Small Business Financing during COVID-19

Coronavirus Financing Resources

• If you don't qualify for business disaster assistance . . .

  If your company wasn’t profitable last year, social service assistance might be an option. There are regional COVID-19 funds set up throughout the state.

  If you need resources now, please contact your local United Way to reach trained, caring professionals seven days a week, 24 hours a day.

   

• If you're self-employed or an independent contractor . . .

  Filing for unemployment may be an option. The CARES Act includes a temporary Pandemic Unemployment Assistance (PUA) program through Dec. 31, 2020, to provide payment to workers who are not traditionally eligible for unemployment such as the self-employed or independent contractors (including so-called gig economy workers), who are unable to work as a direct result of the coronavirus public health emergency.

  Apply through your state unemployment office:

  • in Kansas
  • in Missouri

  The Department of Labor, working collaboratively with the states, offers three specific programs:

  Pandemic Unemployment Assistance (PUA) for those not typically eligible for UI, such as gig workers, and expanded UI benefits. PUA provides benefits for eligible individuals who are self-employed, seeking part-time employment, or who otherwise would not qualify for UI benefits under state or federal law. To be eligible, among other requirements, individuals must demonstrate that they are otherwise able to work and available for work within the meaning of applicable state law, except that they are unemployed, partially unemployed, or unable or unavailable to work because of COVID-19 related reasons.

  Federal Pandemic Unemployment Compensation (FPUC) program, eligible individuals who are collecting certain UI benefits, including regular unemployment compensation, will receive an additional $600 in federal benefits per week for weeks of unemployment ending on or before July 31, 2020.

  Pandemic Emergency Unemployment Compensation (PEUC) program allows those who have exhausted benefits under regular unemployment compensation or other programs to receive up to 13 weeks of additional benefits. States must offer flexibility in meeting PEUC eligibility requirements related to “actively seeking work” if an applicant’s ability to do so is impacted by COVID-19.

   

   

• Cash Flow: Manage your finances

  The quickest way to help your finances is to manage your cash flow by monitoring what revenue comes in and what expenses go out.

  Here are some quick tips from Rebecca Gubbels of the Missouri SBDC at UMKC. (Read her full blog post and further ideas on “Things You Can Do for Your Business Now.”)
  

  Watch the video
  (click on the image to play the video, press your browser's back button to return to this page)
  

  

  Evaluate new distribution methods – Look for ways to boost your newly limited in-person traffic. Could you still be solving problems for customers but in different ways? Does creating a subscription service, setting up e-commerce, adding delivery, or implementing curbside service benefit your customers? We at the Missouri SBDC have a pet store client now offering same day local delivery to help customers and their pets get what they need while safely in their homes. Now is definitely the time to creatively adapt, if you’re able.

  Bill sooner and collect faster – If you offer credit to customers, be sure to bill them promptly. Right now we recommend ensuring that you’re billing just as soon as work is completed. Then consider your collection practices. The time might be right to consider offering your customers a small incentive if they then pay what they owe you super quickly. At a minimum, you need to be following up on receivables a few days before they’re due to ensure your customers remember the invoice and plan to pay on time.

  Hold off on major purchases – While things are so uncertain, big capital expenditures should be postponed if at all possible.

  Manage inventory – Inventory is essentially your business’s cash sitting on a shelf. Now is a great time to consider cancelling or delaying planned inventory purchases. Get creative with current inventory on-hand. Can it be returned or exchanged with your vendor? Are there ways to incent customers to buy current inventory using discounting or other incentives? More ideas for managing inventory can be found here.

  Reach out to your business insurance agent – Some business insurance policies may cover situations like COVID-19, especially if you carry a business continuity policy. You may have Force Majeure coverage providing assistance for financial losses arising out of the inability to bring a project to completion. Reach out to your agent to see what, if any, coverage is applicable to you.

  Consider reducing your payroll expenses – We entrepreneurs are only as strong as our teams. That is what makes managing payroll so hard in light of the likely impact on your co-workers who are often also friends. However, unprecedented times possibly call for unprecedented measures. At this point you should at least begin postponing new hires and considering reducing hours and laying off nonessential employees.

  Pay your bills slowly – While things are in flux, do not pay your bills any faster than you have to. Take advantage of the full agreed payment terms to hold onto your cash longer. The goal should be to pay your creditors as slowly as possible without incurring a negative consequence. You should also reach out to all suppliers, creditors, landlords and banks for possible modified payment terms. Many banks are already offering to modify their existing loans down to interest only or no payments for the coming 3-6 months.

  Break even – Know your break even point to cover fixed expenses and evaluate all expenses. Break-even is your fixed expenses divided by your gross margin %. Great advice is to keep a rolling 13 week cash flow to help make decisions. Jack Harwell explains break even in this video.

  There is a temporary ban in both Kansas and Missouri on evictions, foreclosures, utilities and internet disconnects. Be aware these are temporary and full payment will likely be required at a later date.

• Cash Runway: Calculate how long your cash will last

  Now that you’ve assessed what cash conservation actions you’re planning to take, you’ll need to figure out how long your current cash reserves can last or your “cash runway.” Start with this quick calculation:

  Cash Runway

  • Current cash balances / Monthly cost still happening in virus response months = Your cash runway measured in months

  You might also want to do this calculation a second time including sources of cash that you technically have access to but may be presently hesitant to tap.

  Cash Runway (using all current cash options)

  • Current cash balances + amount of cash that could be tapped (existing credit cards and/or lines of credit) / Monthly costs still happening in virus response months = Your longest currently available cash runway measured in months

  Accessing these lines may or may not be prudent as circumstances continue to develop, but you should have awareness of both timelines. Additional cash runway calculation information can be found here.

   

  Know Your Break Even Number

  Breaking even is not a goal for businesses that want to thrive, but understanding what amount of sales you need to break even is important to survive. Jack Harwell of the Kansas SBDC breaks down the math in this video.

   

• Current Loans: Are you worried about your current SBA loan or another bank loan?

  Talk to your lender now about your existing loans. Loan modifications may be available due to the Coronavirus. Many banks are making no-cost modifications available, but typically you must specifically ask, e.g. interest-only payments for a few months, months of payments pushed off to the end of the loan, etc. Your lender does not want to see you go out of business, talk to them now.

  SBA Loans

  SBA Administrator Jovita Carranza announced an automatic deferment of SBA Disaster Loans through the end of 2020 to help borrowers still paying back SBA loans from previous disasters. By making this change, deferments through December 31, 2020, will be automatic. Now, borrowers of home and business disaster loans do not have to contact SBA to request deferment.

  In addition, the Small Business Debt Relief Program will provide immediate relief to small businesses with non-disaster SBA loans, in particular 7(a), 504 and microloans. Under it, SBA will cover all loan payments on these SBA loans, including principal, interest and fees, for six months. This relief will also be available to new borrowers who take out loans within the next six months.

  If you have a non-SBA loan from a bank, reach out to your current bank to see what options they may have available. There are some other regularly accessible sources of funds like your bank’s conventional financing or factoring accounts receivable that may now warrant reconsideration, but there are also some forthcoming emergency loan options.

   

• Paycheck Protection Program: Get help to cover the cost of retaining employees

  PPP Loan Forgiveness Deadline Fast-Approaching

  Small businesses should apply for PPP loan forgiveness within 10 months of the end of the covered period under which they had to spend the money. If borrowers do not apply for forgiveness within 10 months after the last day of the covered period, then PPP loan payments are no longer deferred, and borrowers will begin making loan payments to their PPP lender.
  
  For some businesses that received the PPP loan when the program launched in April 2020, the covered period was 8-weeks, so the deadline to apply for loan forgiveness will be in mid-July. For those with the 24-week covered period, the deadline could be as early as September. 

  A borrower can apply for forgiveness once all loan proceeds for which the borrower is requesting forgiveness have been used. Borrowers can apply for forgiveness any time up to the maturity date of the loan.
  
  If you're unsure of your covered period or need more details on how to apply for loan forgiveness, please reach out to your PPP lender.

  Visit the SBA's PPP webpage for more information: www.sba.gov.

  
  AltCap PPP Borrowers:
  The Countdown Is On For Loan Forgiveness

  AltCap PPP borrowers should apply for forgiveness once all of the loan proceeds they received have been spent, and before the maturity date of your PPP loan. An AltCap Business Development Officer will soon invite you to submit your PPP forgiveness form (form 3508S for PPP loans under $150,000) via Lenderfit, where you will upload all of the required supporting documentation. For borrowers with loans over $150,000, an AltCap Business Development Officer will be in touch to inform you about next steps in the forgiveness process.
  
  First Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if these things occurred during the 8- to 24-week covered period following loan disbursement:
  

  • Employee and compensation levels were maintained,
  • The loan proceeds were spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds were spent on payroll costs.

  Second Draw PPP loans made to eligible borrowers qualify for full loan forgiveness if these things occurred during the 8- to 24-week covered period following loan disbursement:
  

  • Employee and compensation levels are maintained in the same manner as required for the First Draw PPP loan
  • The loan proceeds are spent on payroll costs and other eligible expenses; and
  • At least 60% of the proceeds are spent on payroll costs

  If you do not apply for forgiveness within 10 months after the last day of your covered loan period, your PPP loan payments will not be forgivable and you will begin making payments back to AltCap for the full amount of your PPP loan.
  

  What's Next For Small Business Relief And Recovery?
  

  (Source: AltCap)
  With the SBA Paycheck Protection Program (PPP) officially closed, many entrepreneurs are thinking about what's next for their small business. AltCap, a local mission- and impact-driven lender committed to increasing small business access to capital and being a strong ally to underestimated entrepreneurs, has successfully deployed over $6.6 million in the second round of PPP and $4.1 million through the KC Region Small Business Relief + Recovery Loan Fund – but we aren't done yet. We remain committed to helping small businesses access the resources they need to come back strong than ever, and grow and thrive. Continue reading to find out what’s next for PPP borrowers and for small businesses still in need of relief capital.

  Still In Need Of Small Business Relief Capital?

  If you are a small business owner still in need of relief capital, the KC Region Small Business Relief + Recovery Loan Fund will reopen this summer. This is a community-backed relief fund intended to provide immediate assistance to local small businesses that have—or are continuing to experience—a financial strain as a result of the economic disruption caused by the government's response to the COVID-19 pandemic.
  
  Follow us on social media and make sure that you're subscribed to our email list to receive an update on when applications will be accepted.

   

  Revised PPP Forgiveness Application

  (Source: SBA)
  Small businesses that obtained Paycheck Protection Program loans of $50,000 or less can now use a streamlined application to apply for loan forgiveness.
  
  The new form includes one page of required information, with one page of information that can be disclosed on a voluntary basis. According to the document, businesses that, together with their affiliates, received $2 million or more in PPP proceeds cannot use the streamlined form.
  
  SBA and Treasury have also eased the burden on PPP lenders, allowing lenders to process forgiveness applications more swiftly.
  
  SBA began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020. SBA will continue to process all PPP forgiveness applications in an expeditious manner.

  Click here to view the simpler loan forgiveness application.
  Click here to view the instructions for completing the simpler loan forgiveness application.
  

  Businesses, even without a personal guarantee or collateral, can apply one of these loans as long as they were operational on February 15, 2020, and had paid employees at that time (even if the owner is the only employee). On a final note, the SBA’s 500-employee threshold includes all types of employees: full-time, part-time and any other status.
  

  
  Who Can Apply

  The following entities affected by Coronavirus (COVID-19) may be eligible:

  • Any small business concern that meets SBA’s size standards (either the industry based sized standard or the alternative size standard)
  • Sole proprietors, independent contractors, and self-employed persons
  • Any business with a NAICS Code that begins with 72 (Accommodations and Food Services) that has more than one physical location and employs less than 500 per location
  • Any business, 501(c)(3) non-profit organization, 501(c)(19) veterans organization, or Tribal business concern (sec. 31(b)(2)(C) of the Small Business Act) with the greater of:
    • 500 employees, or
    • That meets the SBA industry size standard if more than 500

  Will my PPP loan forgiveness be affected if my employee(s) refuse to come back to work?
  

  (Source: Kansas SBDC at JCCC and the Department of Treasury)

  No. As an exercise of the Administrator’s and the Secretary’s authority under Section 1106(d)(6) of the CARES Act to prescribe regulations granting de minimis exemptions from the Act’s limits on loan forgiveness, SBA and Treasury intend to issue an interim final rule excluding laid-off employees whom the borrower offered to rehire (for the same salary/wages and same number of hours) from the CARES Act’s loan forgiveness reduction calculation. 

  The interim final rule will specify that, to qualify for this exception, the borrower must have made a good faith, written offer of rehire, and the employee’s rejection of that offer must be documented by the borrower. Employees and employers should be aware that employees who reject offers of re-employment may forfeit eligibility for continued unemployment compensation. 

  See the full answer to this and more frequently asked questions about PPP loans.

  Please Note: If applicable, SBA will deduct any EIDL advance amount you have received from the forgiveness amount remitted to the Lender, as required by section 1110(e)(6) of the CARES Act. Borrowers are required to retain certain documents for six years after the date the loan is forgiven or repaid in full.

  
  Forgiveness Forms and Instructions

  • SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application (Spanish version)
    • Instructions for the SBA Form 3508 Paycheck Protection Program Loan Forgiveness Application
  • SBA Form 3508EZ Paycheck Protection Program Loan Forgiveness Application
    • Instructions for the SBA Form 3508EZ Paycheck Protection Program EZ Loan Forgiveness Application
  • SBA Form 3508S Paycheck Protection Program Forgiveness Application 
    • Instructions for the SBA Form 3508S Paycheck Protection Program 3508S Forgiveness Application

  PPP loan forgiveness calculator: spreadsheet/template (Source: BerganKDV)
  PPP loan forgiveness calculator: online estimator (Source: CoastApp.com)

  Know Your Options: Financial Assistance Programs for COVID-19
  Rebecca Gubbels of Missouri SBDC at UMKC and Lee’s Summit EDC
  

• Other Local, Regional and National Grants and Loans

  BY CITY/REGION

  
  Adair County, MO
  

  ADAIR County CARES Act Funding Opportunity
  The State of Missouri received about $2.3 billion of the Coronavirus Aid, Relief, and Economic Security ACT (CARES Act). Adair County’s share is $2,973,240. Adair County will use the guidelines provided by the U.S. Department of Treasury and the State of Missouri in making awards of the funds received under the CARES Act. 
  

  Callaway County, MO

  Callaway County Chamber of Commerce COVID-19 Resources
  
  

  Excelsior Springs, MO

  #OneTownOneTeamGrant
  (Source: Excelsior Springs Area Chamber of Commerce)
  The funding from this program is meant to serve as a “bridge” while you wait for business to go back to usual or for when more substantial federal funding becomes available. The money available for this grant is from local businesses and community members who have donated specifically to help our Excelsior Springs businesses.
  
  

  Overland Park, KS

  Overland Park Small Business Rescue Plan
  

  Springfield, MO

  (Source: efactory)
  The City of Springfield has allocated over $400,000 of CARES Act funding for forgivable business loans. Loans of up to $10,000 will be issued through the program.
  Download City of Springfield CARES Act Round 2 Small Business Grant Application
  

  
  St. Joseph, MO

  City of St. Joseph Strong Small Business Retention Program

  Through federal funds received, the City of St. Joseph is making available to small businesses (1-20 full-time employees) loans to address local business impact for COVID-19.
  

  St. Louis, MO

  EDA Metropolitan Loan Program
  (source: STL Partnership)
  

  The U.S. Economic Development Administration (EDA) has awarded CARES Act funds to the St. Louis Economic Development Partnership and The St. Louis Local Development Company, an organization under the St. Louis Development Corporation’s umbrella, to make loans to businesses that have been negatively affected by COVID-19 or that are providing goods or services addressing problems caused by the pandemic.

  Program Details:

  • Must be a for-profit business located in the City of St. Louis or St. Louis County
  • Loan funds may be used for working capital needs and the purchase of inventory, equipment, machinery, and other fixed assets
  • Amounts ranging from $10,000 to $150,000
  • Interest rates starting at 2%
  • Loan terms will be determined by the nature of the project, with most terms ranging from three to five years

  If you have any questions about the program or need assistance completing the loan application, please contact one of our loan officers listed below:

  Zack Folk
  314.276.4203
  zfolk@stlpartnership.com
  

  BY STATE

  
  

  NATIONAL

  KKR Small Business Builders grant
  (Source: GEN, KKR and Hello Alice)
  If you have pivoted your startup or small business in response to the COVID-19 pandemic and/or provide important community services, don't miss this opportunity to receive a $10,000 grant!
  
  The Global Entrepreneurship Network has partnered with global investment firm KKR and small business support platform Hello Alice to offer this opportunity to entrepreneurs like you. Successful applicants will also receive mentorship and small business resources.
  
  To be eligible for the KKR Small Business Builders grant, a business must:
  

  • Be owned (51%+) by a women or a woman-identifying individual
  • Be a for-profit business operating in the United States, United Arab Emirates, Spain, Singapore, Luxembourg, Japan, Ireland, India, Germany, France, England, China, or Australia
    
  • Have 5 to 50 employees
  • Earn less than $7 million USD in annual revenue in 2021
  • Demonstrate the need for support
  • Have a strong plan for moving forward
  • Be in good standing with the IRS or their local regulatory body

  Apply at kkr.helloalice.com.

  
  BY INDUSTRY

  Innovation and Tech

  🛑 KC Ignite COVID-19 Response Accelerator
  (Source: Black & Veatch, LaunchKC)
  Do you have a solution that can reduce the severity of the coronavirus outbreak, but need help commercializing and rapidly deploying? The Black & Veatch COVID-19 Response Accelerator is designed for growing companies looking to scale emerging solutions to save lives, help communities cope, and protect the economy.
  

  National - SBIR Grants
  

  Request for SBIR/STTR Phase I Proposals Addressing COVID-19
  (Source: National Science Foundation)
  Small businesses who are interested in submitting NSF SBIR or STTR Phase I proposals can apply through the FastLane process.

  • COVID-19 Proposal Instructions
  • FastLane Guide

  
  Agriculture + Farming

  USDA Microloan Programs
  (Source: USDA)
  The focus of Microloans is on the financing needs of small, beginning farmer, niche and non-traditional farm operations, such as truck farms, farms participating in direct marketing and sales such as farmers’ markets, CSA’s (Community Supported Agriculture), restaurants and grocery stores, or those using hydroponic, aquaponic, organic and vertical growing methods.

  USDA Implements Measures to Help Rural Businesses Affected by COVID-19 
  (Source: USDA)
  USDA Rural Development has taken a number of immediate actions to help rural residents, businesses and communities affected by the COVID-19 outbreak. Rural Development will keep our customers, partners, and stakeholders continuously updated as more actions are taken to better serve rural America. 
  
  

  Arts

  Local to Kansas City
  Rocket Relief Fund Charlotte Street Foundation & Arts KC (Deadline April 25) – Artists of all disciplines
  Midwest Music Foundation : Abby's Fund – Emergency healthcare funding for musicians
  Midwest Music Foundation COVID-19 Relief Fund 
  

  National

  Cerf+ Craft Emergency Assistance – Relief for medical expenses
  Glad Day  Emergency Survival Fund for LGBTQ2S artists, performers & tip-based workers – Living expenses  
  Artists Fellowship Financial Aid – Emergency aid to professional visual artists and families during sickness  and bereavement
  Musicians Foundation CV19 Emergency Aid – Covid-19 relief for musicians  
  Actors Fund Emergency Financial Assistance – Compiled financial resources for theater workers
  
  St. Louis Art & Music Fund
  (Source: GoFundMe)
  This helps musicians and bands offset by canceled gigs.
  

  Arts Administrators of Color: Arts Leaders of Color Emergency Fund
  Arts Administrators of Color has created the Arts Leaders of Color Emergency Fund, which supports BIPOC (Black, Indigenous, and People of Color) artists and arts administrators impacted by COVID-19 through $200 microgrants.
  

  Motion Picture & Television Fund: COVID-19 Relief Fund
  The COVID-19 Relief Fund aims to help those workers in the entertainment industry who are suffering COVID-19 related hardships. Applicants must be industry members that demonstrate financial need and meet minimum earnings or hours thresholds.

  
  Fitness Industry

  🛑 Fit Pro Relief Fund
  (Source: Inspire360)

  A $500,000 relief fund for fitness professionals that have been most impacted by COVID-19, brought to you by Peter and Kathie Davis and Inspire360. Because there are limited funds, selections will be made at random for those who meet the prescribed criteria. Approximately 500 applicants who meet the criteria will receive on average $1,000 each to help meet their immediate needs. Awards will be limited to one grant per person. Apply online here.
  
  

  Restaurants and Bars
  

  🛑 Restaurant Revitalization Fund (RRF)
  

  See How to apply for more detail.

  This application can be filled out in Spanish if your internet browser is set to display in Spanish. To do this, set your browser’s language setting (typically found under “Advanced Settings”) to Spanish. Most browsers will require a restart to display in that language.
  
  Webinar Training for Application Filing
  Posted on SBA's YouTube channel.

  The newly-approved plan sets aside $28.6 billion for qualifying restaurants, bars, brew pubs, etc. This represents a very high priority embraced by Congress. A large portion of this funding is for small businesses.
  

  To qualify:

  • Must have fewer than 20 units
  • Must not be publicly traded
  • OK for franchises with fewer than 20 units.

  The RRF will be offered directly from the SBA www.sba.gov and not through lending organizations like PPP loans. If you are considering applying for an RRF you will need the following:

  • Duns’ number www.dnb.com – free, usually within 2 days
  • SAM (System for Award Management) www.sam.gov/SAM number for doing business with the U.S. Government – free, but takes longer to finalize
  • Financial data confirming that gross revenues for 2020 are less than 2019. You can apply for the amount of money that is the difference between the two. Note that PPP funds received in 2020 count as income for 2020. EIDL loans do not count as income.

  •  

  Southern Smoke: Emergency Relief Program
  (Source: Southern Smoke)
  The Emergency Relief Program provides emergency funding to restaurant and bar owners and employees, as well as restaurant supplier employees, who are facing unforeseen expenses that cannot or will not be covered by insurance.
  

   

  CROWDFUNDING

  How to Use Crowdfunding to Support Your Small Business through Coronavirus
  (Source: U.S. Chamber)
  As the coronavirus pandemic continues to financially impact small businesses, a crowdfunding campaign could help you stay afloat.

  Small Business Relief Initiative
  (Source: GoFundMe)
  The Small Business Relief Initiative was started by GoFundMe to help small businesses that have been affected by the COVID-19 pandemic and empower their communities to rally behind them. GoFundMe has partnered with Yelp, Intuit QuickBooks, GoDaddy, and Bill.com to provide small business owners with the financial support and resources needed to continue running their businesses during and after the coronavirus crisis.

  
  OTHER LOANS

  EnrichHER Business Financing
  EnrichHER provides direct loans and lines of credit up to $250K for business with at least $100K in revenue or credit scores above 680.

  Main Street New Loan Facility
  (Federal Reserve)
  The Federal Reserve released details on the Main Street New Loan Facility today. The facility is intended to facilitate lending to small and medium-sized businesses that are not eligible for the SBA Paycheck Protection Program.  Here’s some additional context from Polsinelli law firm on the Federal Reserve’s Main Street Business Lending Program.

  Mainvest and Zero-Interest Loans
  (Source: Mainvest)
  If you have an existing brick & mortar business that has been negatively effected by the COVID-19 outbreak and you launch a capital raise on Mainvest, you may be eligible to receive a $2,000 zero-interest loan immediately*. Then through your capital raise, you can receive over $100,000 of investment from your community.

  Latino credit unions and minority grant options
  (Source: Bankrate)
  In an effort to help Latino businesses rebound, Bankrate compiled the best ways for Latinos to grow their business and overcome the funding gap. Near the end of the article is a list of Latino credit unions and minority grant options.

  OTHER GRANTS
  

  🛑 Dany Garcia Presents Latinx the Mosaic Grant Program

  (Source: Hello Alice)
  Dany Garcia will award a total of $100,000 to Latinx small and new business entrepreneurs through short-term financial aid grants with the goal of keeping the entrepreneurial dream alive amidst the global pandemic. This program is dedicated to all Latinx of any origin, heritage, nationality, lineage, indigenous roots, racial background, country of birth, or ancestors before arriving in the United States.
  

  
  Benefits both new and small Latinx businesses building and trying to stay afloat during COVID-19.
  
  A financial award of $100,000 will be split equally between 10 companies.
  
  APPLY NOW 

  Best Small Business Grants for 2022, Including Coronavirus Grants
  (Fundera)
  Small business owners across the country are feeling the impacts of the coronavirus outbreak and the economic ripples it’s caused. Check out these coronavirus small business grants that your business might be eligible for.
  

  And we’ve pulled out a few relevant grant opportunities below.

  The Doonie Fund
  The Doonie Fund makes micro investments of $100 in Black women entrepreneurs.

  GoFundMe: Small Business Relief Fund
  (Source: GoFundMe)
  Small businesses that have been negatively impacted by the coronavirus crisis can sign up on GoFundMe to start a fundraiser to benefit their small business. If the business raises $500 on their GoFundMe and meets certain eligibility criteria, they may be considered to receive a $500 matching grant from the Small Business Relief Fund.
  

  Visa • IFundWomen Grant Program for Black women-owned businesses
  Applications are being accepted from June 30, 2020 through July 31, 2020.
  Visa has extended its partnership with IFundWomen to support Black women-owned small businesses in the United States through a new grant program and educational resources. These grants provide an opportunity for recipients to grow their businesses and continue to offer much needed services to their local (and global) communities. Within this application, you will be asked to provide imagery and a 60-sec video that tells us more about your business. Your video must be provided in the form of a link (Vimeo, YouTube, Dropbox, Google Drive, etc.). Please have these assets and video link at the ready before starting your application.

  IFundWomen COVID-19 Relief Fund
  The IFW COVID-19 Relief Fund provides microgrants to women-owned businesses that are being impacted by this crisis.
  
  Ladies Who Launch Grant and Mentorship Program for Women Entrepreneurs
  

  Rooted in equity and inclusion, the yearlong launch program provides an immediate cash grant of $5,000 - $25,000 USD, mentorship, advisory support, and amplification for women (female identifying and non-binary) entrepreneurs.
  
  With this program we aim to bring all three of our pillars to the forefront: Inspiration, Education, and Community to support US women business owners impacted by COVID-19 with what they need most — access to capital and a community to help them navigate through these challenging times.
  Check out the next steps below and then apply!

  Nav: Small Business Grant Contest
  The next round of Nav’s Small Business Grant opens April 2021
  (Source: Nav)
  Nav is giving grants to small businesses that tell a story of preservation and opportunity in the face of a past or ongoing challenge.
  

  Professional Beauty Association COVID-19 Relief Fund
  (Source: Professional Beauty Association)
  The PBA COVID-19 Relief Fund will provide $500 to licensed beauty professionals who are unable to work due to COVID-19. The funding is intended to be emergency aid for short-term immediate needs such as food and bills. 
  

  🛑 Red Backpack Fund
  (Source: Global Giving)
  The Spanx by Sara Blakely Foundation has donated $5 million to support female entrepreneurs in the wake of COVID-19. GlobalGiving will oversee the Red Backpack Fund, making 1,000 grants of $5,000 each to female entrepreneurs in the United States to help alleviate the immediate needs and support the long-term recovery of those impacted by this crisis.
  

  🛑 Salesforce Care Small Business Grants 
  Salesforce is partnering with Ureeka to offer eligible small businesses the opportunity to receive a $10,000 grant to help them through the COVID-19 outbreak.  Grant Applications open for Missouri and Kansas on April 27.

  SheaMoisture Community Commerce Fund
  (Source: SheaMoisture)
  With SheaMoisture's $1Million Fund, small minority and women of color-owned businesses can apply for funding under different initiatives:
  

  • 🛑Black Business Relief Fund in partnership with 'We Buy Black'

  • Women of Color Entrepreneur E-Lab
    

• Loan Documents: Prepare these documents before you apply for disaster assistance

  The financial assistance programs available for COVID-19 relief have a variety of business and personal documentation required. Check the online application forms or with your banker to understand what you will need to prepare. Use the following list developed by the Missouri SBDC at UMKC as your guide.

  And do be sure to get your paperwork in order before you begin the application process. 

  
  Required Documents

  These are the minimum required documents for your EIDL application. 

  A note about personal documentation: If no one in your company has a greater than 20% stake, at least one owner will have to step up to provide this information and personally guarantee the loan. You and any business partners should begin to think about how to make that decision or share that responsibility equitably now.

  SBA Form 5 
  This is the foundation document for the application. Be sure to select “Economic Injury” as the application type. Download the SBA Form 5 form can be downloaded in preparation for the online application process.

  Past 3 Years of Business Tax Returns 
  If you’ve been in business less than three years, provide as many returns as you have filed. Tax returns hold more sway and legitimacy than internally prepared financials. There are reasons to consider filing your 2019 return as soon as possible. Do also be aware that the IRS has extended the deadline to both file and pay your taxes until July 15th. Missouri has followed suit.

  Most states have not yet extended tax filing deadlines. While that is likely to eventually happen, if you’re going to owe state taxes, we recommend still paying the amount that you’re likely to owe in state taxes before April 15.

  Past 3 Years of Personal Tax Returns 
  Anyone who owns 20% or more of your company will need to provide the last three years of their personal tax returns.

  4506-T 
  While you’ll be asked to fill in recent tax information, the SBA will have you authorize them to check with the IRS to ensure accuracy using a 4506-T form. Be sure to get your entity(s) legal names listed accurately. Download the 4506-T form. 

  2019 Income Statement 
  Show your company’s performance for each month of 2019 as well as the year’s total. Required if your 2019 taxes have not yet been filed

  2019 Balance Sheet 
  This provides perspective on what your company owned at the end of a “normal year” and whether those assets were purchased by owners (equity) or other people’s money (debt). Required if your 2019 taxes have not yet been filed.

  Personal Financial Statement 
  All company owners and investors with greater than a 20% ownership stake must provide a current listing of their personal assets, debts and net worth. Download the Personal Financial Statement form.

  Business Debt Schedule 
  This gives required details about all current debts. This form should be prepared in advance of your application. Download the Business Debt Schedule form.

  
  

  You may also need:

  
  

  2020 Monthly Income Statements 
  Further evidence of how your company was doing prior to the beginning of the pandemic response.

  Current Balance Sheet 
  This gives the most recent statement of assets, equity, and debt.

  Business Narrative 
  The SBA or any new lender will need to have some background information about your business. Create a professional business summary of:

  • Who you are and why your company was performing well prior to COVID.

  • How you’ve retooled in these unexpected circumstances:

    • This should include measurement of your decreased customer traffic, reduced sales, and other recent (and anticipated!) business harm.

    • It should also include what actions you’ve taken to solve your cash flow needs outside of this loan request.

  • How much money you need and what you will use it for:

    • You should be ready to tell the SBA what amount represents 6-months of your typical expenses. However, your loan amount will be calculated by the SBA to be the equivalent of 6 months of business expenses. As such, make double, extra sure your financial information entered is correct!

    • Loan request may not exceed $2 million

  • How you plan to be able to pay any new loan back:

    • No payments will be required until 1 year later

    • Prepare a written description of how you’ll be able to repay the loan amount (automatically amortized over 30 years to keep payments low) and the other assumptions you’ve included. The SBA knows this is unprecedented and that we’re all trying to figure things out. However, you must demonstrate ability to synthesize all that you know so far about your company, your industry, and your customers and make some best educated guesses.

    • Should ideally include 3 years of projected income statements (spread monthly for year 1) and accompanying balance sheets

  
  

  Business Licenses

  • City

  • County

  • State

  
  

  Personal Credit Score 
  All lenders will review 20+% owners’ credit history and credit scores. Even in disaster, historical evidence of repaying creditors is still the best indicator of likelihood to pay new creditors. While not something you need to actually submit like the rest of these items as lenders will independently pull this information themselves, you should proactively check all three of your credit reports and scores either directly with Experian, Equifax, and TransUnion or with a reputable aggregator like Fair Isaac Corporation (FICO).

  
  

  Entrepreneurial service agency Justine PETERSEN has resources to assist with personal credit building and repair, if necessary.

   

• Helpful Definitions: Review these terms as you prepare your application(s)

  Some terms you’ll need to know to complete the paperwork to apply for small business disaster assistance:

  Balance sheet - a financial statement that reports a company's assets, liabilities and shareholders' equity at a specific point in time. Learn more here

  If you use an accounting system, you should be able to pull a balance sheet for the required time period. If you do not, there are templates available on line that you can fill in.

  Business debt schedule (also called schedule of liabilities) - gives required details about all current debts. The SBA has a preferred method of presenting that information. https://www.sba.gov/sites/default/files/tools_sbf_sba202.pdf

  Income statement (also known as profit and Loss statement or earnings statement) - a financial statement that summarizes the revenues, costs, and expenses incurred during a specified period, usually a fiscal quarter or year. These records provide information about a company's ability or inability to generate profit by increasing revenue, reducing costs, or both. Learn more here

  If you use an accounting system, you should be able to pull a profit and loss statement for the required time period. SCORE offers Financial Statements Templates: https://www.score.org/resource/business-planning-financial-statements-template-gallery

  Personal credit score - a statistical number that evaluates a consumer's creditworthiness and is based on credit history: number of open accounts, total levels of debt, and repayment history. Lenders use credit scores to evaluate the probability that an individual will repay loans in a timely manner. You should proactively check all three of your credit reports and scores either directly with Experian, Equifax, and TransUnion or with a reputable aggregator like Fair Isaac Corporation (FICO).

  Personal financial statement - a document or spreadsheet outlining an individual's financial position at a given point in time. A personal financial statement will typically include general information about the individual, such as name and address, along with a breakdown of total assets and liabilities. The SBA has a preferred method of presenting that information. https://www.sba.gov/document/sba-form-413-personal-financial-statement-7a504-loans-surety-bonds

   

• Tax Relief

  Coronavirus Tax Relief and Economic Impact Payments
  (Source: IRS)
  The IRS offers tax help for taxpayers, businesses, tax-exempt organizations and others – including health plans – affected by coronavirus (COVID-19).

  Two refundable payroll tax credits help reimburse small and midsize businesses, dollar for dollar, for the cost of providing coronavirus-related leave. 

  • Deferral of Employer-side FICA Payroll Taxes - can defer the employer portion of FICA taxes through the end of 2020, with all 2020 deferred amounts due in two equal installments, one at the end of 2021, the other at the end of 2022. 

  • Employee Retention Tax Credit - adds a tax credit for employers to encourage businesses to keep workers on payroll during the crisis. 

  • Filing and Payment Deadlines: Q&A 

  More on Employee Retention Tax Credit
  (Source: IRS and Kansas SBDC)
  Employee Retention Tax Credits could pay for 50% of your payroll for the rest of 2020 if:

  • you can afford to still pay at least 50% of your payroll for the near future

  • your business has suffered a significant loss due to COVID-19 (defined as a quarter being 50% less than the same quarter last year)

  • you think that the economic injury might continue (the tax credit only lasts until a subsequent quarter hits 80% of the same quarter last year, or Jan. 1, 2021)

  Compare that to the Paycheck Protection Program, which offers a forgivable loan equal to 8 weeks of payroll and a small portion of non-payroll expenses. 

  Work with your accountant and run the numbers. While you can do the EIDL and PPP (as long as they’re for different expenses), you can’t do the Employee Retention Tax Credit and the PPP, so find out which one is best for your business. 

  All You Wanted To Know about Maximizing Your Tax Credits through the CARES Act
  (Source: Markowitz Accounting)
  The ERTC is the gift that could potentially keep on giving, quarter after quarter for the rest of the year.

  All You Wanted to Know about the Employee Retention Tax Credit
  (Source: Markowitz Accounting)
  Assuming you have under 100 employees, the ERTC is a credit of 50% of all qualified wages in a given quarter.

  
  

  STATE

  Tracking State Legislate Responses to COVID-19
  (Source: Tax Foundation)
  The Tax Foundation provides information on state legislatures’ schedules, adjustments and status of the state’s budget, and the state’s rainy day fund (RDF) balance as a percentage of the prior year’s general fund budget.
  

  Kansas Tax Relief
  The filing and payment date for state income taxes and privilege tax is extended from April 15 to July 15, 2020. This does not apply to estimated tax payments due April 15, 2020. See Executive Order No. 20-13.

  Missouri Extends Tax Filing Deadline to July 15, 2020
  (Source: Missouri Department of Revenue)
  The filing deadline for tax returns has been extended from April 15 to July 15, 2020. Mirroring the federal guidance issued by the IRS, the Missouri Department of Revenue announced that it will provide special tax filing and payment relief to individuals and corporations in response to the COVID-19 outbreak. 

  
  FEDERAL

  Tax Credits through the Families First Coronavirus Response Act
  (Source: BKD CPAs and Advisors)
  BKD walks you through the details, but here’s the high level information: 

  • Payroll Credits for Required Paid Sick & Family Leave: The paid sick time payroll tax credit can be claimed on a quarterly basis, equal to 100% of the amount of sick leave wages paid. The credit is refundable if it exceeds the amount the employer owes in payroll tax.

  • Credits for Sick & Family Leave for Certain Self-Employed Individuals: Self-employed workers, including independent contractors and gig economy workers, also can claim a credit against their regular income taxes related to sick or family leave.

  Forgivable Paycheck Loan or Tax Credit: You Can’t Claim Both, Which Is Better?
  (Source: Forbes)
  You cannot get both a small business loan under the PPP and also claim a tax credit, so some comparison is needed.SBA lenders have details, though there has been controversy and hiccups in rolling out the program.

  IRS Coronavirus Tax Relief Center
  (Source: IRS)
  The filing deadline for tax returns has been extended from April 15 to July 15, 2020. The Treasury Department and the Internal Revenue Service are providing special tax filing and payment relief to individuals and businesses in response to the COVID-19 Outbreak.

  Filing and Payment Deadline Questions and Answers
  (Source: IRS) 
  These Q&As address the federal filing and payment extension to July 15 due to the COVID-19 (coronavirus) outbreak. These Q&As currently include information on the additional extension to Oct. 15, first quarter estimated tax payments, IRAs and HSAs.