Financial/Tax News and Resources
Every business needs access to capital, including in times of customer social distancing and interruptions in supply chains. Here are funding opportunities being offered to Loudoun businesses at this time.
Payment Protection Program (CARES Act)Update 4/25/2020: The Small Business Administration will resume accepting PPP loan applications on Monday, April 27 at 10:30 A.M. EDT from approved lenders on behalf of any eligible borrower. Click here to read the official statement.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act allocated $350 billion to help small businesses keep workers employed amid the pandemic and economic downturn. Known as the Paycheck Protection Program, the initiative provides 100% federally guaranteed loans to small businesses who maintain their payroll during this emergency.
Importantly, these loans may be forgiven if borrowers maintain their payrolls during the crisis or restore their payrolls afterward.
To determine if your business is eligible for this type of funding, check out this handy guide from the U.S. Chamber of Commerce.
SBA Disaster Assistance Loan
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
Economic Injury Disaster Loan (EIDL)
UPDATE 3/31: On March 27, 2020, President Trump signed into law the CARES Act, which provided additional assistance for small business owners and non-profits, including the opportunity to get up to a $10,000 Advance on an Economic Injury Disaster Loan. This Advance may be available even if your EIDL application was declined or is still pending, and will be forgiven.
If you wish to apply for the advance on your EIDL, please visit the site as soon as possible to fill out a new, streamlined application. In order to qualify for the Advance, you need to submit this new application even if you previously submitted an EIDL application. Applying for the Advance will not impact the status or slow your existing application.
SBA 7(a) Loan Payment Relief
SBA will pay the principal, interest, and any associated fees owed on 7(a) loans as follows:
- Existing borrower not on deferment: six months beginning with the next payment due on the loan;
- Existing borrower on deferment: six months of payments beginning with the next payment due on the loan after the deferment period; and
- New borrower: six months of payments beginning with the first payment due on the loan, but only for new loans made within the first six months starting from the date of enactment. (3/27/2020).
Governor Ralph Northam recently announced $70 million for small businesses and nonprofit organizations whose normal operations were disrupted by the COVID-19 pandemic. The funding will be made available through Rebuild VA, a new economic recovery fund, and grants of up to $10,000 will be awarded to approximately 7,000 applicants to cover eligible expenses.
Rebuild VA will be administered by the Department of Small Business and Supplier Diversity (SBSD). Businesses must be:
- in good standing;
- have annual gross revenues of no more than $1.5 million;
- have no more than 25 employees.
- Eligible businesses include food and beverage establishments, non-essential retail, exercise and fitness, entertainment and public amusement, personal care and personal grooming services, and private campground and overnight summer camps.
- Businesses must also certify that they have not received federal Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL) funds or other funding from the federal CARES Act (including any of Loudoun County’s Business Interruption Funding).
Virginia 30-Day Fund
The nonprofit Virginia 30 Day Fund was launched by Virginia technology entrepreneur Pete Snyder and his wife, Burson. Working with other business leaders throughout the Commonwealth, the Fund’s goal is to help save as many Virginia jobs as possible while small businesses await recently approved federal funding.
Virginia businesses that qualify for assistance from the Fund are:
- Small businesses that employ three to 30 people;
- Based in Virginia and have been operating for at least one year;
- Owned and operated by a Virginia resident.
Facebook Small Business Grants Program
Facebook recently announced the launch of a $100 million Small Business Grants Program designed to help communities where Facebook already has a business presence. Given the company’s enormous investment in Loudoun’s Data Center Alley, Facebook listed Ashburn (and surrounding areas) as an eligible territory for businesses to apply.
Google’s COVID-19 Response
Google announces a new $800+ million commitment to support small- and medium-sized businesses, health organizations and governments, and health workers on the front line of this global pandemic. Read more.
Save Small Business Fund
To combat the economic destruction threatening the survival of small businesses in every town across America, the U.S. Chamber of Commerce launched this initiative – a nationwide program to address small businesses’ immediate needs, mitigate closures and job losses, and mobilize support for long-term recovery.
This fund is a grant making initiative offering short term relief for small employers in the United States and its territories. Funded by corporate and philanthropic partners, the Save Small Business Fund is a collective effort to provide $5,000 grants to as many employers as they can.
To qualify for the fund an employer must meet the following criteria:
- Employ between 3 and 20 people
- Be located in an economically vulnerable community
- Have been financially impacted by the COVID-19 pandemic
Many Loudoun County zip codes qualify; an employer can determine if their location qualifies by entering their zip code associated with their business (as listed on their W-9) on the Save Small Business website.
A short application will go live on the Save Small Business website on April 20, 2020 at 3 p.m. EST. The website also allows for employers to sign up for a reminder of when the application portal is open. To learn more about the program visit the website.
Verizon and LISC Come Together to Support Small Businesses
Verizon will donate $2.5 million to Local Initiatives Support Corporation. LISC will use the funds to provide grants of up to $10,000 to businesses facing immediate financial pressure because of COVID-19. Read more.
National Association for the Self-Employed Growth Grants
Worth up to $4,000 each, NASE Members can apply for small business grants. Small business grants are useful for financing a particular small business need. Past recipients used their growth grants for computers, farm equipment, to hire part-time help, marketing materials, website creation and more.
Growth Grant applicants must be a NASE member in good standing for three months prior to submitting an application (annual members may apply immediately. Monthly members may apply 90 days after joining the NASE.) Read more.
The Red Backpack Fund
The Spanx by Sara Blakely Foundation donated $5 million to support female entrepreneurs in the wake of COVID-19 and teamed up with GlobalGiving to establish The Red Backpack Fund. GlobalGiving will be overseeing the fund, making at least 1,000 grants of $5,000 each to female entrepreneurs in the U.S. to help alleviate the immediate needs and support the long-term recovery of those impacted by this crisis.
The Red Backpack Fund application portal will next open from August 3-10. Each month, The Red Backpack Fund will accept additional applications on its website.
USDA Rural Business Development Grants
The Rural Business Development Grants program is designed to provide technical assistance and training for small rural businesses. Small means that the business has fewer than 50 new workers and less than $1 million in gross revenue. Check your business address for eligibility and learn more about the application process on the website.
USDA Coronavirus Food Assistance Program
USDA’s Farm Service Agency is accepting CFAP applications now through August 28, 2020. This program provides direct relief to producers who faced price declines and additional marketing costs due to COVID-19. Find more details and apply here.
Business for All Grants from Hello Alice in Partnership with Verizon
Apply for grants up to $50,000 to support business growth, including $10,000 emergency COVID-19 Business for All Grants to help small businesses in crisis.Incredible leaders and business experts from across industries will be supporting each Business for All Grant winner through video mentorship sessions. Plus, any business owner in the Business for All Community on helloalice.com can collaborate with their peers, any day of the week. Business for All Grants are awarded on a rolling basis. Read more.
GoFundMe.org Small Business Relief Fund
The Small Business Relief Fund will provide one-time matching grants to qualifying small businesses to help alleviate the financial burdens during these pressing times. Donations to the relief fund will be paid out as grants to businesses that qualify, and which businesses have created a fundraiser through the Small Business Relief Initiative or had an existing GoFundMe. For small business fundraisers started prior to March 24 , or outside of the Small Business Relief Initiative partnerships, the organizer can update their fundraiser description with the hashtag #SmallBusinessRelief to be considered for a grant from this fund.
To qualify for a matching grant from the Small Business Relief Fund, the GoFundMe fundraiser must raise at least $500 and verify that your small business has been negatively impacted by a government mandate due to the COVID-19 pandemic. Your small business must be independently owned and operated, and must not be nationally dominant in your field of operation. Each recipient of the matching grant must intend on using the funds to help care for your employees or pay ongoing business expenses. Learn more.
Virginia’s Small Business Investment Grant Program
The Small Business Investment Grant Fund was designed to assist Virginia’s small businesses seeking to raise capital in support of their growth. The goal of the grant is to encourage new investment that will provide a long-term benefit by increasing capital investments.
The Virginia Small Business Financing Authority administers the grant and is responsible to certify applicant small businesses, investors, and investments for grant eligibility.
An eligible business must meet all of the following criteria:
- Be a corporation, pass-through entity, or other entity, (sole proprietorships are not eligible) and,
- Have annual gross revenues of no more than $5 million in its most recent fiscal year, and
- Have its principal office or facility in the Commonwealth, and
- Engaged in business primarily in or does substantially all of its production in the
- May not have obtained during its existence more than $5 million in aggregate gross cash proceeds from the issuance of its equity or debt investments, not including commercial loans from financial institutions, and
- Have no more than 50 employees who are employed within the Commonwealth.
All grant awards are subject to fund availability. Grants shall be the lesser of 25 percent of the qualified investment or $50,000. Lifetime $250,000 maximum per investor and annual $250,000 maximum per small business. VSBFA will begin review of FY21 applications after August 3, 2020. Read more.
Visit Loudoun Foundation’s Tourism & Hospitality Relief Fund
The Visit Loudoun Foundation launched the Loudoun Tourism & Hospitality Relief Fund with $10,000 and asks businesses and individuals contribute in support of Loudoun’s tourism industry professionals impacted by shutdowns and furloughs as a result of COVID-19.
Working in tandem with the Community Foundation’s Emergency Relief Fund, the Loudoun Tourism & Hospitality Relief Fund will provide grants to charitable organizations that provide direct financial support for individuals who are working in—or have immediately formerly worked in—Loudoun tourism and hospitality businesses facing hardship.
Other Financial Information
Banks and Other Small Business Financing Services
According to the SBA the most active SBA 7(A) lenders are listed here.
Many major banks have dedicated pages in regards to small business financial services. will be updated as more information becomes available:
The Federal Reserve Board Commercial Paper Funding Facility
The Federal Reserve Board announced that it will establish a Commercial Paper Funding Facility, to support the flow of credit to households and businesses. Commercial paper markets directly finance a wide range of economic activity, supplying credit and funding for auto loans and mortgages as well as liquidity to meet the operational needs of a range of companies. By ensuring the smooth functioning of this market, particularly in times of strain, the Federal Reserve is providing credit that will support families, businesses, and jobs across the economy. The CPFF will provide a liquidity backstop to U.S. issuers of commercial paper through a special purpose vehicle (SPV) that will purchase unsecured and asset-backed commercial paper. More information, including updates and FAQs, can be found here.
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