBA fairies!
The SBA is paying 6 months of fees that borrowers owe for certain loans. It doesn’t, however, apply to EDIL or PPP loans.
Contact your lender if you have any questions about this debt relief.
Deadline extension for tax filing and payment
Those of us who are paperwork-averse will be thrilled to hear that they don’t need to gather those receipts and open those pesky excel sheets for another 3 months. Put it in your calendar: July 15th is the new deadline for federal tax filing.
Certain states have also shifted their deadlines to July 15th. Find out if businesses in your state have an extension to pay state and local taxes this year by checking with your state tax agency.
In today’s episode of “Which State is it Anyway?” the following are up for grabs: 0% interest loans, grants of up to $10,000, and loans of up to $50,000.
Governors are moving fast to help out small businesses in their state. Check your governor’s website to find out relief programs are on offer in your area.
You’ve got to move quickly, though. The New York City Small Business Continuity Fund previously offered up to $75,000 in zero-interest loans. For now, it has been paused due to “overwhelming interest.” So make sure that you apply STAT for relief programs that are still accepting applications.
You’ve Applied for Small Business Relief Programs, Now What?
Once you’ve applied to all the programs you’re eligible for, make sure you give yourself credit. Waiting around for an answer is stressful, but you should at least acknowledge that you’ve done your part. You’ve done everything in your control.
Now you can focus on other ways of shoring up your business during the pandemic. For inspiration read our blogs Saving Small Business, and How To Stay Connected with Customers During the Coronavirus Pandemic.