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A list of financial protection resources for small businesses during COVID-19
The COVID-19 pandemic managed to bring the global economy to a standstill. To help small businesses in this situation, governments from around the world have come up with financial relief plans. To help you access these opportunities, we’ve created a consolidated list of financial support programs that are being offered by different countries during COVID-19.
In addition, we at Zoho believe now is the time to give back to all the small businesses who have always supported us. To ease the burden for our subscribers, Zoho has come up with the Small Business Emergency Assistance Subscription Program (ESAP). Under this, small businesses (25 or fewer employees) who have been subscribed to Zoho for a year can continue to use the software they’ve subscribed to for free for the next three months. The waivers offered will depend on the effect and severity of disruption based on the industry.
Here is the global list of programs, arranged by country. These schemes may change over time and may get outdated. We will try our best to maintain it as much as possible.
United States of America
Paycheck Protection Program (PPP)
This is a loan provided by the US Small Business Administration (SBA) to help businesses to keep their employees on their payroll.Economic Injury Disaster Loan Emergency Advance (EIDL)
This allows for a loan advance of $10k for small businesses experiencing temporary setbacks.SBA Express Bridge Loans
This loan enables businesses that have an existing relationship with an SBA express lender to borrow up to $25k immediately.SBA Debt Relief
This is a small financial reprieve to small businesses where SBA will pay the principal, interest, and fees for a period of six months.WaFD
This regional bank is offering 90 days interest-free to businesses with a 10% drop in revenue. This is available in several states like Arizona, Idaho, Nevada, New Mexico, Oregon, Texas, Utah, and Washington.Alabama
The Department of Revenue for the state of Alabama is waiving late fees for sales tax for small hospitality and retail businesses.Arkansas
The Governor has promised to fund to midsize companies to continue their operations.California
The sate of California has several COVID relief plans for small and medium businesses in the state:Colorado
This state is currently offering two relief plans:Connecticut
The state is offering no-interest loans to organizations with less than 100 employees.Delaware
They are offering no-interest loans of $10k to businesses that have a turnover of less than $1.5 million per year.Florida Small Business Emergency Bridge Loan Program
This is an interest-free loan that is meant for small businesses located in any Florida county.Illinois
This is offered by the state to provide vital economic support required by small businesses and NGO’s at an almost zero interest rate.Iowa
This grant offered $5k-25k to small businesses. The application window has closed as of March 31, 2020.Kansas
They used to offer a short-term loan of $20k offered by the government to small businesses with less than 100 employees.Louisiana
The funds offered by the state are extended to gig workers like musicians and drivers as long as they are Orleans Parish members.Maine
This state has two ongoing relief programs:FAME Bridge and Direct Loans
Massachusetts
The administration has offered up to $75k to small businesses with less than 50 full and part-time employees.Michigan
This state is offering three support programs:Minnesota
This state has the following relief programs:Small Business Emergency Loan
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Minnesota Disaster Recovery Fund (MDRF) for Coronavirus
Montana
This state’s relief programs are:-
COVID-19 & Emergency Assistance
Nevada
This state offers the following programs:-
WaFD, a regional bank, is offering 90 days interest-free to businesses with a 10% drop in revenue.
New Hampshire
The state is offering emergency assistance to people so that they can keep their homes. This program will pay for rent and other essentials like heating systems.New Jersey
This state’s relief programs are:
To learn more about all the different support offered by New Jersey, visit this page.
New York
This state offers a wide range of COVID relief programs to small businesses:-
The NYC Employee Retention Grant Program (Not currently accepting any applications)
North Dakota
This state is offering many relief programs including:-
ONEOK Hospitality Employee COVID-19 Assitance Fund
ND COVID-19 and Non profit Response Fund
Oklahoma
This state is offering a COVID-19 relief program by the name Oklahoma City’s Small Business Continuity. Applications can be sent in from April 6-14, 2020.Oregon
This state has a Jade District-Old Town COVID-19 Small Business Response Fund along with WaFD bank’s COVID-19 relief program.Washington
This state will soon offer the Small Business Emergency Grant Program along with all other countrywide programs.Wisconsin
This state has several programs to offer:-
Small Business 20/20
COVID-19 Emergency and recovery funds
Canada
The new Canada Emergency Response Benefit (CERB)
This program provides $2,000 CAD per month for the next four months to eligible workers who lost their jobs to COVID-19.Community Support Fund
This fund is used to meet the immediate needs in the First Nations, Inuit, and Métis Nation communities.Work-Sharing program
Under this program, employees work for a reduced number of hours each day for reasons that are beyond the control of the employers.EI sickness benefits
This benefit is provided to employees who are sick, quarantined, or in self-isolation.Mortgage Deferral
The respective financial institutions will be proving the necessary support for planning and activating mortgage deferrals.The Canada Emergency Wage Subsidy
Under this program, 75% of an employee’s salary will be covered for qualifying organizations for a span of three months.
Europe
United Kingdom (UK)
Corona Job Retention Scheme
This scheme provides 80% of an employee’s wages up to £2,500 monthly. This is applicable for the next three months.Self-employment Income Support Scheme
Under this scheme, any person who is self-employed or was a partner and lost their income due to COVID-19 is eligible to make claims.Support for businesses who are paying sick pay to employees
Under this scheme, sick employers can claim Statutory Sick Pay (SSP) paid to employees for sickness absence due to COVID-19. This is only for small and medium businesses with less than 250 employees. This scheme is still under development and will come into effect once the legislature has passed it.Support for retail, hospitality, and leisure businesses that pay business rates
Under this scheme, properties will be provided with grants up to £25,000 depending upon the valuation of each business in the specified categories.Coronavirus Business Interruption Loan Scheme
This scheme allows access to loans, overdrafts, invoice finance, and asset finance of up to £5 million and for up to six years for SME’s.Commercial Insurance
Most insurance policies do not cover pandemics like COVID-19. Those under the insurance scheme that covers government-ordered closure and pandemic or unspecified notifiable diseases such as COVID-19 can make claims under this policy.Cash grants for retail, hospitality, and leisure businesses
This grant is provided by your local authority. It allows businesses in the above-mentioned categories to be eligible for grants if they have properties that are being used as hotels or restaurants.Support to Small Businesses by Deferral of VAT
Under this scheme, VAT payments have been deferred for a span of three months until the end of June.Businesses in Scotland
These schemes are specifically meant for small businesses in Scotland.Businesses in Wales
These programs are applicable only to businesses in Wales.Businesses in Northern Ireland
These schemes are meant for small businesses in Northern Ireland.- To see all the schemes available for the United Kingdom, CompanyDebt.com has a well-furbished article.
Italy
Small and medium-sized businesses will get a moratorium on mortgage payments and other short-term maturity loan repayments.
Exemption of Various Taxes
Italy has postponed the payment of all taxes and government duties, with different deadlines for different sectors.Bonus to Employees
Employees who have an income of less than €40,000 in the previous fiscal year can get a non-taxable bonus of €100 for each day they worked in the month of March 2020.
France
France has extended all tax payment deadlines for the next three months until June. Essential bills like electricity and gas have also been postponed for small businesses. Companies have been asked to pay employees 70% of their salary. For employees who fall below the minimum wage categories, companies must pay 100% of their salaries. The state has also guaranteed cash loans to all businesses with a few exceptions.
Germany
Kurzarbeit (short-term working) is a government scheme where employers are expected to reduce employee working hours while the state continues to pay their salaries. This is a chosen method to reduce layoffs.
Africa
South Africa
Debt Relief Fund
This program is available for small, micro, and medium enterprises (SMME’s) who can demonstrate a direct impact of COVID-19 on their businesses. It will offer relaxation to existing debts and repayments.The Business Growth/Resilience Fund
This scheme is meant to allow SMME’s to continue to manufacture and produce goods that are in high demand locally due to the COVID-19 situation.Industrial Development Corporation (IDC) Support
This scheme will fund vulnerable businesses while giving fast-track financial support to vital businesses addressing the impact of COVID-19.National Empowerment Fund (NEF) Support
This scheme has allocated 200 million Rand as loans for black entrepreneurs to help manufacture essentials like masks and other equipment during COVID-19.Small businesses in South Africa can also apply for grants on the basis that they are based out of South Africa and have at least 70% of employees who are citizens of South Africa.
Middle East
To learn about all the schemes offered by the different countries in the Middle East, visit this link.
United Arab Emirates (UAE)
Targeted Economic Support Scheme
The Central Bank of UAE has allocated 100 billion Dirhams to ease principal and interest payments to help the economy and protect consumers.
Saudi Arabia
The government of Saudi Arabia has decided to give an extension of three months for VAT and Excise Tax.
Expatriate Residence Visas will be extended for a period of three months while employers will be given refunds on visas that are not used due to lockdown of borders.
Egypt
Property tax will be given a three months extension for businesses in the tourism and industrial sectors.
The Central Bank of Egypt has reduced interest rates along with rates of essentials like electricity and natural gas for industries.
Oceania
Australia
Jobkeeper Package
This scheme provides 100% median wages for industries that are deeply affected and about 70% for other industries. This will amount to a minimum of $1,500 every fortnight for the next six months.Business and Industry Support
Under this relief scheme, there are several industry-specific categories of programs:-
Coronavirus payroll tax relief
Queensland Government commercial fishing industry assistance
South Australia Coronavirus Relief Fund
This fund is available to businesses in South Australia. This scheme covers everything from payroll-tax to business support.New South Wales Economic Relief in response to the novel Coronavirus
Under this scheme, secondary level of funds has been released to help small businesses and households.Local Governments offered Stimulus and Support for local businesses
Different local governments are providing several benefits to local businesses in their cities. This is a list of some efficient schemes available.Australian Taxation Office (ATO)
ATO has requested all affected businesses to directly contact them on the Emergency Support Infoline at 1800-806 218. You can also check out their website for further information.
New Zealand
Business Finance Guarantee Scheme
This scheme will provide businesses with cash flow and operating expenses. $6.25 billion NZD will be made available in loans to New Zealand businesses under this scheme.Mortgage holiday and business finance support
This scheme provides a six-month holiday for mortgage holders and SME’s that have been affected by COVID-19.
Asia
India
COVID-19 Regulatory package
This is a Reserve Bank of India (RBI) initiative where all loans are given a three-month moratorium period. The catch is that this moratorium period will cost you in the form of an increased interest rate.PM Garib Kalyan Aann Yojana
This scheme is meant to help the weakest section of society. Rural women and migrant workers will benefit the most from this scheme that provides free ration to 80 crore families for the next three months starting from April .COVID-19 Second Economic Package
This scheme is still under discussion. It is meant to bring tax concessions to the worst-hit manufacturing industries. Micro, small, and medium industries will benefit from this scheme.
China
Preferential Tax Policies
The Chinese Government has made changes to the policies to cope with the COVID-19 situation.Financial 30
This is a collection of multiple policies that have been issued by the government, the Bank of China, and other regulatory commissions.
Singapore
Job Support Scheme
This scheme allows 8% of wages for every worker in employment with a cap of S$3,600 per month for the next three months until the end of June.Corporate Income Tax rebate
All tax paying organizations can use a rebate of 25% of tax payable capped at S$15,000.Redeployment Programs
Employees from the aviation and tourism sector can take time to re-skill themselves and find jobs in other sectors.Property Tax Rebate
Under this scheme, organizations can use a rebate of 30% for accommodation in licensed hotels for 2020. A 15% rebate is provided for International cruises and ferries.
In addition to all of these, the World Bank has offered financial support to different countries as a part of their First Operation for COVID-19. To learn more about these financial offers, visit their website.
There are several other schemes that are being made available across the world. If you are aware of any that could make a difference, email us at sneha.j@zohocorp.com.