As the COVID-19 crisis continues to take shape, people are stepping forward to help small businesses in a big way. The federal and state government are taking steps to provide for emergency small business loans, lending institutions are offering extensions on loans, and organizations like ours are establishing a revolving loan fund to help business owners weather this storm.
The U.S. Small Business Administration (SBA) is offering two loan programs to help small businesses in New York State during the Coronavirus outbreak:
SBA Paycheck Protection Program
The Paycheck Protection Program (PPP) is part of the Federal Coronavirus Aid, Relief and Economic Security (CARES) Act. The PPP provides loans of up to $10 million to help small businesses pay workers, and cover expenses like interest on mortgage obligations, rent, insurance, paid sick or medical leave, utilities, and payroll. Lenders will be accepting applications starting April 3, 2020. To learn more about this program, visit the Empire State Development page here.
SBA Economic Injury Disaster Loan Program
The SBA’s Economic Injury Disaster Loan (EIDL) Program provides small businesses and non-profits with low-interest loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due to COVID-19. To learn more about this program, visit the Empire State Development page here
If you think you may need a loan at some point, apply now, as funds are distributed on a first-come, first-serve basis.
COVID-19 Small Business Continuity Program – Grant
To assist small businesses impacted by the COVID-19 crisis, the Community Loan Fund of the Capital Region has teamed up generous supporters, Neil and Jane Golub, the Capital Chamber, Citizens Bank, Berkshire Bank, KeyBank, and local community organizations to launch the COVID-19 Small Business Continuity Program. The program provides grants in amounts up to $20,000 to local small businesses to help them stay afloat during this crisis. At this time, our grant program is not longer accepting applications.
To assist our borrowers through this difficult time, the Community Loan Fund of the Capital Region is offering a three-month loan payment deferment and providing emergency relief low-interest loans. These small business loans can be used for general operating expenses.
To be eligible, businesses must be:
● Existing Loan Fund borrowers in good standing.
● Located in one of the 11 Capital Region counties: Albany, Columbia, Fulton, Greene, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Warren, and Washington.
Interested in emergency relief?
To learn more about our emergency relief program and how to apply, contact a member of our lending staff at (518) 436-8586 or complete this form and a member of our staff will contact you.
Banks and Traditional Lending Institutions
Recognizing that many banking customers are facing challenges meeting their normal financial obligations, numerous banks have offered to increase daily debit card spending limits, waive penalties for early CD withdrawals and consider loan forbearance or “skip a payment” programs. To investigate what your bank offers and what you might be eligible for, contact your individual financial institution.
Keep in mind that many banks are operating only limited branches and there may be delays in getting to your call.