Americans watched as Congress passed an amendment to the CARES Act to provide $900 billion for pandemic-related economic relief. Although Congress vetoed the plan, President Trump signed the amendment on December 27. The House of Representatives then raised the amount of the check included in the new stimulus package to $2,000 instead of the requested $600. Many other sources of federal and state funding were available during the shutdown and afterward. Now, with multiple vaccines available, many business women are wondering how they can find funding to assist in the-post pandemic era when the economic impact of COVID remains?
The Second Stimulus Package
The new act may help entrepreneurs more than they thought it would. Here are some high points from the new legislation:
Loans and Grants to Small Businesses
● The government will provide over $284 billion to reestablish the Paycheck Protection Program to allow for low-interest-rate loans supplied by the Small Business Administration (SBA).
● There will be enhanced jobless benefits of $300 per week.
● Those who need it will receive $25 billion in rental assistance.
● An extension of the eviction moratorium will continue.
● The money will support schools and colleges across the nation using $82 billion from the US government.
Speaker Nancy Pelosi says that these actions are the first step, but more needs to be done. She added that the Biden-Harris administration would hit the road running.
Important Facts You May Not Know
1. To acquire Paycheck Protection Program loans, you must spend 60 percent of the money you receive on payroll and the rest on eligible costs, such as:● Rent
● Mortgage costs
● Utility bills
● Operating costs
2. If a woman does not have an ongoing relationship with a bank, getting PPP loans could become a huge hurdle. Black, Indigenous, People of Color (BIPOC), and women business owners failed to receive capital loans more often than other loan-seekers.
3. The Treasury Department privately encouraged banks to serve existing clients when implementing the PPP. Limiting PPP lending to existing customers hurt minority-and women-owned businesses. The congressional panel had this to say about the disproportionate decision:
"As a result, small businesses that were truly in need of financial support during the economic crisis often faced longer waits and more obstacles to receiving PPP funding than larger, wealthier companies," the congressional panel said in a statement.
More Business Resources for Women
Entrepreneur.com suggests that, since many businesses are in the same boat that your business is experiencing, the crisis may be an excellent time to collaborate. Creating business partnerships has many benefits, including:
● Coming up with new ideas
● Adopting new partnerships
● Access to new customers
● Creating new products
● Getting your innovative brains stimulated
Explore Lower-Cost Loans
Kiva is a non-profit that increases access to capital for entrepreneurs globally. The folks at Kiva want character over credit and community power based on community-based lending. When entrepreneurs need money, Kiva loans money to businesses that conventional lenders would pass up. The idea behind Kiva's mission is to connect US small business owners to zero percent interest crowdfunded loans.
Fundid is on a mission to get women owned business the capital they need to grow so that we can all close the business wealth gap. While 42% of business in the US are owned by women they only account for 4% of revenue generated by private businesses. We spend our time at Fundid thinking about what the world would look like if women also generated 42% of revenue and how to get them the capital they need to make that happen. Fundid is a challenger business bank, business lender and grant marketplace built on from the feedback of women entrepreneurs.