Revisiting Relief Funds As Small Business Owners Still Struggle

More than three months since the pandemic upended life in the U.S., the stakes are high for business owners and the economies they support. On July 4, the deadline for Paycheck Protection Program applications was extended from June 30 to August 8. Given the uneven situation for many entrepreneurs, here’s a fresh look at PPP, Economic Injury Disaster Loans, and other aid available.

Significant increases in new Covid-19 cases in Alabama, California, Florida, Texas and other states suggest the already tricky reopening situation is getting even harder for many entrepreneurs. The pandemic “poses acute risks to the survival of many small businesses,” the Federal Reserve warned in a monetary policy report released June 12. It described the current situation as “alarming,” noting that roughly half of small businesses entered the Covid-19 crisis with cash reserves sufficient for fewer than 15 days of operations without revenue. “The path ahead is extraordinarily uncertain,” the report said.

In other words, entrepreneurs need money to buoy their businesses that were disrupted after the pandemic prompted state and local governments across the U.S. to order nonessential businesses to temporarily close to slow the spread of the disease. So we’re taking a fresh look at government and private programs--grants, loans, and other aid--meant to help small employers and people who work for themselves.

If this is your first time applying for funding, consider getting help from a lender that will give you the time of day (we offer a few suggestions in our article “Not All Small Business Lenders Are the Same”), your local Small Business Development Center, volunteer network SCORE, or an advocacy group such as Freelancers Union, Main Street Alliance, or Small Business Majority.