FAQs On Unemployment Benefits And Funding
On March 27, 2020, President Trump signed into law a bipartisan $2 trillion economic relief plan known as the CARES Act to offer assistance to tens of millions of American households affected by the coronavirus pandemic. Its components include stimulus payments to individuals, expanded unemployment coverage, student loan changes, different retirement account rules and more. Information specific to businesses as it relates to unemployment benefits and access to funding is summarized here.
The plan wraps in far more workers than are usually eligible for unemployment benefits, including self-employed people and part-time workers. The bottom line: Those who are unemployed, are partly unemployed or cannot work for a wide variety of coronavirus-related reasons will be more likely to receive benefits.
Benefits will be expanded in an attempt to replace the average worker’s paycheck. Under the plan, eligible workers will get an extra $600 per week on top of their state benefit. Self-employed workers will also be eligible for the additional $600 weekly benefit provided by the federal government. Click here for EDD.
Aid For Small Businesses And Nonprofits
The stimulus package includes more than $370 billion in government-backed bank loans that, in some cases, borrowers won’t have to repay.
The stimulus package is offering small businesses S.B.A.-backed loans to pay for basic expenses. They would not have to repay portions that were spent on paying employees, a mortgage, rent or utilities.
An earlier stimulus package offered special loans to cover employees’ benefits along with utilities and other necessities while businesses were closed. Modeled after a disaster relief function inside the S.B.A., it requires applicants to deal directly with the small agency.
Under the new program, individual lenders will be able to use their own paperwork to process loans and can expect S.B.A. approval within two weeks. Banks will not disburse the loans until the S.B.A. assures them that each is fully guaranteed against default.
Businesses would not have to repay loans covering up to eight weeks' worth of payroll expenses. That means that once businesses receive their loans, a new clock will begin to tick: They’ll have to use the money within two months to avoid repaying it. Click here for small business administration.
Funding Programs & Business Support
In addition to the Small Business Administration disaster relief lending program, there are additional funding programs and support programs available as listed below to help during the time of COVID-19.
$340 million in Google Ads credits available to all SMBs with active accounts over the past year. Credit notifications will appear in their Google Ads accounts and can be used at any point until the end of 2020 across our advertising platforms. Learn more.
Facebook is offering $100 million in cash grants and ad credits through its Small Business Grants Program. Learn more.
The Verizon Small Business Recovery Fund is offering grants to help small businesses fill urgent financial gaps with $2.5 million in funding. Learn more.
JPMorgan pledged $50 million global philanthropic commitment to support communities and people hit hardest by this public health crisis, including $2 million to existing nonprofit partners and $8 million to assist small businesses. Learn more.
Kabbage launched an online hub to help boost sales for U.S small businesses impacted by COVID-19, including a system through which businesses can sell gift cards to consumers for use at a later date. Learn more.
James Beard Foundation
The James Beard Foundation is launching a fund that will be gathering support from the corporate, foundation, and individual donors to provide micro-grants to independent food and beverage businesses in need. Learn more.
MainVest, a crowdfunding platform, announced its new Main Street Initiative: a $2,000, zero-interest, 120-day loan for restaurants or other brick and mortars affected by the shutdown. Learn more.
Opportunity Fund, which specializes in money lending to small businesses owned by women, immigrants, and people of color, is collaborating with investors and nonprofits to put together a coronavirus relief fund that will provide grants and low-interest rate loans. Learn more.
Small Business Development Center
Don't forget that the Small Business Development Center (SBDC) has over 50 advisors standing by to help you with one-on-one counseling, at no charge. Contact them directly for one-on-one counseling and for assistance navigating the various loan and funding programs available. They are located right here in Carlsbad and have convenient hours available to discuss your options, step you through the application process, and more. You can register for services directly at the small business development center.
Meanwhile, the Carlsbad Village Association (CVA) will continue to provide updated information and resources to help us all get through this together!