Financial resources for publishers during COVID-19

It’s a challenging and uncertain time for many businesses right now, including those in digital media. As a partner to thousands of the highest quality independent publishers, CafeMedia strives to support and empower them by any means possible.

We’ve created this guide to outline several of the new or expanded programs offering assistance to eligible U.S. small businesses – it contains details on these programs, how to apply, and resources for more info. 

How the CARES Act can help publishers

Independent publishers may be eligible for some of the financial relief programs offered through the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. 

Business owners should consult with their business bankers, CPAs or financial advisors to see if any of these programs could benefit their business.

Paycheck Protection Program (PPP)

The Paycheck Protection Program (PPP) provides loans that help small business owners continue to maintain payroll and avoid laying off employees — even if the only “employee” is the owner, as a sole proprietor or self-employed person. 

The loan amount can be up to 2.5x average monthly payroll cost. Loan payments are deferred for six months. 

If businesses meet certain requirements, they can request loan forgiveness for the portion of the loan used to cover the first eight weeks of payroll, employee benefits, and most utilities, mortgage interest, and rent.

Small businesses and sole proprietors can apply starting on April 3; independent contractors and self-employed individuals can apply on April 10. There are financial caps to this program, so while loans are available through June 30, it may be best to apply sooner rather than later.

Here’s a handy PDF guide from the U.S. Chamber of Commerce

More information: Paycheck Protection Program (PPP)

Apply: Paycheck Protection Program application

Economic Injury Disaster Loan (EIDL) / Emergency Economic Injury Grant

An Economic Injury Disaster Loan (EIDL) provides support to small businesses facing a temporary loss of revenue. Loans can be up to $2 million, with a 3.75% interest rate for small businesses and repayment terms of up to 30 years.

Funds may be used to pay fixed debts, keep employees on payroll, make rent or mortgage payments, or pay other bills affected by the disaster.

Once a business owner has applied for an EIDL, she or he can also request an advance of up to $10,000. Emergency Economic Injury Grants provide this advance to small businesses affected by COVID-19, and the advance does not need to be repaid! The full EIDL application can take about 2 hours to complete, but funds will be available within three days of a successful application.

Businesses can apply for an Emergency Economic Injury Grant and a PPP loan. There are some stipulations on how loan forgiveness works with both in play, and funds received from each program have to be used for different purposes.

More information: Economic Injury Disaster Loans and Loan Advance

Apply: Economic Injury Disaster Loan application

SBA’s Customer Service Center may be reached at 800-659-2955 or via email at disastercustomerservice@sba.gov for more information.

Free business counseling services

SBA also offers small business counseling services (with extra funding right now) to provide guidance through these difficult times. Local partners are available to navigate questions about business structures or financing options.

State and local opportunities + other small business relief programs

Forbes is running regularly-updated coverage on federal, state, and local programs that help small businesses during COVID-19. It’s worth checking back in regularly for news!

Additional resources

Many banks and financial institutions are setting up webinars and training opportunities to help their clients navigate the application processes. Business owners without a CPA or financial advisor may be able to access these types of resources through their bank right now. 

Businesses can also take advantage of free services offered through their local Small Business Development Center or Women’s Business Center. 

Many organizations are offering support right now – while all the different options and avenues can get confusing, we hope this guide will be of help!