Coronavirus Financial Help for Small Businesses
Note: The Small Business Administration has placed the following notice on its Coronavirus (COVID-19): Small Business Guidance & Loan Resources page.
Additional Funding Notice: The SBA will resume accepting Paycheck Protection Program applications from participating lenders on Monday, April 27, 2020 at 10:30am EDT.
With the additional funding provided by the new COVID-19 relief package, SBA will resume processing EIDL Loan and Advance applications that are already in the queue on a first come, first-served basis.
We will provide further information on the availability of the EIDL portal to receive new applications (including those from agricultural enterprises) as soon as possible.
If your business has been hurt by the coronavirus (COVID-19), the Small Business Administration has options that may help you. For declared disasters, the SBA offers low-interest disaster loans for businesses. And now, its new programs can help businesses affected by the coronavirus pandemic.
These programs were authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed on March 27, 2020.
Paycheck Protection Program
The Paycheck Protection Program provides help for:
The program offers loans for payroll and certain other expenses. Businesses that pay all employees for eight weeks will not have to repay loans used for:
Economic Injury Disaster Loan Emergency Advance
The Economic Injury Disaster Loan Emergency Advance provides a loan advance for businesses losing money due to the coronavirus.
Apply for an Economic Injury Disaster Loan Emergency Advance.
SBA Express Bridge Loans
If your business has a relationship with an SBA Express lender, you can borrow up to $25,000 fast under the SBA Express Bridge Loan program.
SBA Debt Relief
The SBA will pay the principal, interest, and fees of some types of loans through September 27, 2020. It may also defer loan payments on disaster loans through December 31, 2020.
Explore the variety of government-backed loans and funding programs for your business.
Small Business Loans
Government loan programs offer financial support to people starting or expanding a business. This helps those who may have trouble qualifying for a traditional bank loan.
In these programs, you’ll apply by creating a loan package with a participating lender. The federal government will guarantee a portion of the loan and will repay the lender if you default. This government guarantee reduces the risk to the lender and increases the likelihood of a loan being offered.
Use these government resources and services to find a loan that best suits your business needs:
Small Business Administration (SBA) - Explore many types of loans for starting and expanding a business, handling disasters, and exporting goods.
U.S. Department of Agriculture (USDA) - Get information on government-guaranteed loans for rural businesses and local program contacts.
GovLoans - Research many types of federal loans for your business and learn how to apply.
Small Business Lending Fund (SBLF) - This Treasury Department initiative provides capital to qualified community banks and community development loan funds (CDLFs). This helps promote economic growth and create new jobs.
No Federal Grants for Businesses
The federal government does not offer grants for starting or growing a business. It only provides grants for nonprofit and educational institutions. These organizations focus mainly on medicine, technology development, and other related fields.
Some state and local programs offer business grants. They usually require you to match the funds. Or, they may expect you to combine the grant with other forms of financing, such as a loan.
Other Government Funding Options for Your Business
These federal and state programs can also help finance your business:
Small Business Investment Company (SBIC) Program - The Small Business Administration (SBA) partners with private investment funds licensed as SBICs to provide growth capital to small businesses. Find out if SBIC financing is right for your business.
Small Business Innovation Research (SBIR) Program - This competitive, awards-based program encourages small businesses to pursue federal research or research and development (R/R&D) projects that can lead to opportunities for commercialization. Learn how to apply for the program.
- State and Local Business Assistance - Find out about state and local business financial assistance where you live. This includes financing for business expansion, state credit initiatives, and more.