Loans & Grants for Businesses
Last updated May 8, 2020
Cuyahoga County Small Business Stabilization Fund
Cuyahoga County created a Small Business Stabilization Fund to support small, neighborhood-based businesses impacted by COVID-19. This fund provides working capital to businesses impacted by COVID-19 for business related expenses, including payroll, accounts payable, fixed costs, inventory, rent, and utilities. The program includes grant and loan options.
Small businesses with fewer than 25 employees can apply for grants. In round one, 200 small businesses received grants of $2,500. In round two, an additional $2 million in grant funding is now available. Cuyahoga County expects that approximately 600 small businesses will be awarded grants between $2,500-$5,000 in round two. Applications for round two are due by 5:00pm on May 15, 2020.
Small businesses with fewer than 500 employees can apply for loans.
U.S. Small Business Administration
The U.S. Small Business Administration (SBA) has established several programs to help small businesses manage the effects of COVID-19.
SBA Economic Injury Disaster Loan (EIDL)
The SBA EIDL program offered working capital loans to small businesses. However, as of May 7, 2020, only new applications from agricultural businesses will be accepted due to limitations in funding availability and the unprecedented submission of applications already received. Applicants who have already submitted their applications will continue to be processed on a first-come, first-served basis. Click here for EIDL program information.
The Paycheck Protection Program (PPP)
The federal CARES Act allocated $349 billion for the SBA to guarantee additional private loans of up to 250% of an employer’s average monthly payroll costs (capped at $10 million) if the business maintains payroll through the end of June. PPP loans may be forgiven upon meeting set criteria. Small businesses, independent contractors and self-employed individuals are eligible to apply. You can apply through your lender. For more information, see the following resources:
- PPP Program Information from the SBA
- Borrower’s PPP Information Sheet
- FAQs on PPP from the SBA
- PPP Borrower Application Form
- Find a local bank eligible to offer PPP
Debt Relief on Existing SBA Loans
The federal CARES Act provides $17 billion to the SBA to cover six months of loan payments on existing SBA loans, including the 7(a), Community Advantage, 504, and Microloan programs. Visit this SBA webpage and contact your lender for more information.
NOTE: The Small Business Owner’s Guide to the CARES Act provides additional information on the programs listed above.
Federal Reserve Main Street Business Lending Program
The Federal Reserve is offering a new Main Street Business Lending Program to assist small and mid-sized businesses during this economic downturn created by the COVID-19 pandemic. Businesses with fewer than 15,000 employees or with revenues of less than $5 billion are eligible to apply for Main Street loans through an eligible bank. Banks may use Main Street loans to issue new loans or to increase the size of existing loans to businesses. Businesses commit to make reasonable efforts to maintain payroll and retain workers. If you have already applied for the Paycheck Protection Program (PPP), you may also take out a Main Street loan. For more information, click here and talk to your lender.
Additional Private Grant and Loan Options
- ECDI Recovery Loan is designed to provide immediate capital to businesses affected by COVID-19. Businesses must meet all SBA Microloan eligibility requirements to qualify. To learn more about the program and receive an application, email email@example.com or call (614) 559-0115.
- KIVA Cleveland has increased their loan capacity and added a 6-month grace period on payments. Apply here.
- Honeycomb Credit is offering to float possible SBA loans. Loans are crowdfunded and launch in as quickly as 3-4 days.
- Growth Capital SBA Community Advantage Loan Program: As part of the Goldman Sachs 10,000 Small Businesses program, businesses can take out maximum loans of $250,000 with interest up to Prime + 6%. Eligible uses of loan proceeds include: fixed assets (real estate must be 51 percent owner-occupied), leasehold improvements, receivables financing, working capital and debt refinancing. Eligible borrowers are manufacturing, distribution, wholesale, commerce or service for-profit businesses.