Resources to Help Your Small Business Survive the Coronavirus

The coronavirus is causing financial difficulties for businesses across the U.S. Here are five resources that can help you navigate this difficult situation.

The coronavirus outbreak has global health consequences, and it puts many small businesses at economic risk. If your business is struggling financially due to the coronavirus, here are some resources that can help.

The U.S. Chamber of Commerce put together this toolkit to help businesses and citizens alike understand how to navigate the coronavirus. There are guidelines on how small business owners can ensure they are keeping their customers and employees safe.

The toolkit also includes a business preparedness checklist. This checklist can help you figure out what to prioritize and to create a plan of communication for your employees.

The Chamber has also created a customizable flyer that small businesses can use to communicate their coronavirus efforts to their customers. You can find the flyer here.

The SBA has created a comprehensive Coronavirus page with all of its resources in one place. You can find that page here.

The SBA announced it would offer disaster assistance loans for up to $2 million for small businesses affected by the coronavirus. These low-interest loans are available to businesses that have sustained “substantial economic injury” due to the spread of the coronavirus.

These loans can be used to pay off outstanding debts, payroll and any other bills they are unable to pay. However, small businesses that have access to credit are not eligible. Small businesses with no available credit qualify for an interest rate of 3.75%, and nonprofits will have an interest rate of 2.75%.

The SBA’s Office of Disaster Assistance will coordinate with state governors that submit relief requests. Once a state or territory is approved, these affected businesses will receive more information. You can find a regularly updated list of states where disaster assistance is being offered here.

Even if your state is not yet offering disaster assistance you can begin to prepare to apply by looking over the information required. You can get that information here. The SBA announced it would offer disaster assistance loans for up to $2 million for small businesses affected by the coronavirus.

So far, the coronavirus has had a varying effect across different states and responses have also varied by state and even local government. The New York City Department of Small Business Services, for example, says it will offer financial assistance to small businesses in the form of loans and grants. The San Francisco Chamber of Commerce also plans to petition the government to waive fees for businesses with low margins. Washington state, the site of the earliest outbreaks, will also offer no-interest loans for businesses that encounter cash flow problems.

Since each state’s plan to assist small businesses varies, the best thing small business owners can do is check with their local governor’s office for the latest on state specific assistance, resources and updates. You can find a list of all state governors and their website links here.

You can also check in with local small business organizations and agencies. Here is a list of state- and local-level small business resources to consult:

Local SBA office finder

List of SCORE organizations by state

List of Small Business Development Centers

Assistance from banks and credit card companies

Capital One, Citi and Wells Fargo have all issued statements indicating that they are willing to work with customers that experience financial difficulties. Citi issued a statement that for 30 days, small business customers are eligible to have their monthly service fees waived.

Citi is also waiving the fees on early CD withdrawals. Wells Fargo donated $6.25 million in aid to help the public relief effort. The bank also encouraged customers that are experiencing financial hardship to contact customer service for assistance.

Federal small business assistance

Plans for federal assistance for small businesses is still underway. The U.S. Chamber of Commerce has called on the Administration and Congress to take critical steps to support America’s employers during this period.

The three steps recommended by the Chamber include:

• Enacting legislation canceling the payment of all payroll taxes typically paid by employers for the months of March, April and May.
• Enacting legislation expanding and streamlining loan programs for small businesses with fewer than 500 employees experiencing revenue loss as a result of the Coronavirus.
• Enacting legislation enabling the creation of credit facilities to provide loans and loan guarantees to employers with more than 500 employees experiencing significant revenue loss as a result of the Coronavirus.

For full details on the Chamber’s proposal to assist businesses, go here.

Tax Relief

To offer tax relief during the coronavirus outbreak, the individual and corporate taxpayer will have an additional 90 days to pay their taxes. As a result, taxpayers will have until July 15, 2020 to pay the taxes owed. Note you will still need to file a tax return or an extension by April 15.

This applies only to Federal income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for the 2019 taxable year, and Federal estimated income tax payments (including payments of tax on self-employment income) due on April 15, 2020, for an Affected Taxpayer’s 2020 taxable year.

Grants and other assistance from companies and organizations

• Facebook has launched a grant program for small businesses. You can read about it here.