**UPDATE: SMALL BUSINESS RELIEF PROGRAMS**
( AS OF MARCH 27, 2020 )


FEDERAL

SBA DISASTER LOAN ASSISTANCE (Federal Disaster Loans for Businesses, Private Nonprofits, Homeowners and Renters)
Businesses may be eligible for an SBA Economic Injury Disaster Loan (EIDL) if they have suffered substantial economic injury and are a Small Business, Small Agricultural Cooperative or Most Private Nonprofit Organizations. Businesses will be eligible for a loan up to $2,000,000 with an interest rate not to exceed 4% per year. Apply here and be sure to also complete the IRS Form 4506-T giving permission for the IRS to provide the SBA your tax return information. Additional information on the SBA Disaster Assistance in Response to the Coronavirus can be found here.

*The Deadline to return economic injury disaster loan applications is December 21, 2020*

CORONAVIRUS AID, RELIEF, AND ECONOMIC SECURITY ACT (CARES)
The CARES Act offers a mix of loan opportunities through commercial banks who handle SBA lending.

  • Small Business Loans – This option is for businesses that have fewer than 500 employees (includes sole proprietors and nonprofits) to help keep them afloat. The total amount of these loans will be about $350,000,000 and will encompass the “covered period”, which runs from February 15,2020 through June 30,2020. These loans are referred to as “Paycheck Protection Loans” and will be fully guaranteed by the government through December 31, 2020.

  • Emergency Government Disaster Loan – This option is for businesses who have fewer than 500 employees (includes sole proprietors and ESOPs) to help keep them afloat. Any loan made under this program that is less than $200,000 and completed before December 31, 2020 will not require a personal guarantee. Businesses can receive an immediate advance of up to $10,000 through an Emergency Grant after they have applied for the Emergency Government Disaster Loan which can be used to maintain payroll. If the Business’s request is denied the Emergency Grant does not have to be repaid

  • Loan Forgiveness of Paycheck Protection Loans – Businesses could have a portion of these loans forgiven on a tax free basis. To seek forgiveness, the Borrower must submit an application and the required documentation (verification of the number of employees and pay rates, and cancelled checks showing mortgage/rent, or utility payments) to the lender.


PRIVATE COMPANY PROGRAMS

FACEBOOK
Businesses who have experienced disruptions in normal business activities will be able to apply for cash grants and ad credits. They will be offering $100,000,000 in cash grants and ad credit to up to 30,000 eligible small businesses in the United States and abroad where Facebook operates. Small businesses are encouraged to continue checking their website as additional information becomes available. They should be accepting applications in the coming weeks but you can sign up for updates on the website at https://www.facebook.com/business/boost/grants.


PENNSYLVANIA

PHILADELPHIA COVID-19 SMALL BUSINESS RELIEF FUND
This fund offers a mix of grants and zero-interest loans for businesses that make under $5 million in annual revenue. It’s a three tiered fund and what relief you qualify for depends on your revenue level.
  • Microenterprise Grants - $5,000 per business for businesses with less than $500,000 in annual revenue.
  • Small Business Grants – Up to $25,000 per business for businesses with annual revenue between $500,000 and $3,000,000
  • Small Business Zero-Interest Loans – Up to $100,000 per business for businesses with annual revenue between $3,000,000 and $5,000,000
Businesses can apply for all three tiers at www.phila.gov/COVID-19-business-relief Applications will be reviewed on a rolling basis and once all materials are received they expect a decision to take about two weeks.

PHILADELPHIA INDUSTRIAL DEVELOPMENT CORPORATION (PIDC)
  • Business Builder Loans – Apply at pidcphila.com/financing/business-loans
  • Project Development Finance – Apply at pidcphila.com/financing/project-development-financing
  • Tax Advantaged Financing – Apply at pidcphila.com/tax-advantaged-financing
  • Grants Administration (Redevelopment Assistance Capital Program (RACP), Stormwater Grants Program and Soak it up Adoption Program) – Apply at pidcphila.com/financing/grants-administration
  • Additional Resources (Early Stage Technology Capital and Alternative Financing and Micro Lending – Apply here and get more information.

PENNSYLVANIA DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT (DCED)

COVID-19 WORKING CAPITAL ACCESS PROGRAM (CWCA)
DCED is offering working capital for the purposes of assisting with operations, excluding fixed assets, and the production of machinery and equipment. There will be a limit of $100,000 for each loan and interest rates could vary from 0%-2%. The PIDA partners with a network of nonprofit organizations called Certified Economic Development Organizations (CEDOs) to administer the CWCA loan program. The loan application will need to be submitted to the PIDA Office by the CEDO for final approval. To determine which CEDO(s) serve your business’s county and to receive additional information about the CWCA Program go to https://dced.pa.gov/CWCA. 
Click here for a checklist of everything that you need to include in your application submission. Then you can download the necessary documents to assist with the completion of your application. Once your application is finished you will need to submit it to the available CEDO that serves your county.
Additional information provided at https://dced.pa.gov/resources/ as it becomes available.

PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (PIDA)
PIDA is currently putting together the Small Business First Fund to make $61,000,000 available for business assistance. Funds can be used for working capital loans of up to $100,000 given to small businesses (any maybe nonprofits) who employ 100 or fewer people. Currently the interest rates are set at 3% but the PIDA board can adjust the interest rates as low as 0%. More information will be available in the next coming days.
PIDA also provides low-interest loans and lines of credit for eligible businesses that create and retain full-time jobs for the development of industrial parks and/or multi-tenant facilities. To get additional information about what is offered in your county visit the website and check the Certified Providers by County.

KIVA
Gives Entrepreneurs access to zero-percent interest small business loans through a crowdfunding platform, including some at no-interest. For more information or to create a page on KIVA go to https://www.phila.gov/programs/kiva/

FINANTA
Gives Entrepreneurs affected by COVID-19 and other emergencies Loans that range from $5,000 to $15,000 without incurring any closing fees. For more information about the loans or to apply, call 267-236-7030.
 

NEW JERSEY

NJ ECONOMIC DEVELOPMENT AUTHORITY (NJEDA)
New Jersey passed legislation to make grants available for business to provide working capital and meet payroll requirements, among other things during this crisis. NJEDA urges businesses of all sizes to continue checking its website for specific information regarding New Jersey Businesses and the impact COVID-19.

NJEDA SMALL BUSINESS EMERGENCY ASSISTANCE GRANT
The program will provide up to $5,000 for businesses that have between 1-10 full time employees. The funding is assist in maintaining a workforce during the containment period and can be used to meet payroll needs and working capital support (and cannot be used for capital expenses). More information is available here.
In addition to that information NJEDA offers a wide range of loan and grant options for businesses of all sizes at https://www.njeda.com/financing_incentives. They have an easy to use tool at the bottom of the screen to better assist you and see what options may fit your business.

SMALL BUSINESS EMERGENCY ASSISTANCE LOAN PROGRAM
This is a $10,000,000 program to make direct low-cost financing available to New Jersey small businesses and non-profits to cover operating expenses and ensure continuity of operations during the outbreak of COVID-19. The program will provide a loan of up $100,000 who have been in existence for at least 12 months and have an annual revenue of less than $5,000,000. In order to qualify for this program your business must have been negatively impacted by COVID-19 (e.i. reduction of business hours, complete closure of business, 20% or more decline in revenue, employees unable to work, required to close by government, or disruption of supply chain). Additional information available here.
*Application are set to open the week of March 30, 2020.

NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY (NJHCFFA)
Visit the NJCFFA website for more information on programs for small businesses. More information will follow on direct help for businesses affected by COVID-19.

DELAWARE

DELAWARE DIVISION OF SMALL BUSINESS
PROGRAM TO HELP THE HOSPITALITY INDUSTRY
The State of Delaware has set up the Delaware Hospitality Emergency Loan Program (HELP) to offer no-interest loans for Delaware hospitality businesses who are adversely affected by COVID-19. The Division will make no-interest loans of up to $10,000 per business per month to eligible businesses. Currently, it is limited to specified NAICS codes and you must have been in business for at least 12 months and generating revenue under $1,500,000. Apply here. 
This alert is intended to notify its readers of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have . We are fully operational during this pandemic and we stand ready to assist your business with any of the aforementioned applications. Please do not hesitate to contact any of our Business and Finance attorneys with your questions and concerns.
Visit our COVID-19 Legal Response Team Page here