Funding Relief Options for Companies Impacted by COVID-19
By John Confrey and Alisha Jernack
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:
- California – IBank
- Chicago – Resiliency Fund
- Florida – Disaster Loan
- Hillsboro – Crisis Funding
- Michigan – Small Business Relief
- Maine – Relief Loan
- New Jersey – EDA Grant
- New Mexico – Business Loans
- New York
- New York City – Employee Retention Grant
- North Dakota – Development Fund
- Pennsylvania – Emergency Loan
- Seattle – Small Business Relief
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)
Note: The above list contains select private funding options. There are numerous other options available.