COVID Small Business Relief: Loans and Grants
Depending on the size of your small business, you may be qualified for certain loans and grants on both the federal and state level.
What is considered a small business?
Small businesses are defined based on what type of industry they belong to. To determine if your business is considered to be a small business by the Small Business Administration, visit the SBA Size Standards webpage.
COVID Federal Small Business Help
The Small Business Administration (SBA) is providing disaster loan assistance in all states. These low-interest loans are targeted toward small businesses and nonprofits that have experienced severe economic injury due to the coronavirus.
The Florida Department of Revenue has an FAQ on Federal Economic Impact Payment Offsets to help educate and assist Florida residents.
COVID State Small Business Help
The State of Florida has created the Emergency Bridge Loan Program for small businesses experiencing economic injury as a result of the coronavirus. Up to $50,000 in short-term debt loans will be given to eligible Florida businesses through May 8th, 2020.
To learn more about the Emergency Bridge Loan Program and to see if your business qualifies, visit the Florida Disaster Loan website.
Florida also offers a Public Assistance Grant Program for certain nonprofits through FEMA and the Florida Division of Emergency Management. To see if your organization qualifies, visit the Division of Emergency Management’s website.
COVID Small Business Relief: Private Sources
Some private companies and organizations have established grants for small business relief. Facebook is one such company. The Facebook small business grant was created to help small business owners amid disruptions that are being caused by the coronavirus.
Certain credit card companies and banks, like Bank of America, are also offering economic relief for their small business members.
For a larger list, visit our guide to private grants for small business relief.
The federal government has extended the payment deadline for all first-quarter tax payments from April 15th, 2020 to July 15th, 2020. Small businesses must file IRS Form 7004 to extend their tax payments, while individuals must file IRS Form 4868.
State Tax Relief
On April 3rd, the Governor of Florida issued an Executive Order 20-25. The Order will suspend certain taxations, under Chapter 201, Florida Statutes, for all notes and other written obligations made pursuant to Title I of the CARES Act. This will allow employers to use the full dollar amount from the CARES Act to pay their rent and assist their employees. Learn more about the CARES Act and how it will affect your business.
The Florida Department of Revenue now includes Taxpayer Information Regarding Covid-19 and has information on all Florida Tax updates since the Covid-19 outbreak.
As of March 26th, 2020, the Florida Department of Revenue issued an emergency for sales and use taxes. To learn more about how this could affect your business, check out the Florida Department of Revenue Press Release page.
Changes to Federal Paid Leave
As of March 18th, 2020, the federal government is providing certain workers paid sick leave in the event that they are ill, quarantined, or seeking medical care.
This relief act applies to employees at small, midsize, and nonprofit companies so long as the employee has been employed for more than 30 days. For more information, you can read the Families First Coronavirus Response Act.
The Department of Labor also recommends that small business employers check if their employee’s sick leave is covered under the Family and Medical Leave Act (FMLA). If an employee or their family is incapacitated due to the coronavirus (or any pandemic illness), their employer is required to provide job-protected, unpaid leave.
So long as employers are covered, they are required to abide by federal FMLA and state FMLA laws. For more information on the FMLA, check out the Department of Labor’s website.
In the event that your small business undergoes financial difficulties during the coronavirus spread, consider implementing these guidelines for the good of your business and its employees:
- Consider putting employees on temporary leave instead of terminating them
- Communicate with customers regarding business closures, reduction of hours, or maintenance changes
- Diversify your suppliers or stock inventory with an adequate amount of supplies to last an extended period of time
- Contact your insurance agent to review any business interruption policies that your business may have in place
- Prepare a plan with your employees regarding present and future business actions regarding the virus
- Review your emergency business continuity plan. If you don’t have one, take a look at New York’s Emergency Planning Process Sheet.
- Determine whether your business is considered essential or nonessential. Visit our guide to essential businesses for more information.
For more business solutions, visit the SBA website.
The Coronavirus Aid Package (CARES Act) is providing extended unemployment benefits to workers who are ineligible for regular unemployment programs but are out of work solely because of the coronavirus pandemic. Unemployment compensation has also been extended by 13 weeks. Learn more about the CARES Act and how it will affect your business.
Florida workers who are quarantined, laid off, or sent home without pay due to the coronavirus pandemic may be eligible for unemployment benefits. The governor of Florida has also waived the work search requirement for benefit-seekers.
For more information, visit the Florida Department of Economic Opportunity website or view their coronavirus FAQ.
NOTE: Workers cannot file for unemployment if they are receiving any kind of direct financial help from your business.
Small business employers should also establish strategies with their employees and customers to avoid spreading the virus:
- Encourage sick employees and customers to stay home
- Separate sick employees from the rest of the employees and encourage them to go home
- Practice good self-hygiene
- Avoid travel
- Clean all work environments routinely and thoroughly
At this time, all vacation rentals are suspended in the state for two weeks.
For periodic state updates, visit the Florida Department of Health's website.
NOTE: The State of Florida has mandated a safer-at-home order that will go into effect April 3rd and will last until April 30th. All visitors to Florida must adhere to a 14-day home quarantine that meets the requirements. To see if you are required to stay at home and how the mandate affects your business, read executive order 20-80 from Florida's Governor Ron DeSantis.
The best way to prevent the spread of the virus in your business is to create a “work from home” policy. If your business is able to provide remote work opportunities for its employees, consider the following strategies:
- Invest in new technologies and software
- Provide remote training for employees
- Establish a remote communication system
- Enforce a daily routine
- Trust in your employees’ ability to stay on track