Helpful Resources For Small Businesses During COVID-19 | Coronavirus Small Business Loan

Apr 09, 2020

COVID-19 has dealt a devastating blow to our nation’s small business community. With state mandates and safety measures requiring the suspension and closure of many businesses, officials are hoping to slow the spread of the COVID-19. For most businesses, this has meant a dramatic drop in cash flow, threatening many to potentially close their doors for good.

Despite the troubling impact, small businesses are not alone. A growing number of resources and relief programs have been developed to help small businesses during this economic crisis. President Donald Trump signed into law a $2 trillion stimulus package. The FDIC has encouraged banks nationwide to assist customers with personal and business finances directly impacted by the outbreak.

More help is on the way. Here is a list of federal, state, and specific assistance provided by certain lenders. 

Federal Small Business Relief During COVID-19

  • Paycheck Protection Loans – The Small Business Administration or (SBA) is offering loans with interest rates of up to 4%, for terms as long as 10 years, if businesses employ less than 500 people. They can qualify for as much as $10 million. Lenders will include banks and credit unions. Qualifying businesses can receive loan deferments from six months to a year. Loans can be potentially forgiven if businesses keep its payroll for eight weeks, maintaining the employees’ regular salary.
  • SBA’s Economic Injury Disaster Loans – The SBA is offering “working capital” loans of up to $2 million for both small businesses and nonprofits impacted by the coronavirus. The interest rate for small businesses is 3.75% and 2.75% for nonprofits. Repayment terms will vary, but it offers a maximum of 30 years. Applicants don’t need a personal guarantee for loans less than $200,000. There is also a payment deferment for up to four years. 
  • Emergency Grant of $10,000 for applicants of SBA Economic Injury Disaster Loan – This grant can be used for employee sick leave, providing payroll, and meeting other financial obligations, such as paying the rent. In the event that you are denied a loan, this grant is still accessible to you.

Along with financial assistance, the SBA also offers helpful guidance and resources to assist small businesses during this difficult time. 

  • Extension for Federal Income Tax Filing and Payment Deadline – The filing for the federal tax return has been extended to July 15, 2020. This new deadline is also applicable to individuals and businesses that owe tax payments up to $10 million. Any estimated tax payments due on April 15 are now due on July 15. 

Always check with your state tax agency to ensure you have more time to both file and pay state and local taxes due to the outbreak. Some states may even have provisions in place that may waive or reduce penalties on any late tax payments. 

State and Local Coronavirus Small Business Support

States are mobilizing efforts to assist small businesses. New programs are being added each day. Check your governor’s website to receive the latest information on relief efforts and resources. You can go to the National Governors Association to get a complete list of governor’s websites. Here are a few states with the latest assistance programs.

For California

  • San Francisco COVID-19 Small Business Resiliency Fund – Emergency funding is available for businesses that employ between one and five people. They can receive up to $10,000 to cover rent and employee salaries.
  • City of Los Angeles Small Business Emergency Microloan Program – Businesses and “microenterprises” in the city of Los Angeles that provide low-income jobs can apply for an emergency microloan of $5,000 to $20,000. If the repayment terms on the loan are six months to one year, the interest rate is 0%. Five year loans will carry an interest rate of 3% to 5%. 

For Colorado

  • Denver Small Business Emergency Relief – For industries that have been especially hit hard by the coronavirus outbreak, this program is offering cash grants of up to $7,500. 

For Florida

  • Florida Small Business Emergency Bridge Loan Program – For small businesses affected by the coronavirus, loans of up to $50,000 to even $100,000 (in special cases) are available. These loans serve as “short-term funding” that can be paid back once alternative funding can be secured.

Assistance Programs From Lenders and Corporations

Numerous banks have made provisions for business loan customers that are experiencing difficulty making payments. This has come in the form of deferments and forbearances. To see if your bank is participating in this way, go on the American Bankers Association’s A-Z list of coronavirus response programs and search for your bank.

  • Amazon Neighborhood Small Business Relief Fund – Businesses that are located in Bellevue, Washington as well as the neighborhoods of South Lake Union and Regrade, can apply online for a grant from Amazon. Businesses need to have 50 employees or less, or make less than $7 million annually to qualify.
  • Facebook Small Business Grants Program – Facebook has announced that it is offering up to 30,000 businesses $100 million in the form of cash grants and Facebook advertising credits. The offer is available to businesses in more than 30 countries. 

Stay Informed

Although information overload is becoming all too common during this time of crisis, it’s important to stay up-to-date with all pertinent information related to your small business. Continue to regularly visit websites such as SBA, SCORE, and, your local state government website for any developments related to coronavirus relief programs.

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Having a merchant account allows an account holder to take advantage of merchant cash advances. When a merchant is approved for an advance, the business agrees to receive a lump sum of cash in exchange for an agreed-upon percentage of future credit card sales.

Pricing varies depending on the merchant’s industry, past credit card processing history, the type of business seeking the account, average ticket sales, and average transaction volumes.

Yes, EMB works with merchants who are building their credit, as well as those who have poor credit. EMB also approves merchants that have no credit card processing history and businesses that have lost their merchant accounts due to high chargebacks.

Several factors influence a merchant’s risk level. Though only one factor likely will not get a merchant classified as high risk, a combination of these may: business size, location, and industry, credit score, credit card processing history, a industry’s reputation for excessive chargebacks, a prior history of high chargeback ratios, and whether a merchant exclusively sells online.

Virtual terminals are stationed on a merchant’s website, making it easy for customers to make a payment or purchase online. Merchants or a payment processor can easily set up virtual terminals, so online businesses can accept credit and debit card and e-check transactions.

A merchant account is a business account with an acquiring bank. Without this business account, which actually works more like a line of credit, a merchant cannot accept and process credit and debit card transactions. Businesses need a merchant account to accept major credit cards via a static point-of-sale terminal, mobile card reader, or through a virtual payment gateway.

After filling out EMB’s simple online application and submitting any necessary, requested documents, many merchants get approved within 24 and 48 hours.

EMB specializes in working with high-risk merchants. EMB works with many merchants, including but not limited to businesses in these industries: gambling and gaming, adult entertainment, nutraceuticals, vaping and e-cigarettes, electronics, tech support, travel, high-end furniture, weight loss programs, calling cards, e-books and software, and telecommunications.

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