Small businesses have been hit hard by the COVID-19 pandemic. Many have had to shut their doors, while others have struggled to keep their doors open. However, there is some relief available to small businesses in the form of grants that provide financial assistance. In this article, we will discuss the top five small business relief grants that are available now.
1. Paycheck Protection Program (PPP)
The PPP is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. The loan can cover up to 24 weeks of payroll costs, as well as other expenses such as rent, utilities, and mortgage interest. The PPP loan can be forgiven if certain conditions are met, such as using the funds for eligible expenses and maintaining employee and compensation levels.
2. Economic Injury Disaster Loan (EIDL)
The EIDL program provides small businesses with low-interest loans to help them recover from various economic disasters. These loans can be used to cover working capital needs, such as payroll, rent, and utilities. Additionally, the EIDL program provides an advance of up to $10,000 that does not need to be repaid.
3. Small Business Innovation Research (SBIR)
The SBIR program encourages small businesses to engage in government research and development efforts. The program provides funding to businesses involved in innovative research and development projects that have the potential for commercialization.
4. Community Development Block Grant (CDBG)
The CDBG program provides grants to local and state governments to assist in the development of communities. The program’s goal is to stimulate economic development by financing projects that support job creation, affordable housing, and public infrastructure.
5. Minority Business Development Agency (MBDA)
The MBDA is a government agency that provides assistance to minority-owned businesses. Services provided by the MBDA include business consulting, access to capital, and market research. Additionally, the agency offers several grant programs that support the growth and development of minority businesses.
In conclusion, small businesses facing financial difficulties due to the COVID-19 pandemic have multiple options when looking for relief. The aforementioned grants provide financial assistance that can be crucial to small businesses seeking to stay afloat. Small business owners are urged to research and apply for these grants to help them weather the current economic storm.
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