After hitting its $349 billion limit, the Small Business Administration is unable to accept new applications for the Paycheck Protection Program or the Economic Injury Disaster Loan (EIDL)-COVID-19 related assistance program (including EIDL Advances).
While this may be temporary, many small business owners are still looking for financial relief. Here’s what you can do in the meantime (and if you’ve gone through the process of applying, we would love to hear about your experience in our Mutual Aid Group.)
Look into other government programs
There are still ways to get financial aid from the government, including:
SBA Debt Relief: The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months, as well as the principal, interest, and fees of new loans issued before September 27, 2020.
Additionally, if your disaster loan was in “regular servicing” status on March 1, 2020, the SBA is providing automatic deferments through December 31, 2020.
SBA Express Bridge Loans: allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. According to the SBA, "if a small business has an urgent need for cash while waiting for decision and disbursement on an Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan." You can find more information here.
Employee Retention Credit: To encourage businesses to keep employees on their payroll, the refundable tax credit is 50% of up to $10,000 in wages paid by an eligible employer whose business has been financially impacted by COVID-19.
Pandemic Unemployment Assistance: Offers payment to workers not traditionally eligible for unemployment benefits who are unable to work as a direct result of COVID-19 (Ex: being diagnosed with COVID-19, caring for a family member with COVID-19, or quitting a job because of COVID-19.)
Apply to non-government loans
For instance, Kiva, a non-profit, is offering zero-interest loans of up to $15,000 to US entrepreneurs. You can also look into small business loans (keeping in mind that the applications for the low-interest loans through the Paycheck Protection Program are now frozen.) Some extra information on loans can be found in the Freelance Mutual Aid Circle here.
Consider alternate funding
Many small businesses around the country are crowdfunding in order to manage debt and pay their workers. Some restaurants have also raised money through donations and then provided the food to local hospitals.
Lastly, there are always grants, funds, and microloans to look into–you can check the Freelance Mutual Aid Circle for a list of them here.
If you've successfully received federal funding, or know of other options, join the the conversation in the Mutual Aid Group. Plus, check out the Freelance Mutual Aid Circle for a list of other grants, funds, and micro loans that could be of help.
[Photo: Unsplash/Kelly Sikkema]