Financial Resources During Times of Uncertainty
By Serah Blackstone-Fredericks of Books in Harmony
April 4, 2020
Whether you are a small business, an employee, a large organization or an entrepreneur, uncertainty is something that many people are becoming familiar with, and fast. With major layoffs sweeping the nation, children shifting to home learning, and rapid change to business infrastructure, the global pandemic is affecting almost everyone. The best way to dispel uncertainty is to have more information that can guide you when the next step for your business and your family seems less clear.
To help you keep moving forward, no matter what kind of business you have, we have collected for you some valuable information on grants and loans available to support you during this time. Many of these programs will be key to not only navigating solutions during the current uncertainty surrounding COVID-19, but to help you better understand what options are available to keep your business safe while we flatten the curve.
Your first step? Research grants. One grant that is recently giving small businesses hope is Facebook. Soon they will begin accepting applications to their grant program in order to give our small business friends a boost. They will be offering over $100 million in cash grants as well as ad credits for up to 30,000 small businesses around the world. Facebook's platform has been serving small businesses for over a decade and this is just another way they are reaching out to lend a hand to struggling small businesses suffering amidst the decline of sales and revenue since the onset of COVID-19.
What about loans? Most people have seen or heard about the $2 Trillion Dollar stimulus package that was signed off on to bring relief and aid to American's all over the U.S. What does that mean for you and your business? The EIDL (Economic Injury Disaster Loan) is a program that is normally set up to help small businesses seek loan help when economic hardship or disaster hits. Normally, you would need to apply under a strict set of circumstances to be eligible. The process can take quite some time. The Cares Act has not only expanded the eligibility requirements for this loan, but it has also reduced certain requirements that made it harder for businesses to qualify. It has sped up the application process so that they can get funds where they are needed faster and more efficiently. What if you have already taken out an EIDL but you still need help making sure that your employees are taken care of during the shutdown? That is where the Paycheck Protection Program comes in. People who have already taken advantage of the EIDL (NOT for COVID-19) can still apply for the Paycheck Protection Program and obtain loan assistance to keep their company and their employees more financially stable.
Even if you have already checked into these options, there are still a few more options you have for protecting your business. SBA disaster relief loans can be another avenue for securing capital to keep your business running in the midst of the shutdown. These low-interest-rate loans are available for businesses, renters, and homeowners who have been negatively impacted by COVID-19.
With all of these options to bring some additional capital to your company, you may still be concerned about the upcoming tax season. With all that has depleted so much revenue from companies, President Trump has extended out, for everyone, tax filing and payments until July 15th, 2020. There is nothing that you have to do to take advantage of this as it is in effect for everyone as of now. If you need additional time beyond that you can still connect with the IRS and request an extension.
It can be overwhelming to consider all of the options available to you. If you are an employee or a small business owner, make sure that you either speak with your HR representative to understand your options, or make sure to connect with your business attorney. We know that many businesses are struggling due to the shut down of businesses that are not considered essential. Many small businesses and organizations have been working hard to maintain their employee's payroll despite the lack of incoming revenue. If you have employees make sure that you are exploring all of your options to take care of your business and your employees. The last thing that your company needs during this uncertain time is the added stress of an unlawful termination lawsuit.
One thing is for sure, every single business that takes advantage of the available grants and loans will have a better chance of survivability when normal business resumes. While we know that nothing will ever be exactly the way it was before, we know that we will come back stronger and more bonded together than ever before. It takes a village to rise up when disaster strikes, and reach out a hand to those struggling to stay afloat. While we need to keep six feet away right now, soon, we will be rejoining together as a community to regain lost ground. While we wait for that day, we are here to help continue to serve your business needs and we are certain that these tools are here to help ensure you have the best chance to continue to build your business beyond this pandemic.
Here are some links to find out more about the resources available:
Facebook Grant Program: https://www.facebook.com/business/boost/grant
EIDL, SBA Disaster Relief Loans, Paycheck Protection Program: https://www.sba.gov/funding-programs/disaster-assistance
EDD Unemployment Workshare Program: https://www.edd.ca.gov/Unemployment/Work_Sharing_Program.htm
David Stern CFO has been releasing very informative bulletins, with some excellent information: https://www.davidsterncfo.com/ffcra
IRS File Date info: https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020
New Resources
Verizon just launched a Small Business Recovery Fund:https://www.lisc.org/covid-19/verizon-small-business-recovery-fund/