--- title: "Funding Sources for Small Businesses" url: https://burnaze.com/article/573d897c-a583-43cc-bdc8-356e20dfe8cb source: "1851 Franchise" original_url: https://1851franchise.com/funding-sources-for-small-businesses-2712670 category: "Finance" topics: ["Finance & M&A"] published: 2020-03-31T13:08:52.000Z modified: 2026-11-01T02:30:01.377Z image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/51ab48eba13c4acea4b1de81552ff1ac5799.jpg --- # Funding Sources for Small Businesses **TL;DR:** The coronavirus pandemic has put a strain on small businesses, but many organizations are providing assistance, including government relief programs like the Paycheck Protection Program and city-specific initiatives like the NYC Employee Retention Grant Program. Experts encourage small business owners to prepare ahead by collecting necessary documents for loan applications. *originally published in 1851 Franchise on 2020-03-31. [Read the original](https://1851franchise.com/funding-sources-for-small-businesses-2712670).* ## Key facts - $349 billion in loans for small businesses through the CARES Act - Up to $10 million in funding through the Paycheck Protection Program - Multiple cities offer grants and loans, such as NYC and San Francisco ## Story **The coronavirus pandemic has put a tremendous strain on many small businesses, as social-distancing practices, closures, layoffs, and state-implemented restrictions threaten their ability to sustain operations. However, many local and nationwide organizations are providing assistance to small businesses during this challenging time.** **Experts encourage** **those who will need financial help to prepare ahead by collecting all documents necessary for loan applications, including financial, accounting and employee records.** ## Government relief programs **Paycheck Protection Program of the CARES Act** **- The $2.2 trillion coronavirus spending bill was passed by the House of Representatives and Senate on Friday, March 27, 2020. The bill provides a $349-billion lending program for small businesses, while also increasing unemployment payments and benefits.** **There is an 100-percent government guarantee of loans through December 31, 2020 for** **SBA 7(A) loans.** **This includes companies with less than 500 employees and less than a certain gross annual amount, depending on the industry. Lenders determine if the business was operational by confirming it had paid its employees’ salaries and payroll taxes by February 15, 2020.** **Funding Limit: $10 million through December 31, 2020** **Small Business Administration** **- The SBA continues to be the default option for most small businesses. The agency provides 3.75-percent interest rate disaster loans to help U.S. small businesses and nonprofits that are facing temporary loss of revenue during declared disasters. A tip for success? Since an SBA loan is conferred at the discretion of the bank you apply to, it’s best to apply for one at a bank with which you have a positive long-standing relationship.** **Funding Limit: $2 million** ## City specific initiatives **New York City Hall** **- It was announced on March 8 that NYC will provide relief for small businesses seeing a reduction in revenue because of the vast spread of COVID-19 in the area. The following programs are available to small businesses located within New York City’s five boroughs with a proven record of at least a 25-percent decrease in revenue, and which have been operating for more than 6 months and have no outstanding tax or legal issues.** - **NYC Employee Retention Grant Program** **- Businesses with less than 5 employees are covered for 40 percent of payroll costs for 2 months to help retain employees.** - **NYC Small Business Continuity Loan Fund** **- Businesses with less than 100 employees are eligible for zero-interest loans to help retain employees and encourage business continuity.** **Funding Limit: Up to $75,000 loans** **Grant Program for Newark Small Businesses** **- Newark Mayor Ras J. Baraka announced on March 26 that this program will provide small businesses emergency grants. The City will offer about 200 business grants up to $10,000 to help cover operating costs, payroll, inventory, equipment, rent, taxes, licensing or any other necessary business-related expenses. Businesses must have a physical location located in Newark, have less than 10 employees and prove that loss of income directly related to the COVID-19 outbreak.** **San Francisco City Hal****l - Major London Breed announced that the city of San Francisco will provide grants and low-interest loans to small businesses impacted by the coronavirus.** - **Small Business Resiliency Fund** **- The city has established a relief fund to offer emergency grants of up to $10,000 for businesses with 1-5 employees showing a decrease of more than 25-percent in sales and less than $2.5 million in gross revenue.** - **New Arts Relief Program** **- Administered by San Francisco’s Center for Cultural Innovation, the program offers up to $2,000 grants to individuals, teaching artists and small- to mid-sized art organizations, who are all eligible for $5,000 to $25,000. This is aimed to help pay rent and salaries, to retain employees and to “help keep artists and organizations in San Francisco,” according to the announcement.** **Funding Limit: $2.5 million ($1.5 million in grants and $1 million in loans)** **Funding Limit: $100 million** ## Corporate funding initiatives **JP Morgan Chase** **- The company’s Head of Corporate Responsibility Peter Scher, announced plans to launch a $50 million fund in humanitarian aid and small business grants to help communities recover from losses due to COVID-19.** **The funds will be spread among the following areas of need: $5 million to provide immediate healthcare, food and other relief; $2 million to nonprofits responding to crisis; $8 million to assist small businesses; and the remaining $35 million to be distributed over time, according to need.** **Funding Limit: $50 million** **Amazon** **- Provides grants to Seattle-area small businesses with less than 50 employees or less than $7 million in revenue.** - **Neighborhood Small Business Relief Fund** **- Grants will be provided in varying amounts with the goal of helping cover businesses’ day-to-day costs. To be eligible, small businesses must be a service or retail establishment open to the general public.** **Funding Limit: $5 million** **Chicago Small Business Resiliency Loan Fund****- Mayor Lori E. Lightfoot launched this new funding program for local businesses being impacted by the spread of coronavirus in the city.** **The loans will be funded by the following sources: $25 million from the City of Chicago; $50 million by the Chicago Community Catalyst Fund; $10 million from Goldman Sachs’ Urban Investment Group; $1 million from Fifth Third Bank; $250k from construction company Clayco Inc.; and $15 million from unnamed private funding sources.** ## Entities - 1851 Franchise (publication) - General (sector) - Amazon (company) - Small Business Administration (regulator) - Goldman Sachs (company) - JPMorgan Chase (company) - covid-19 relief (topic) - CARES Act (regulator) - small business funding (topic) - loan programs (topic) - Paycheck Protection Program (regulator) - government relief (topic) --- Originally reported by 1851 Franchise (https://1851franchise.com/funding-sources-for-small-businesses-2712670). Summarized by Burnaze (https://burnaze.com/article/573d897c-a583-43cc-bdc8-356e20dfe8cb).