COVID-19 Financial Support Available, and How You Can Access It
Written by Luke Woodhatch on March 24, 2020
Around the globe, economies and businesses have literally ground to a stop. Governments, corporations such as Facebook, banks and non profits are all offering support to help business & individuals survive financially.

There is no doubt many businesses will cease to exist, but many will also pivot, innovate and create opportunities during this challenging time. Access to financing, grants and capital at this time is a big factor in this especially as many traditional revenue streams could be on pause.

That is why we have created a list of the programs announced to give you access to the ones that can help you come out stronger than ever.

We’ve broken it down into countries, but some (such as Facebook and & Shopify ) will likely be available in all the countries they operate.

Let’s start with the big businesses. They all rely on a healthy economy, and with a huge amount of money in the bank, they are offering many different ways to support companies at this time.

We are also here to help, if you have a product launch we can help you adjust your strategy to be ready to launch at the perfect time and to exceed your goals for the year. 


Private Companies

Facebook is offering $100M in cash grants and ad credits for up to 30,000 eligible small businesses in over 30 countries where they operate. They state the money can be used for: Keep your workforce going strong, Helping with your rent costs, Connecting with more customers and to Cover operational costs.

They still haven’t announced who is eligible of how the process will work, but you can sign up for updates here.


$5 million Neighborhood Small Business Relief Fund to provide cash grants to local Seattle small businesses.

$50 million to help struggling customers, and $8 million in aid to small businesses.


$2,000, zero-interest, 120 day loan for restaurants or other brick and mortars affected by the shutdown


Expansion of Shopify Capital programme, including to 30 new countries to combat the COVID-19 outbreak

provide grants and low-interest rate loans to business owners in need

Americas

United States

Federal: Low-interest loans of up to $2 million are available through the Small Business Administration for states impacted by COVID-19

City of San Francisco: are offering $10,000 to help with employee salaries and rent for businesses with less than 5 employees.

City of Sacramento: have Zero-interest loans of up to $25,000 based on demonstrated need and supported by a small business hotline

City of Chicago: Low-interest loans up to $50,000 for businesses who’ve suffered more than 25% revenue decrease due to COVID-19 and have under 50 employees. Funds will be provided to eligible businesses as low-interest loans. The Fund is seeded through $25 million from the City of Chicago, $50 million from the Chicago Community Catalyst Fund, $10 million through Goldman Sachs Urban Investment Group, $1 million from Fifth Third, $250,000 from Clayco and $15 million from other sources

State of Massachusetts: The $10 million Small Business Recovery Loan Fund will provide emergency capital up to $75,000 to Massachusetts-based businesses impacted by COVID-19 with under 50 full- and part-time employees, including nonprofits. Loans are immediately available to eligible businesses with no payments due for the first 6 months. Massachusetts Growth Capital Corporation (MGCC) has capitalized the fund and will administer it.

State of Florida: Up to $50,000 per eligible small business. Loans of up to $100,000 may be made in special cases as warranted by the need of the eligible small business. These short-term, interest-free working capital loans are intended to “bridge the gap” between the time a major catastrophe hits and when a business has secured longer term recovery resources, such as sufficient profits from a revived business, receipt of payments on insurance claims or federal disaster assistance.

State of Michigan: The Michigan Small Business Relief Program will provide up to $20 million in support for small businesses negatively impacted by COVID-19. The funding is divided between $10 million in small business grants and $10 million in small business loans to support businesses facing drastic reductions in cash flow and the continued support of their workforce. Funds for the program are expected to be available no later than April 1, 2020.

City of New York: Zero-interest loans of up to $75,000 for businesses with less than 100 employees. 40% of payroll costs covered for businesses with less than 5 employees.

Canada

Wage subsidy: Eligible small employers will receive a wage subsidy for a period of three months. This is equal to 10% of remuneration paid during that period, up to a maximum subsidy of $1,375 per employee and $25,000 per employer.

Defer tax filing: Businesses can defer the payment of any income tax amounts that become owing on or after today and before September 2020. The government will not initiate any GST/HST or Income Tax audits for the next four weeks.

Emergency care benefit: Up to $900 bi-weekly, for up to 15 weeks for workers who need to stay home due to illness, parents who need to take care of children, or those taking care of a sick family member.

Small Business Loan: Low-interest loans up to $100,000 if your business has been generating revenues for at least 24 months.

Purchase order financing: Cover up to 90% of the purchase order amount to ease cash flow to your suppliers.

BDC: Working capital loans of up to $2 million with flexible repayment terms such as principal postponements for qualifying businesses; Flexible repayment terms, such as postponement of principal payments for up to 6 months, for existing BDC clients with total BDC loan commitment of $1 million or less

Provincial:

British Columbia: A one-time $1,000 payment if you’ve lost income because of COVID-19.

Saskatchewan: Three-month deferral to remit PST

Quebec: Low-interest loans and loan guarantees of at least $50,000 

Nova Scotia: Defer payments until June 30 for all government loans and small business renewal fees
 
Europe

United Kingdom

Business interruption loan: 12-month interest free loans up to £5 million in value. a new scheme, announced by The Chancellor at Budget 2020, that can provide facilities of up to £5m for smaller businesses across the UK.

Sick Pay relief: Small businesses can recover two weeks statutory sick pay per eligible employee who has been off work because of COVID-19. Employers with less than 250 employees are eligible. 

Retail business grants: The retail and hospitality grant scheme provides businesses in the retail, hospitality and leisure sectors with a cash grant of up to £25,000 per property. For businesses with a rateable value of under £15,000, you’ll receive a grant of £10,000. For businesses with a rateable value of between £15,001 and £51,000, you’ll receive a grant of £25,000.

Small business grant: You can receive a one-off grant of £10,000, if you’re eligible for small business rates relief or Rural Rate Relief, to help meet ongoing business costs.

Wage relief: UK workers placed on the Coronavirus Job Retention Scheme can keep their job, with the government paying up to 80% of a worker’s wages, up to a total of £2,500 per worker each month. These will be backdated to 1st March and will be initially open for 3 months.

Deferred VAT and income tax payments: VAT payments due between March and the end of June will be deferred by three months. Income tax payments due in July 2020 under the Self Assessment system will be deferred to January 2021,

Rates relief (Scotland): 75% rates relief for retail, hospitality and leisure sectors with a rateable value of less than £69,000 from April 1, 2020. 

SMB grants (Scotland): Grants of at least £3,000 to small businesses in sectors facing the worst economic impact of COVID-19.

Netherlands

Bridging loans for small businesses: The government is offering the ability to receive a loan or an overdraft on your bank account for SMBs that are missing income or production due to COVID-19.

Shorten working hours for employees: For businesses with employees, the government is offering the ability to shorten working hours and request unemployment benefits.

Defer tax payments: For SMBs and self-employed businesses there is a 3-month postponement to pay their taxes. These taxes include income taxes, corporation tax, VAT returns and payroll taxes. For income taxes and corporation taxes entrepreneurs can also ask for a reduction.

Compensation for the self-employed and SMBs: SMBs and self-employed businesses that need to close their business because of COVID-19 will be compensated €1500 net per month to a maximum of €3500 net for the coming three months.

France

Defer tax debts: Small businesses are able to defer payment of tax and social debts with a simple email to their company tax department (SIE).

Suspension of bills and taxes: Bills for water, gas, electricity and rent for the small businesses impacted heavily by COVID-19, along with the suspension of taxes and social contributions.

Solidarity fund: Financial aid of € 1,500 available to business owners who make less than € 1 million in turnover, and is forced to close or has experienced a loss of more than 70% in March 2020 compared to March 2019.

Wage reimbursement: Eligible for compensation equal to 70% of gross salary (around 84% of the net) to employees. Employees with minimum wage or less are 100% compensated. Businesses will be fully reimbursed by the State, for wages up to 6,927 euros gross monthly.

Germany

Short-time work allowance: You can receive a short-time work allowance, if a minimum of 10% of your workforce if affected.

Italy

Self-employed allowance: Self-employed workers are paid a monthly allowance of 600 euros for three months for the municipalities affected by COVID-19.

Redundancy fund: Employers, including companies with fewer than 5 employees, who suspend or reduce their business are eligible to receive 50% of their previous wages for the maximum duration of 9 weeks. 

Rent relief: a tax credit equal to 60% of the rent in the month of March is awarded to shops and shops.
 
Spain

Defer tax debts: Small businesses can defer payment of tax debts, or settle them in installments, an interest-free period of six months.

Sick pay relief: The government will temporarily take on the full cost of all sick pay costs in April and May. Self-employed persons are also compensated by receiving a standardized sickness benefit for days 1 to 14.

Temporary pay compensation: For permanent employees, the salary compensation constitutes 75% of the total salary costs to a maximum of DKK 23,000 per full-time employee per month. For hourly workers, the salary compensation amounts to 90% to a maximum of DKK 26,000 per hour, per month.
 
Oceania

Australia

Cash flow assistance: Up to $25,000 tax-free subsidy for small and medium-sized businesses with annual net sales of less than $50 million.

Tax deduction: Instant asset write-off threshold increased from $30,000 to $150,000 for businesses with annual net sales of less than $500 million until 30 June 2020.

Support for apprentices and trainees: Eligible employers can apply for a wage subsidy of 50% of apprentice or trainee wages for up to 9 months from 1 January 2020 to 30 September 2020 (up to a maximum of $21,000 per eligible apprentice or trainee).

New Zealand

Wage subsidy scheme: Available for businesses struggling to pay employees in all sectors and all regions that can show a 30% decline in revenue for any month between January and June 2020. Affected businesses can receive a subsidy of $585.80 per week for a full-time employee (20 hrs or more) or $350.00 per week for a part-time employee (less than 20 hrs) to a maximum of $150,000.

Leave and self-isolation support: Available to support people financially if they need to self-isolate, cannot work because they are sick with COVID-19, or cannot work because they are caring for dependents who are required to self-isolate or who are sick with COVID-19. The payments will be $585.80 per week for full-time and $350 per week for part-time workers. 

Business cash flow and tax measures: Measures include the discretion to remit use-of-money interest for heavily affected businesses, increasing the provisional tax threshold from $2,500 to $5,000, increasing the small asset depreciation threshold from $500 to $1,000 and to $5,000 for 2020/2021, and removing the hours test from the In-Work Tax Credit (IWTC) from July 1, 2020.

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We are also here to help, if you have a product launch we can help you adjust your strategy to be ready to launch at the perfect time and to exceed your goals for the year. 


The team at Khierstyn.com

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