Small businesses play a significant role in any economy. With the onset of the Covid-19 pandemic, small businesses all over the world have been greatly affected. Many have been forced to close down while others have been struggling to stay afloat. Fortunately, various relief funds have been established to help small businesses overcome their financial challenges during these uncertain times. In this article, we’ll discuss the top 5 small business relief funds that you should know about.
1. Paycheck Protection Program (PPP)
The Paycheck Protection Program is a forgivable loan designed to assist small businesses to keep their workforce employed during the Covid-19 crisis. This program provides small businesses with loans of up to $10 million, which can be fully forgiven if the funds are used for payroll, rent, utilities, or mortgage interest. This program is administered by the Small Business Administration (SBA) and is available through participating banks and other financial institutions.
2. Economic Injury Disaster Loan (EIDL)
The Economic Injury Disaster Loan program is another relief program that assists small businesses experiencing temporary loss of revenue due to the Covid-19 pandemic. This program offers low-interest loans of up to $2 million, with a repayment term of up to 30 years. The loan can be used for paying off debts, payroll, rent, utilities, and other operational expenses. The EIDL program is also administered by the SBA and is available through participating banks and other financial institutions.
3. Main Street Lending Program
The Main Street Lending Program is a new lending program created by the Federal Reserve to support small and medium-sized businesses that were in good financial standing before the pandemic. This program offers loans of up to $600,000 with a repayment term of up to five years. Interest rates are variable, and the loan can be used to facilitate payroll and other operational expenses. The program is available through participating banks and other financial institutions.
4. Facebook Small Business Grants Program
Facebook has established a Small Business Grants Program to provide much-needed cash flow to small businesses affected by the Covid-19 pandemic. This program offers cash grants of up to $30,000 to eligible small businesses in the United States. The grant can be used for rent, operational expenses, workforce retention, and marketing and social media activities.
5. Verizon Small Business Recovery Fund
Verizon has established a Small Business Recovery Fund to support small businesses that were impacted by the Covid-19 pandemic. This program offers grants of up to $10,000 to eligible small businesses in the United States. Grants can be used for paying off bills, program expenses, rent, or payroll. This program is available to small businesses that are run by a majority of individuals who identify as Black, Latinx, or Native American.
In conclusion, small businesses across the country are facing unprecedented financial strains due to the Covid-19 pandemic. Fortunately, there are many relief funds available to help them overcome these challenges. Whether you’re in need of a loan, grant, or any other form of financial assistance, be sure to explore these options and see how they can help your small business stay afloat during these uncertain times.
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