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Funding Relief Options for Companies Impacted by COVID-19



March 28, 2020

Amidst the COVID-19 economic crisis, there is a growing need for relief for small to middle-market companies.

U.S. Small Business Administration (SBA) Disaster Loan

The SBA Economic Injury Disaster Loans or EIDL Loans are provided to eligible companies to help fund working capital to be used to pay fixed debts, and cover payrolls, COVID-19 related sick pay, and operating expenses that were paid prior to the disaster. The loans have zero cost to apply and there is no obligation to utilize the loan if one is granted after the application process.

  • Eligibility is based upon:
    • Credit history acceptable to SBA
    • Repayment capability by the business and its owners
    • ALL US territories are currently eligible
    • Application with existing SBA loans, can qualify for EIDL loan but cannot be consolidated with existing loans
  • Maximum borrowing is up to $2m for eligible entities
  • Interest rates are 2.75%-3.75%
  • Terms are up to 30 years

State and Local Coronavirus Small Business Assistance Programs

Most states and cities are directing businesses to the SBA for low-interest federal disaster loans for working capital. However, some states and cities have additional assistance programs in place.

States include but are not limited to:

In addition to the above, additional states may be providing funding.

Additional Private Funding Resources (Source Facebook)

  • Facebook Small Business Grants Program
    • Up to $100m in cash grants and ad credits
    • Up to 30,000 eligible businesses worldwide
  • US Bank Quick Loan (Source US Bank)
    • Loans ranging from $5,000 to $25,000
    • 12 – 84 months term
    • 2% interest rate
    • US Bank Cash Flow Manage (Source US Bank)
      • On demand line of credit ranging from $5,000 to $250,000
      • 1% lower than the standard rate
    • Stimulus 2020 (Source Stimulus 2020)
      • $1,000 loan
      • No interest or fees

Note: The above list contains select private funding options. There are numerous other options available.

 




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