10 Small Business Grants For Businesses Suffering From COVID-19
Small businesses around the world are experiencing the impacts of poor economic conditions.
Due to the mandatory closures and safety measures required to flatten the curve and slow the spread of the virus, most businesses are struggling with cash flow. Almost 30 million businesses across the United States are in trouble because of this pandemic.
While some states have provisions for small business grants and other resources for startups, you might be wondering what those are.
Below is a list of federal, state and lender-specific support that small businesses can pursue to stay afloat.
1. Facebook Small Business Grants Program
The social media giant announced that it will offer $100 million small business grants in cash and ad credits to up to 30,000 businesses across 30 countries. To be eligible for the grant, a business must:
- Have between 2 and 50 employees
- Have been in business for over a year
- Have experienced challenges from COVID-19
- Be in or near a location where Facebook operates
The applications for the grant is expected to open in the coming weeks. Facebook also launched a Business Resources Hub to help guide small businesses.
2. Economic Injury Disaster Loan Advance Grant
In response to the pandemic, small business owners in all U.S. states, Washington D.C., and territories are eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
This amount will be disbursed to them within three days of successful application. This loan can be turned into a grant if businesses spend it on lease payments, maintaining payrolls, increased business costs or any other business-related financial obligations.
3. Yelp’s Support For Local Businesses
Yelp announced $25 million in relief to local restaurants and nightlife businesses, in the form of waived advertising fees, free advertising, products, and other services.
For restaurants that offer delivery and/or takeout, Yelp will provide $100 in free search advertising.
In addition to these benefits, Yelp is also offering support for independent local advertisers in other categories that are struggling to pay their bills during this global crisis.
4. Wisconsin Small Business 20/20 Program
The Wisconsin Small Business 20/20 Program provides grant funds to approved community development financial institutions (CDFIs).
The program will give grants of up to $20,000 to their existing loan clients to assist with cash-flow challenges resulting from this global economic crisis.
Businesses that are not currently CDFIs do not qualify for this grant, however, the institution is working towards providing relief through other programs and resources.
5. Amazon Neighborhood Small Business Relief Fund
Amazon has created a Neighborhood Small Business Relief Fund to provide small business grants up to $5 million business based in Seattle. They are currently accepting applications online.
The fund is intended for small businesses with fewer than 50 employees or less than $7 million in annual revenue.
The businesses applying for the grant must have a physical presence within a few blocks of Amazon’s Regrade, South Lake Union, and Bellevue office buildings, that are open to the general public, and that are reliant on foot traffic for customers.
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6. Denver Economic Development and Opportunity Relief Package
The city of Denver has created an initial relief fund of $4 million to support small businesses during this pandemic.
Denver Economic Development and Opportunity (DEDO) is setting up an emergency relief program that will provide small business grants up to $7,500 in cash to qualifying small businesses.
7. James Beard Foundation Relief Fund
The food and beverage community employs nearly 16% of the American workforce.
To help independent food and beverage businesses, the James Beard Foundation is gathering support from the corporate, foundation, and individual donors to provide micro-grants to those small businesses.
8. NYC Small Business Continuity Loan Fund
To help small businesses in New York deal with the global economic impact, the City has launched the NYC Small Business Continuity Loan Program.
This program is available to small businesses with fewer than 100 employees. These businesses must prove at a decrease in revenue due to the pandemic.
Those eligible can apply for an interest-free loan up to $75,000. Factors that determine eligibility include:
- Must be located within the five boroughs of New York City
- Prove a minimum 25% decrease in revenue due to the pandemic
- Have fewer than 100 employees in total across all locations
- Have been in operation for at least 2 years
- Prove the ability to repay the loan
- Have no outstanding tax liens or legal judgments
9. San Francisco COVID-19 Small Business Resiliency Fund
Small businesses with five employees or fewer can apply for up to $10,000 in grants to help cover rent and employee payrolls.
To be eligible, you must show a decrease of at least 25% revenue caused due to the pandemic and documentation to prove that you are licensed to operate in San Francisco.
All you have to do is fill out an online application form and email it to investsf@sfgov.org. You’ll need to supply proof of payroll costs and lost revenue.
10. City of Los Angeles Small Business Emergency Microloan Program
Businesses and micro enterprises based in Los Angeles that are have been providing low-income jobs can get an emergency microloan of $5,000 to $20,000.
Loans with repayment terms of less than one year have a 0% interest rate while the five-year loans have interest rates ranging from 3% to 5%.
To be eligible you must show your individual credit history and a commitment to use the loan for working capital only. You must also show documentation proving you are licensed to operate in the City of Los Angeles.
You can apply online and provide supporting documentation which includes:
- Business and personal tax returns
- Three months of bank statements
- Business and personal financial statements
Conclusion
There are a variety of small business grants available and the government is doing its best to help small businesses stay afloat.
If you can qualify for a grant, there’s no doubt that the money will help you keep your business running in these trying times.