COVID-19 Business Resources
ARTICLES FOR RETAILERS
REPORTS AND GUIDES TO HELP YOU PIVOT YOUR BUSINESS
LEARN HOW TO PIVOT YOUR RETAIL BUSINESS
THE CORONAVIRUS AID, RELIEF AND
ECONOMIC SECURITY (CARES) ACT
The third relief legislation related to the COVID-19 pandemic, a $2 trillion stimulus package titled the Coronavirus Aid, Relief and Economic Security (CARES) Act (“CARES”) is just not in draft form. It still has to be officially approved and signed into law. We are currently reviewing summaries of the various sections. Once CARES is final, and proper analysis has been performed, we will provide summarized updates as they apply to our area. For the time being, we’ve put together some highlights.
CLICK TO READ WHAT YOU NEED TO KNOW NOW
- $350 billion would be made available in loans for small businesses with less than 500 employees.
- Paycheck Protection Program: 8 weeks of cash-flow assistance through 100 percent federally guaranteed loans to employers who maintain their payroll during this emergency.
- The borrower shall have a portion of their loan forgiven in the amount equal to payroll support, employee salaries, leaves, rent and utility payments between the covered period of February 15, 2020 and ending on June 30, 2020.
- Eligible borrowers must make a good faith certification that the loan is necessary due to the uncertainty of current economic conditions caused by COVID-19; they will use the funds as intended; and are not receiving duplicative funds for the same uses from another SBA program.
- Includes sole-proprietors, independent contractors, and other self-employed individuals as eligible for loans.
- Recovery Rebate for American Households: Determine Your Amount
- All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not dependent on another taxpayer and have a work eligible social security number, are eligible for the full $1,200 ($2,400 married) rebate. Families are eligible for an additional $500 per child.
- $150 billion Available in State and Local Stimulus Funds.
- “State Stabilization Fund,” which would assist state governments with looming revenue shortfalls during the pandemic.
- Emergency Increase in Unemployment Compensation Benefits
- Provides an additional $600 per week payment to each recipient of unemployment insurance or Pandemic Unemployment Assistance for up to four months. An addition to the state program.
- Establishes a $500 billion lending fund for industries and cities.
AS A SMALL BUSINESS, YOU MIGHT HAVE BENEFITS!
If your business is formed as an S-Corporation or C-Corporation and you’ve been running payroll for yourself, know that if push comes to shove, you could collect unemployment if you are out of work. Yes. As an employee of your corporation, you have the same rights as any other employee.
Paid Family Leave
Again, if you are an owner/employee of an S-Corporation or C-Corporation and work/live in a state that has Paid Family Leave benefits and have coverage in place, you could file for benefits if you are unable to work because you have to take care of a sick relative.
New Bill - Families First Coronavirus Response Act
The House recently passed a bill that offers paid time off and expanded unemployment benefits, among other things. This bill still needs to be approved by the Senate, but it will likely pass. The benefits in this bill will not only support small businesses with employees, but also provides assistance to those who are part of the gig-economy. So if you are self-employed but not on payroll under your business, or don’t have a formal business set-up, you would still be able to receive benefits.
IMPORTANT LINKS FOR RETAILERS
Business Assistance for Retailers
- Federal: Low-interest loans up to $2 million through the Small Business Administration for states impacted by COVID-19.
- Small Business Association: Eligibility for Economic Injury Disaster Loans is based on the financial impact of the COVID-19. The interest rate is 3.75% for small businesses. The interest rate for private non-profit organizations is 2.75%. SBA offers loans with long-term repayments in order to keep payments affordable, up to a maximum of 30 years and are available to entities without the financial ability to offset the adverse impact without hardship.
- U.S. Chamber of Commerce: Information on SBA Coronavirus emergency loans and federal stimulus aid programs, updated regularly with new resources to assist you and your business.
- KIVA: Kiva lenders have shown their commitment to providing financial assistance to all by making 0% interest loans to entrepreneurs in the U.S. on Kiva.org for the last 10 years.
- Facebook Small Business Grants Program: Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where we operate. We’ll begin taking applications in the coming weeks. In the meantime, you can sign up to receive more information when it becomes available.
- The GoFundMe.org Small Business Relief Fund: The Small Business Relief Fund will provide one-time matching grants to qualifying small businesses to help alleviate the financial burdens during these pressing times. To qualify for a matching grant from the Small Business Relief Fund, the GoFundMe fundraiser must raise at least $500 and verify that your small business has been negatively impacted by a government mandate due to the COVID-19 pandemic. Your small business must be independently owned and operated, and must not be nationally dominant in your field of operation. Each recipient of the matching grant must intend on using the funds to help care for your employees or pay ongoing business expenses.
- Bumble Loves Small Businesses: Bumble is granting a number of small businesses up to $5K to help during this trying time. At this time, we are only accepting requests from small businesses and will verify all company registration numbers. If you’re not a small business owner, you can fill out this form to nominate a small business (or forward this link to them!).”
- Forbes: National and state-specific funds, grant, and resources for business owners grappling with coronavirus.
Assistance By City or State For Retailers
- State of Massachusetts: Emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits.
- State of Florida: Up to $50,000 per eligible small business. Loans of up to $100,000 may be made in special cases. Interest-free for the first year and 12% per annum thereafter.
- State of Michigan: Grants up to $10,000 (if you have less than 50 employees) and low-interest loans between $50,000 and $200,000 (if you have less than 100 employees).
- State of Pennsylvania: Pennsylvania businesses through $60M of funds provided by the PA Industrial Development Authority (PIDA) Conronavirus Relief. PIDA is making emergency relief loans up to $100,000 available to qualifying small businesses with 100 or fewer employees at a 0% interest rate for a term of 3 years. The new program is called the COVID-19 Working Capital Access Program (CWCA) and is meant for PA businesses to be able to keep their doors open during the shutdown. This program is currently live as of the governor’s press conference. All loan applications must be submitted by a Certified Economic Development Organization (CEDO).
- City of New York: Zero-interest loans of up to $75,000 for businesses with less than 100 employees. 40% of payroll costs covered for businesses with less than 5 employees. There are some requirements that will need to be met for the funding, and I hope no one actually meets these requirements, but, it really made me feel better to know that if it gets to this point, there is a light. I also suggest signing up for updates on their site so you’re kept in the loop as programs are released.
- City of Stamford, CT: Stamford has similar like New York City.
- City of San Francisco: $10,000 for employee salaries and rent for businesses with less than 5 employees.
- City of Sacramento: Zero-interest loans of up to $25,000.
- City of Chicago: Low-interest loans up to $50,000 for businesses who’ve suffered more than 25% revenue decrease due to COVID-19 and have under 50 employees.
- City of Los Angeles: Low-interest loans between $5,000 to $20,000 to help with job retention.
- City of Seattle: The City of Seattle will commit approximately $1.5 million in one-time Community Development Block Grant (CDBG) funds to the Small Business Stabilization Fund, an emergency fund that provides working capital grants in amounts up to $10,000 to qualifying small businesses.
Other Resources For Retailers and Small Business Owners
- Government Support for Small Businesses during the Coronavirus | Podcast
- The Pros and Cons of Small Business Selling on Amazon | Article
- How Small Business Can Get Creative During the Coronavirus | Article
- How Jewelry Retailers are Dealing in the wake of the Coronavirus | Podcast
- Should Small Businesses Take Out a Loan or is it a Trap? | Article
Discounted or Free Business Tools For Retailers and Small Businesses Owners
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