Start offering Covid-19 relief funds to businesses

If your city ready to start offering Covid-19 relief funds to businesses?

Local, state, and federal authorities across the United States are being put to the test amid the COVID-19 outbreak. Many companies have been pushed to the brink, as the local and global society has almost shut down.

It is important that your city is prepared to support businesses struggling for support. Even if your government has no funds to offer, pointing business owners in the right direction could go a long way.

City governments will be on the front lines of both the health and economic crises that are unfolding. Leaders at all levels will have to step in to provide direction, resources, information, and more. So is your city ready to provide help for COVID-19?

Even if your city does not distribute funds or resources, you can direct individuals and businesses to the proper authorities.

Cities must anticipate and prepare for a wide variety of questions and concerns
The COVID-19 pandemic is unprecedented. Yes, humanity has experienced epidemics and pandemics before. However, with the world now much more globalized than in the past, the spread and effects of the outbreak have forced governments to deliver massive responses never before seen.

Many borders have been closed, travel has been very limited, and supply chains are collapsing.

For many entrepreneurs, social distancing and nonessential business closings have created an immensely difficult operating environment. Even if a business closes, the owner may be demanding rent among other bills that can add up quickly.

Unprecedented economic difficulties and uncertainty have prompted the US federal government to launch a $ 2 trillion project The Economic Relief, Relief and Security Act, or CARES stimulus plan. Funds are flowing elsewhere as well, and the US Federal Reserve is pumping liquidity into the market.

Meanwhile, countless state and local governments are establishing their own programs. Regardless of whether your city sponsors programs, you might ask questions.

The Small Business Administration offers several programs
Make sure you share the Small Business Administration (SBA) COVID-19 Resource Page with your community. Under the CARES Act, the SBA is supporting at least four programs:

Paycheck Protection Program: Small businesses will receive a loan of up to $ 10 million. If the business keeps all of its employees on payroll and spends the loan on rent, payroll, utilities, or mortgages, the loan will be forgiven.
Economic Injury Disaster Loan: Businesses that have experienced a temporary loss of income can apply for a loan of up to $ 10,000. Generally, companies must have fewer than 500 employees, although companies in certain industries may be eligible even if they employ more.
SBA Express Bridging Loans: If a business already has a relationship with an SBA Express lender, they can access up to $ 25,000 in loans quickly.

SBA Loan Forgiveness: The SBA will automatically pay the 7 (a), 504, and microloan rates, interest, and principal for six months if the loan has already been disbursed or issued before September 27. 2020.

Expansion of unemployment
Even with the above programs, many companies will be forced to lay off staff. Many business owners will still want to protect their (ex-) employees. Fortunately, the CARES Act will expand unemployment benefits.

Beyond state benefits, the federal government will pay up to $ 600 in additional funds per week for up to four months. Many states have also extended the duration of unemployment benefits. This $ 600 is unlimited. with the maximum salary of the employee.

Initiatives at the state level
Many states are launching their own COVID-19 relief programs. Let's take a quick look at some of the many state programs that have been launched. Even if your state has yet to launch COVID-19 relief programs, be sure to check back.

Florida Small Business Emergency Bridging Loan Program provides up to $ 50,000 in interest-free loans if a business has been impacted by the COVID-19 epidemic. This program is intended to help businesses until federal assistance is available.

Michigan Small Business Assistance Program - Grants will be administered through 15 local economic development and nonprofit organizations across the state. The funds are expected to be available in April.

Minnesota Department of Employment and Economic Development Loans: If a business can show that it has experienced hardship due to the COVID-19 outbreak, it may be eligible for up to $ 35,000 in interest-free loans.

Wisconsin Small Business 20/20 Program: If COVID-19 has led to cash flow problems, a business may be eligible for up to $ 20,000 in grants.

Many other states have launched programs. Check with your state authority to see what resources are available.

Local governments offer greater support
Local governments are also stepping up support for small businesses in their community. Each local government should see if funds or other resources can be obtained to help businesses. Of course, many governments are facing their own struggles, so resources may be scarce.

In Atlanta, the city council has set aside $ 1.5 million to support small businesses. Chicago has launched a $ 100 million Small Business Resilience Fund program that will provide low-interest loans. Meanwhile, businesses in Denver can apply for grants of up to $ 7,500. In New York City, businesses that have experienced a 25 percent or more decline in sales are eligible for interest-free loans of up to $ 75,000.

Rules and eligibility vary from community to community. If your city government is considering an aid program, consider both what other cities are doing and the needs of local businesses.

In conclusion
Many other programs have been launched by government authorities and other organizations. Members of Congress are already debating new stimulus measures. If more stimulus measures are announced, make sure you understand the details well. Businesses in your community may be eligible for relief, and will certainly need it.https://www.facebook.com/105398281241123/