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Small Business Resources to Survive the Impact of Coronavirus

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Update: April 3, 2020

New regulations have come out detailing how to apply for loans under the Paycheck Protection Program, a provision of the CARES Act. Learn more below!

In times of real economic turbulence, businesses need to hunker down and take stock of what resources are available to them. I don’t only mean the resources inside your business—cash, people, assets. I mean outside assistance too.

There is a plethora of federal, state, and local agencies whose sole purpose is to help small businesses succeed. That’s why I’m always surprised at the number of small business owners who have never visited the Florida SBDC or SBA websites.

Especially at a time like this when the economic forecast looks so grim, knowing what resources you can make use of and the kind of assistance they provide can mean the difference between surviving and thriving and becoming another small business failure.

I know the landscape is evolving very fast right now, but here are some business resources from the federal to the local levels that you should take advantage of to get your business over the hump.

Small Business Administration

  • Small Business Guidance and Loan Resources

    Overview of coronavirus-related information for small business owners, including tips for employee safety, common small business issues, and other SBA products.

  • Economic Injury Disaster Loans

    The SBA is offering low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Businesses can apply for Economic Injury Disaster Loans of up to $2 million to get vital economic support they need to overcome the temporary loss of revenue. These loans may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. There’s a simple three-step loan process.

  • Paycheck Protection Program

    The PPP is a highly anticipated loan program that was initiated under the CARES Act to give loans of up to $10 million to small businesses to cover payroll costs and keep workers employed. Final regulations for the application process have not yet been issued of as April 3, but banks expect to begin accepting applications today, April 3, 2020. The benefits of the Paycheck Protection loans are that they are potentially forgivable, if funds are used for qualified expenses within 8 weeks of loan origination. We have a full breakdown of the loan program and more on the linked blog post.

Florida Programs

  • Florida Disaster Dashboard

    Collection of resources and Twitter feeds from many Florida government agencies with separate areas for information on preparing for, responding to, and recovering from disasters.

  • Business Damage Asssessment Survey

    This is a short survey about the current or potential economic damage your business could suffer from the coronavirus outbreak. The survey, managed by the Florida Department of Economic Opportunity, evaluates businesses affected by the coronavirus and the impacts the virus is having on the local economy so the state can implement appropriate relief programs.

  • Florida Bridge Loan Program

    Governor DeSantis initiated the Florida Emergency Bridge Loan Program to provide extra assistance to Florida small businesses. Under this program, businesses can receive up to $50,000 in a short-term, 1-year interest-free working capital loans.

  • Florida Economic Development Council Dashboard

    Collection of links, resources, and updates from the Florida Economic Development Council on how Florida businesses can respond to the coronavirus (COVID-19) outbreak.

Federal Government

  • Phase One Coronavirus Package (H.R. 6074)

    The first of two bills passed by Congress and signed into law in response to the rapidly spreading coronavirus. The first bill, H.R. 6074, provides $8.3 billion in emergency funding for federal agencies to respond to the coronavirus outbreak. Specifically, funding is directed to the Small Business Administration, programs for small business loans, and an “Economic Support Fund.”

  • Phase Two Coronavirus Package (H.R. 6201)

    President Trump signed H.R. 6201, the second bill passed by Congress in response to the coronavirus threat, on Wednesday, March 19th. This bill provides for, among other things, paid sick leave and free coronavirus testing, expanded food assistance and unemployment benefits, and additional protections for health care workers. Specific provisions are included that:

  • Establish a federal emergency paid leave benefits program to provide payments to employees taking unpaid leave due to the coronavirus outbreak,
  • Expand unemployment benefits and provide grants to states for processing and paying claims,
  • Require employers to provide paid sick leave to employees (certain businesses are exempt from this, though),
  • Establish requirements for providing coronavirus diagnostic testing at no cost to consumers.

  • Phase Three Coronavirus Package (H.R. 748, CARES Act)

    H.R. 748, known as the CARES Act, is the third bill passed by congress in response to the coronavirus. The CARES Act is an enormous $2 trillion economic stimulus package that includes funding for a wide swath of the population including individuals, small businesses, big corporations, hospitals and public health, state and local governments, and education. Among the key beneficiaries of the bill:

  • Individuals: $300 billion in direct payments are set to be distributed to Americans of up to $1,200, per person, with an additional $500 per child.
  • Big Business: $500 billion is earmarked for major industries, provided the funds can’t be used for stock buybacks or CEO pay raises.
  • Workers: $260 billion will go to bolster the unemployment insurance program, expanding coverage to four months and adding $600 to the weekly benefit.
  • Small Businesses: $375 billion has been allocated to relieve small businesses. This total includes $10 billion for emergency grants of up to $10,000 and $350 billion for the SBA’s Paycheck Protection Program, which provides loans to cover employee payroll, rent, and other business debts . Independent contractors, sole proprietors, and certain self-employed individuals also qualify for these loans! 

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