The United States has been greatly affected by the coronavirus and the federal, state as well as local governments are constantly working hand-in-hand to deal with this unfortunate situation. Several financial assistance programs, loans, and grants are being provided by individual states to help their residential community. The US Chamber of Commerce clearly stated these programs in its state-by-state guide, easily available for the residents to read. Some of these funds programs are highlighted as follows:
Small Business Stabilization Fund: Washington
This funds program aims at helping small and moderate-income businesses to stabilize financially during the virus. Grants that will go up to $10,000 will be provided to small business owners across Seattle under this program. 250 small businesses were selected under the program that qualified for the fund. Until now only one round has been completed. The local government has however made it public that future rounds can take place if the pandemic persists.Any future round will distribute the money to a wider Seattle community
Small Business Continuity Loan: New York
The problems faced by the New Yorkers are no different than other states. It is difficult for small businesses to survive during this COVID-19 situation. To cope up with this situation, the Small Business Continuity Loan Program is introduced for the residents of New York. This program will particularly help those businesses that employ less than 100 employees and whose sales have dropped to at least 25% in the Covid-19 outbreak. Such business owners will be granted 0% interest loans reaching up to $75,000.
Hospitality Emergency Loan Program (HELP): Delaware
In Delaware, Governor John Carney announces the HELP which will target the hospitality industry. These include hotels, bars, restaurants, and other businesses related to this particular industry. Since the restaurant businesses are now only limited to take-out or delivery, considerable income loss is being faced by Delawareans in the hospitality business. An approximate $10,000 will be provided to each business on monthly basis completely interest-free. The grant money can be used to pay rent, utility bills, and other important expenses but cannot be utilized for personnel costs. However, businesses who wish to receive this funds money should be a working restaurant business for at least one year with a yearly revenue below $1.5 million.
Small Business Emergency Business Loan Program: Florida
The Florida Emergency Bridge Loan Program has been active since the year 1992 and aims at bridging the gap between small businesses the time a major crisis took place and when the business was able to stand up again in the long-term. Interest-free and short-term loans will be provided to the people of Florida under this program. These loans can be used by businesses as lost capital and to mitigate any revenue losses. Monetary support will be given to each eligible business, ranging from $50,000 – $ 100,000. The higher amounts are subject to approval and are to be provided under special circumstances only.
Chicago Small Business Resiliency Fund: Illinois
Many businesses in Chicago are experiencing temporary loss of revenue as an aftermath of Coronavirus. To support such businesses, the City’s authorities have come up with “The Chicago Small Business Resiliency Fund” that will provide $100 million as loans to support small businesses. Applications of this program are now open to the general public at www.chicagoresiliencyfund.com. Through these loans not only will the small businesses will profit but also their employees. These loans will go up to five years to those businesses that employ less than 50 employees and earn revenue of a maximum of $3 million. These loans will accompany very low-interest rates. Only 1% interest will be charged for the initial 1.5 years and very little payments in the first 6 months. At least 50% of the loan amount must go towards payroll.
Covid-19 Business Loan Guarantee Program: New Mexico
To deal with the adverse economic effects of Covid-19 on small businesses, the Economic Development Department (EDD) of New Mexico has devised the “Covid-19 Business loan Guarantee Program”. This program will provide emergency loans or line of credit worth $50,000 or 80%of the principal amount to the qualifying business owners. The loan is very flexible and can be used for many purposes. For example, to pay employee salaries, as working capital, to buy materials or inventory. However, the business owners can also use the fund money for other purposes as well. Another program called the “New Mexico Recovery Fund” is active amid coronavirus. Under this fund, short-term and low-interest loans are being provided to the struggling business owners across the city. Similarly, the “All Together NM Fund” is addressing the sudden financial needs (such as food, medical, cleaning supplies, and child care) of the residential community of New Mexico.