Startup & Small Business Resources To Survive COVID’s Economic Impact
Reading the daily headlines on how Coronavirus is ravaging the world is stressful enough, but when you add being a business owner to the mix, things can be even more faint-inducing. Many businesses have been forced to close, while others who are deemed essential are required to completely change the way they do operate in service of social distancing.
However, it’s not all doom and gloom. There are many opportunities in place that you can tap into in order to not only stay afloat, but grow during this unprecedented time.
However, I’m not here to present you with hustle worship. Every business — and business owner — has different needs and growth plans. Some may need a loan to keep the lights on until things get back to normal, while others will be ready to completely pivot their products into something that is in high demand right now (hello face masks!).
Regardless of which direction you choose to take your business, there are many things to think about: Should you apply for a loan or a grant? If you need to, is it better to layoff your team or furlough them? Is now really the time to be upping your advertising budget? How can you add on a revenue stream to make ends meet?
Help is on the way:
Federal and Local Loans and Grants
The U.S. government is stepping up to help small businesses across the country survive the turmoil that’s upon them. From getting additional loans to having your previous loans deferred, you can find ways to gain the working capital you need to keep the doors open. In addition to federal initiatives, you’ll also find many state and local-level financial relief programs that include both loans and grants.
· U.S. Small Business Administration Economic Injury Loan
· U.S. Small Business Administration Deferment of Previous Loans
· State and local financial relief programs for small businesses
· The Federal Reserve’s Main Street Lending Program for mid-size businesses
Employee Costs: Layoffs vs. Furlough
If you’re having trouble making payroll, you may be thinking about laying off your employees. Learn about whether a permanent or temporary layoff (also called a furlough) is better for your organization, and whether you can avoid that situation altogether with paycheck protection relief programs.
· U.S. Small Business Administration Paycheck Protection Program
· Layoff guidance and resources from Andreessen Horowitz
· Implications for layoffs for small businesses from Littler Mendelson
· Founder Shield’s resources on Employment Practices Liability policies
· QuickBooks’ guide to protecting employees during Coronavirus
· SBA-backed Paycheck Protection Program Loan from Lendio
Funding Opportunities
Many organizations have set up funds specifically to help small business owners keep steady during the pandemic. We’ve gathered a few opportunities that are specifically for women or women of color to help you access the funds you need to thrive in the face of COVID-19, in addition to a few opportunities for all small business owners.
· The Doonie Fund for black female entrepreneurs
· The Red Backpack Fund for female entrepreneurs, backed by The Spanx by Sara Blakely Foundation
· Business for All grants, powered by Hello Alice in partnership with Verizon
· Bumble’s Small Business Grant Program
· SheaMoisture’s fund for women of color entrepreneurs
Corporate Relief Programs
Many of the biggest organizations on the planet have started corporate lending and financial relief programs to help small and medium-sized business during Coronavirus. Here, you’ll get access to grants and loan programs, as well as more creative relief programs that offer waived fees or advertising credits.
· Amazon’s Neighborhood Small Business Relief Fund for Seattle businesses
· Facebook Small Business Grants Program, with ad credits and funding
· Google’s Ad Credits Program for small and medium businesses
· Duke’s Fuqua School of Business’ searchable database of funding sources totaling $14.5 billion
· Square Resources for Small Businesses, including waived fees on services
· Shopify Capital’s access to funding and COVID-19 resources
· Etsy’s differed billing for sellers in good standing
· GoFundMe Small Business Relief Fund
· Opportunity Fund’s Assistance for Small Business Owners
· Yelp’s Coronavirus relief for bars and restaurants
· Emergency funding program from Wefunder
Learning and Development Resources
When we’re facing something as life-changing as a pandemic that keeps your customers indoors, fearful of buying the things they once loved, it’s important to look to experts for their guidance. Many organizations have compiled resources to help tackle the changing market landscape. You’ll find business guidance, legal information, financial resources and free tools on this list.
· JetBlue Technology Ventures resources for startups
· Small business relief options from Fundera
· COVID-19 Resource Center from Goldman Sachs
· Shippo’s recorded webinar, The Coronavirus: Navigating Shipping, Logistics, and Operational Challenges
· Resource on Coronavirus and business insurance, from Founder Shield
· Forbes Small Business Relief Tracker
· Leading Your Company Through a Pandemic, from Lenny Rachitsky
· TechStars COVID-19 Resource Guide
· Guidance on loans for venture capital-backed growth, from Lowenstein Sandler
· NfX’s 28 Moves to Survive (& Thrive) in a Downturn
· Shopify’s guide to buying online and picking up curbside
· Crunchbase Resources to Help Your Business and the Community During COVID-19
· Legal and business insights during COVID-19 from Cooley
· COVID–19 Resources for Startups from Pilot
· Inc’s roundup of free tools and resources for small businesses navigating Coronavirus
· The COVID-19 Content Hub from Create & Cultivate
Investor Insights
What are the investors thinking during the pandemic, and are they ready to provide the much-needed funding you need — now and in the future? Read up on the investor insights to get a feel for their sentiment and how it could affect you once the pandemic has eased off.
· The VC/Founder Sentiment Survey by NfX
· Forbes Guidance For Startups/VCs From VCs Around The Globe During COVID-19
Business Opportunities
In addition to accessing the capital, guidance and tools you need to keep your small business going during the pandemic, keep in mind there are additional ways you may be able to add revenue to your current venture. Making small changes like offering up home delivery can make a big difference to your customers, while changing your product line completely can help you make a name for yourself in the larger community.
· Incorporate social distancing into your workplace: Ensure your employees are safely six feet apart. If they have to deal with customers in person, consider adding plexiglass barriers at key touch points like cash registers.
· Think about how to serve your customers at home: If your customers can’t come to you, consider how you can get to your customers. Offer delivery or curb-side pickup to make it easy for your customers to get your goods.
· Branch out of your comfort zone: If you have the in-house expertise or equipment to help, consider producing much-needed items like face masks or hand sanitizer.
· Predict what your customers will need once this is all over: After Coronavirus has passed (and it will pass), what are your customers going to want from you? Develop special packages of your products and services so you can make it easy for your customers to get their hands on the things they’ve missed most.
The small business world is changing forever, but that doesn’t mean you have to accept your fate. There are numerous opportunities waiting to be seized. So, figure out what you need most, develop a plan and start checking off those to-do items one by one. Whether you’re looking for a capital injection to pay your rent or make payroll, or you want to try your hand at developing PPE for frontline workers, there are ways you can make it happen. And — now more than ever — don’t forget to clean your phone.
Byline: Anam Ahmed
