Coronavirus, COVID19, Small Business, Finance, Government, Business Loans

List of Coronavirus Emergency Financial Resources (2020)

On March 25th the Senate approved a $2 Trillion stimulus bill — the largest financial aid package in history!

In total, the new stimulus package is more than twice as much as Congress coughed up after the 2008 financial crisis. 

Here’s how the Coronavirus cash is expected to be divvied up:

1. Individuals and families will get $301B in direct assistance:

  • Individuals who earn <$75k/year will get a $1.2k check.
  • Families will receive an additional $500 per child. 
  • Assistance decreases for people who earn >$75k/year and stops for those who earn $99k+.

2. ~$350B in loans are earmarked for small businesses:

  • They’ll be available through June 30, and forgiven for businesses that keep paying their employees.
  • Companies with <500 employees can access loans of up to $10m to pay their staff.
  • But many small businesses say they’re already running into problems getting financial assistance, and say they could go under before the new rescue money is doled out.

3. Unemployed workers will get $250B in benefits:

  • Unemployment assistance will increase by $600 for the next 4 months.
  • Benefits will extend for an additional 13 weeks and will apply to non-traditional employees like gig workers.

4. ~$500B in loans and other aid will be set aside for corporations, states, and local governments:

  • $454B of the money will be available through a fund controlled by the Federal Reserve.
  • The rest will be set aside for specific industries (including $29B for passenger and cargo airlines).

State and local governments will get $150B. When news of the deal broke yesterday, the Dow Jones rose more than 11%.

Source: The Hustle Newsletter

1. Apply for an SBA Disaster Recover Loan

The Small Business Administration has issued Disaster Recovery Loans for small businesses for immediate deployment, in amounts up to $2 million, based on direct business impact from coronavirus. The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.

  • Businesses can secure up to $2 million.
  • Interest rates will not exceed 4% per year and terms will not exceed 30 years.
  • If your business has access to credit, you are not eligible to apply. If your small business has no available credit, for-profit companies can qualify for an interest rate of 3.75%, and nonprofits will receive an interest rate of 2.75%. 
  • All U.S. states and territories qualify.

To apply for a COVID-19 Economic Injury Disaster Loan, click here.

2. US Chamber of Commerce

The US Chamber of Commerce has published a variety of resources, including COVID-19 Tips for Employees: uschamber.com/coronavirus#resources

There are legislative initiatives in the works also to provide economic stimulus as well as tax and federal obligation relief. The SBAs EIDL program (discussed above) is the only phase of relief that has been approved as of yet. It is unknown what will be approved and what won’t. The US Chamber of Commerce, Forbes, and other media/organizations are keeping up with the efforts. The US Chamber outlines current effortshere. It is important to continue keeping an eye on this to help you formulate new pieces of your plan.

3. CARES Act

The CARES Act was recently passed which provides more options for disaster funding for business owners including the Paycheck Protection Program loan, tax credits, and SBA loan payment relief. The SBA has 15 days to respond/provide infrastructure for enacting the parts of the bill that relate to small business. While we do not know everything yet, here is what we do know:

4. Federal Assistance

For details on all federal assistance, visit usa.gov/coronavirus or en Español – gobierno.usa.gov/coronavirus

5. IRS Resources

The U.S. government announced the ability for individuals to defer up to $1 million in taxes for 90 days beyond the April 15 deadline, while corporations can defer up to $10 million.

Regarding the IRS, please see their website: irs.gov/coronavirus

6. Corporate Solutions for Entrepreneurs

Whether in their own backyards or across the globe, corporations are stepping up to offer grants and loans to entrepreneurs in need. Amazon has committed $5 million to neighboring businesses in Seattle, while Facebook has committed a whopping $100 million to 30,000 small businesses around the world. Wells Fargo has $6.25 million in funds to distribute, and more help is undoubtedly going to arise in the weeks to come. This is non-dilutive capital that won’t impact your balance sheet, specifically designed to get your business back on its feet.

  1. Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where we operate. 
  2. Amazon is creating a $5 million Neighborhood Small Business Relief Fund to provide cash grants to Seattle small businesses that need assistance.
  3. Business for All is a national movement to lift up 100,000 small business owners to receive funding and mentorship. By completing the application below, you’re eligible to receive up to $50,000 in grant funding.
  4. Airbnb launched The Superhost Relief Fund and employees have donated $1 million from their own pockets to kickstart a fund for hosts struggling to make ends meet.
  5. Google said it will give the World Health Organization and global government agencies a total of $250 million in ad grants. Another $340 million in Google ad credits will be available to small and medium-sized businesses whose accounts have been active over the past year, with an additional $20 million earmarked for announcements on relief funds and support for small businesses.
  6. Capital One, Citi, and Wells Fargo have announced that they’re willing to work with customers impacted by COVID-19 (coronavirus), meaning you might avoid late fees or can receive special payment plans depending on your situation. For 30 days, Citi small business customers are eligible to have their monthly service fees, and early CD withdrawal fees, waived.
  7. If you have an existing brick & mortar business that has been negatively effected by the COVID-19 outbreak and you launch a capital raise on Mainvest, you may be eligible to receive a $2,000 zero-interest loan immediately. Then through your capital raise, you can receive over $100,000 of investment from your community.

Additional Resources: Emergency Funding for Small Businesses Affected by the Coronavirus

7. Stimulus 2020 Economic Recovery Package

Womply is a local commerce company that serves more than 450,000 local businesses across America. Last year we helped those businesses manage more than $130 billion in sales. We’ve been in business for nine years and we’re proud to call some of the biggest financial services companies in the world our partners.

The $1,000 Stimulus is a no-interest and no-fee capital offer that is deposited directly into your business bank account. You can use the money for any business purpose–pay your bills, avoid overdraft fees, invest in marketing, etc.

Any US business with a verifiable business bank account is eligible. We will approve as many businesses as possible, but as you can imagine we reserve the right to not give you the money if we believe your business is operating in a suspicious manner.

8. Grant Programs

9. Unemployment In Crisis

The Disaster Unemployment Assistance (DUA) program provides unemployment benefits to individuals who have become unemployed as a direct result of a Presidentially declared major disaster.

In the event of a disaster, the affected state will publish announcements about the availability of Disaster Unemployment Assistance. To file a claim, individuals who are unemployed as a direct result of the disaster should contact their State Unemployment Insurance agency. Individuals who have moved or have been evacuated to another state should also contact the state agency.

For more information about this program and where to apply for benefits, please visit the Disaster Unemployment Assistance website.

10. Finding A Job

There’s so many online job boards to throw your name into the hat — Glassdoor, Indeed, CareerBuilder, ZipRecruiter, and my favorite LinkedIn Jobs. It’s super easy to apply for jobs with a simple one-click feature to send your resume/CV on LinkedIn. I also recommend checking out this list of Top 100 Remote Companies Hiring.

If your job has been impacted by coronavirus, or if you’re ready to immediately jump in to help those organizations that need to fill roles during this challenging time, here are the most in-demand jobs and companies hiring right now (based on LinkedIn job posting data in the U.S. between March 15 – 21, 2020).

Companies with the most open jobs in the U.S. 

  1. 7-Eleven
  2. Army National Guard
  3. KPMG
  4. Amazon
  5. Genentech
  6. Lowe’s
  7. HCA Healthcare
  8. Intuit
  9. Whole Foods
  10. Sherman Williams

Source: Jobs In Demand During COVID-19 (LinkedIn Blog)

11. Resources for Veterans

12. Donate To Non-Profit Organizations

Feeding America

Feeding America is a nationwide organization that harnesses support from local communities to the federal government to keep low-income families supplied with food. Right now, its biggest concern is children whose schools have closed, cutting off a source of healthy, free meals. Feeding America also has a running list of food banks across the country, if you’d like to donate closer to home.

DONATE

Meals on Wheels

Meals on Wheels delivers food to seniors—safely, per CDC guidelines, as older folks are at greater risk of serious illness from COVID-19—and makes sure they’re not left on their own while the country hunkers down. You can donate to the national branch, or call up your local Meals on Wheels provider to see how you can help.

DONATE

Homeless Shelters

According to medical researchers, the half-million homeless people in America are at a higher risk of contracting coronavirus, and shelters around the country have been advised by the CDC to conduct screenings. Meaning, the already-stressed shelter system will need more assistance than ever. Look to this directory of homeless shelters to find one near you.

DONATE

American Red Cross: Give Blood

The coronavirus outbreak appears to be keeping Americans from donating blood. Hundreds of blood drives have already been cancelled, but if you’re healthy and still have access to one near your home, the Red Cross is asking that you schedule a time to donate. To be clear, there is no evidence that coronavirus can be spread through blood, and Red Cross employees will employ stringent safety precautions.

GIVE BLOOD

Thanks for reading! I decided to put together this comprehensive list of financial resources to help individuals, families, and small businesses struggling to keep their heads above water during this economic recession spurred on by the Coronavirus (COVID-19) world pandemic. This post will be updated frequently to provide additional resources as more information comes to light.

You can read my previous blog post entitled Traveling During the Coronavirus Outbreak in which I offer a rational unapologetic explanation why I’m continuing to travel in Southeast Asia during the Coronavirus outbreak. I believe the mass hysteria and fear-mongering is more dangerous than COVID-19 itself. In the prophetic words of FDR, “The only thing we have to fear is fear itself”.

You may also be interested in this article about How to Get Your Stimulus Check Faster from IRS (2020).

Paid sick leave keeps everyone healthier. During a pandemic, it’s a necessity.

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