A Guide to Federal & State COVID-19 Financial Relief Programs Available for Small Businesses

Lindsay Gilder Apr 07, 2020

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According to Thomas' recent survey assessing the impacts of COVID-19 on North American manufacturers, 60% of North American manufacturing companies say they are being impacted in some way by the virus; that figure has likely increased over the past few weeks as widespread "stay at home" measures and other state-specific orders have been implemented.

These safety guidelines are, in many cases, leading to layoffs and major cuts in profits, along with a host of other expenses that many small businesses had no way to prepare for. According to the Small Business Report from Chase, half of all small businesses save up a cash buffer intended to cover business expenses equivalent to 27 days of typical outflows. As COVID-19 related shutdowns in some states approach Day 27, some business leaders may need additional support to keep their industrial businesses afloat.

Both federal and state governments are now beginning to offer financial relief to small businesses impacted by COVID-19 closures. A guide to these resources, including additional information and links to application pages, is outlined below.

Federal Small Business Loan Resources

According to the U.S. Small Business Association (SBA), the federal government is offering three different loan and debt relief programs for U.S. small businesses as part of the $2 trillion stimulus bill.

1. Paycheck Protection Program

Under the CARES stimulus act, the Paycheck Protection Program will be authorizing up to $349 billion toward job retention and other relevant expenses. Eligible businesses include nonprofit organizations, veteran organizations, and tribal businesses described in the Small Business Act, along with self-employed individuals and independent contractors, with some exceptions.

The program offers:

A loan of up to $10 million, determined by the last eight weeks of payroll plus 25%
Deferral of loan payments for six months
Forgiven loan proceeds used to cover the first eight weeks of payroll and other expenses following the loan origination

To learn more about qualifications for the paycheck protection program, click here.

2. Economic Injury Disaster Loans

As part of the government's response to small businesses impacted by COVID-19, Economic Injury Disaster Loan advances are available for up to $10,000. The program will also provide up to $2 million in loans to help small businesses overcome the loss of revenue during closures.

Loan funds are made available to qualified applicants within three days of submitting an application and the loan advance will not need to be repaid.

For more information about applying and qualifying for Economic Injury Disaster Loans and loan advances, click here.

3. Debt Relief and Express Bridge Loans from SBA

Under the Small Business Administration's (SBA) debt relief program, the SBA will pay the principal and interest of new 7(a) loans issued prior to September 27, 2020, for a period of six months.

The Express Bridge Loan Program allows small businesses with an existing relationship with SBA Express lender to access up to $25,000 with less paperwork.

4. National Institute of Standards and Technology (NIST) Manufacturing USA National Emergency Assistance Program

On March 31, NIST announced it had opened funding for rapid, high-impact projects that support U.S.' response to the COVID-19 pandemic. NIST will be awarding funding to Manufacturing USA Institutes' projects that include, but are not limited to:

Medical or nonmedical countermeasures
Grants to accelerate production of critical materials, equipment, and supplies
Additional production facilities
Technology road-mapping for pandemic response and recovery
Leveraging institute capabilities to strengthen state and community resilience
returning to the U.S. the manufacture of critical conventional drugs and ensuring supply chains for critical materials related to pandemic response
Workforce development and training for manufacturing workers.

For more information on the release, click here.

To view eligibility and submit an application, click here.

State Small Business Relief Resources

Along with federal resources, states have also stepped in to provide relief to small businesses impacted by COVID-19, including waived late fees on payments or other state implemented loan programs.

Along with loan and grant offerings for local businesses, most states are extending their income tax filing date from April 15, 2020, to July 15, 2020, and are waiving late payment penalties for all returns filed in February, March, and April 2020.

Outlined below are a variety of state-specific resources, listed alphabetically by state:

Alabama

Alaska

Arizona

Growth Partners Arizona - to apply for new loan options.
Arizona-specific COVID-19 resources for businesses

Arkansas

Details on Arkansas' Quick Action Loan Program
Arkansas-specific COVID-19 resources for businesses

California

Colorado

Delaware

Florida

Georgia

Georgia-specific COVID-19 resources for businesses

Hawaii

Idaho

Idaho-specific COVID-19 resources for businesses

Illinois

Indiana

Indiana-specific COVID-19 resources

Iowa

Kansas

Kentucky

Kentucky-specific COVID-19 resources

Louisiana

Maine

Maryland

Massachusetts

Michigan

Minnesota

Nebraska

Nevada

New Hampshire

New Jersey

New Mexico

New York

North Carolina

North Dakota

Ohio

Oklahoma

Oregon

Pennsylvania

Rhode Island

Rhode Island Commerce small business FAQs

South Carolina

South Carolina Governor's COVID-19 briefing to businesses

South Dakota

South Dakota resources for businesses impacted by COVID-19

Tennessee

Texas

Utah

Vermont

Virginia

Washington

Washington, D.C.

West Virginia

Wisconsin

Wyoming

Wyoming Small Business Development Center resources

Image Credit: Maderla / Shutterstock

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