Updated Small Business Resources
April 16, 2020
A lot has changed in the two weeks since our Small Business Resources webinar. Below are some updates and guidance on how to move forward from here.
This article is divided into Federal, State, Local, and Private options. Note: The Paycheck Protection Program (PPP) and Economic Injury Disaster Loan (EIDL) are currently at capacity, though we believe that Congress will extend these programs.
If you missed those programs, we suggest looking into the Employee Retention Credit (see below.)
There are a growing number of private funds available for businesses, while state and local governments are providing loan and grant options as well. If you are worried about keeping your staff employed after the 8 weeks of the PPP, or you were unable to participate in the federal programs, we recommend looking into these other options now. Also, check periodically to see if more money becomes available in the PPP and EIDL programs. Some banks are still accepting applications, so you are added to the queue if funds become available. Check with your bank to find out more.
For self-employed/independent contractors: you may want to look at unemployment. Check out the Pandemic Unemployment Assistance program if you are in CA (they start taking applications around April 28) or your state’s unemployment website. You may be eligible this year for unemployment PLUS an additional $600/week from the CARES Act.
As we’re sure you have heard or experienced, the PPP suffered from processing delays and has now run out of money. Fortunately, FinTech companies such as Intuit QuickBooks Capital are now approved as lenders for the PPP program, which should make it easier to apply once Congress approves more funds. Here are some articles about the program:
- New lenders: Check out the Forbes article here. Intuit Capital is now approved as a lender.
- In LA and need help? Reach out to LA CARES Corps.
- Guidance for self-employed/schedule C folks applying for the PPP.
- FAQ about the PPP from Forbes.
The EIDL, which included a $10,000 grant, has been tapped out and is awaiting more funds from Congress. They are still processing applications previously submitted. Additionally, the SBA has said that the $10,000 grant for each applicant may instead be $1,000 per employee rather full $10,000. Most applicants to the EIDL program are awaiting approval from the SBA. Here are some articles about the program:
- Keep an eye on the SBA Website that lists the different programs to see any new updates.
- Processing times have been slow from Forbes.
If you did NOT get either the PPP or the EIDL, there is another option under the CARES Act: The Employee Retention Credit. There are specific qualifications for this credit, and it is only available if you did NOT get either of the other loans. This article explains details of the credit and gives examples of when it may be applicable to you.
California has updated its website to show more resources for small business owners; see the new website here. Their existing website for employers has details on tax assistance, work sharing programs, and an LA fund for small businesses.
If you are self-employed or otherwise not eligible for traditional unemployment, California has created a website dedicated to the Pandemic Unemployment Assistance fund. The PUA fund is for those that aren’t typically eligible for unemployment, such as business owners, the self-employed, independent contractors, and those that have exhausted benefits under the traditional program. The PUA is supposed to start taking applications on April 28. See the LA Times article here. In the meantime, reach out to your local America’s Job Center of California for information.
IBank (associated with the state of CA), also has lending programs, including a small business disaster relief loan guarantee program, which you can find here.
Los Angeles now has several funding programs for small business owners, which are continually updated. Here’s are a few websites to follow for information:
- Los Angeles Finance Website with a great list of resources
- Los Angeles Resources list
- LA Economic Development Corporation has an amazing list of available programs. If you are a business in LA, GO HERE!!
- If/When more PPP funds become available, a special loan program for LA County businesses in collaboration with Goldman Sachs may be available here
Wondering how prepared your business is for COVID-19? PWC developed a free, online digital assessment.
More private donors keep coming forward to support small businesses. Our website has a Resource List of the different programs, but to start you off, the National Center for Family Philanthropy is curating an extensive list of response and recovery funds here.