During these uncertain times, many entrepreneurs and small businesses are struggling to stay afloat, compensate employees, and pay rent. Local, state and federal governments, as well as some non-governmental organizations have been working to collect and disperse funding and assistance for small businesses and members of the workforce who have been hit with unexpected losses and expenses due to the global epidemic. Wright Books, our accounting team and the marketing team here at JanMar Agency, have collectively put together information for some of these available resources that businesses and organizations like yours can take advantage of.
SMALL BUSINESS DISASTER ASSISTANCE
This is a statewide program offering Economic Injury Disaster Loans (EIDLs). If you are a small business owner, operator of a nonprofit organization, a homeowner or a renter, you may qualify for this loan offers by the Small Business Administration. EIDLs are intended to provide necessary working capital to help small businesses continue to operate until economic conditions return to [a new] normal. You can find more detailed information about this loan, including terms, rates and qualification criteria, by clicking here.
If you qualify for this loan and decide to apply, we advise you to start collecting your paperwork. The more detailed information you’re able to provide within your application, the more likely you will be to receive the loan. If you have any questions, don't hesitate to contact the sources listed in the resources mentioned above.
LOCAL BANKS & ORGANIZATIONS
Many local banks have started a recovery loan program of their own. At this time, the banks are primarily focused on assisting their existing customer bases. Many of them, however, are open to discussing options regardless of who the inquirer banks with. It is important to note that these recovery loans are intended to function as a temporary solution to provide funding for your small business or organization.
Once the effects from this epidemic flattens to a manageable rate, if you find that you are in need of further assistance, you might want to consider applying for a more long term funding option. One of our experts recently spoke with the Galveston Department of Economic Partnerships (GDEP). A representative from the GDEP mentioned that Small Business Administration was working on offering up to a one-year deferral of payments on the EIDL loans. We have yet to see an official update announcing this information.
PAYCHECK PROTECTION PROGRAM
The Paycheck Protection Plan (PPP) application has been released and is now open for enrollment. The PPP is a provision of the CARES Act, and offers forgivable low-interest loans to small businesses facing uncertainty during the COVID-19 emergency. This plan was created to enable small businesses to retain workers, maintain payroll, and cover certain other existing overhead costs. If you are interested in applying for this program, we advise you to work with your local lender to see if and when they are accepting applications and what their process will be.
ASSISTANCE FOR ARTISTS & MUSICIANS
With many states putting stay-at-home orders in place, thousands of concerts, shows, festivals and gatherings have been postponed or cancelled altogether. Our team found a few resources for artists and musicians who are in need of help due to lost income from the COVID-19 crisis.
For musicians specifically, nonprofit organization, Sweet Relief, is offering a creative way for artists to raise funds for themselves and others. Additionally, the Musicians Foundation is dispersing grants for qualifying individuals in need of assistance. This is a micro-grant through which the foundation will pay the musician's expenses directly. No checks will be written to the musician.
One of our experts found this information on the National Chamber of Commerce website. We are hopeful that more resources will be coming available soon.
ASSISTANCE FOR BARTENDERS
Another industry which has taken a huge economic hit from the COVID-19 crisis is bars and nightclubs. The USBG National Charity Foundation created the Bartender Emergency Assistance Program (BEAP) to provide grant assistance for qualifying individuals. Check to see if you are eligible for BEAP by visiting their website. If you are a bartender, the spouse of a bartender, or a child of a bartender, and have lost income due to the current global epidemic, you may qualify for this grant.
THE RED BACKPACK FUND
This program is designed for majority women-owned businesses and nonprofits with annual revenues less than $5 million and with fewer than 50 individuals on staff. Qualifying businesses must be in good standing and incorporated as a legal entity, and be able to demonstrate that the COVID-19 pandemic is causing hardship.
Between May and September, GlobalGiving, via the Red Backpack Fund, will award at least 1,000 emergency assistance grants to majority women-owned businesses and nonprofits in the United States. Each grant will be $5,000.
Enrollment is now open and the first round of applications will be accepted now through 11:59 p.m. ET, Sunday, April 12, or until 5,000 applications have been received, whichever happens first. Each month, they will be accepting additional applications. The portal will open for applications on May 4, June 1, July 6, and August 3.
As always, JanMar Agency strives to bring you the most accurate and up-to-date information regarding marketing, design and business development topics. We hope this information helps and that you, your small business, or organization will take advantage of these resources to help fight the harsh financial effects that have been unleashed on so many of us.