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Cities and states, in addition to the federal authorities, are providing aid to those employers. Treasury Secretary Steven Mnuchin stated Friday the small enterprise aid included within the large $2 trillion coronavirus stimulus bundle may keep 50 percent of Americans at work.
The biggest aid invoice in current reminiscence contains greater than $370 billion in funding for small companies.
Here is how cities and states hit hardest by the pandemic are responding.
New York Metropolis
New York Metropolis, which is taken into account a virus sizzling zone with greater than 38,000 instances, has launched the NYC Small Business Continuity Loan Program.
This system offers interest-free loans as much as $75,000 for New York Metropolis companies with fewer than 100 workers “that may display a minimum of a 25% lower in income in consequence” of coronavirus.
Small companies in California can acquire loans by way of the California Capital Entry Program, or CalCAP. Since early March, CalCAP has been permitting supplemental contributions for credit score enhancements for loans if the companies can show they’re immediately affected by the pandemic. CalCAP for Small Business applies to corporations with fewer than 500 full-time workers.
Some California companies are additionally anticipated to hunt assist from the Small Enterprise Administration’s Disaster Loan Program. This system has a piece often called the Financial Harm Catastrophe Mortgage program, which can assist certified small companies.
To be able to qualify for such a mortgage, a enterprise should show substantial financial damage – that it’s unable to pay its bizarre and vital working bills. The purpose of the mortgage is to assist a enterprise journey out a catastrophe interval till regular operations can resume. It applies to conditions the place there isn’t a bodily injury.
California exceeds 7,300 confirmed coronavirus instances.
Louisiana small companies have entry to SBA catastrophe funds as of final week after the state’s catastrophe declaration. The state has the third-highest variety of deaths with 151. Its whole instances quantity 4,025 as of Tuesday.
Small companies in Washington state, no matter county, can apply for SBA disaster loans as of late March.
There are greater than 5,000 confirmed instances in Washington state and greater than 200 deaths. In King County, house to Seattle, there are 150 deaths, based on the most recent analysis from Johns Hopkins University.
As well as, the City of Seattle Small Business Stabilization Fund is an emergency fund that offers working grants of as much as $10,000 to qualifying small companies. Enterprise house owners will need to have revenue that’s lower than or equal to 80 p.c of the realm median revenue, 5 workers or much less, a bodily institution and should be capable to show lack of revenue as a result of pandemic.
Gov. J.B. Pritzker has centered efforts on serving to suburban and rural small companies, whereas Chicago Mayor Lori Lightfoot introduced the $100 million Chicago Small Business Resiliency Fund.
The fund will assist with emergency money stream with seed cash from each town and Goldman Sachs City Funding Group, Fifth Third Financial institution and development agency Clayco.
Pritzker introduced $14 million in hospitality emergency grants for bars, eating places and resorts. The cash was initially budgeted for job coaching, tourism promotion and different functions.
Any small enterprise exterior of Chicago can apply for low-interest loans of as much as $50,000 by way of the Illinois Small Business Emergency Loan Fund. The companies will need to have fewer than 50 staff and fewer than $three million in income in 2019.
Illinois has greater than 5,000 confirmed instances.
Florida activated its Small Business Emergency Bridge Loan Program on March 17 till Might 8. The short-term, no-interest loans whole $50,000 per enterprise and $100,000 in particular instances.
Florida allotted as much as $50 million for this system and obtained greater than 6,300 purposes in its first week, NBC 6 reported. Small companies can even apply for the SBA’s federal catastrophe loans.
Florida has reported greater than 5,700 instances of the coronavirus.
Michigan small companies can apply for SBA catastrophe loans, and native and nonprofit financial growth organizations across the state have teamed as much as provide as much as $20 million in grants by way of the Michigan Small Business Relief Program.
The state is within the high 5 for many coronavirus instances, with a rely of greater than 6,400.
Massachusetts Gov. Charlie Baker has instructed residents to remain at house and introduced a $10 million loan fund for small companies affected by the pandemic in mid-March. The state is approaching 6,000 instances of coronavirus.