COVID 19 Relief Programs
Remember, your first step should be to contact your bank to secure a line of credit. Take what you qualify for! If you have solid business history, this will be the easiest and fastest way to obtain funding. If you plan to apply for the SBA Disaster Relief Fund, your application should be approved/disapproved in 21 days, but it MAY take months for payout. Remember, SBA is Federal and managing the nation, not just the State. You must be able to provide evidence of economic disruption; this can be projected losses! I recommend to submit a letter explaining how the pandemic has affected business while using quantitative data.
Interest rates are 3.75% for small business and 2.75% for non-profits up to 30 year terms with no penalty for prepayment. You can request up to $2 Million. Loans up to $25,000 require no collateral. Over $25,000, the SBA will need access to collateral, but it does not need to be fully collateralized. Payments will begin five months after initial payout.
The Maryland Department of Commerce is accepting applications for the COVID19 Emergency Relief Loan AND Grant Fund. Loans up to $50,000 for 12 months at 0% interest and 2% for the remaining 36 months and grants up to $10,000. YES, GRANT FUNDING!
Facebook Grants: Facebook has announced they will be providing $100 million in cash grants or advertising to small businesses.
KIVA Loans: The nonprofit organization Kiva provides 0% interest loans to small businesses worldwide. They are expanding eligibility and the number of loans provided during this crisis.