Note: This guidance was sent as a client alert on April 2, 2020 and the information is current as of that date.
The applications for several grant and loan programs are now open or opening soon. Please see the details below and don’t delay as some of these programs are first come first served. We will continue to provide actionable up-to-date information and resources as we navigate these uncertain times. You can also view additional resources on our website: COVID-19 Resource Center.
Paycheck Protection Program
This program sets aside $350 billion in government-backed loans from private banks to help small businesses. In some cases, these loans can be converted to grants that don’t need to be repaid. Lenders may begin processing loan applications as soon as April 3, 2020 and these loans will be first come, first served. Reach out to your participating financial institution directly to apply. A sample application can be viewed here: PPP Loan Sample Application. You can also view a borrower fact sheet.
Economic Injury Disaster Advance Loan
The CARES Act for small businesses expanded the eligibility for the SBA’s Economic Injury Disaster Loans (EIDLs). These loans are available through the SBA and can be approved solely based on an applicant’s credit score. Borrowers can receive a $10,000 emergency grant cash advance that can be forgiven if spent on paid leave, maintaining payroll, increased costs due to supply chain disruption, mortgage or lease payments or repaying obligations that cannot be met due to revenue losses. APPLY HERE
Small Business Resiliency Fund
The application opened on March 31, 2020. The $100 million Chicago Resiliency Fund will provide small businesses and non-profits with emergency cash flow during this health crisis. Funds will be provided to eligible businesses as low-interest loans. Proceeds are required to be used for working capital with at least 50% of proceeds being applied toward payroll. Applicants must also make a commitment to maintain its workforce at 50% or more of pre-COVID-19 levels for at least 6 months. APPLY HERE
Verizon Small Business Recovery Fund
Local Initiatives Support Corporation (LISC) and Verizon have partnered to offer grants of up to $10,000 for small businesses to fill gaps in revenue. Applications must be completed by April 4, 2020 at 11:59 pm ET. APPLY HERE
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 they operate. Facebook is allowing business owners to sign up for updates about the grants while they determine the details of the program. You can find additional information here: Boost with Facebook
Have questions? Need more information? Schedule a free consultation today!