• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

PlanningShop

Plan. Start. Grow.

  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search
  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search

Small Biz Update: Roundup of Funding Sources

April 16, 2020 //  by Rhonda Abrams

TWO FACEBOOK LIVE EVENTS

Please join me for one of two Facebook Live events next week

Tuesday 1pm EDT/10am PDT: my own Facebook Live

Update on funding sources and tips for long-term business survival. Go here to join or to watch after the event.

Tuesday 4pm EDT/1pm PDT: Facebook Live with LocalIQ

“Retaining & Gaining Customers in Uncertain Times.” Go here to join.

And if someone forwarded you this newsletter, you should sign up here.

SMALL BUSINESS SURVIVAL TIP: FIND WAYS TO LOWER AND/OR DEFER PAYMENTS

In addition to finding ways to get financing, now is also the time to try to reduce your expenses. Don’t wait for your vendors or landlord to come to you—reach out to them to start the conversation to see whether you can come up with new payment arrangements and terms. Recognize that they may be in the same boat as you—especially other small businesses and small landlords. But they don’t want to lose your business, either—not in the long run. Go through your bills for ALL your fixed expenses—telecommunications, online services, equipment leases, credit cards, lines of credit. Contact all of them to see if you can reduce what you owe or come up with a payment plan to spread out payments over many months. Don’t be embarrassed, reluctant, or too confrontational. Just do it. Also, figure out what you might be able to do without. If your lease is up or you are on a month-to-month, perhaps you can use less space, move, or give up space entirely. Tighten your belt—if you still have a belt.

ROUNDUP OF FEDERAL FUNDING PROGRAMS

Here’s a brief rundown of the key programs in case you’ve had a hard time keeping them straight. Please do take advantage of all programs you’re eligible for.

PPP: Paycheck Protection Program 
  • Eligibility: self-employed; businesses & nonprofits with fewer than 500 employees; hotel/restaurant businesses with fewer than 500 employees in one location
  • Amount: 2.5 times your average monthly “payroll costs”—includes salary, wages, commissions, group health insurance, retirement, state and local employment taxes for payroll employees and self-employed; limited to maximum annual salary of $100k; maximum of $10 million
  • Can be used for: payroll costs, rent/mortgage on business property; utilities
  • Terms: 1% if not forgiven; 2-year term; no payment for six months
  • Forgiveable: if at least 75% of funds are used for payroll costs in the 8 weeks after receiving loan
  • Apply through: banks, PayPal, Square, Intuit, other non-bank lenders
EIDL—Economic Injury Disaster Loan
  • Eligibility: self-employed; businesses & nonprofits with fewer than 500 employees affected by Covid-19 crisis
  • Amount: up to $2 million
  • Can be used for: working capital, payroll
  • Terms: 3.75% businesses; 2.75% nonprofits; 30 year term; no payment for one year
  • Forgiveable: NO
  • Apply through: SBA
$10,000 “Grant”: apply as part of EIDL
  • Eligibility: $1000 per payroll employee up to $10,000
  • Cannot be used for: same payroll costs as PPP or reduces that amount of PPP forgiveness
Unemployment Insurance
  • Eligibility: self-employed, gig workers, as well as employees
  • Amount: $600 week for four months in addition to any eligible state unemployment
  • Can be used for: anything
  • Apply through: state unemployment agencies
Main Street Lending Program

This is a new program from the Federal Reserve (not the SBA) that might be of interest to larger small businesses and mid-size companies, both for-profit and nonprofit businesses. These are large loans (minimum $1 million, maximum $25 million) and a company must be in “good financial standing” before the current crisis. The loan term is 4 years; interest rate is based on 2.5%-4% ABOVE the overnight financing rate (SOFR), and there are a variety of fees. There is no prepayment penalty. These are NOT forgiveable.

Remember sole proprietors, self-employed are eligible for most of these programs—including the PPP and EIDL.

I will discuss all this further during my Facebook Live session—Tuesday, April 21 at 1pm EDT/10am PDT—and future Facebook Live sessions. Go here to join or to watch later. Learn more in future newsletter updates as well. Sign up here if you are not already on my mailing list.

Stay well. Stay home. Stay in business.

Copyright Rhonda Abrams, 2020

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Email

Category: Rhonda's BlogTag: coronavirus, COVID-19, EIDL, funding, loans, PPP, rhonda abrams, small business, stimulus

Previous Post: « Small Biz Update: Saving Your Business
Next Post: Small Biz Update: More Money Coming »

Primary Sidebar

Subscribe to Rhonda's Blog via Email

Instagram @rhondaabrams

Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
#smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
“And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
#smallbusiness #tuesdaythoughts #inspirationalquot #smallbusiness #tuesdaythoughts #inspirationalquotes
Here's to a great week, small business owners! . . Here's to a great week, small business owners!
.
.
#smallbusiness #smallbusinessowner #mondaymotivation
My Tweets
  • Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
    What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
    National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
    #smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
    “And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
    We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
    Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
  • Footer

    Our Products
    Instructor Central

    Privacy Policy
    Contact Us

    • Email
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Copyright © 2023 PlanningShop · All Rights Reserved · Site design by paulinaart

    This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. ACCEPT Read More
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT