** Updated May 14 **
We have compiled the following list of available funding resources to help our small business clients navigate the unprecedented challenges caused by the current crisis. The list - and programs listed - are subject to change given the evolving situation. We attempt to provide regularly updated information.
The Small Business Administration has announced several funding programs to assist businesses negatively affected by COVID-19.
Programs are available for businesses and nonprofits in operation as of February 15, 2020, including sole proprietorships, independent contractors and eligible self-employed individuals
The Paycheck Protection Program (PPP) provides funding for up to 250% of monthly payroll via 2-year loans at 1% interest. Loans may be combined with other programs and may be forgiven in whole or part based on employee retention and salaries. This program is subject to Congressional funding appropriations and is scheduled to end June 30
Economic Injury Disaster Loans (EIDL)* of up to $2M have maturities of up to 30 years. Pricing is 3.75% for businesses, 2.75% for nonprofits. Programs subject to Congressional funding appropriations and is scheduled to end December 31
EIDL applicants can also apply for an Emergency Loan Advance* of up to $10K. Funds do not have to be repaid. (If applicant also receives PPP, advance will be combined with PPP for forgiveness calculation)
EIDL applicants who have a prior relationship with the SBA can apply for up to $25K expedited funding as Express Bridge Loan*. (Can not be used together with Emergency Loan Advance.)
The Small Business Debt Relief Program covers all interest, principal payments and fees on new or existing non-emergency SBA loans (7A, 504, microloans) for six months.
The Main Street Lending Program is designed to make it less risky and more economical for banks to lend to small- to medium-sized businesses (minimum loan size is $500K). Loan sizes are tied to EBITDA on a sliding scale based on existing debt. The program has yet to launch and will be administered directly by banks. Companies who think they may qualify should contact their lender so as to be apprised as programs and applications become available.
*Note: applications for EIDL and related programs are currently closed for non-agricultural borrowers
See below for more information and advice on application, forgiveness and other related issues
Applications for the Employee Retention Grant have now closed. The Small Business Continuity Fund has paused on accepting applications
New York’s Shared Work Program lets companies keep trained staff and avoid layoffs. Employees can receive partial Unemployment Insurance benefits while working reduced hours. Full-time, part-time and seasonal employees are eligible. Companies can apply online through the NY Department of Labor.
The IRS has several programs in place to allow businesses to delay tax payments and thus conserve cash.
The tax filing date has been delayed until July 15. Businesses owing taxes can delay payment until that date without incurring interest or penalties; businesses anticipating refunds can file sooner, as returns and refunds are being processed in the interim period
The Employee Retention Tax Credit* provides a refundable tax credit of up to $5000 per employee for businesses experiencing economic hardship as a result of the Coronavirus crisis
Payroll Tax Deferral* allows employers to defer the employer portion of Social Security tax for the remainder of the year; amounts will be due 50% in 2021 and 50% 2022
*Note that the Employee Retention credit and payroll tax deferral can not be used in combination with the PPP loan program
The New York Community Trust's NYC COVID-19 Response and Impact Fund is offering loans and grants to NYC-based nonprofits struggling to meet the new and urgent needs hitting the city. Priority will be given to nonprofits addressing essential healthcare and food insecurity; arts organizations are also eligible.
The US Chamber of Commerce is offering grants of up to $5K to small businesses affected by COVID-19
The Hispanic Federation is offering grants of $10,000-25,000 to member agencies and Hispanic non-profits.
Renaissance is offering emergency loans covering Manhattan Chinatown, Koreatown, Jackson Heights, Flushing, Sunset Park, and other neighborhoods.
Robin Hood announced that it will accept applications on a rolling basis for grants to nonprofits (501(c)(3) only) providing or expanding emergency assistance to vulnerable populations
The Verizon / LISC small business grant program completed its first round of funding, Applications for the second round are now open, through midnight E.T. on April 28th
Sam’s Club, backed by LISC, has donated $1M to provide small business grants of up to $10K to small businesses and nonprofits. Applications open May 14th.
The Brooklyn Community Foundation is accepting applications on a rolling basis through June 30 for $10,000 grants to organizations focusing on racial equity or which are led by members of affected communities
The Global NY Fund is open to NYS-based companies looking to create or expand export programs or serve as suppliers to larger exporters. Loans are available to purchase equipment, inventory, working capital to support foreign accounts receivable, export lines or credit, or long-term financing
The West Side Community Fund is offering grants of $5-10K to small businesses in the Chelsea and Hudson Yards neighborhoods, prioritizing businesses owned by people of color, immigrants, and women
Yelp is offering free advertising, products and services through May 25 to support independent, local restaurant and nightlife businesses
NY-area applications opened April 24 for the Salesforce Care Small Business Grants, which offer grants of $10K to for-profit businesses with 20-50 employees and $250K-$2M of revenue that have been in business for 2 years as of March 2020. Applications will be open for one week.
Hello Alice is offering $10K grants to small businesses “severely impacted by COVID-19” The next round will open May 15th and close June 4th; subsequent rounds run June 5th-25th and June 26th-July 16th. Applications roll from one round to the next and do not need to be resubmitted.
Red Backpack Fund (Spanx) will provide 1000, $5000 grants, at least 200 each month, May-September. Applicants should be majority women-owned businesses and nonprofits with less than $5m revenues and fewer than 50 employees (but at least one additional non-paid employee on staff).
Shea Moisture is offering three separate programs totalling $1M to businesses supporting communities through COVID-19 and Black-owned businesses facing COVID-related hardship, as well as an E-Lab (with a potential funding opportunity) for women of color entrepreneurs
The Zakat Fund is offering support to 501(c)(3) organizations working to support residents of the NYC metropolitan area
Facebook has announced plans to provide cash funding and advertising credits to up to 30,000 small businesses worldwide. Details and application are not yet available.
Google has announced plans to provide up to $340M in advertising credits through the end of 2020 to small businesses worldwide who are existing advertisers on the platform. Small- and medium-sized businesses who advertised on Google in ten out of twelve months in 2019 and either January or February of 2020 will receive credits toward future Google advertising spend.
Kiva has expanded eligibility, increased the maximum loan size from $10,000 to $15,000 and introduced a six-month grace period on its
zero-interest crowdfunded loans.
Mainvest has introduced the "Main Street Initiative". Existing bricks-and-mortar businesses negatively impacted by the virus that launch a funding campaign for a Mainvest revenue-based loan may be eligible for an immediate, $2000 zero-interest loan.
SBA Loan Applications and Process
EIDL loans and grants: Applications are currently closed for non-agricultural borrowers.
Businesses who have completed the application process and received an application number should assume they are part of this process and await contact from the SBA (see fraud alert, below). Application status can be checked at the Disaster Center: 1-800-659-2955 or email@example.com
Businesses that were unable to complete an application before the cutoff should continue to monitor the application portal; EIDL is designated to remain open through December 31, 2020, assuming necessary funding appropriations
PPP applications are processed by individual banks and lenders for submission to the SBA.
Some larger banks have indicated that they will work through their backlog before accepting new applications
Many smaller and community banks, CDFIs and micro-lenders are open to non-customers. In addition, several online lenders are currently accepting applications in anticipation of the program reopening.
Businesses who have been approved for or received a PPP loan should carefully manage and record funds and expenditures; see Advice for PPP recipients
Businesses considering the pros and cons of accepting a PPP can refer to our PPP Issues to Consider: Click Here
For answers, see our answers to frequently asked questions regarding PPP
Applying for PPP Loan Forgiveness Click Here
For morre information on the loan forgiveness process. Click Here
The value and level of activity surrounding the COVID-relief programs has heightened the possibility of fraud. Please beware:
Share financial information only with your bank or the SBA. The SBA and city agency web sites and emails all end with “.GOV” extension
The SBA does not initiate contact. Any communication regarding an application already received will reference the application number provided to you by the SBA. Make sure they are identical.
You should not need any agent, broker, eSignature provider or other outside service to complete the loan. Beware of anyone offering these or related services