Coronavirus Small Business Financial Relief Options - Updated

This article was updated on April 10, 2020. Updates to this article will be made as new information becomes available.

Schneider Downs continues to track the evolving landscape of financial programs offered to small businesses whose operations have been disrupted by the coronavirus pandemic (“COVID-19”).  This is a summary of resources and programs that are available, specifically to small businesses. Schneider Downs can assist with any of these programs.

In addition to the small business federal financing programs such as the Payment Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL), there is a multitude of other resources for small businesses impacted by COVID-19 that can provide financial relief.

The following are some of the many COVID-19 resources available for impacted small businesses in the Pittsburgh area.

The Pittsburgh Foundation Emergency Action Fund

The Emergency Action Fund will address the immediate and long-term impacts of COVID-19 by providing funding in four areas:

• Operating support for small and mid-sized nonprofit organizations (annual budgets under $5 million) serving communities with predominantly low-income households. Funding will be awarded to assure that these organizations can continue to meet the basic needs of the people in their communities, particularly relating to food and housing insecurity, and to cover losses associated with the disruption of their operations.
• Organizations that manage emergency funds that provide direct financial assistance to individuals impacted by COVID-19.
• Support for Federally Qualified Health Centers and other community health facilities.
• Small arts organizations (and individual artists) that have had to cancel productions scheduled between March 1 and June 30, 2020.

ELIGIBILITY: Nonprofits applying for funding must:

• Have a current 501(c)(3) status or a fiscal sponsor with this designation. 
• Serve residents of Allegheny, Westmoreland or Beaver counties.

GRANT AWARD AMOUNTS: The Pittsburgh Foundation expects that the needs generated by this pandemic will exceed the available funds. Grant amounts are expected to range from $5,000 to $25,000 and will be reviewed on an ongoing basis. Larger grants will be reviewed on a case-by-case basis. Grants will be awarded on a rolling basis.

GRANT TIMELINE: The goal is to provide funding decisions within 15 business days of application.

https://pittsburghfoundation.org/eaf-grant-guidelines

Urban Redevelopment Authority of Pittsburgh

The Urban Redevelopment Authority of Pittsburgh (URA) announced that it is taking the following steps to help mitigate the unprecedented potential economic ramifications of COVID-19 on Pittsburgh’s small business community.

• The URA is halting ALL loan payments for the month of April 2020 for URA small business borrowers, including automatic loan payment withdrawals from borrowers’ accounts.
• The URA is temporarily easing and streamlining its Micro-Enterprise Loan Program to provide 0% loans to existing and new URA small businesses. Details of the Micro-Enterprise Loan:
  • Up to an additional $15,000
  • Loan proceeds may be used for rent, payroll, and other approved fixed monthly business expenses
  • 0% interest rate, no fees
  • 3-year term, six months of no payments, 2½-year fully amortizing terms after payment deferral period
  • For existing small businesses (not startups) located in the City of Pittsburgh

For more information on URA emergency small business funding programs, please visit the link below.

http://www.ura.org/pages/covid-19

Hebrew Free Loan Association Pittsburgh

The Coronavirus Financial Bridge Loan Program provides interest-free loans on a nonsectarian basis for up to $5,000 to residents of Allegheny, Beaver, Butler, Westmoreland, Washington, and Armstrong counties who are facing financial challenges caused by the Coronavirus/COVID-19 outbreak. 

These loans are intended to address:

• Lost wages due to being unable to go to work
• Childcare costs due to school closures
• Small business losses
• Canceled study abroad programs
• Related medical costs

Loan applicants must provide written substantiation of these costs. These loans are repayable in monthly installments of $150–$250 depending on the size of the loan. Repayments begin two months after the loan is received.

A cosigner is required for all loans unless the borrower is a homeowner with a credit score of 670+. If the borrower or cosigner is married, both spouses must borrow/cosign together.

DVI Funding (National Program)

DVI Funding’s Coronavirus Financial Bridge Loan Program provides unsecured cash loans up to $100,000 to U.S. citizens nationwide.

These loans are intended to address:

• Lost wages due to government-mandated shutdowns
• Childcare costs due to school closures
• Small business losses
• Shelter Expenses (Rent, Utilities)
• Food Assistance
• Medical bills

?Loan applicants must provide verifiable proof of income and have a minimum annual income of $30,000. Loans are repayable in monthly installments and amount will depend on the amount of the loan.

Honeycomb Crowdfunded Small Business Relief Loan (National Program)

To help deliver the working capital to businesses, Honeycomb is offering 45-day payment-free periods, six-month interest-only periods, and reducing posting, success, and investor fees. Options include:

Option 1

• Borrow $10,000-$50,000 in working capital
• 45-day payment-free period
• 3.75% interest rate over an initial 6-month interest-only payment period 
• 5% interest rate over a 3-year fully amortizing loan after the interest-only period
• No pre-payment penalties

Option 2

• Borrow $10,000-$25,000 in working capital
• 45-day payment-free period
• 3.75% interest rate over an initial 6-month interest-only payment period
• 7.5% interest rate over a 3-year fully amortizing loan after the interest only period
• No pre-payment penalties

For more information on Honeycomb Credit’s loan program, please visit the link below.

https://www.honeycombcredit.com/relief

Bridgeway Capital

Bridgeway Capital’s COVID-19 Response Fund makes flexible financing available to help small businesses manage business disruptions and sustain vital services during the COVID-19 pandemic. The loan program is designed to help businesses with under 50 employees that are experiencing negative economic impacts in industries hit hard by the public health crisis.

For more information on the loan program, please visit the link below.

https://www.bridgewaycapital.org/loans-and-modifications/covid-19-response-fund/

Progress Fund

The Progress Fund provides financing from $20,000 to over $1 million to people who are starting, expanding or buying small businesses.

These loans can be used to:

• Purchase property, restore and rehabilitate buildings, purchase inventory or equipment
• Buy the assets of an existing business
• For working capital

The interest rate is variable based on the risk of the project. Terms are typically five to fifteen years. An origination fee and various closing costs are charged.

Application for the Progress Fund Loan can be found at:

https://www.progressfund.org/small-business-loans/

Washington County Council on Economic Development

Washington County offers various loan programs, including a Pennsylvania SBA Microloan and a West Virginia SBA Microloan up to $50,000 and a Manufacturing Loan Program up to $100,000.

http://washingtoncountypa.org/loan-programs/pennsylvania-sba-microloan/

Kiva

If you’re a small business owner in Pittsburgh, and your business could benefit from a microloan, Kiva may be an option. Loans are 0% interest, with no fees and can be up to $10,000, paid back over up to three years.

More information regarding options can be found at the website below:

https://us.kiva.org/pittsburgh/?fbclid=IwAR0BSy5568wfRg1mTA1hzKo9B5zl2oWE9yV88mUs581kmkPSh65jBHiTA0g

Allegheny County Small Business Loan Program

The purpose of the loan is to promote the establishment and expansion of new and existing small businesses, by providing low-interest financing for land development, building improvements, machinery and equipment acquisition, and infrastructure development.

Eligible businesses are a legal business entity located within, or seeking relocation to, Allegheny County, and with less than one hundred (100) full-time employees at the time of the loan application.

More information can be found at: https://www.alleghenycounty.us/economic-development/businesses/loans.aspx

Please visit our Coronavirus resource page at schneiderdowns.com/our-thoughts-on/category/Coronavirus for related content.