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Do You Qualify for These Coronavirus Relief Resources?

With the current crisis, many agencies, organizations and corporations are stepping up to provide relief to small businesses affected by COVID-19.

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With the current coronavirus pandemic wreaking havoc on not only our health but our livelihoods, we understand that times are hard — for everyone. This outbreak has incited widespread fear, panic, and a strong sentiment of self-preservation.

However, it’s important to remember that we are all in this together and experiencing similar struggles. We are all trying to cope with the effects of COVID-19 and do what we can to stay safe, healthy, and make ends meet.

The outbreak of COVID-19 has prompted necessary mandated closures and mass quarantines to contain the virus in hopes of stopping it from further spreading. But in doing so, it has also temporarily halted business operations across all industries and stopped life as we know it.

Despite the grim situation, we have seen people and businesses all over the world exemplify courage, compassion, and resilience. Now is the time for innovation — you must be creative and figure out ways to work with your employees and customers in a safe and responsible way. Business may not go on as normal, but it will go on.

Remember that you are not in this alone. Businesses across the globe are experiencing hardship and it is our responsibility to do whatever we can to support each other and come out on the other side stronger. Time and time again we have come together and pooled resources to help protect small businesses from going under.

Here are some of the major ones to look out for:

  • Facebook Small Business Grants Program; 
  • The Small Business Association Economic Injury Disaster Loan Program;
  • Paycheck Protection Program; and
  • Tax Deferral.

Facebook Small Business Grants Program

In an attempt to alleviate some of this hardship, Facebook recently announced that it's launching a Small Business Grants Program. The program aims to help struggling small businesses stay in business during these challenging times by offering $100M in cash grants and ad credits. Facebook has begun accepting applications in certain locations. 

You can check to see if grants are available in your area here.

They have also launched a Business Resource Hub, which provides helpful resources to businesses on how to deal with the effects of the coronavirus crisis.

Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries throughout the world where Facebook operates. 

To be eligible to apply, you must: 

  • Be a for-profit business;
  • Have 2-50 employees;
  • Have been in business for at least a year;
  • Have experienced hardship as a result of COVID-19; and
  • Be located in or nearby a location where Facebook conducts business.

The grant requires you to provide several documents including:

  • Federal Employer Identification Number (FEIN);
  • Partnership documents;
  • Business license;
  • Proof of incorporation; and
  • Official business registration.

Once the grant applications are available in your area, businesses will have 2 weeks to submit an application before the application closes. Facebook will then take a few weeks to review the applications before announcing grant recipients. 

You can review the application guide here.

The company is making admirable efforts to support small businesses in whatever way they can. Facebook plans on sharing more details about the program as they become available in the near future.

As previously stated, the primary purpose of the program is to provide support to eligible small businesses affected by the coronavirus crisis and help keep them up and running during these difficult times. 

Facebook suggests that the program will help:

  • Keep your workforce going strong; 
  • Help with your rent costs; 
  • Connect with more customers; and
  • Cover operational costs.

For more information about the program, you can visit Facebook and sign up for updates.

COVID-19

The SBA’s Economic Injury Disaster Loan Program

The U.S. Small Business Administration (SBA) is offering an Economic Injury Disaster Loan Program. The application for the program is a three-step online loan process and is available to designated states and territories. It offers low-interest federal disaster loans to small businesses experiencing substantial financial hardship as a result of the coronavirus (COVID-19). 

The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide critical financial support to small businesses to help overcome the revenue deficit they are currently experiencing. Small businesses that have access to credit aren’t eligible to apply for the loan.

Businesses can use these low-interest loans in a variety of ways including paying fixed debts, payroll, accounts payable, and other bills that aren’t able to be paid as a result of the coronavirus crisis. The interest rate is 3.75 percent for small businesses and the interest rate for nonprofits is 2.75 percent.

The SBA is working with State Governors to provide these low-interest loans. Small business owners in the following designated states are currently eligible to apply for a loan: 

  • California
  • Connecticut
  • Delaware
  • The District of Columbia
  • Florida
  • Georgia
  • Indiana
  • Maine
  • Massachusetts
  • Montana
  • Nevada
  • New Hampshire
  • New Jersey
  • New Mexico
  • North Carolina
  • Rhode Island
  • Utah
  • Washington


You can apply for the Economic Injury Disaster Loan here.

Note: The SBA is not accepting applications for this program at this time.

How to Help Those Affected by the Coronavirus-3

The Paycheck Protection Program (PPP)

The PPP authorizes up to $349 billion in forgivable loans to small businesses across the Untied States. These loans are intended to be used by business owners to pay their employees during the COVID-19 crisis. The terms of loans will be the same for everyone.

All kinds of businesses are eligible to apply including nonprofits, veterans organizations, Tribal business concerns, sole proprietorships, self-employed individuals, and independent contractors as long as they have 500 or less employees.

The entire loan will be forgiven if:

  1. The loan received is used to cover payroll costs, and most mortgage interest, rent, and utility costs during the 8 week period after the loan is approved; and
  2. The employee headcount and compensation amounts are maintained during the 8 week period.

The loan will cover payroll costs up to $100,000 on an annualized basis for each employee. Because of the high demand, not more than 25 percent of the forgiven amount may be for non-payroll costs. The loan payments will be deferred for 6 months.

You can apply for the PPP here.

Note: The SBA is not accepting applications for this program at this time.

Treasury and IRS Deferral for Tax Payments 

The U.S. Treasury and IRS recently announced all taxpayers will get a 90-day postponement to pay the income taxes owed for 2019. Their intention of this extension is to provide relief to individuals, businesses, and corporations suffering economic loss due to the coronavirus (COVID-19).

The tax reprieve means that all individual and other non-corporate tax filers are able to defer up to $1 million of federal income tax (including self-employment tax) payments that were due on April 15, 2020, until July 15, 2020, without incurring penalties or interest. 

Similarly, the guidance allows corporate taxpayers deferment of up to $10 million of federal income tax payments for three additional months, without penalties or interest. 

This deferral applies solely to federal income tax payments owed for the 2019 taxable year and to federal (estimated) income tax payments for an Affected Taxpayer’s 2020 taxable year. We advise you to check your state’s tax deadline to see if there has been any deferment due to the extenuating circumstances.

You can find more information regarding the income tax payment extension here.

As this public health crisis continues to unravel, we are confident that more and more agencies, organizations, corporations, and individuals will come forward and make an effort to provide financial support, stand behind small businesses, and help in whatever way they can. 

We all know that small businesses are the backbone of the American economy and everyone needs to see them survive. We as people, need to band together, lend a helping hand when we can, and continue to persevere through these trying times. 

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