American small businesses and nonprofits are facing an unprecedented economic disruption due to the COVID-19 outbreak. Congress provided funding relief through the CARES Act. This page provides information on the CARES Act along with a a summary of a number of programs that have been launched by state governments and local municipalities to assist businesses and nonprofits with specific. This page will be updated continually through this economic crisis to provide you with links to programs and resources you can investigate as a way to support your operations.
During this time of crisis, it can be hard to keep track of all of the resources available and, more importantly, understand how they can be accessed. We are providing information on a few programs that will be critical for our partners and providing our recommendations on how to best access these routes. Resources for these programs are limited, so we encourage our partners to act quickly.
Congress created an emergency program to provide small businesses and nonprofits with forgivable loans if they are used for payroll, rent, or utilities. It’s administered by the U.S. Small Business Administration (SBA), but the loans will be deployed by banks that already participate in the SBA’s regular loan program, known as “7(a)”. Some other financial institutions will also qualify.
How does the program work?
How to access this program:
For more information on eligibility and program uses, please click here to see the SBA’a latest FAQs.
The SBA also operates a direct emergency lending program, called Economic Disaster Loans (EIDL). Small businesses and nonprofits are eligible for up to $2 million in working capital loans. Applicants are also eligible for a loan advance of up to $10,000 in grants that can be used for providing paid sick leave, maintaining payroll, meeting increased costs, and other activities.
The interest rate is 3.75% for small businesses and 2.75% for nonprofits.
How to access this program:
State and Local Responses
The National League of Cities (NLC) and Bloomberg Philanthropies has put together a growing list of local policy changes related to COVID-19. They are categorized, and a few of the categories, like those related to housing, will be relevant. Please click here for more information.
The National Council of State Housing Agencies (NCSHA) has a running list of resources on the impact of COVID-19 on the development of affordable housing and policy responses. Please click here to view these resources.
NHT’s Energy Efficiency for All coalition has provided a state and local policy tracker. Please click here to access the tracker.
Additional Resources and Information
CDBG Allocations: Congress provided an additional $5 billion for Community Development Block Grants. The allocation for CARES Act CDBG grants were released last week. Click here to see the allocations.
Note: Borrowers can apply for both PPP and EIDL loans. If you ultimately receive a PPP loan or refinance an EIDL into a PPP loan, any advance grant amount received under EIDL would be subtracted from the amount forgiven in the PPP. EIDL loans must also be used for different purposes (i.e., they cannot be duplicative).
Opportunity Finance Network (OFN) is working with CDFIs to ensure that credit continues to flow in rural, urban and Native communities nationwide. Click here for more information.
The National Low Income Housing Coalition (NLIHC) is sharing guidance and resources on the COVID-19 crisis as it relates to housing and homelessness. Click here for more information.
The Corporation for Supportive Housing (CSH) has compiled a list of resources for supportive housing providers. Please click here to view the resources.
Construction activity has been included as an essential activity in most states, but there are some areas where construction is limited. Click here to view where construction is considered essential.
Property Management Resources
The Michigan Housing Council has compiled a list of recommendations for property managers. Please click here.
Helping residents access their stimulus check could result in better rent collection. They will need access to a bank account. Details on stimulus payments and signing up for direct deposit can be accessed by clicking here.
State deadline relief for LIHTC projects
Cinnaire continues to advocate for federal relief for LIHTC project deadlines that are unrealistic due to the ongoing crisis. In the interim, state Housing Finance Agencies (HFA’s) have authority under Internal Revenue Service (IRS) guidance that authorizes program deadline extensions in disaster areas, such as Place in Service and 10 percent teas deadlines. Learn more here.
Navigating & Learning this Uncharted Territory
In this informative CDFI Continuity & COVID-19 Webinar, five experienced CDFI leaders candidly share their strategies, best practices and experience on navigating and learning through COVID-19. Click here for more details and to view the webinar.