Times are tough, and with so many unknowns, small businesses need access to capital. COVID-19 has taken a toll on small businesses across America, but fortunately, there are programs put in place to help alleviate economic stress for those in need.
Paycheck Protection Program (PPP Loans)
On March 27, Congress approved the Paycheck Protection Program to be administered through the Small Business Association (SBA) as part of the CARES Act, focused on businesses with 500 or fewer employees. Most of these loans are expected to be forgiven if they’re used for designated proposes during the eight weeks after being funded. Congress allocated $349 billion for these loans, which were offered on a first-come, first-served basis, and the entire tranche was loaned very quickly. Congress has now passed a second tranche of $310 billion with additional eligibility criteria that will focus the program more effectively on small businesses. They haven’t re-opened the application process yet, but when they do anyone interested in applying will have to act FAST!
Disaster Assistance Loans
The United States Small Business Administration is offering low-interest loans to small businesses who are in need of economic support as a result of COVID-19. Small businesses in designated states and territories are qualified to receive interest rates of 3.75% without credit available elsewhere, and long-term payment plans will be implemented to keep repayments affordable.
States have taken matters into their own hands to provide small businesses with assistance. Programs differ from state to state with some offering loans with 0–3% interest to others offering grants ranging from 5,000 to 25,000.
Large corporations (like Facebook, Amazon, Yelp, Google) are establishing their own programs to give back to the community. They understand how a little support can go a long way, so these organizations are going above and beyond to help small businesses survive this crisis.
Use your favorite search engine and scour the internet for grants relevant to your company. Find those smaller, niche grants that aren’t generating mass amounts of applications. Use those specialty terms like plant-based, woman-owned, immigrant founded, vegan, food and beverage, and apply, apply, apply.
Pod Foods is here to support emerging brands and retailers during this time! If you’re looking for more affordable and transparent distribution to keep your sales moving, reach out.