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.
As part of the Coronavirus Aid Package (CARES Act), small businesses can also apply for forgivable loans under the Paycheck Protection Program (PPP) that can be used to pay employees and fund other day-to-day business operations. To learn more, visit our guide to the CARES Act or read about the Paycheck Protection Program in particular.
COVID State Small Business Help
The State of Louisiana has established the Louisiana Loan Portfolio Guaranty Program, which offers up to $100,000 in loans to state small businesses that are facing economic injury because of the coronavirus pandemic. These loans will not carry interest or require payments for 180 days.
For more information and to see if your small business qualifies, visit the Louisiana Economic Development 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.
Private Relief in Louisiana
The Greater New Orleans Foundation has also established a Disaster Response and Restoration Fund for New Orleans nonprofits that work directly with vulnerable communities in the area. To learn more about this fund and if your nonprofit qualifies, email the foundation at firstname.lastname@example.org.
The Baton Rouge Area Foundation has created an Emergency Relief Fund for local nonprofits that need economic assistance due to the coronavirus pandemic. To learn more about this fund, visit the foundation's website.
A disaster response fund has been established for community organizations in the greater Acadiana region of Louisiana. To learn more about this fund, visit the Community Foundation of Acadiana’s website.
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
The Department of Revenue has released new income tax rulings in response to the statewide public health emergency, including penalty waivers and tax credit extensions. To see how this affects your small business, read the state's Revenue Ruling.
The Louisiana governor has authorized an automatic extension of sales and excise tax filings and payments to at least May 20th, 2020. Both individual and business income tax filings have been extended to July 15th, 2020. For more on Louisiana state tax relief, check the Department of Revenue’s website.
Local Tax Relief
As of March 17th, 2020, the City of New Orleans has waived fines, fees, and interest on city taxes for 60 days. For more information, visit the city’s official website.
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.
The Louisiana Workforce Commission announced a temporary deferral from paying 1st quarter unemployment taxes. Filing must occur by the original April 30th deadline, but payments are extended until June 30th, 2020.
The Workforce Commission has also waived work search requirements and the week of waiting for workers applying for unemployment benefits due to the pandemic.
For more information on Louisiana’s current unemployment rules, check out their PDF listing.
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
NOTE: The State of Louisiana has issued a “stay-at-home” executive order shutting down non-essential businesses. To see if your business is considered essential, read the Louisiana governor’s executive order.
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