Disaster Support Hub for The LCF Group clients
2020 COVID-19 Outbreak
Because of the extreme hardship that small businesses are now facing during the Coronavirus (COVID-19) outbreak, business owners are in need of help. The LCF Group has collected the most important resources for businesses in this Resource Hub so they get the support they need quickly and effectively.
Do you have an open balance with LCF and need help due to COVID-19?
Get help and advice
The LCF Group is offering guidance and support to business owners affected by the crisis. Call our hotline and get connected with one of our experts that are here to help.
There are several Federal, State and Local government initiatives that are supporting business owners during these difficult times.
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Special Government Lending Programs Related to the Economic Impact Coronavirus had on the United States
The government has not released full details of the program at this time. Check back soon for more information.
On March 27, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This new law allocates about $350 billion for small businesses to keep workers employed during the pandemic and the related economic downturn. Known as the Paycheck Protection Program this program is unlike any other government loan program.
The initiative will be offered by private, non-government lenders and provides 100% federally guaranteed loans to small businesses until June 30th, 2020.
Importantly, loans made under the program are potentially eligible to be forgiven. Borrowers would need to maintain their payrolls during the crisis to qualify for loan forgiveness.
Loans may be given up to 2.5x the amount of qualified payroll a business would provide to employees in an average month. The lending cap is currently set at $10 million. More details about the program will be released in the near future, including details on how to apply.
The U.S. Small Business Administration will provide Disaster Assistance Loans for Small Businesses impacted by Coronavirus.
The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance for small businesses. The following sequence of events must take place for the SBA to action:
State Governors must request the SBA to issue an Economic Injury Disaster Loan declaration.
The Declaration will enable the SBA to issue loans to small businesses in the area of the state covered by the declaration that are impacted by the coronavirus
The SBA’s Office of Disaster Assistance will coordinate with the state’s Governor to submit the request for Economic Injury Disaster Loan assistance
Once a declaration is made for designated areas within a state, the information on the application process for Economic Injury Disaster Loan assistance will be made available for all affected communities
Loans funded by the SBA may be used to pay fixed debts, payroll, AP and other bills that cannot be paid because of the disaster’s impact
The interest rate is 3.75% for small businesses without credit available elsewhere. This is important because if the SBA thinks the customer can receive financing elsewhere, the customer will not be able to receive the SBA disaster assistance loan.
See if your business fits the maximum size requirements that the SBA holds for your industry.
The SBA offers long-term repayment terms up to a maximum of 30 years.
Terms are made on a case-by-case basis upon each borrower’s ability to repay
SBA website: https://www.sba.gov/disaster-assistance/coronavirus-covid-19
Email: [email protected]
Customer Service Center: 1-800-659-2955
Secure Disaster Loan Application site: https://disasterloan.sba.gov/ela/
Borrowers will need to access the application website and Register first, then log in
Borrowers will be eligible for the Economic Injury Disaster Loan assistance only after their state’s Governor has requested an Economic Injury Disaster declaration
Declarations declared for the following jurisdictions:
All US states and counties are now Declared Disaster areas. For more information visit: https://disasterloan.sba.gov/ela/Declarations/Index
ew York City is going to provide relief for small businesses across the City that are seeing a reduction in revenue due to the economic impact of the coronavirus.
Businesses with fewer than 100 employees who have seen a sales decrease of 25% or more will be eligible for zero interest loans up to $75,000 to help mitigate losses in revenue and income
The City will also offer small businesses with fewer than 5 employees a grant to cover 40% of payroll costs for two months to help the business retain employees.
Florida: Small businesses with 100 employees or fewer can access loans up to $50,000 with 1-year terms from The Florida Small Business Emergency Bridge Loan Program.
Iowa: The Iowa Small Business Relief Program provides access to grants ranging from $5,000 to $25,000 and tax deferrals to eligible businesses.
Maine: Information about applying for an SBA economic disaster loan.
Maryland: The Emergency Relief Grant Fund provides grants up to $10,000 and the Emergency Relief Loan Fund provides businesses with 50 or fewer employees access to loans up to $50,000.
Massachusetts: Small businesses with fewer than 50 employees can access funds up to $75,000 that are immediately available from a relief fund for Massachusetts businesses.
Michigan: The Michigan Small Business Relief Program provides information about small business grants and loans for local business owners.
Minnesota: Review information from the Department of Employment and Economic Development and their interest-free emergency loans ranging from $2,500 to $35,000 to Minnesota-based businesses in need.
New Jersey: Review the information for NJ businesses and the small business services page.
New Mexico: The Business Loan Guarantee Program provides aid to small businesses by guaranteeing a portion of a loan or line of credit up to 80% of principal or $50,000.
South Dakota: Information about applying for economic injury assistance as the state works to qualify for a disaster declaration.
Texas: Information about applying for economic injury assistance.
Washington State: Resource list for affected businesses.
Wisconsin: Companies with fewer than 20 employees can apply for up to $20,000 from the Small Business 20/20 grant program.
Atlanta: The city has approved a coronavirus emergency fund that will allocate $1.5 million to small businesses.
Chicago: The Chicago Small Business Resiliency Loan Fund will provide access to low-interest loans to the city’s small businesses.
Denver: The city created a new $4 million small business relief fund. Small businesses can apply for cash grants up to $7,500 as part of the Denver Economic Development and Opportunity’s emergency relief program.
Los Angeles: Information on loans ranging from $5,000 to $20,000 with 0-3% interest rates from the city’s Small Business Emergency Microloan Program.
New York City: Small businesses with fewer than 100 employees and a 25%-plus revenue decrease can access loans up to $75,000. The city is also offering grants to cover 40% of payroll costs for two months to businesses with five employees or less. Visit New York City assistance or call 311 for info.
Portland: Small businesses located in the city’s Jade District or Old Town Chinatown are eligible to receive support through the city’s $190,000 emergency fund. Asian and Pacific Islander business owners will be prioritized.
Philadelphia: Information on immediate relief to local small businesses in the form of grants and zero-interest loans.
Sacramento: Information on the economic relief fund for businesses that provides 0% interest on loans up to $25,000.
Salt Lake City: Apply for 0% interest loans up to $20,000 as part of the city’s emergency loan program.
San Francisco: Small businesses with fewer than five employees are eligible to receive up to $10,000 for staff salaries and rent.
Seattle: Information on grants up to $10,000 for small businesses. The city is also deferring tax payments for business-owner candidates and will set up a small-business recovery task force.
Syracuse: Information on zero-percent interest, 180-day emergency loans up to $25,000 for the city’s small businesses.