Craft Business Owners Received Business Aid During the COVID-19 Pandemic
We’re used to doing wonderful things with a jumble of resources and materials as microbusiness owners and ConsolidationNow creators. However, many of us are vulnerable due to the economic slowdown brought on by the Coronavirus epidemic. With the money we rely on from events evaporating due to cancellations and online sales drying up, our clients have their problems too.
Emergency financing and grant alternatives have developed in recent weeks to assist small firms in covering losses, primarily due to the COVID-19 situation. Here’s a list of loan and grant programs designed explicitly for craft enterprises.
Grants for Small Businesses on Facebook
The social media corporation recently announced that up to 30,000 small businesses would be eligible for $100 million in cash grants and ad credits. The application procedure is still being worked on, but you may sign up for updates as they become available by following the link above.
Paycheck protection program
Small firms can get up to $10 million in payroll and other expenses under the Paycheck Protection Program, which gives them a direct incentive to keep their employees during the recession. The Small Business Administration will waive the percentage of the loan used for payroll, rent, mortgage interest, or utilities if all employees remain on the payroll for eight weeks.
Up to 100% of the loan can be forgiven.
Any recognized lending institution, such as your bank will accept your application. Businesses with less than 500 employees, such as sole proprietorships, independent contractors, and self-employed individuals, are eligible. The time frame covered is February 15 to June 30, 2020.
Any small business can borrow up to $10 million, or 250 percent of its typical monthly payroll expenses.
Economic Industry Disaster Loans from the US Small Business Administration (SBA)
This federal loan program, administered by the Small Business Administration, provides working capital loans of up to $2 million to businesses affected by the COVID-19 outbreak. The interest rate is 3.75 percent, and the loan can be repaid within 30 years. According to the SBA, the funds can be used for “loan payments, payroll, rent, accounts payable, and other expenses that can’t be paid due to the disaster’s impact.”
All businesses in the United States are now able to apply, according to the passage of the CARES Act of 2020, which President Trump signed on Friday, March 27th. The bill also contained a $10,000 advance that will be paid out three days after the EIDL application is submitted, regardless of whether the disaster loan is accepted or not. In most cases, these advances are not required to be repaid. The application is submitted using the SBA’s portal.
In general, you’ll need details on your 2019 income and expenses and payroll for your business.
Etsy is providing some assistance.
Following conflicting evaluations of its offsite ads program, which is required for shops with $10,000 in sales or more, Etsy CEO Josh Silverman said in an open letter to sellers that the company would invest $5 million in offsite marketing credits at no cost to them. In addition, they’re giving sellers a one-month grace period on unpaid debts.
QuickBooks GoFundMe Small Business relief Initiative
According to a press release announcing the effort, accounting software QuickBooks has paired up with crowdfunding site GoFundMe to give matching grants through a Small Business Relief Fund, to which both firms will donate directly. Businesses must launch a fundraiser on the GoFundMe platform to be eligible.
Government spending bill
On March 27, a $2 trillion emergency coronavirus spending bill was passed into law, which includes $350 billion in loans as part of what’s known as the Emergency Coronavirus Loan Program.
For small enterprises, there is a Paycheck Protection Program. According to published accounts, these low-interest (sub 4%) loans would cover a company’s salaries, pay, and perks.
Commercial loans in the traditional sense
Traditional bank loans
These loans may be available to some businesses with assets. According to reports, the congressional measure contains billions in new small business loans from FDIC-insured institutions.