Facebook and SBA Grants to Keep Your Business Afloat During the Recession
- Author: Kelly Cooke
- Posted: 2024-02-18
COVID-19 has wreaked havoc on the overall economy. Governors have ordered restaurants to close their dining room services and use take-out and delivery only services for their customers.
Gyms have become creative and are offering online yoga and aerobics classes. Non-essential businesses have closed their doors and gone online to service the remainder of their customers. Meanwhile, workers have either been laid off or furloughed, and businesses have limited access to credit with declining corporate revenues.
Businesses worldwide use Facebook services through ads, Instagram, and homepages to showcase their products to potential and bona fide customers. Businesses may have difficulties keeping their operations afloat and retaining their employees while they wait for federal financial assistance. Facebook wants to provide a soft cushioning for this economic crash by providing cash assistance.
Ten thousand small businesses are eligible to apply for the $40 million Facebook grants that are part of the overall $100 million grants that Facebook has made available to the general worldwide public. Small businesses in Seattle and New York will have first access to the $40 million small business grants.
Initially, Facebook announced the $100 million grant program on March 17. Corporate members can use grant funds to purchase Facebook ads to reach their business customers or use the cash influx to improve their business services. Owners can use the funds to meet payroll, pay operational costs, or pay rents and mortgages on leased and owned properties.
According to Goldman Sachs, there are more than 30 million small businesses within the contingent 48 states. Approximately 96% of small businesses have been impacted by COVID-19.
Facebook COO Sheryl Sandberg said, "The COVID-19 pandemic has hit small businesses everywhere. Suddenly and, through no fault of their own, many simply can't do business, and for others it has become much, much harder because customers are doing the right thing and staying at home."
Who is Eligible?
For the general grant, small businesses in over 30 countries are eligible to apply for the grant. Ureeka is also collaborating with Facebook to invest in women-owned and minority-owned businesses. Owners must have the following:
- Small business must have been operational for one year.
- Owners must have between 2 and 50 employees.
- Small business must be in a location where there are Facebook services.
- Owners must have experienced severe challenges related to COVID-19.
Facebook Business Hub
Owners can implement technical innovation to meet the needs of their customers. Facebook offers online services to foster creativity in outreach to the public with five main steps.
- Keep informed and safe: Follow the CDC and WHO on Facebook.
- Keep in touch with customers: Notify your customers with your status and hours of operation on Facebook.
- Make an online imprint for your business: Promote digital gift cards to boost business sales. Hold webinars on Facebook and Instagram. Shoot live video streaming on Facebook.
- Develop a customer service plan: Use Instagram Direct Messages, establish a WhatsApp Business profile, or use the Messenger app.
- Provide a frequently ask questions section for your customers online: Provide vital information that your customers need to know and understand.
SBA Grants
EIDL Loan and Grant
The SBA is offering coronavirus relief packages for small businesses, independent contractors, sole-proprietors, and some non-profit corporations. Businesses can have employees on the payroll from 1 to 500. Apply for the EIDL 'economic injury disaster loan' and upon completion of a successful application, receive up to a $10,000 grant. The loan offers temporary relief from present economic challenges. The program will be available until the end of the year.
Agents will direct deposit the funds into your bank account within three business days once the application is approved. Owner-operators will get the grant regardless of whether the SBA associates approve the loan. Small businesses can use the funds to pay rents, payroll, arrearages, and other operational expenses. The application is online, and it is five pages long. Owners will need to know the overall business income, with the profit and loss statements.
Forgivable PPL Loan
PPL 'paycheck protection loan' ”is an incentive for businesses to keep their employees on the payroll and forego layoffs. The SBA will forgive the loan if business owners show receipts that the funds were used to pay employees, rents, mortgages, and utilities up to 3 months of business operational expenses. Local banks and credit unions are underwriting the loan.
Small businesses can apply from April 3, 2020; sole proprietors and independent contractors can apply from the date of April 10, 2020. Funds are generally available in a matter of days from a successful application. June 30, 2020 will be the final date of the program. Aspirants can apply for the EIDL grant and the PPL forgivable loans but cannot use the funds for the same expenses.
