A Patchwork of Small Business Grants and Loans

(Bloomberg) -- Beyond the U.S. government’s two major emergency loan programs (the Paycheck Protection Plan is attracting criticism for failing to disburse money quickly enough), some states and cities are offering relief to local businesses in the form of grants, loans, and loan guarantees. The programs are largely meant to help fill gaps until federal assistance arrives. A handful of major businesses and nonprofits are also making grants that aren’t limited to specific locations. We’ve compiled this list of select regional, local and corporate resources.

Check state and local government websites for additional programs. Keep in mind that because of strong demand, some of the loans and grants included here may run out of money soon. More than a dozen programs we researched (and did not include) have already stopped accepting applications. 

Venturize, which describes itself as an “unbiased education and resources” site managed by advocacy group Small Business Majority, has also compiled emergency loans, grants, and other resources available in nearly 20 states, the District of Columbia, and nationally.

NATIONAL PROGRAMS

• Facebook’s Small Business Grants Program is committing $40 million in cash grants and ad credits to support 10,000 small businesses in 34 locations where Facebook employees live and work, according to an April 2 post by Chief Operating Officer Sheryl Sandberg. She expects applications will be available starting next week. Businesses must have between two to 50 employees and meet other conditions to be eligible. 
• The Red Backpack Fund is making 1,000 grants of $5,000 each to help female entrepreneurs in the U.S. The Spanx by Sara Blakely Foundation is funding the program with $5 million; the nonprofit GlobalGiving will oversee the grant program.
• The Verizon Small Business Recovery Fund is providing grants of up to $10,000 to small businesses, “especially entrepreneurs of color, women-owned businesses and other enterprises that don’t have access to flexible, affordable capital in historically underserved communities,” the fund’s site explains. The nonprofit Local Initiatives Support Corp. is administering the program. Verizon has invested $2.5 million so far.

STATE AND CITY PROGRAMS

California
The California Infrastructure and Economic Development Bank (IBank) is guaranteeing loans for businesses and nonprofits with up to 750 employees. Applicants apply directly to participating lenders.

Chicago
The Chicago Small Business Resiliency Fund, a $100 million economic relief package, is lending up to $50,000 to businesses and nonprofits with fewer than 50 people. Interest rates are 1% for the first 18 months and 5.75% for the rest of the term.

Delaware
The Delaware Division of Small Business’s Hospitality Emergency Loan Program is making interest-free loans of up to $10,000 per month to businesses with annual revenue of $2.5 million or less in the hospitality industry.

Florida
The Florida Department of Economic Opportunity is making loans of up to $500,000 to businesses with from two to 100 employees. The loans are interest-free for the first year, 12% on the unpaid balance thereafter. It is accepting applications through May 8.

Los Angeles
The city’s Economic & Workforce Development Department is lending from $5,000 to $20,000 to businesses with fewer than 101 employees. Interest rates and terms range from interest-free for a term of up to 18 months to 3% for a term of up to five years.

Maryland
Maryland’s Department of Commerce is using $5 million to make grants of up to $100,000 to manufacturers to help them produce personal protective equipment and other critical items urgently needed by health-care workers and first responders.

New Jersey 
The New Jersey Economic Development Authority is offering grants up to $5,000, interest-free loans up to $100,000, and additional aid. It aims to provide more than $75 million in state and private money. The measures are meant to support from 3,000 to 5,000 enterprises.

New Mexico
The New Mexico Economic Development Department (NMEDD) is guaranteeing loans, or lines of credit, up to 80% of principal or $50,000. The lender, not the borrower, applies to the NMEDD program for a guarantee in case of default. 

New York City

• The City of New York is making interest-free loans of up to $75,000 to businesses with fewer than 100 employees that can demonstrate at least a 25% decrease in revenue as a result of Covid-19. 
• The New York Community Trust is using $75 million to make grants (grant amounts didn’t appear to be available on its site) and interest-free loans ranging from $100,000 to $3 million to nonprofits.

North Carolina
The Carolina Small Business Development Fund, a nonprofit community development financial institutions fund CDFI), is making loans of up to $50,000 to business owners. The loans are interest-free for six months and then 5.5% for four years.

Philadelphia
The city’s Covid-19 Small Business Relief Fund is making $5,000 grants to businesses with annual revenue under $500,000.

Portland, Oregon
Prosper Portland’s Small Business Relief Fund is making interest-free loans of up to $50,000 to businesses with $5 million or less in annual revenue and 50 or fewer employees. 

Seattle and Bellevue
Amazon.com’s Neighborhood Small Business Relief Fund is making grants of unspecified amounts to service and retail businesses in two Seattle neighborhoods and Bellevue, Wash. Businesses must have fewer than 50 employees or less than $7 million in annual revenue. The tech superpower is allocating “an initial $5 million,” it says on an FAQ page. 

Utah
The Utah Governor’s Office of Economic Development’s Small Business Bridge Loan program is making interest-free loans from $5,000 to $20,000 to businesses and nonprofits with 50 or fewer employees. The program is using $11 million in state funds.

Wisconsin
The Wisconsin Economic Development Corp. is providing grant funds to CDFIs. Approved CDFIs can award grants of up to $20,000 to their existing loan clients. A list of CDFIs is available here)

©2020 Bloomberg L.P.