I Need Help Paying My Startup’s Loans During COVID-19
The Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504, and microloans.
Under The Small Business Debt Relief Program, SBA covers all loan payments, including principal, interest, and fees, for six months. This relief will also be available to new borrowers who take out loans within six months of the bill becoming law.
- Borrowers with 7(a), 504 and microloans
- Does not include loans made under the Paycheck Protection Program (PPP)
- Does not preclude taking out a Paycheck Protection Program (PPP) loan
State and Local Program
Many cities, counties and states are enacting their own support measures for companies within their jurisdictions. CFOs should look for relevant programs at each municipal level where their clients are active.
- Disaster Relief Loan Program, currently available to small businesses needing assistance to overcome economic injury caused by COVID-19 through securing 95% guarantee on a bank loan.
- CA Employment Development Department - Unemployment information & Links
- SF Small Business Resiliency Fund - $10,000 for rent and salaries for small businesses with 1-5 employees. Applicants must show 25% or more revenue decline, <$2.5m in sales and proper SF operating licences
- SF Moratorium on Commercial Evictions - 30-day moratorium for small and medium-sized businesses.
- Effective March 17
- May be extended
- Deferral of Business Taxes & License Fees
- For companies with <$10m in sales:
- Payment of quarterly business taxes due April 30, 2020, to February 2021 Defers annual small business license and permit fee due dates until June 30, 2020.
New York City
- NYC Employee Retention Grant Program provides grants for small businesses with fewer than 5 employees to cover 40% payroll costs for two months.
- NYC Small Business Continuity Fund - zero-interest loans for up to $75,000 for businesses with fewer than 100 employees.
- NYC Small Business Services - Assistance & Guidance for Businesses Impacted
- Chicago Chicago Small Business Resiliency Fund
- Starting March 31, small businesses in Chicago can apply for low-interest loans of up to $50,000 with repayment terms of up to five years. The amount of the loan depends on revenues before the business was affected by the coronavirus.
- 25% drop in revenue
- <$3 million in revenue
- Fewer than 50 employees
- No current tax liens or legal judgments.
Burkland offers expert CFO services, accounting services, and tax services to startups across the USA. Please reach out to us to learn more about what we can do for you, or if you have questions about federal, state and local resources available in response to the COVID-19 outbreak.