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Questions About CARES Act Resources for Small Businesses?

Click here to schedule a time to talk with an ETA staff expert on the CARES Act, or email [email protected].

COVID-19: Resources for Small Business Owners

Many businesses had to curtail — and in some cases suspend — many aspects of their business to slow the spread of coronavirus (COVID-19). As a result of that unprecedented, although necessary decision, the ability of businesses to conduct commerce has been negatively impacted and are now experiencing a significant drop in revenue.

ETA has put together a list of resources to help where it’s needed the most — America’s small businesses.

ETA Members Participating as a Lender in the CARES Act

Federal Support for Small Businesses

The CARES Act provides for two loan programs from the Small Business Administration:

Payroll Protection Program

Application for Borrowers
Application for Federally Insured Depository Institutions, Federally Insured Credit Unions, Farm Credit System Institutions Lenders
Application for Non-Bank and Non-Insured Depository Institution Lenders
Paycheck Protection Program – Interim Final Rule
$659 billion in small business loans. These loans will be made by participating banks and FinTech companies.
Businesses with up to 500 employees or which meet the applicable size standard for the industry as provided by SBA's existing regulations
Borrowers can borrower 2.5 times their monthly payroll expenses, up to $10 million
Loans must be made before June 30.
The loans are 100% guaranteed by the federal government until 06/30/2020.
Small businesses to certify the money is needed due to COVID.
Adjusts underwriting standards to allow the loans to be made on expedited basis- the CARES Act waives the requirement that a business show that it cannot obtain credit elsewhere.
Sets the maximum interest rate at 1%.
Allows for loan forgiveness equal to 8 weeks of payroll following the loan. (Haircuts if the small business reduces payroll during this time)
Loan proceeds must be used for routine expenses such as salaries, sick leave, rent, or insurance premiums.
The loans can be packaged and sold into the secondary market, freeing up liquidity.

Economic Injury Disaster Loans (EIDL) Expanded

Emergency EIDLs are available for businesses or cooperatives with fewer than 500 employees.
Waives requirements that:
- the borrower provide a personal guarantee for loans up to $200,000,
- that the eligible business be in operation for one year prior to the disaster, and
- that the borrower be unable to obtain credit elsewhere.
The SBA may approve small-dollar loans solely on the basis of their credit score or "alternative appropriate methods to determine an applicant's ability to repay."
Small businesses may receive an emergency advance of $10,000 within three days after applying for an EIDL grant. If the application is denied, the applicant is not required to repay the $10,000 advance. Emergency advance funds can be used for payroll costs, rent or mortgage payments, or for repaying debt the small business cannot meet due to CORVID-19.

Note: Small businesses may apply for funding under the EIDL and the Paycheck Protection Program, if the proceeds are not used for the same purpose.

More details will be made available from the SBA soon.

Other Provision

Payroll Tax Credit for Employee Retention - Refundable payroll tax credits of up to $5,000 for each employee available to eligible employers that have seen at least 50% reduction in revenue during Q1 of 2020 v. Q1 of 2019.

National Small Business Resources

America's Small Business Development Center Network is working to help small businesses address the business challenges of the coronavirus disease 2019 (COVID-19) pandemic. On this page they have gathered information and resources to help small businesses plan for and respond to the pandemic.
As COVID-19 begins to have an increasingly significant impact on communities across the country, they are compiling existing resources, opportunities, and community response examples to help Main Street districts during this crisis.
The Federal Reserve announced extensive new measures to support the economy by creating a, Main Street Lending Program for small business partners.
National Federation of Independent Business Coronavirus resources page contains up-to-date resources on COVID-19 from the NFIB for business owners.
SBA's Coronavirus (COVID-19): Small Business Guidance & Loan Resources
Stimulus 2020 - Capital, free offers from tech companies, and information for small businesses.
Intuit Aid Assist- A free website with an interactive tool to help small business owners and the self-employed in the U.S. assess potential eligibility for financial relief under the CARES Act. The interactive tool assesses eligibility, estimates loan amounts, delivers a personalized recommendation and, for qualified small businesses and other eligible applicants, provides links to help them take the next step of applying for a loan. Intuit Aid Assist supports both the Paycheck Protection Program and Economic Injury Disaster Loan relief programs.
Facebook Small Business Grant Program is offering $100M in cash grants and ad credits to help during this challenging time.
FTC blog post on small business financing and considerations for borrowers.
CFPB Issues Credit Reporting Guidance During COVID-19 Pandemic
The CFPB issued coronavirus guidance for consumer credit bureaus, and said that companies won't face enforcement actions if dispute reviews take longer than the mandated 30 days. The CFPB said this relief is intended to allow some flexibility for companies facing staffing shortages and other unforeseen disruptions due to the coronavirus outbreak. The guidance also gives instructions on how to comply with credit reporting provisions in the CARES Act. Click here for announcement.
TSY and SBA released guidance about the $359 billion of payroll protection program loans created by the CARES Act. Small businesses can start applying with current SBA lender banks on Friday.
Borrowers can use this form to apply.

SBA is still working on a process for non-banks to offer loans. New details revealed today: 1. loans must mature in two years; 2. they still allow for 8 weeks of operating expenses to be forgiven. What’s new is that 75% of the eight weeks of expenses must be for payroll expenses, with the remaining 25% for rent, utilities, etc.; 3. eligible loans will be fully forgiven.

Community Small Business Service Providers

Find resources for business owners in your community.

MicroMentor Resource Page
Opportunity Finance Network CDFI Locator
SBA District Office & Resource Partner locator

State Support

Alabama: Guide to Business Continuity / Disaster Recovery, and a Checklist for Managing in Times of Financial Difficulty are available online. The Alabama SBDC hosted a series of live SBA Economic Injury Disaster Webinars Series: March 23-27.

Alaska: The Alaska SBDC is here to support and prepare small businesses in the days, weeks, and months to come. Here you will find guidance, updates, and resources to help adapt in an unpredictable situation. You can also view our full listing of workshops.

Arizona: The SBA approved an Economic Injury Disaster Loan declaration for Arizona that will help small businesses impacted by COVID-19. Individual businesses can be eligible for up to $2 million through the program. Click here (SBA) or here (Gov. Doug Ducey) for more information, or click here to apply.

Arkansas: Arkansas small businesses suffering economic injury due to coronavirus (COVID-19) are now eligible to apply for low-interest SBA loans. See our fact sheet and Coronavirus Resource Page for the documentation and information you will need.

California: The Governor’s Office of Business and Economic Development has compiled helpful information for employers, employees and all Californians as it relates to the COVID-19 outbreak.

Colorado: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.

Connecticut: The state extended filing deadlines for certain business taxes.

Delaware: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.

Florida: Complete the business damage survey as the state works to qualify for a disaster declaration.

Georgia: Review the information for Georgia Small Businesses and the small business services page.

Hawaii: Information about applying for an SBA economic disaster loan.

Idaho: Complete the business damage survey as the state works to qualify for a disaster declaration.

Illinois: DCEO is working diligently to secure access to helpful resources for small businesses throughout the State of Illinois and has compiled these helpful links regarding COVID 19 resources for small businesses.

Indiana: A step-by-step guide for how to submit an application can be found here and a video walking through the application can be found here.

Iowa: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.

Kansas: The U.S. Small Business Association has approved Governor Laura Kelly’s request to make low-interest disaster loan funding available for Kansas businesses up to $2 million.

Kentucky: Resource list for affected businesses.

Louisiana: LED is working with all levels of government to safeguard Louisiana businesses in terms of economic and physical safety issues related to COVID-19 by posting links that connect business owners with valuable resources.

Maine: Information about applying for an SBA economic disaster loan.

Maryland: COVID-19 Information for small businesses page features several resources available for business throughout the state, including guidelines for employers, fair labor standards, information on insurance claims, opportunities for financial assistance, tax questions, and more.

Massachusetts: Resource list for affected businesses.

Michigan: The State of Michigan will provide both grants and loans to small businesses affected by the coronavirus.

Minnesota: Minnesota Department of Revenue details on business tax changes details on the sales tax payment extension for eligible businesses.

Mississippi: The State of Mississippi has created a special website for Mississippi Small Businesses with the latest on the coronavirus including resources and a fact sheet.

Missouri: MOSourceLink created this portal of business resources—and business resources specific to the coronavirus (COVID-19) outbreak—to help you stay informed, safe and sane.

Montana: Small businesses across Montana impacted by the novel coronavirus (COVID-19) are now eligible to apply for emergency loans.

Nebraska: Resource list for affected businesses.

Nevada: The Nevada Small Business Development Center Business Resiliency Toolkit contains a small business resiliency plan developed by the Washington SBDC as well as links to help small business owners plan for any kind of disruption.

New Hampshire: The NH Department of Business and Economic Affairs launched a new website to support the business community. The site has information on business resources, financial assistance, unemployment benefits, health guidelines and recent updates on COVID-19.

New Jersey: Review the information for NJ businesses and the small business services page.

New Mexico: Assess and examine information regarding applying for New Mexico’s economic disaster loan and COVID-19 information, resources, and tips for New Mexico small businesses and organizations.

New York: Financial assistance & resource guidance for small businesses impacted due to Novel Coronavirus.

North Carolina: In response to the unique economic challenges of COVID-19, a consortium of public, private and nonprofit partners have come together and launched an innovative recovery-lending program to support and stabilize North Carolina’s small businesses.

North Dakota: To best serve small businesses and communities dealing with the impact of COVID-19, the Commerce team is taking a proactive approach by temporarily redirecting human and financial resources to support the North Dakota small business community.

Ohio: Resources for Oregon businesses looking for assistance in the event of local, regional, or statewide economic impacts due to identified disasters.

Oklahoma: Oklahoma small businesses and nonprofit organizations impacted by the COVID-19 pandemic are now eligible to apply for low-interest disaster loans.

Oregon: Resources for Oregon businesses looking for assistance in the event of local, regional, or statewide economic impacts due to identified disasters.

Pennsylvania: Pennsylvania COVID-19 Small Business Relief Fund which provides some small businesses impacted by the COVID-19 pandemic with immediate relief through a mix of grants and loans.

Rhode Island: Rhode Island’s Small Business Resource Guide and resource list for affected businesses.

South Carolina: Review the SC Business Coronavirus (Covid-19) Partner Contact Guide and the small business resources page.

South Dakota: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.

Tennessee: The State of Tennessee will provide regular updates including the necessary resources, information and support to help our small businesses overcome the challenges that have resulted from COVID-19.

Texas: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.

Utah: “Utah Leads Together,” a comprehensive task force plan released by Gov. Herbert to mitigate the economic consequences of COVID-19.

Vermont: Stay informed when new information becomes available through the COVID-19 Economic and Community Response Newsletter.

Virginia: Small businesses across Virginia impacted by the novel coronavirus (COVID-19) are now eligible to Disaster Relief Loan Assistance for emergency loans.

Washington State: Resource list for affected businesses.

West Virginia: Resource list for affected businesses.

Wisconsin: Wisconsin SBDC, a resource partner of the SBA, has created a web page to help business owners understand the qualifications and application process.

Wyoming: The Wyoming SBDC Network is ready to strategize with entrepreneurs statewide to develop individualized plans to keep your business running as smoothly as possible.

Municipal Support

Chicago: 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 you’ll qualify for depends on your revenues before business was affected by the coronavirus. You must demonstrate a 25% drop in revenue, have less than $3 million in revenue and fewer than 50 employees, and have no current tax liens or legal judgments.

Denver: Small Business Emergency Relief program offers cash grants of up to $7,500 to businesses in industries particularly hard-hit by the coronavirus. Small businesses that have lost the ability to operate, including restaurants, retail shops, barbershops and nail salons.

New York City: Small businesses with fewer than 100 employees and a 25%-plus revenue decrease can access loans up to $75,000. The city is also offering grants to cover 40% of payroll costs for two months to businesses with five employees or less. Visit New York City assistance or call 311 for info.

Los Angeles: Businesses and microenterprises in Los Angeles that are responsible for providing low-income jobs can get an emergency microloan of $5,000 to $20,000. Loans with repayment terms of six months to one year carry an interest rate of 0% and five-year loans have interest rates of 3% to 5%.

Oregon: Businesses that reside in Beaverton, with fewer than 50 employees that have been ordered close, as a result of government coronavirus guidelines can apply for $2,500 per month in rent or mortgage reimbursement while the city is in a declared state of emergency.

From March 23 to April 20, businesses in Hillsboro can apply to receive a $5,000 grant to offset losses associated with the coronavirus. Priority will be given to restaurants, bars, education facilities and businesses that serve large groups of people.

Portland: Small businesses in the Jade District and Old Town Chinatown neighborhoods can apply for emergency funding to support their businesses by March 23. Up to $190,000 total is available from local government sources. Priority will be given to Asian- and Pacific Islander-owned businesses.

Sacramento: The city established a $1 million economic relief fund for businesses that provides 0% interest loans of up to $25,000 per business.

San Francisco: Businesses with between one and five employees can apply for up to $10,000 in emergency funding to help cover rent and employee salaries. You must show that you lost 25% or more of your revenue, that you have less than $2.5 million in gross receipts and that you’re properly licensed to operate in San Francisco.

Seattle: The city’s Office of Economic Development is providing $1.5 million in grants of up to $10,000 to small businesses. The mayor is also deferring tax payments for business-owner candidates and will set up a small-business recovery task force.

Canadian Government Resources for Small Businesses

The wage subsidy will increase from 10% to 75% retroactive to March 15. Businesses will be able to hire back their employees and keep them on the payroll
A new loan program will be available to small businesses coming shortly. This will be an interest-free loan for 6 months of up to $40,000. The first $10,000 will be non-payable for qualifying businesses, more details on who qualifies to come.
GST remittances are now on hold until June

Finance Minister Bill Morneau provided some additional details on the Prime Minister’s announcement of Additional Support for Canadian Businesses from the Economic Impact of COVID-19. The package of announced policies includes:

Deferral of Sales Tax Remittance and Customs Duty Payments

GST/HST remittances starting from February for companies paying monthly and in January for those paying quarterly are deferred to June 30, 2020. Payment deadlines for statements of accounts customs duty and GST on imported goods for March, April and May are deferred to June 30, 2020.

New Loan Programs for Businesses

Canada Emergency Business Account: Implemented by financial institutions in cooperation with Export Development Canada (EDC), this $25B program will offer interest -free loans of up to $40,000 to small businesses and not-for-profits to help operating costs during COVID-19.
A New Loan Guarantee for Small and Medium Enterprises: Up to $6.25M, EDC will guarantee new operating credit and cash flow term loans that financial institutions extend to SMEs. The program cap is $20B for export sector and domestic companies.
A New Co-Lending Program for Small and Medium Enterprises : Business Development Bank of Canada (BDC) alongside financial institutions will co-lend term loans to SMEs for cash flow requirements. SMEs could obtain incremental credit amounts up to $6.25, while the potential for lending under this program is $20B.

The Canada Revenue Agency (CRA) has also announced some additional measures for individuals and businesses, including an extension for some administrative income tax actions, an extension the deadlines for the filing of returns for charities and for trusts, partnership and NR4 information returns, a suspension of audit activities, among others.