Crisis Relief Funding
During this difficult time, the US government and other private institutions are conducting relief programs for small businesses that are severely affected by the COVID-19 crisis. Piotr Adamovics on Pexels




COVID-19 did not only cause trouble for the healthcare system of the United States but also small businesses. Due to the widespread mandatory closure orders in the country to prevent the fast spread of the illness, many small businesses had no other option but to postpone operations, says an article.

If you are an owner of small business and you feel like all hope is lost for your company, do not give up just yet. The government and other private institutions are conducting relief programs for small businesses that are severely affected by the COVID-19 crisis. Additionally, the FDIC had advised banks to provide coronavirus-related assistance to its customers either for personal or commercial purposes.

Here are some coronavirus-related support available in the country that small businesses may find useful:

Paycheck Protection Loan

The United States Small Business Administration (SBA) will guarantee loans with interests up to 4% and terms up to 10 years for businesses with less than 500 employees.

Businesses can apply for a maximum loan amount of $10 million. These loans will be provided by lenders such as credit unions and banks. For qualified businesses, they can get loan deferment for six months to one year. Businesses that keep paying their employees for eight weeks at normal salary levels may also negotiate the loan payments.

Expanded Access to the United States Small Business Administration Economic Injury Disaster Loans

As part of the SBA's disaster assistance program, it will be providing working capital loans of up to $2 million. This loanable amount will be granted to non-profit organizations and small businesses that are affected by the COVID-19 crisis.

For small businesses, these loans will carry a 3.75 percent interest rate. For non-profit organizations, the interest rates on their loans will be at 2.75 percent.

The terms on loan repayment vary depending on the applicant, which may be repaid for up to 30 years. The stimulus updated this program to allow small business owners and businesses with less than 500 employees to qualify. Also, applicants will not be required to give a personal guarantee of loans not exceeding $200,000. Furthermore, loan payments can be deferred for up to 4 years.

Check these out:

The emergency Grant Amounting to $10,000 to Applicants for Economic Injury Disaster Loan

If your business did not get a loan, you could apply for this grant, which is useful to maintain payroll, provide employee sick leave, and for other needs such as rental payment.

To view the list of relief programs offered by the U.S. Small Business Administration (SBA), visit their website now. Also, it guides the owners of small businesses during the COVID-19 crisis.

Federal Income Tax Filing and Payment Deadline Extension

The filing deadline for the federal tax return is now July 15, 2020. The IRS had extended the deadline for individual and business taxpayers with tax payments of up to $10 million until July 15, 2020. The tax payments due on April 15 is now moved to July 15 for the year.