The COVID-19 Pandemic is not only a health crisis but also an economic crisis. Our federal government planned to issue grants for small business owners to maintain payrolls and to tide them over until the shutdown ends. Large entities like the Shake Shack and Ruth’s Chris Steakhouse received millions, some even returned funding.
A second round of financing/grants was distributed and this time some small minority business successfully received funds. According to an article in INC magazine, over half of all small business in the USA are now run by minority women. These were the businesses that had been left out. Some had relationships with lending institutions, but many were bootstrapped with savings and family investments. I reached out to Sybil Slade from LifePlan Financial Advisors, formerly with the Federal Reserve bank, for a few updates.
I ask Slade if there is still money available for small business owners in need of support due to COVID-19. She shares that money becomes available every week. She shares that some of the larger entities that took funding returned funds due to rules stating that they had to have 75% of their staff on board by the end of June. Others decided that they didn't need the funding the returns increased the amount of funds available to small businesses.
I asked about the PPP (Payroll Protection Plan) and she shares that there are other grants available including the EIDL (Economic Injury Disaster Loan). For small business owners without a banking relationship she recommended several community resources with funding for business that banks can't or won't loan to including: Access to Capital for Entrepreneurs (ACE) which is certified by treasury to make loans to small business owners. ACE also has a SBA sponsored Women’s Business Center where they provide coaching services to businesses free of charge. The are several other CDFIs (Community Development Financial Institutions Fund) in the state as well including banks that are working to support small business owners.
Slade additionally adds that there is an informal networking ecosystem to support small business and we typically know firsthand when additional funding comes online because are asked to promote it.
She provided the following resources for our listeners:
Resources for WCLK
My contact information: www.lifeplanfin.com
LinkedIn: https://www.linkedin.com/in/sibylslade
Small Business Mastermind Forum Focus Forward Webinar Series
The Blue Print to Planning the New Future of Your Business https://vimeo.com/412857578
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