5 Critical Funding Resources Every Philadelphia Business Should Know About
Updated: Aug 10, 2021
As relief options for small businesses evolve, it can be hard to keep up with all the changes and acronyms. Our team of small business supporters put together this resource guide to help Philly businesses understand the key sources of funding at their disposal.
1. SBA Emergency Injury Disaster Loan
What can you use it for?
Businesses whose operation has been affected by COVID-19 can use this loan to pay for standing debt, payroll, and any other bills.
What are the terms?
Loan rates are 3.75% for small businesses with a term of up to 30 years. Loan payments are deferred for 6 months.
How can you apply?
Businesses can apply directly with the SBA at https://covid19relief.sba.gov/#/
2. City of Philadelphia COVID-19 Small Business Relief Fund Microenterprise Grants
What can you use it for?
Unrestricted funds meant to help Philadelphia businesses retain as many employees as possible. This program was previously receiving applications for zero-interest loans but due to overwhelming demand, it has closed. Only the grant program described below is still accepting applications.
What are the terms?
These are $5000 grants for Philadelphia-based businesses that do not need to be repaid.
How can you apply?
Businesses can apply through this form.
3. Paycheck Protection Program’s Small Business Loans
What can you use it for?
Through the Paycheck Protection Program, your business can apply to borrow up to 2.5 times your average monthly payroll costs in 2019, up to $10 million.
The payroll costs include any payment to your employees, which includes: salary and wages(capped at $100,000 per employee), cash tips, paid time off, health insurance, retirement benefits, dismissal allowances, and state and local taxes related to employee compensation.
What are the terms?
The interest rate on these loans is 0.5% at a fixed rate. The loan term is 2 years, with payment deferred for the first 6 months (interest will continue to accrue). There are no prepayment penalties on these loans, and there is no requirement for a personal guarantee or collateral.
If you retain headcount and employee salaries, this loan may be forgiven. Note that loan forgiveness will be reduced if your business cuts employee headcount or salaries. If you have already cut employees as a result of the economic uncertainty, you have until June 30, 2020 to rehire staff.
How can you apply?
Businesses can apply by reaching out to their bank or a certified SBA lender. Learn more about preparing your application by reading our guide on How to Apply for the Paycheck Protection Program’s Small Business Loans
4. FINANTA Emergency Loan
What can you use it for?
The FINANTA Emergency Loan is designed for entrepreneurs affected by COVID-19 and other emergencies. Funds can be used for most business needs, including but not limited to working capital, inventory, equipment, and supplies.
What are the terms?
Business can borrow $5,000 to $15,000
How can you apply?
Businesses can apply by reaching out to their bank or a certified SBA lender. Learn more about preparing
5. Honeycomb Small Business Relief Loan Program
What can you use it for?
These are crowdfunded working capital loans that you can use for standing debt, payroll, and any other bills. Businesses can use Honeycomb to borrow working capital loans from their fans, customers, and community.
What are the terms?
Businesses can launch loan crowdfunding campaigns to borrow between $10,000 and $50,000 at 5% or 7% depending on their risk tier. These 36-month loans have a 45 day grace period, a six month 3.5% interest-only period, and no prepayment penalty.
How can you apply?
Businesses can apply by filling out an interest form at honeycombcredit.com/relief. Decisions can be processed in as little as 24 hours.
Keep Your Business Strong
Want to learn more about structuring your COVID-19 relief plan or boosting your community support with a Honeycomb crowdfunded relief loan?
Schedule a meeting with one of our small business experts now. Sign up below for more information!