The State Small Business Credit Initiative (SSBCI) was reauthorized by the American Rescue Plan Act of 2021. The program provides federal financing to states to deliver flexible, affordable capital to small businesses across the country. This new iteration of the program will provide $10 billion to support small businesses responding to and recovering from the COVID-19 pandemic. It will also ensure business enterprises owned by socially and economically disadvantaged individuals have access to credit and investments and provide technical assistance to help small businesses applying for various support programs. Each state must detail how minority-owned depository institutions and CDFIs will be encouraged to participate in its funding programs. Click here for the recording of CDFA’s national stakeholder call discussing key SSBCI questions and timelines and several states’ efforts to re-launch SSBCI programming.
SBA’s new Restaurant Revitalization Fund will provide grants to address the pandemic’s impact on the food services industry, including restaurants, bars, food trucks, brewpubs, and caterers. Grants will be up to $10 million per entity or $5 million per physical location, and will be calculated by subtracting 2020 revenue from 2019 revenue. Funds may be used for a variety of eligible expenses including payroll, rent, and personal protective equipment costs. Once the program launches, SBA will prioritize applications from restaurants owned and operated by women, veterans, and socially and economically disadvantaged individuals for the first 21 days.
SBA launched the Community Advantage (CA) Recovery Loan pilot program to allow eligible mission-focused CA Lenders to provide technical and financial assistance to small businesses located in underserved areas as defined by the agency. CDFIs, along with other types of organizations, are eligible to become CA lenders, which must maintain at least 60 percent of their SBA loan portfolio in underserved markets. The program expires March 31, 2021.
SBA is accepting new COVID-19 Economic Injury Disaster Loan (EIDL) applications from qualified small businesses, including agricultural businesses, and private nonprofit organizations. Loans are used to meet financial obligations and operating expenses that could have been met had the disaster not occurred, including working capital and normal operating expenses. Additionally, the COVID-19 Targeted EIDL Advance provides businesses in low-income communities with additional funds to ensure small business continuity, adaptation, and resiliency. Advance funds of up to $10,000 will be available to applicants in low-income communities who previously received an EIDL Advance for less than $10,000, or those who applied but received no funds due to lack of available program funding. Applicants do not need to take any action; SBA is reaching out to those who qualify.
The Council on Foundations has created a spreadsheet of community, regional, and global foundations that have funds for COVID-19 relief, available here. The Council includes grant-makers of all sizes, focus areas, and geographic representation.
Candid compiled a searchable list of funds established in the wake of COVID-19 that are hosted at US-based foundations serving nonprofits.