Here are available options for small businesses and non-profits in need of financial support due to the COVID-19 impact.
EZ and Revised Full Forgiveness Applications for the Paycheck Protection Program
On June 17, in addition to revising the full forgiveness application, the Small Business Administration published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
The EZ application requires fewer calculations and less documentation for eligible borrowers. Both applications give borrowers the option of using the original 8-week covered period (if their loan was made before June 5, 2020) or an extended 24-week covered period. These changes will result in a more efficient process and make it easier for businesses to realize full forgiveness of their PPP loan.
NYFLF is providing working capital loans so that small businesses, nonprofits and small landlords have access to credit as they reopen. These loans are available to small businesses, nonprofits, and small landlords that did not receive a loan from either the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loans (EIDL) for COVID-19 in 2020. The loans are not forgivable in part or whole. The loans will need to be paid back over a 5-year term with interest.
The COVID-19 Small Business Continuity Grant Program is intended to help businesses keep their employees and stay afloat during a time of economic hardship due to the impacts of COVID-19. Businesses are encouraged to apply for this funding to help make payroll, to pay bills and to keep their operations going. This Program will be administered by the Community Loan Fund of the Capital Region and allocated in accordance with program guidelines and a scoring matrix approved by the donors to the Program. This Program is meant to bridge the gap for a brief financial hardship period. Eligibility: small businesses with a physical commercial storefront located in the service area or independent contractor/gig worker based in the service area, Albany County and surrounding Capital Region. Click on link for more information.
The National Endowment for the Humanities (NEH) has new grant guidelines designed to rapidly distribute CARES Act funding to cultural nonprofits affected by COVID 19. This new funding opportunity, NEH CARES: Cultural Organizations, will provide grants of up to $300,000 to sustain humanities organizations and preserve jobs in the cultural sector. NEH will award grants to museums, libraries and archives, historic sites, independent research institutions, professional organizations, colleges and universities, and other cultural organizations across the country to help these entities continue to advance their mission. The deadline to apply is May 11, 2020. Please click on the link above for more information.
Here are programs/resources that can be considered for possible loan options
Coronavirus Aid, Relief & Economic Security (CARES) Act. There are two components of the CARES Act-
The Small Business Development Center (SBDC) can provide assistance via remote advisors. Please visit www.nyssbdc.org to make an online request for counseling.
Small Business Administration (SBA) Disaster Loan Program. Information here. Once the loan application is approved, there is a possibility to have as much as a $25,000 advance.
(Video courtesy of Saratoga County Chamber)