Federal, state, and local governments along with private corporations are moving quickly to provide financial assistance to small businesses in the face of the COVID-19 pandemic. Here is a summary of the public and private loans, grants, and support programs for small businesses and employees, along with how you can take action and advocate for dedicated funding for child care programs. We will update this article as more information becomes available.
Federal Assistance
The Federal Reserve announced that it is cutting interest rates to 0% and launching a $700 billion quantitative easing program.
The Small Business Administration (SBA) is offering $7 billion in low-interest federal loans to small businesses in designated states and territories impacted by COVID-19. Businesses can receive up to $2 million in assistance with interest rates of 3.75% and repayment terms up to 30 years. Check the SBA website to see if your area is eligible.
The U.S. Department of Labor issued guidance for state unemployment insurance programs to extend benefits to individuals whose employment status is impacted by COVID-19. Use this tool to find the agency that manages unemployment insurance in your state and visit their website for more information about eligibility and how to apply for benefits.
The federal government passed an economic relief bill to ensure that working people are able to access paid leave should they become infected or need to give care. It also strengthens existing unemployment insurance and food assistance programs, and will provide free diagnostic testing for the virus.
View this article for a breakdown of the CARES Act—including the top six things providers need to know about the $2.2 trillion stimulus package passed in late March.
View this article to learn about the expanded Payment Protection Program passed by Congress on April 24, 2020.
State Programs
Many states are offering their own recommendations and relief programs for businesses in response to COVID-19.
Here are some of the resources available by state. Note: this list is not exhaustive. View this comprehensive spreadsheet compiled by employer software platform Gusto to search for more your state’s available resources.
Alabama
Birmingham is providing $15 million to the COVID-19 response plan to fund police, fire, public works, and a stimulus program for small businesses affected by the crisis.
Businesses in Bibb, Fayette, Greene, Hale, Lamar, Marengo, Pickens, Sumter, and Tuscaloosa who meet certain criteria can apply for small business relief funds.
Alaska
The Alaska Industrial Development and Export Authority will provide a loan guarantee up to $1,000,000 per borrower to enable Alaska’s banks and financial institutions to immediately provide additional capital to Alaska businesses.
Arizona
Arizona enacted a cooperative agreement with the state’s banks to protect small businesses and families from eviction and foreclosure. Banks are now suspending evictions and foreclosures for at least 60 days, with the potential to extend that period for the duration of the state’s emergency declaration.
Arkansas
Arkansas Community Foundation has established a statewide COVID-19 Relief Fund to provide rapid-response grants to nonprofit organizations working on the front lines. The fund will focus on addressing the ongoing economic needs of Arkansans affected by the pandemic and shoring up critical systems in the state, such as healthcare, emergency food distribution, and schools.
California
IBank 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.
The Employment Development Department is providing a work sharing program for employers who need to reduce work hours, support teams for businesses planning closures or layoffs, and deadline extensions for filing payroll reports and taxes.
Sacramento has established a $1 million-economic relief package for small local businesses, in the form of zero-interest loans of up to $25,000 based on demonstrated need.
The City of San Francisco has developed the COVID-19 Small Business Resiliency Fund allowing impacted small business owners to access up to $10,000 for employee salaries and rent.
The City of Los Angeles has established Small Business Emergency Microloan Program, providing financing needed to strengthen small business enterprises in this time of acute need that have been affected by the COVID-19 outbreak with loans ranging from $5,000 to $20,000.
State legislators approved $100 million for K-12 districts and child care centers to cover school cleaning expenses and adopted waivers that will ensure funding for school districts and state-funded child care during school closures.
Colorado
The City of Denver launched an emergency relief fund to address the most immediate needs of the business community. This program provides up to $7,500 in cash grants to assist eligible small businesses that may have had to temporarily close, have difficulty with paying their rent and utilities, or have had to lay off staff.
Connecticut
The Connecticut Department of Revenue Services (DRS) is granting an automatic extension of Connecticut filing deadlines for certain annual tax returns in order to support businesses during the COVID-19 outbreak.
Delaware
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans to small businesses impacted by COVID-19.
Florida
The Florida Small Business Emergency Bridge Loan Program will provide short-term, interest-free loans to small businesses that experienced economic injury from COVID-19. The application period opened March 17, 2020 and runs through May 8, 2020.
Georgia
The Decatur City Commission approved a framework for a loan program to help businesses affected by COVID-19 by creating a $500,000 business loan fund. Businesses could receive up to $25,000, with the average loan in the $10,000 to $15,000 range. The loans would have a low interest or be interest-free. The payback period would be 36 to 60 months. The loans would be limited to businesses with 25 or fewer full-time employees.
Hawaii
Hawaiian small businesses suffering financial losses due to the impact of COVID-19 can now file for low-interest working capital loans of up to $2 million from the SBA. The loans can be used to pay fixed debts, payroll and other bills that can’t be paid because of a disaster’s impact.
Idaho
SBA is now offering low-interest federal disaster loans for working capital to Idaho small businesses suffering substantial economic injury as a result of COVID-19. Businesses in Cassia, Clearwater, Fremont, Owyhee, and Twin Falls may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses that could have been met if the disaster had not occurred.
Illinois
The city of Chicago established 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.
Indiana
The Indiana Chamber of Commerce established the Rapid Response Loan Fund through the Indy Chamber's Business Ownership Initiative (BOI) and its partners to provide 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.
Iowa
The Iowa Small Business Relief Program provides financial assistance ($24 million) to small businesses and tax deferrals to any Iowa businesses that have been impacted by COVID-19.
Kansas
The U.S. Small Business Administration is providing loans of up to $2 million available to small businesses in Kansas disrupted by coronavirus. The disaster declaration extends to all 105 Kansas counties.
Kentucky
Covington, KY launched a program that offers financial assistance in the form of reimbursement of up to half of a business's monthly rent or mortgage payment, or $500.00 per month (whichever is less).
The City of Pikeville is offering one-time $2,000 grants to businesses impacted by the coronavirus. To qualify, businesses must employ fewer than 25 people, have been in business since the beginning of the calendar year along with other requirements.
Louisiana
The Louisiana Loan Portfolio Guaranty Program offers loans of up to $100,000 to Louisiana small businesses of fewer than 100 employees that are impacted by COVID-19.
The Greater New Orleans Foundation has activated its Disaster Response and Restoration Fund to provide assistance to those who are most in need.
Maine
The COVID-19 Relief Business Direct Loan Program provides 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
The Maryland Small Business COVID-19 Emergency Relief Loan Fund provides a $75 million loan fund (for for-profit businesses only) with no interest or principal payments due for the first 12 months, then converts to a 36-month term loan of principal and interest payments, with an interest rate at 2% per annum.
Massachusetts
The $10 million Small Business Recovery Loan Fund will provide emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits. Loans are immediately available to eligible businesses with no payments due for the first 6 months.
Michigan
Michigan is providing grants to child care centers who agree to lower their weekly rates by at least ten percent during the COVID-19 crisis.
The Michigan Economic Development Corporation is providing up to $10 million for small business loans for small businesses statewide that have realized a significant financial hardship as a result of the COVID-19 outbreak. Loans to eligible borrowers must be $50,000 or more and are capped at $200,000.
Minnesota
The Minnesota Small Business Loan Guarantee Program provides another option for financing to help small businesses impacted by COVID-19. DEED estimates that this will guarantee $20 million to $25 million in loans for Minnesota small businesses.
Mississippi
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of COVID-19.
Missouri
The St. Louis Economic Development Partnership and the St. Louis Development Corporation are offering a zero-loan program for small businesses in the city of St. Louis and St. Louis County. Businesses are eligible to apply for loans of up to $5,000 for working capital.
Montana
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses impacted by COVID-19. Montana businesses are now eligible to apply for up to $2 million in 30-year loans with an interest rate of 3.75 percent.
Nebraska
The Omaha Community Foundation has launched a fund to provide flexible resources to organizations in the metro area working with communities who are disproportionately impacted by coronavirus and the economic consequences of this outbreak
Nevada
Small businesses may qualify for Economic Injury Disaster Loans of up to $2 million to help meet financial obligations and operating expenses.
New Hampshire
The U.S. Small Business Administration (SBA) is providing New Hampshire with loans of up to $2 million to pay fixed debts, payroll, accounts payable and other bills that can't be paid because of the disaster's impact.
New Jersey
The New Jersey Economic Development Authority (NJEDA) Board is providing grant and loan programs of more than $75 million. The initiatives will support between 3,000 and 5,000 small and midsize enterprises and are meant to complement recently announced federal economic recovery initiatives.
New Mexico
New Mexico Economic Development Department (NMEDD) 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 working capital, inventory, payroll, and more.
New York
New York City will provide relief for small businesses across the City through zero interest loans of up to $75,000 to help mitigate losses in profit. Small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help retain employees.
North Carolina
The U.S. Small Business Administration granted Governor Roy Cooper’s request for a disaster declaration for small businesses that are suffering economic losses due COVID-19.
North Dakota
The North Dakota Development Fund, Revolving Rural Loan Fund and the Venture Capital Program provides loans and equity investments to companies certified as a primary sector of up to $1 million to use for working capital, equipment, or real estate.
The child care loan program provides loans of up to $100,000 at a 2.5% interest rate to certified daycares to ensure continuity.
The Childcare Emergency Operating Grant offers grants to providers who prioritize the children of health/safety/lifeline worker households.
Ohio
JobsOhio has committed up to $50 million to assist Peoples Bank and recently merged First Federal Bank and Home Savings Bank with providing lending support to companies negatively affected by COVID-19.
The Office of Small Business Relief (OSBR) is providing direct financial support to Ohio small businesses.
Oklahoma
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.
Oregon
The City of Grants Pass is providing up to $2,500 in assistance to qualifying local businesses to assist with mortgage, rent and lease payments, utility costs, and payroll expenses.
Pennsylvania
The City and the Philadelphia Industrial Development Corporation (PIDC) is providing new grants and zero-interest loans for businesses that make under $5 million in annual revenue.
Businesses in the City of Pittsburgh can be eligible for loans of up to $15,000 to use for rent, insurance, payroll, and other fixed assets.
Rhode Island
The Rhode Island Commerce and Goldman Sachs committed $10 million for loans to small businesses in Rhode Island.These Paycheck Protection Program (PPP) loans are for small businesses and nonprofits that have been unable to submit a PPP application through another lending institution.
The Providence Business Loan Fund (PBLF) is offering loans starting at $10,000 to provide working capital to support business-related expenses. New loan recipients will also receive closing costs capped at $500, zero interest for up to 12 months, and deferred loan payments for 6-12 months.
South Carolina
The City of Columbia is providing Small Business Stabilization Forgivable Loans of up to $10,000 at zero interest in an effort to mitigate losses experienced by small businesses.
South Dakota
The Small Business Loan Fund was allocated $10.5 million, and allows small businesses to apply for interest-free loans up to $75,000.
Tennessee
The Tennessee Department of Human Services is funding a $10 million grant to licensed day cares impacted by COVID-19 to retain staff and operations.
Texas
The U.S. Small Business Administration (SBA) has included the entire state of Texas in its Economic Injury Disaster Declaration and granted access to its Economic Injury Disaster Loan (EIDL) program, which will provide long-term, low-interest loans to qualifying businesses across the state.
Utah
The Salt Lake City emergency loan program aims to provide financial relief to small businesses that will most likely see a downturn in business due to an unforeseen emergency. The program will fund loans up to $20,000 at 0% interest. The application will be open until Monday, March 23rd at midnight.
The Child Care Operations Grants are available for Utah-based child care providers whose operations have been affected by decreased enrollment due to COVID-19. Child care programs with (a) a license in good standing from Utah Child Care Licensing and (b) are open and (c) providing child care services may be eligible for a Child Care Operations Grant.
Vermont
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses impacted by COVID-19.
Virgina
The U.S. Small Business Administration is offering small businesses and non-profits located throughout the state a loan of up to $2 million to pay fixed debts, payroll, accounts payable, and other expenses.
Washington
Seattle Mayor Jenny A. Durkan announced a $1.5 million fund to invest directly in small businesses financially impacted by COVID-19. Eligible small businesses will receive a grant of up to $10,000 to mitigate revenue lost by COVID-19.
West Virginia
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses impacted by COVID-19.
Wisconsin
The Small Business 20/20 Program will provide grants of up to $20,000 to assist targeted businesses with cash-flow challenges resulting from COVID-19.
Wyoming
Governor Mark Gordon announced that Wyoming small businesses are now eligible to apply for up to $2 million per company in federal economic disaster loans through the U.S. Small Business Administration (SBA).
Private Corporation Relief
Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where they operate.
Amazon is creating a $5 million Neighborhood Small Business Relief Fund to provide cash grants to Seattle small businesses that need assistance.
Stimulus 2020 is a privately-funded stimulus program intended to support America’s local businesses. They are curating a $1000 stimulus package and offers designed to help American businesses stay afloat in this time of crisis.
Amex business cardholders can enroll into their working capital program to access funds for vendor payments between $500-150,000, offering repayment terms of 30, 60, or 90 days w/ a fixed rate between 0.6%-5.25%.
How to Take Action
Child Care Aware of America is rallying early education providers to send letters to Congress to urge them to provide significant and dedicated funding for child care programs during this public health crisis.
The National Association for the Education of Young Children (NAEYC) has published a survey to collect stories of how early education programs have been impacted by COVID-19 in order to inform local and state policymakers.
Visit the brightwheel Coronavirus Resource Center for more essential tips and resources on how to stay informed, keep your business running, and communicate with families during COVID-19. If you have any feedback or ideas on what else we should cover, email us at resources@mybrightwheel.com.