COVID-19 Relief Programs to Aid Recession Planning for SMBs: Part 2

Mandatory closures and safety measures implemented due to the COVID-19 pandemic have impacted almost all industries. This is especially true for small and medium-sized businesses that are working with limited resources. As business owners focus on coming up with an emergency response plan, it is helpful to be aware of the various relief programs offered by the federal, state, and local governments across the U.S. 

There are different programs for you to consider, from the Congress pledging a stimulus package and several states introducing their own relief funds. We’ve compiled a comprehensive list of federal, state, and lender-specific COVID-19 relief programs you can pursue.

In part 2 of this two-part series, we will focus on state and local programs that are applicable to SMBs. Last week, in part 1, we discussed federal loan and debt relief programs.  

State and Local COVID-19 Small Business Assistance

Most states and municipalities are offering programs for local businesses to aid their emergency response plan. Keep visiting your governor’s website for any new programs that may help you. The National Governors Association offers a list of governors’ websites for your convenience.

Here are some prominent state and local government relief programs:

1. San Francisco COVID-19 Small Business Resiliency Fund

This resiliency fund is for extremely small businesses that have between one to five employees. They can apply for up to $10,000 in emergency funding to help cover their rent and employee salaries.

The following parties are eligible for the program:

  • Those that have lost 25% or more of your revenue
  • Have less than $2.5 million in gross receipts
  • Are properly licensed to operate in San Francisco

You can apply for the program by filling out an online application form and emailing it to investsf@sfgov.org. Along with the form, you also have to supply proof of payroll costs and lost revenue.

2. City of Los Angeles Small Business Emergency Microloan Program

This loan helps businesses and microenterprises in Los Angeles with their financial emergency response plan. If your business is responsible for providing low-income jobs, you are eligible for this program. You can apply for an emergency microloan of up to $5,000 to $20,000. There are two different types of loans depending on the repayment terms:

  1. Ones with repayment terms of six months to one year have an interest rate of 0%.
  2. Five-year repayment term loans have an interest rate of 3% to 5%.

To qualify for this loan, you must meet the following requirements:

  • Have a “reasonable and responsible” individual credit history.
  • Commit to using the loan only for working capital.
  • Ensure that your business is within the City of Los Angeles.
  • The individual that owns 20% or more of the business must guarantee the loan.

You can apply online for the program. You’ll have to provide the following supporting documentation:

  • Business and personal tax returns
  • Three months of bank statements
  • Business and personal financial statements

Funds to help SMBs out with their emergency response plan

3. Florida Small Business Emergency Bridge Loan Program

This program offers loans of up to $50,000 – even $100,000 in certain special cases – for small businesses that can prove they’ve been affected by COVID-19. These loans are meant to serve as short-term funding while businesses look for alternative long-term loans.

The loans are interest-free for a year but after that, there’s an interest rate of 12%.

The following parties are eligible for this program:

  • Small businesses with two to fifty employees.
  • Any previous bridge loads the business has taken out must be repaid.

Submit an application by May 8, 2020 to be considered for the program. You also have to submit supporting documentation such as business and individual tax returns and employer tax documentation.

4. New York City Small Business Continuity Fund

This program is for small businesses that comprise fewer than 100 employees. You can get up to $75,000 in interest-free loans. The loan is meant to cover revenue losses due to COVID-19.

The following parties are eligible for this program:

  • Businesses situated within the five boroughs.
  • Have experienced a minimum of 25% reduction in their revenue.
  • Must not have any tax liens or legal judgments against you.

The applications for this loan aren’t open yet. You can still fill out an interest form on the New York City Department of Small Business Services website to get more information about it once it’s available. Once the loan applications are live, you will also need to provide proof of the loss in revenue and that you are capable of repaying the loan.

State Income Tax Filing and Payment Deadline Extension

Several states are extending the tax filing and payment deadlines to align with the federal extended deadline. To find out if your state has given business more time, check with your state tax agency.

Banks Offering Small Business Assistance Programs

Banks that are helping SBMs with their emergency response plan

The FDIC is encouraging banks to work with customers to provide COVID-19 related support, for both personal and business finances. You can find out if your bank is offering any assistance by visiting the American Bankers Association’s A-Z list of coronavirus response programs.

At EZRentOut, we’re here to help

We realize that rental businesses around the world are facing unprecedented challenges due to the spread of COVID-19. This is going to be a period of significant transition for all of us. At EZRentOut, we are committed to helping you succeed during this uncertain time. Use our cloud-based rental asset management solution to:

  • Retain and grow customers with a custom Webstore and customer rental portal. Reserve rental assets and receive payments online.
  • Enable remote assets usage – track and protect your rental assets from anywhere.
  • Manage remote employees with customizable digital communication and alerts.
  • Carry out maintenance events across the organization.
  • Control budgets and costs through business reports.

If you have any questions, please contact our customer support team at support@ezrentout.com. We are always available to help.

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