As small businesses struggle with the impact of Coronavirus (Covid-19), the Small Business Community will continue to provide updates on grants, special loans and other financial relief to help your business survive.
Please use this thread to share knowledge and resources or to pose questions.
We’re kicking things off by sharing all of the resources we’ve gathered so far and encourage you to share ones you’ve heard about as well.
Financial Grants and Loans
The Small Business Administration:
SBA Economic Injury Disaster Loans: According to the SBA, “The SBA’s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.” Click here to apply for a Disaster Loan at SBA.gov/disaster
Some states may be eligible for additional funds resulting from natural disasters. Click here to see what programs are available for your state, and to apply directly for available programs.
The 7(a) Loan Program: The SBA’s 7(a) loan is its primary program for assisting small businesses. It offers loans from $25k to $5 million and repayment of up to 25 years (if you utilize an SBA Preferred Lender). Note that Bank of America is a member of the SBA Preferred Lender Program and may provide additional benefits such as fee waivers, discounts for veterans, and 24-hour approvals.
Additional Funding Resources
CDFIs: also known as local loan centers – provide capital, mentoring and financial advice supporting small businesses. Through these innovative partnerships, Bank of America is making more loans available for people and communities, and helping address important economic and social issues. We created a searchable directory to connect small business owners to more capital. Click here to search the directory to find a CDFI that fits your needs.
Kiva: Kiva.org is a unique non-profit. Starting out as a lender making microloans to impoverished people around the globe, it has grown into a crowdfunding platform that has expanded into the U.S. Presently, Kiva is making 0% loans of up to $15,000 to qualified U.S. businesses.
Facebook: Facebook just announced that it is making $100 million available in small cash grants to 30,000 eligible businesses.
Fee Waivers and Payment Deferrals
Bank of America: (see full press release) Working on a case-by-case basis, as we’ve done in many other situations including the government shutdown and natural disasters, Bank of America’s additional assistance for small business clients impacted by the coronavirus includes:
- Consumer and Small Business deposit accounts: clients can request refunds including overdraft fees, non-sufficient funds fees, and monthly maintenance fees.
- Consumer and Small Business credit cards: clients can request to defer payments, refunds on late fees.
- Small business loans: clients can request to defer payments, refunds on late fees.
- Auto loans: clients can request to defer payments, with payments added to the end of the loan.
- Mortgages and home equity: clients can request to defer payments, with payments added to the end of the loan.
- In all of these instances, there will be no negative credit bureau reporting for up-to-date clients.
- We have also paused foreclosure sales, evictions and repossessions.
All Bank of America teammates who work with clients are trained to identify and assist impacted clients and provide the right support to address their unique needs. Clients facing financial hardships related to the coronavirus are encouraged to visit the company’s Client Resources website and contact the client services team for assistance.
IRS Payments: If you owe a tax payment to the IRS, you can defer payments of up to $1 million as an individual, and $10 million as a corporation, interest-free and penalty-free for 90 days, according to Treasury secretary Steven Mnuchin
Student Loans: The government says it will waive interest on federal student loans amid the pandemic. How can you use this to your advantage? Well, if you qualify for a 90-day student loan payment forbearance, those 90 days of the deferral could be interest free. This presents an opportunity to divert funds you’d typically pay toward student loan payments to other expenses.
Help for Restaurant Delivery
- Through the end of April, independent restaurants in the United States can sign up for free with DoorDash and Caviar and pay zero commissions for 30 days
- For all existing DoorDash and Caviar partners, restaurants will pay no commission fees on pickup orders. They are also providing additional commission reductions for eligible merchants that are already on DoorDash.
- This is not a deferral of fees, nor will merchants be asked to pay anything back.
GrubHub will temporarily defer $100 million in commissions for independent restaurants through March 29 (or earlier, at their discretion). However, there are strings attached to the offer, including that commissions are not being waived, but deferred. Grubhub currently expects restaurants to pay back the commissions beginning in mid-April. Read the full details of their program here.
State and Local Benefits
Check out these benefits that might be available to residents of specific states, counties, or cities.
- California: San Francisco is giving emergency grants of up to $10,000 to affected microbusinesses.
- Florida: Gov. Ron DeSantis announced a statewide loan program, the Florida Small Business Emergency Loan Program. He is earmarking $50 million to the loan program to assist businesses that have between two and 100 employees and which belong to industries most affected by coronavirus. The loans are for one year and do not come with interest payments or pre-payment penalties.
- Massachusetts: With its “Small Business Recovery Fund,” the state of Massachusetts will offer emergency loans of up to $75,000 to small businesses affected by the coronavirus outbreak.
- New York state is waiving the 7-day waiting period for unemployment benefits for people laid off because of the outbreak, and New York City is making zero-interest loans and cash grants available to affected small businesses.
- North Carolina lifts restrictions on unemployment benefits to those losing their jobs due to coronavirus-related closings in the state.
- In Washington State, Governor Jay Inslee's office is preparing to roll out: favorable credit terms for businesses that encounter cash-flow problems; debt and late penalty forgiveness for workers; and deferred bills, waived fees, and no-interest loans
- Seattle is going to offer grants of up to $10K to small businesses impacted by COVID-19.
We’ll keep updating the list above as new programs become available.
NOTE: There are a lot of questions from Small Business Owners today. Unfortunately, this forum is not intended to provide Bank of America account or product support. The community is provided as a place that allows small business owners to exchange ideas and information. Per our community guidelines, any post that is used to report a Bank of America customer service issue or complaint will automatically be moderated and will not appear on the site. Bank of America Small Business clients can find more information about the Paycheck Protection Program on www.bankofamerica.com/SBResources.