Sarasota County is using an untapped financial growth fund to make $four.3 million available in resiliency loans to tide over small companies till federal reduction is on the market. Loan repayment will be deferred for the first 12 months, then the interest rate is 3.5 p.c for the next three years. The North Miami Community Redevelopment Agency is providing two grant programs for small companies affected by the COVID-19 pandemic. The Emergency Relief for Essential Business Program will make $1,000 grants to each of 25 businesses to buy stock to proceed restricted operations in the course of the public health emergency. The Emergency Relief to Jump Start Businesses fund will present grants of as much as $5,000 to one hundred fifty small businesses for future working expenses, once the disaster declaration has been lifted.
The City of Rome used a new $258,000 Community Development Block Grant to make grants of as much as $5,000 to small companies with no more than 20 workers. The program, which continues to be under growth, will score purposes using a degree system, with extra weight given to the smallest companies. Select Fulton and the Development Authority of Fulton County have created the $1.5 million DAFC Business Contingency Loan Program, providing loans of as much as $50,000 to small companies in Fulton County negatively affected by the COVID-19 pandemic.
The Fulton County Board of Commissioners launched a virtually similar mortgage program, additionally with the Development Authority, the week of April 13, however its funding was exhausted inside 72 hours. Loan applications may be submitted through the Access to Capital for Entrepreneurs’ website. St. John’s County began accepting applications on May 24 for the Back to Business Grant Program, offering grants of as much as $10,000 to assist small companies offset costs like payroll, hire, and utilities. To be eligible, a business must have seventy five or fewer workers, have revenues of lower than $5 million in 2019, have been in business for a minimum of one year previous to March 17, not be home-based mostly, and be in good standing with the county and state.
The El Paso County Economic Development Office has created a business aid fund for small businesses within the Pikes Peak Enterprise Zone. Small companies located inside the enterprise zone are eligible for grants up to $7,500. People who donate $100 or more to the fund will qualify for a state earnings tax credit score of 25 % of their donation. On May 7, Riverside County launched two small business COVID-19 reduction packages. The COVID-19 Small Business Assistance Microloan Program presents curiosity-free, one-yr loans of as much as $15,000 to businesses with fewer than 5 staff, with reimbursement deferred by three months.
The fund was capitalized with county funds and Community Development Block Grants. It announced its first awards, to 18 tenants, on April thirteen and will make extra awards in a later distribution. The City of Chicago has awarded $5,000 grants to 959 micro-companies – companies employing fewer than 5 people, with annual revenues of $250,000 or less, in certainly one of 36 low- and reasonable-income neighborhoods. More than 4,500 businesses submitted functions through the April 28-May 4 utility interval, with successful businesses chosen via a lottery system. Of the grants awarded, more than 55 p.c are owned by women, forty five % are owned by African Americans, and 34 percent are Latinx-owned.
Small Business Funding: In Review
However, with no demonstrated means to pay again debt, capital from these sources shall be restricted to a few borrowers. It is therefore imperative that government in any respect ranges do what it could to assist companies presently. Grants to small business might be supplied as “money grants,” primarily based on eligibility in response to the COVID-19 emergency. The full grant amount would be thought of an incurred expense to a local authorities when the grant is awarded, which will help expediate the distribution of the small business grant. Additionally, Commerce advised that a business doesn’t have to submit receipts so as to entry grant funds and the native authorities does not must request reimbursement from Commerce for the grant award.
However, this doesn’t absolve a local government from having appropriate documentation in place to ensure that the grant requirements have been meet. Even as know-how creates new methods of raising capital, conventional financing products remain the primary method small companies fund their operations. According to the Small Business Administration , nearly 75% of financing for new firms comes from business loans, credit cards, and features of credit score. Eligible applicants are registered, Montana-based social service nonprofits that had been working prior to February 15, 2020.
A group of organizations in Larimer County launched a $5 million Larimer County Small Business Recover Loan Fund on April 26, offering loans of $2,500-$50,000 at three.5 % curiosity to businesses with 20 or fewer workers. Round 1, with $2 million in loans, was seeded by the Bohemian Foundation, the City of Fort Collins, and the Fort Collins Area Chamber of Commerce.
Certain kinds of companies are ineligible, together with nonprofits, hotels, skilled providers companies, and retail chains. The Program received $1.37 million in whole mortgage requests from 141 companies; it was capable of award $477,310 to fifty eight companies. On June 2, the City of Diamond Bar introduced the launch of a Business Recovery Grant program, offering $5,000 grants to each of sixty four businesses. To be eligible, companies must have a physical storefront in Diamond Bar, be independently owned, be in operation for a minimum of one 12 months, and have fewer than 25 employees.