Western Washington University's Small Business Development Center is closely monitoring the impacts to our local businesses caused by the COVID-19 outbreak. We will be updating this page with resources and information that can help our small business community get through these challenging times. (last update: 7-10-2020)
Table of Contents
- Workforce: Employee/Unemployment
- Business Triage
- Small Business Resilliency Guides
- Resource Partner Links
SBA Lending Options
EIDL Loan & EIDL Advance Applications Now Open Again!
The SBA EIDL program offers long-term (up to 30 years), low-interest assistance for a small business or nonprofit. These loans can provide vital economic support to help alleviate temporary loss of revenue. Applications are quick and easy to submit. To start an application visit the SBA Disaster Loan Assitance page.
About the COVID-19 EIDL:
- May be used to pay debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact, and that are not already covered by a Paycheck Protection Program loan.
- The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- The EIDL Advance will provide up to $10,000 ($1,000 per employee) of emergency economic relief to businesses that are currently experiencing temporary difficulties, and these emergency grants do not have to be repaid.
- To keep payments affordable for small businesses, the SBA offers loans with long repayment terms, up to a maximum of 30 years.
- The first payment is deferred for one year.
Paycheck Protection Loan Program (about $130B still available from second round of funding)
Primarily for payroll expenses, the Paycheck Protection Program (PPP) provides up to $10 million per small business in loan forgiveness for retaining employees. The loan forgiveness portion is dependent on keeping and paying employees or re-hiring employees laid off in response to the COVID-19 national emergency. Small businesses and eligible nonprofit organizations, Veterans organizations, and Tribal businesses described in the Small Business Act, as well as individuals who are self-employed or are independent contractors, are eligible if they also meet program size standards.
How PPP Loan and EIDL Loan funds can be used: Check out this handy flowchart and permitted use of funds document.
The U.S. Chamber of Commerce has put together a PPP Loan Foregiveness Guide.
Updated Forgiveness Information: The U.S. Small Business Administration, in consultation with the Department of the Treasury, posted a revised, borrower-friendly Paycheck Protection Program (PPP) loan forgiveness application implementing the PPP Flexibility Act of 2020, signed into law by President Trump on June 5, 2020. In addition to revising the full forgiveness application, SBA also published a new EZ version of the forgiveness application that applies to borrowers that:
- Are self-employed and have no employees; OR
- Did not reduce the salaries or wages of their employees by more than 25%, and did not reduce the number or hours of their employees; OR
- Experienced reductions in business activity as a result of health directives related to COVID-19, and did not reduce the salaries or wages of their employees by more than 25%.
Both applications will allow borrower to use either the original 8-week covered period or the extended 24-week covered period.
You can find the EZ Forgiveness Application by clicking this link.
You can find the Full Forgiveness Application by clicking this link.
These will be SBA backed loans, originated by SBA approved lending institutions. If your current bank cannot meet your needs, you can find other SBA lenders.
Many traditional lenders have been overwhelmed with applications. You may want to consider some of the FinTech companies like Kabbage, Square, etc. listed below in the Alternative Lending options.
Express Bridge Loan
These loans allow small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct Economic Injury Disaster Loan.
You can read more detail about this program at the SBA website.
SBA's Debt Relief Efforts
The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
Other Local Lending Options
These local banks and credit unions are rolling out emergency funding options:
- Washington Federal (offering a 5-year business line of credit with no interest for 90 days)
- WECU Crisis Relief Loan (personal loans up to $5,000 with no payments for 90 days, 24 month term, 3.9%)
Alternative Lending Platforms
Following are some alternative sources of funding, inclusion in this list is not an endorsement or a recommendation:
- Prosper (Personal loans up to $40K)
- Lending Club (personal and business loans)
- OnDeck (Business loans up to $500K, also taking PPP applications)
- Kabbage (Up to $250,000 lines of credit)
- Square (if using Square Point-of-Sale)
- Amazon (for Amazon sellers)
- Lendio (FinTech platform connecting borrowers to PPP lenders)
- BoeFly (FinTech platform connecting borrowers to commercial lenders)
Tax Relief Options
Both Federal and State taxing authorities are developing programs to offer deferral of the payment of taxes which can help businesses retain cash to meet operating expenses.
- Washington State assistance programs are summarized on the Governor's Office website
- The Federal Government tax relief programs will be updated on the IRS website
- The U.S. Chamber of Commerce has a Guide to the Employee Retention Tax Credit (note: you cannot use the tax credit if you have received a PPP loan)
Grants for Business
Verizon and LISC have partnered to roll out a $2.5 million recovery fund, more details can be found here: Verizon and LISC Come Together to Support Small Businesses with COVID-19 Recovery Fund
Sam's Club and LISC have partnered to also provide small business grants of up to $10,000, information can be found here: https://www.lisc.org/covid-19/small-business-assistance/small-business-relief-grants/sams-club-grant/
GoFundMe has created Small Business Relief Initiative, more details can be found on their Small Business Relief Initiative and Fund FAQs.
Facebook has created a Small Business Grants program, more details can be found at their Small Business Grants Program page.
Google has also created a Small Business Grant, largely based on free advertising credits the details of which can be found here: COVID-19 Ad credits for Google Ads Small and Medium-sized Businesses.
The Red Backpack Fund (for women entrepreneurs) - Up to $5,000 grants available. Next round of applications opens up June 1-8th. Check out their website for more details
Hello Alice with the support of Verizon, Silicon Valley Bank, Ebay, and others is offering $10,000 emergency grants, being distributed immediately to small business owners impacted by this pandemic. Visit their website for more information.
Fed-Ex Small Business Grants Each grant recipient will receive $5,000, plus a $500 credit from FedEx Office that can be used for printing banners, posters, floor graphics, custom branded boxes, and more. Visit their website to apply after May 25th.
Supermaker.com Entrepreneurial Dream Project: A $100,000 grant, split between 2 winning companies. Also a mentorship award program. Applications open through June 15, 2020. Visit their website for more information.
Business For All: HelloAllice has partnered with a number of corporate sponsors to bring $250,000 of general growth grants and Emergency COVID-19 grants to small business owners, deadline to apply is July 16, 2020. Visit their website for more information.
The Stacy's Rise Project: Supports female-founded businesses with grants of $10,000 as well as mentorship and ad space support. Applications open through June 1, 2020. Visit their website for more information.
Unemployment Options for Employees (and self-employed owners, independent contractors & gig workers)
Washington's Employment Security Department has programs to assist businesses and workers during this crisis. If you are affected by COVID-19, Employment Security has programs that may be able to help. They have adopted a series of emergency rules to relieve the burden of temporary layoffs, isolation and quarantine for workers and businesses. You can get more information at: https://esd.wa.gov/newsroom/covid-19
Labor is often the largest single expense item for businesses and if revenues have dropped due to forced closures and reductions in consumer spending then now is the time to look at workforce reduction options. ESD has summarized various labor situations for employers to consider from layoffs, to stand-by and shared-work status in their message on COVID-19.
The U.S. Department of Labor's unemployment insurance programs provide unemployment benefits to eligible workers who become unemployed through no fault of their own and meet certain other eligibility requirements. You can find more information about federal unemployment benefits at the Department of Labor website.
What About Paid Family & Medical Leave?
This may be another source of financial relief for workers who are themselves sick, subject to quarantine or caring for family members. You can find out more at https://paidleave.wa.gov/coronavirus/.
Labor and Industries also has a great FAQ summary.
Employer Paid Leave Requirements and Tax Credit Provisions
The House recently passed Families First Coronavirus Response Act which is summarized with this chart.
The U.S. Chamber of Commerce has a Guide to Coronavirus Paid Leave Programs.
The IRS recently published information on the Employee Retention Credit.
Small Business Guides
The Washington State SBDC has put together the following guide and planning documents that can be downloaded and customized for your company:
From the State of Washington:
- What's Open and What's Closed (information regarding phased re-opening)
- Reopening Guidance for Businesses and Workers (specific guidelines for each industry)
- Labor and Industries (workplace safety guidelines)
Additional Business Resources
- Washington Governor's Office - Financial Assistance & Employer Assistance Info
- Planning for Coronavirus Pandemic
- Preparedness for Businesses & Non-profits (guidelines, checklists & video)
- Back to Work Toolkit (from Madrona Venture Capital, Seattle Chamber of Commerce, Bellevue Chamber of Commerce and others)
- Business Re-Opening Toolkit (from WA Association of Washington Businesses)