The Coronavirus impact to B2B organizations is still changing and evolving daily. In the middle of the confusion, governments and big businesses around the globe are seeking to alleviate the hardships some businesses are facing as a result of the COVID-19 pandemic.
Here is a list of available resources that can help support your business during the pandemic. It is by no means a list of all available resources but our hope is that this can provide value to your organization to get ahead during this time of uncertainty. We will continue to keep these resources updated as the environment changes.
Economic Injury Disaster Advanced Loan
Low-interest loans from the U.S. Small Business Administration (SBA) are available to small business owners negatively impacted by COVID-19. The CARES Act set aside $10 billion to help small businesses overcome temporarily destabilized revenue as a result of the COVID-19 pandemic. $10,000 is available to small businesses within three days of application. As of the publication date of this article, the wait time is a little bit longer than that.
The application process takes just over two hours and is relies on self-certifications to verify that the applicant is eligible for the load.
Paycheck Protection Program
The Paycheck Protection Program is one of the largest sections of the CARES Act. It set aside $350 billion in government-backed loans from private banks to help small businesses survive through the coronavirus outbreak. In some cases, these loans can be converted to grants.
As long as 75 percent of the loan is spent on funding payroll and the remaining 25 percent is spent on mortgage interest payments, rent lease payments, and utilities associated with running the business, 100% of the loan can be forgiven.
Big Business Aiding SMBs
Amazon in Seattle created a $5 million Neighborhood Small Business Relief Fund to support the many retail outlets in the immediate area surrounding its South Lake Union and Regrade buildings.
John Schoettler, Vice President of Global Real Estate and Facilities at Amazon, writes, “These businesses support thousands of local jobs that are a critical part of the Seattle and Puget Sound economy. They’re our friends and neighbors, and we believe it’s important to try to help them confront the economic challenges that are likely to come from the COVID-19 outbreak.”
The fund is intended for small businesses (less than 50 employees or less and $7 million in annual revenue). In order to qualify for the relief fund, the business must have a physical presence within a few blocks of Amazon’s Regrade, South Lake Union, and Bellevue office buildings. Additionally, the business must be open to the general public and rely on foot traffic for customers.
GoFundMe Provides Micro-Grants
The GoFundMe.org Small Business Relief Fund provides micro-grants to qualifying small businesses negatively impacted by the COVID-19 pandemic. The Small Business Relief Fund is a program supported by GoFundMe, Yelp, and Intuit Quickbooks. These three companies have also pledged to donate up to $1.5 million in donations into the GoFundMe.org Small Business Relief Fund.
The Small Business Relief Fund will provide one-time matching grants to qualifying small businesses to help alleviate financial burdens during these pressing times. Donations to the relief fund will be paid out as grants to businesses that qualify (businesses that have created a fundraiser through the Small Business Relief Initiative or have an existing GoFundMe).
To qualify for a matching grant from the Small Business Relief Fund, the GoFundMe fundraiser must raise at least $500 and verify that it has been negatively impacted by a government mandate due to the COVID-19 pandemic. The business must be independently owned and operated, and must not be nationally dominant in its field of operation. Each recipient of the matching grant must intend on using the funds to help care for its employees or pay ongoing business expenses.
Facebook is Offering $100 Million In Advertising & Grants
Facebook is offering $100 million in cash grants and advertising credits for up to 30,000 eligible small businesses in over 30 countries. The grant program is meant to keep workforces strong, help with rental costs, connect businesses with new customers, and cover operational costs.
Google is Offering $340MM In Free Ads
Google is offering $340 million in ad credits to small and mid-size businesses with active Google ad accounts as part of an $800 million coronavirus response package.
They want to help alleviate some of the cost for small and medium-sized businesses (SMBs) to stay in touch with their customers during this challenging time. So, they’re giving their SMBs worldwide $340 million in ad credits, which can be used at any point until the end of 2020 across all Google Ads platforms. SMBs who have been active advertisers since the beginning of 2019 will see a credit notification appear in their Google Ads account in the coming months. This is part of a larger commitment from Google to support SMBs, governments, health organizations, and health workers on the frontline of this global pandemic.
Small business owners can reduce the amount of federal, provincial, or territorial income tax that they send to the CRA by using the Canada Emergency Wage Subsidy (CEWS) program. A portion of the employees’ income tax can be kept instead of giving it all to CRA.
Eligible employers will be able to apply for the CEWS through the Canada Revenue Agency. Employers will need to keep records demonstrating their reduction in arm's-length revenues and remuneration paid to employees.
The United Kingdom has announced the Coronavirus Business Interruption Loan Scheme. It provides loans of up to £5m to eligible businesses. These are government-backed loans with zero percent interest for the first 12 months.
The European Commission has put forward a proposal for temporary support to mitigate unemployment risks in an emergency (SURE). It aims to help people keep their jobs during the crisis by providing loans to member states of up to €100 billion. These loans are intended to cover part of the costs related to the creation or extension of national short-time work schemes.