The spread of COVID-19 has resulted in many business closures and negative economic impacts on business owners.
As a result, some organizations have announced funding programs to help businesses survive through the pandemic.
NC COVID-19 Rapid Recovery Loan Program
The Golden LEAF Foundation is providing $15 million in funding for a rapid recovery loan program as a response to the coronavirus, according to a news release Wednesday.
Eligible businesses can get loans of up to $50,000 with zero interest and no payments for six months.
The NC COVID-19 Rapid Recovery Loan Program is aimed at helping small businesses recover from the economic impact they have experienced due to the spread of the virus.
Loan sizes are capped at two months of current revenue. After the initial six months, the loan must be repaid through 48 months of principal and interest payments of 5.5%.
Loan money must only be used for maintaining or restarting a business.
To apply for the program, business owners can visit ncrapidrecovery.org
. Applicants should be able to provide tax returns, profit and loss statements and bank statements.
“The Golden LEAF Board of Directors is making funds available to help meet the immediate needs of businesses affected by the pandemic by building upon a model used following Hurricanes Matthew, Florence, and Dorian,” Bo Biggs, Golden LEAF Board Chair said in the release. “This program is designed to assist businesses working to apply for a Small Business Administration (SBA) Economic Injury Loan or other commercial loan but that have more immediate needs for capital.”
Eligible applicants must own and operate a legal business in the start or plan to do so, be at least 18 years old, have credit showing successful repayment history and not have any active judgments, foreclosures, or federal obligations in default.
Families First Coronavirus Act
Small and midsize employers can get immediately and fully reimbursed for the cost of providing coronavirus-related leave for their employees.
Under the Families First Coronavirus Act
, signed by the IRS and U.S. Department of Labor, employers are allowed to use two refundable payroll tax credits to get reimbursed.
Those include 100% reimbursements to employers for paid leave, including paid childcare leave when schools are closed, and childcare is not available. It also includes health insurance costs.
Employers with fewer than 500 employees are required to pay up to 80 hours of paid leave due to COVID-19, under the act. Those with 50 or less employees qualify for an exemption.
Disaster Assistance Loan
Local small business owners whose business has been impacted by COVID-19 are now able to apply for a Disaster Assistance Loan through the U.S. Small Business Administration.
An Economic Injury Disaster declaration was given to all counties in North Carolina Wednesday evening, said Gregory Grevelding, public affairs specialist for the SBA North Carolina district office.
Small businesses in all counties in the state can now apply for a loan, according to a notice by the SBA.
Economic Injury Disaster Loans provide working capital to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture and most private, nonprofits of all sizes meet financial obligations that cannot be meet as a result of the coronavirus, according to the SBA.
Loans of up to $2 million are available with a maximum interest rate of 3.75%. If a business, however, is a major source of employment the administration can waive the $2 million limit.
The money can be used to pay debts, payroll, accounts payable and other bills.
The deadline for loan applications on December 18 of this year.
Online applications can be found at disasterloan.sba.gov/ela
. Applicants can also call SBA’s Customer Service Center at (800) 659-2955 or email [email protected]
Small Business Grants Program
In other funding opportunities for small businesses, Facebook has launched a Small Business Grants Program to support businesses struggling as a result of the coronavirus.
Facebook is offering $100 million in cash grants and advertising credits to up to 30,000 eligible small businesses. The organization will share more details on who is eligible on its website.
It will begin taking application in the coming weeks and people can sign up to received updates on the site when more information is available.