Financial Relief Options for Small Businesses Impacted by COVID-19
Small Businesses struggling with the impact of the COVID-19 pandemic still have additional options for financial relief. The U.S. Small Business Administration (SBA) offers several loans and grant programs for small businesses, read more about available programs below.
1. Paycheck Protection Program (PPP) Loan Forgiveness
The PPP loan ended on May 31, but existing borrowers may be eligible for 100% loan forgiveness if all conditions are met. Small businesses need to spend at least 60% of the loan on payroll costs, while the remaining 40% can be spent on rent, protective equipment modifications, mortgage interest, and other qualified expenses. Learn more about PPP loan forgiveness here.
2. Shuttered Venue Operators (SVO) Grant Program
Applicants of the SVO Grant Program may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. Those eligible for the SVO Grant Program include live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators (including owners), and talent representatives. SVO Grant funds may be used for rent, payroll, utilities, and other qualified expenses. See the full list of qualified expenses here.
3. Economic Injury Disaster Loan (EIDL)
The EIDL provides loans of working capital and normal operating expenses up to $500,000. The EIDL is a 30-year loan with a fixed interest rate of 3.75% for small businesses and 2.75% for nonprofits.
4. Restaurant Revitalization Fund (RRF)
The RRF provides funding equal to pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Eligible recipients include restaurants, caterers, wineries, and food trucks. Please see the full list of eligible recipients here. Beneficiaries are not required to repay the funding if funds are used by March 2023, on eligible expenses including rent, payroll, and utilities. See the full list of qualified expenses here.
RRF applications are currently closed, click here to sign up for email updates if additional funds become available.
The SBA also offers a database of additional private funding options. For additional national and local funding options please visit the SBA website here.
Rita Simmons, Ph.D., is the founder and lead consultant of Novelle, where she provides business and research consulting to companies across a variety of industries. Dr. Simmons leverages her drive for innovation and excellence along with her extensive executive and military experience to help companies grow their business, drive revenue, and achieve strategic goals. When you’re ready to take your business to the next level, contact Dr. Simmons at info@novelleonline.com or connect with her on LinkedIn.