Recovery from the pandemic is an ever changing process. County by county across the United States, positivity rates differ to determine what businesses can be open and how they can operate.

What funding assistance is out there? Interest rates are still low in early 2021, which allow for business owners to not completely stress over high rates that continue to compile interest that ultimately do not serve their business in the right manner. Loans and grants coupled with the current low interest rates can and have helped many small businesses get through a difficult time.

Small Business Administration COVID-19 Relief Programs

The U.S. Small Business Administration (SBA) currently offers four different types of loan assistance for small businesses in the fight to recover from the COVID-19 pandemic.

The SBA is preparing to offer two additional loans that are for venue operators and a targeted economic injury disaster loan (EIDL). This is the largest source of economic relief for small businesses. Taking time to review their complete suite of loans and grants will help determine what may be suited for your business and industry.

Paycheck Protection Program

The Paycheck Protection Program (PPP) is a Small Business Association loan that assist businesses in keeping their employees paid during the COVID-19 pandemic. This has been a main feature in the news for small businesses during relief package negotiations. Not only does this loan help pay your employees during the crisis, but can be used towards benefits, mortgage interest, rent, utilities, worker protection related COVID-19, uninsured damage costs caused by vandalism or looting during 2020, and certain supplier expenses for business operations.

As of January 24, 2021 the PPP approved over 5.5 million applications and provided over $557.8 billion dollars in aid to small businesses across the country. Deadline for first and second time borrowers is March 31, 2021.

The PPP also provides Loan Forgiveness if certain criteria of the loan has been met by the borrowing business. This applies not only to first time borrowers, but second time, as well.

COVID-19 Target EIDL Advance Loan

This option is replacing the original EIDL Advance loan that is no longer available. The targeted EIDL option provides advance funding of up to $10,000 to applicants in low-income communities who previously received an EIDL Advance for less than $10,000, or who applied but received no funds due to lack of program funding. There is no application process due to the terms above and the SBA will be notifying those that qualify to determine eligibility and process for any further documentation needed.

If you have received funding for the EIDL Advance or applied, please be aware of this option and any communication that may arrive to promptly respond with needed information.

Shuttered Venue Operators Grant

The Shuttered Venue Operators (SVO) Grant program was established in the aid bill that was signed into law on December 27, 2020. This bill is specifically designed for venues that have been unable to open doors or hold performances due to the impact of the pandemic and safety regulations.

The grant can provide equal funds to 45% of gross earned revenue (with a max. of a single grant of $10 million) for venues such as: movie theaters, theatrical and live performance halls, museums, zoos, aquariums, and talent representatives.

The application has been not been open yet for this grant, but please continue to visit the site for updates. However, there are priority periods based upon how much the venue operator has suffered in revenue during the pandemic.

Express Bridge Loan Pilot Program

The SBA Express Bridge Loan creates a funding opportunity for businesses that currently have a relationship with an SBA Express Lender to be provided up to $25,000 quickly for business operations.

SBA Debt Relief

For existing SBA loan borrowers only, funds will be provided for debt relief during the COVID-19 pandemic. The initial relief assistance provides 6 months of principal, interest, and any associated fees that borrowers may owe for all 7(a), 504, and Microloans that are in current good standing. As of December 27, 2020 borrowers may receive additional relief beyond the 6 month mark and will be determined beginning February 1, 2021 (current borrowers may contact their lender for further assistance and eligibility).

Non-Profit Grant Programs

You may be eligible for small business grants and loans through local and national non-profits organizations. These can be industry specific, based upon community involvement of the business and many more requirements. Doing a thorough sweep of grants available to your business will be in the interest of keeping your doors open.

Local Initiatives Support Corporation (LISC) is a non-profit organization that promotes community development initiatives in 35 cities, 2,100 rural counties in 44 states. Their Rapid Relief & Resiliency Fund was established in response to the COVID-19 pandemic to help provide grants and loans for small business support, access to technology, and provide support for community partners based upon gifts made by LISC supporters.

LISC also offers a Small Business Relief Grant for rural small business owners during the pandemic that help contribute to their local communities and economies. Grants range from $5,000-20,000, to businesses located in communities of 50,000 or less, with an emphasis on underserved communities.

Crowdfunding

For many, appealing directly to the community is hard pill to swallow. Many find pride in their business and it can be tough to admit needing help – however, these are not normal times where financial trouble is caused by wrongdoing. Using crowdfunding platforms allows for a business to share their story, how much is needed, and where that money will be directed to (payroll, rent, utilities, etc.).

GoFundMe is a popular platform has been used for entrepreneurs and personal hardships. The platform has created in response to the COVID-19 crisis, the Small Business Relief Fund, which will provide micro-grants to eligible small businesses impacted by the pandemic. This program is funded by the GoFundMe community and the Small Business Relief Initiative partners. Small businesses can apply here.

Classy is a platform that is specifically design for non-profit organizations to highlight their programs and initiatives that need special attention during the pandemic.

Kickstarter is best served for new creative projects, business endeavors that highlight an incentive for gifts made.

Look Locally

Small business owners can look to their local village (city) board for further resources on grants or loans that may be provided by the business registered town or county. Reviewing your state small business grant program is another beneficial resource that can help alleviate financial hardships during such difficult and unfathomable times. Finally, partnering with local investors and consultants can help determine what other options are out there for your business.

Summary

Time and allocated resources will be a large factor in energy spent in applying and determining eligibility for loans and grants during the COVID-19 pandemic. No one ever thought that this would be the state of the world when so many need support and guidance in next steps. By taking a few minutes a day to see what is available for your specific business through local, state, and national efforts, there may be a glimmer of hope that peaks through that can lead to relief.