For small business owners who are seeing their profits and sales plummeting, at this very moment, the future might look bleak. What can you do to survive through stormy economic times? Keep going… but how?
Since many small businesses also come with very passionate owners, it’s safe to say that many of you won’t give up. We suggest focusing some of your drive and energy in other areas, namely relief offered to small businesses!
Unfortunately, there is no set playbook to follow to that will make everything better right away. What you can do is use this guide that we’ve put together to help give you just the financial boost you need to stay on track! Here is our list – Read through and see what applies to your company and how it can help – Be sure to read through to the end to see how Hire Up Staffing can help:
1. Coronavirus small business loans
The U.S. Small Business Administration (SBA) has created a relief plan to help small businesses affected by coronavirus through affordable loan options. The disaster assistance loans for small businesses program will offer interest rates of 3.75% for small businesses without credit available elsewhere, and interest rates of 2.75% for nonprofits. The SBA offers long-term repayment options on these loans of up to 30 years. Businesses with credit available elsewhere are not eligible for these loans.
To find out if these loan options are available in your region and your business is eligible, visit the disaster loan assistance application page.
2. Leniency from credit card companies
Many credit card companies have released statements announcing that they’ll be giving COVID-19 relief for small businesses too. They’re doing this by waiving service fees for 30 days, or offering other types of disaster relief assistance for small businesses. For example, Citibank recently announced that they’ll waive monthly service fees and fees incurred for early CD withdrawal.
Be sure to check with your bank or credit card company to find out if they are offering any special services during the COVID-19 pandemic. During times of crisis, many lenders and credit card companies are willing to negotiate on payment timelines and fees.
See this list of banks helping customers who are impacted by the coronavirus.
3. State and local resources
COVID-19 relief for businesses varies across different states, cities, and counties. For example, Washington State is offering no-interest loans for businesses that are enduring economic hardship due to the coronavirus pandemic. Meanwhile, New York City has launched the city’s Employee Retention Grant Program to help retain employees as businesses face decreased revenue.
Check with your state’s chamber of commerce to find out what financial assistance options exist in your area for your small business.
4. Coronavirus help for small business through crowdfunding
Fundraising for coronavirus expenses can be a lifeline when your business is struggling during the COVID-19 outbreak. While grants, loans, and stimulus measures can help greatly, it can take weeks—and even months—to receive that type of assistance. But with crowdfunding, you’re able to receive emergency financial assistance immediately.
Many people who are financially secure are now looking to help those affected by COVID-19—and crowdfunding gives them a way to easily do that. Your customers want to show their support and lend a hand to their favorite local business, but they may not know how. With online fundraising, loyal customers have an actionable way to step up and help you when you and your business need it most.
You can use crowdfunding to pay for any of these expenses and more during this period of COVID-19 closure:
- Your monthly rent or mortgage payment
- Health insurance for your employees
- Paid sick time for your employees who are affected by COVID-19
- Crisis pay for employees who aren’t sick but are out of work
- Employees who need time off to care for their children
- Any other operational expenses you’re struggling to pay
If your business has already started a GoFundMe and you have questions about how to set up withdrawal to your business bank account, please take a look at our article on business and organization withdrawals.
Receive a $500 grant through GoFundMe’s Small Business Relief Fund
GoFundMe has partnered with Yelp and Intuit QuickBooks to help small business owners receive the financial support they need to keep their businesses thriving throughout the coronavirus pandemic—and long after. Through the Small Business Relief Fund, qualifying businesses that have raised at least $500 on GoFundMe can receive a matching $500 grant. To find out if you’re eligible and learn about the process, read the Small Business Initiative FAQs.
Real businesses that have started successful fundraisers
Below are just two examples of small businesses that turned to online fundraising during a personal financial crisis.
After making the decision to close through the end of March, the owners of the Hideout Tavern in Chicago, Illinois knew their staff would be hurting financially. They launched a virtual tip jar fundraiser as a way to support their staff during COVID-19, and their customers and supporters donated over $24,000 in just five days.
Warp and Weft, a comfort food restaurant in Lowell, Massachusetts, had to close its doors because of COVID-19. To offset their weekly expenses of over $10,000, the owners started a GoFundMe that raised over $6,000 in just two days from local supporters.
5. Tax payment extension
To help those affected by the pandemic, the Internal Revenue Service (IRS) is providing small business relief for coronavirus. The IRS announced that it was giving both individuals and businesses a 90-day extension to pay tax fees. Now individuals can delay making tax payments up to $1 million, and businesses can delay making payments up to $10 million. Everyone will still need to file their taxes by April 15, 2020, but won’t need to pay on owed taxes until July 15.
6. Upcoming federal assistance
The U.S. Chamber of Commerce wrote a letter to government leaders requesting legislation that would allow employers to forego paying payroll taxes for March, April, and May. In the recent letter to Congress, the U.S. Chamber also called on lawmakers for the expansion of loan programs for small businesses with fewer than 500 employees, as well as the creation of credit facilities that could provide loans and loan guarantees to businesses with more than 500 employees. The timeline for this legislation isn’t certain, so keep an eye on the U.S. Chamber’s website and news sources to find out the latest.
7. Coronavirus business grants through private companies
Amazon has pledged $5 million through a small business relief fund to help small businesses in need in the Seattle area. Businesses are eligible for grants if they have fewer than 50 employees or less than $7 million in annual revenue. Amazon reviews all applications and disburses funds as quickly as possible.
Facebook is making $100 in cash grants and ad credits available to small businesses in over 30 countries. The grant money can be used to cover operational costs, take care of employees, pay rent, and more. Facebook says it will start taking applications in the coming weeks, and businesses can sign up for updates on their grant page.
8. Families First Coronavirus Response Act
There are small business relief bills in the works currently that haven’t passed yet, but for now there are many efforts focused towards the individual. One thing to remember is that you have to take the necessary steps needed to keep your business afloat. Some of these decisions may be difficult and we understand what you are going through, but we offer the suggestion to not feel bad. Many companies are forced into a position of having to let staff go and cut budgets temporarily, in order to minimize some of the losses that all Americans are going to see shortly. Everyone is in the same boat as you right now and I don’t think anyone expects businesses to deplete their savings to where you may not have a business anymore just to keep employees working who may not have a lot to do.
Whatever you decide, know that the government is offering stimulus packages to US citizens to leave them close to where they would be if still employed by you. It is better that you save your business, than lose it and have a thriving company that people can return to. If you have still some work that needs to be done, but not enough for a full time staff member, consider using a temporary service like Hire Up! We offer availability with temporary staffing to help fill in the work gaps while making staff and budget adjustments to keep things going strong.
9. The Senate Stimulus Package (In progress now, but not yet passed)
Treasury Secretary Steve Mnuchin told reporters at the Coronavirus Task Force briefing Wednesday that small business retention loans would cover roughly 50% of private payroll, making loans that would supply eight weeks of salaries, as long as they keep workers employed, and overhead. The loans would be forgiven at the end of the eight-week period if the businesses keep their employees. This bill has not yet been signed but it looks like it’s in the works and is yet another relief effort to keep your business alive!
We are here for you!
Though the coronavirus pandemic leaves a lot of uncertainty in our future, rest assured that your customers and supporters want to help you survive. WE WANT TO HELP YOU SURVIVE!! The very best thing we can do for our economy right now is to keep business going.
Hire Up Staffing is here to help with all that we can… with that said are offering free HR and Staffing consultations. We are helping essential businesses who are short staffed due to COVID-19 find qualified temporary employees. If you are interested in setting up a consultation or finding an employee find the location nearest you in the links below. Simply click the link and schedule an interview.
Fresno – https://calendly.com/fresno-branch
Visalia – https://calendly.com/visalia-branch
Bakersfield – https://calendly.com/bakersfield-team
Northern CA – https://calendly.com/northern-ca-team
Executive Direct Hire Team (Nationwide) – https://calendly.com/executive-recruiting-solutions
Article source: gofundme.com