Economic Help during COVID-19 

This page provides information on various economic opportunities availble during the government-suggested social distancing due to the COVID-19 outbreak across the world. Please review these resources and contact the Main Street office if you have any questions.

 

Small Business Administration Disaster Loan Information

Because there is a cap on this pool of low-interest, long-term small business loan funds, we recommend all businesses apply. You DO NOT have to accept the loan award should you receive one. There is also no fee to apply. Additionally, the new CARES Act has expanded the Economic Injury Disaster Loans program to include Emergency Grants. An eligible entity that has applied for a loan due to COVID-19 can request an advance on the loan of not more than $10,000, which is distributed within 3 days. Applicants are NOT required to repay these advance payments, even if they are denied for a loan.

Which businesses are eligible to apply?

SBA's Economic Injury Disaster Loans (or working with capital loans) are available to small businesses, small agricultural cooperatives, small aquaculture businesses, and most non-profit organizations in Georgia. 

This includes:

What is the criteria for a loan approval?

How much can I borrow?

How can I use the loan funds?

These working capital loans may be used to pay fixed debts, payroll, accounts payable, and other bills that could have been paid had the disaster not occurred. The loans are not intended to replace lost sales or profits or for expansion.

HOW TO APPLY:

Although a paper application and forms are acceptable, filing electronically is easier, faster, and more accurate.

Other Facts:

Basic Filing Requirements

Other Information that may be requested:

In addition to the above, we suggest contacting your lending institution to see if relief programs are being offered during this time: delaying payments; interest-only payments.

 

Coronavirus Aid, Relief, and Economic Security (CARES) Act
Paycheck Protection Plan (PPP)

The Congress has passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will provide 100% federally guaranteed loans to small businesses through its Paycheck Protection Plan (PPP). Please find attached a primer here.
 
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward. A few things to note:
 
Pay attention to that last bullet point. That means that you can fold SBA Economic Injury loans into this new loan if you are able to obtain them before this program becomes available. We still recommend that you do take advantage of the Economic Injury Loan Program. If you are unable to take advantage of it before this loan becomes available, then we would recommend trying to make use of the CARES Act PPP instead if that supports your business model.
 
Finally, a borrower is eligible for loan forgiveness equal to the amount the borrower spent on the following items during the 8-week period beginning on the date of loan origination:
Loan forgiveness cannot exceed the principal. The amount of loan forgiveness is reduced if there is a reduction in the number of employees or greater than 25% in wages paid to employees. Bringing back employees before June 30, 2020 will result in the restoration of full forgiveness options.
 
This is a GREAT program to take advantage of. The application is open for small businesses or sole proprietorships beginning on April 3, 2020. The application is open for independent contractors and self-employed individuals beginning on April 10th. 
 
Take a look at this handy infographic for more information.
Here's another one detailing the PPP.
 
Which Should You Take Advantage of?
That depends solely on your business:

Please contact us with any questions you may have. 

 

Facebook Small Business Grants Program

Facebook knows that your business may be experiencing disruptions resulting from the global outbreak of COVID-19. They've heard that a little financial support can go a long way, so they are offering $100 Million in cash grants and ad credits to help during this challenging time.

Who's eligible?

Facebook is offering $100 Million in cash grants and ad credits for up to $30,000 eligible small businesses in over 30 countries where we operate. They'll share more details as they become available.

How the program can help:

Sign up at this page for more information as it is made available: https://www.facebook.com/business/boost/grants.

 

GoFundMe Grant Program

The GoFundMe Coronavirus Small Business Relief Initiative is intended to support local businesses facing financial loss from the COVID-19 pandemic. The fund will be issuing $500 matching grants to qualifying businesses that raise at least $500 on GoFundMe. Take a look here.

 

Access to Capital for Entrepreneurs (ACE)

ACE is available to schedule one-on-one consultation via videoconferencing or telephone with business consultants. Please email them at acewbc@aceloans.org to schedule an appointment.

 

Need Help with any of this?

Contact us at chamilton@cityoftoccoa.com or 706.898.5777.