As small businesses across the country are hit hard from the impact of COVID-19, several government agencies and other organizations are working to help ease the burden. We’ll continue to update this list as more opportunities become available.
SBA Disaster Relief Loans
The U.S. Small Business Administration is making disaster relief loans available to help alleviate substantial economic injury resulting from the pandemic.
Small businesses in Wisconsin can apply for loans of up to $2 million of working capital to pay current expenses like debt, payroll, accounts payable and other bills. Businesses will need to show that the loans will be used for overhead expenses, and those with credit available elsewhere are not eligible.
Credit Requirements
Applicants must have a credit history acceptable to SBA and be able to show the ability to repay the loan. Collateral is required for all loans over $25,000. While SBA will not decline a loan for lack of collateral, it will require the borrower to pledge collateral that is available.
Interest Rates & Terms
The maximum interest rates are 3.75%, and loan terms can be up to a maximum of 30 years.
Application
Interested applicants are encouraged to use the SBA’s online loan application. The SBA has said it takes approximately five days for review and three weeks for the receipt of funds once approved.
Applicants will be asked to provide the following:
- Tax Information Authorization (IRS Form 4506T) for applicant, principals & affiliates
- Complete copies of the most recent Federal Income Tax Return
- Schedule of Liabilities (SBA Form 2202)
- Personal Financial Statement (SBA Form 413)
- Profit and loss statements
- Monthly sales figures (SBA Form 1368)
Assistance
The Wisconsin Small Business Development Network, a resource partner of the SBA, is helping small businesses apply for the loans and has created a web page to help business owners understand the qualifications and application process. Consultants across the network’s 13 locations are working remotely to assist clients.
- RELATED: SBA’s Wisconsin Declaration & Fact Sheet
- RELATED: SBA Coronavirus Disaster Assistance Info Sheet
- RELATED: 3 Step Disaster Loan Application Process
SBA Express Bridge Loans
The SBA’s Express Bridge Loan Pilot Program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can help overcome a temporary loss of revenue or be used to bridge the gap while applying for a direct SBA Disaster Relief Loan. Find an Express Bridge Loan Lender via SBA’s Lender Match Tool or by connecting with your local SBA District Office.
Legislative Efforts
As the coronavirus pandemic has spread rapidly across the country, several pieces of legislation have been introduced to help struggling businesses.
The CARES Act, introduced by Senate Majority Leader Mitch McConnell on March 19, would provide significant further relief for small businesses, including $300 billion for SBA loan guarantees and subsidies and additional funding for SBA resources.
The bill would provide for a process by which borrowers would be eligible for loan forgiveness for funds spent on payroll, mortgage interest, rent and utility costs. It also would establish an emergency grant to allow an eligible entity that has applied for an SBA Disaster Relief loan to request an advance of no more than $10,000, which would be distributed within three days. The applicant would not be required to repay the advance, even if subsequently denied an SBA Disaster Relief loan.
The COVID–19 Relief for Small Businesses Act of 2020, which was introduced by House Small Business Committee Chairwoman Nydia M. Velázquez on March 19, aims to establish a temporary direct loan program at SBA.
If approved, the legislation would provide small business owners capital to pay off or refinance existing debt, provide employee benefits, pay employee wages and related taxes, and acquire technological and other resources that enable continuity of operation.
It would support $100 billion worth of zero-interest, zero-fee loans of up to $2.5 million each with 10-year terms and repayment deferred for the first year. The bill would also provide forgiveness of up to 50% of the loan after December 31, 2021, if the borrower has retained the same number of employees as when they received the loan.
WEDC 20/20 program
The Wisconsin Economic Development Corp. has announced a $5 million grant program that will help small businesses that suffer losses related to the coronavirus outbreak. The Small Business 20/20 program aims to provide grants of up to $20,000 to businesses with 20 employees or fewer to cover rent and meet payroll expenses, including paid leave.
The grants will be deployed by partnering with the state’s 23 community development financial institutions, and businesses are expected to be able to apply in the coming weeks.
Lender Assistance Programs
Many banks have offered deferment and forbearance to business loan customers having trouble making payments as coronavirus continues to impact communities across the country.
Search for your bank in Forbes’ list of banks offering relief or the American Bankers Association’s ongoing A-Z list of coronavirus response programs.
Facebook Small Business Grants Program
Facebook will provide up to 30,000 small businesses $100 million in cash grants and Facebook advertising credits. Information is limited, but sign up to get more details from the company when they’re available.
Coronavirus News Collaboration Challenge
The Pulitzer Center on Crisis Reporting is seeking proposals that develop innovative approaches to reporting on the coronavirus crisis using collaboration among journalists and newsrooms across state lines or national borders. Applications will be reviewed on a first-come, rolling basis.
