Covid-19 Business Funding Programs to Watch Out For
I know we’ve been hit hard - off guard with this crazy pandemic Covid-19. This disease has shaken and taken many lives, leading to disruption of the economy and businesses on a monumental international scale. So I wrote this blog in response to help alleviate some concerns and what options a small business owner like yourself, in the fashion, accessories and luxury retail industry, can do during this health and economic global crisis.
There are several Covid-19 Disaster Relief funding and loan programs out there popping up. I suggest to take advantage of them and apply to help your business stay afloat. See the list below:
Economic Injury Disaster Loan Program (EIDLP) & Paycheck Protection Program (PPP)
CFDA Fashion Awards (Council of Fashion Designers of America) & CFDA: A Common Thread Funding
Facebook Small Business Grants Program
Salesforce Care Small Business Grant
Verizon Small Business Recovery Fund
1. Economic Injury Disaster Loan Program (EIDLP) & Paycheck Protection Program (PPP):
The US federal government has injected billions of dollars to help businesses float during the pandemic via the EIDLP and PPP programs. The good thing about some of these program loans is that they are easier to get because the money is directly provided by the federal government and not through tight regulatory banks. Additionally, the application process has no fees and a lot of the strict requirements have been greatly reduced due to the emergency. Most important, loan advance of up to $10,000 will not have to be repaid under EIDLP, while loan forgiveness for PPP is available so that loans do not need to be repaid if approved. The bad news is that these reserves are already dried out as of this writing but the federal government is planned to inject more. I believe as of now, both maybe on its 2nd or 3rd phase injection. As of now their application registration form for EIDLP is is open, because I just applied having missed out when it first came out. For those lucky enough to have applied and got it in for any of these programs, will need to wait as the line up to receive funding is long. Loan application is done through SBA website and approved partners. Get more info on EIDLP & PPP:
https://www.sba.gov/funding-programs/loans/coronavirus-relief-options
2. CFDA Fashion Awards (Council of Fashion Designers of America) & CFDA: A Common Thread Funding:
Originally designers had a chance to win funding from the Council of Fashion Designers of America, under this program called, CFDA - Fashion Awards, which is an organization funded and operated by about 500 of America’s foremost womenswear, menswear, jewelry and accessory designers. Just to name a few, they include Elenaor Lambert, Tom Ford, Vera Wang, and more. It has over 80 prominent people in its organization. It’s really prestigious to be part of this community. The monetary prize of $400,000 is provided to the winner while $150,000 to the two runners-up. Consequently, all winners are provided invaluable mentorship from an esteemed group of industry professionals.
Due to Covid-19, they have since altered this program, the CFDA Fashion Awards, and created a new one called, “A Common Thread Funding” specifically to address Covid-19 and small fashion and luxury brand businesses hit hard by this. So under this new transformed program, the reserves are now available, or include to support small business, in which grants of up to $100,000 are available to help businesses. For more info on CFDA Fashion Awards and CFDA: A Common Thread Funding, the link is below:
CFDA Fashion Awards:
https://cfda.com/news/apply-for-the-cfda-vogue-fashion-fund-now
CFDA: A Common Thread Funding
https://cfda.com/news/apply-for-a-common-thread-funding-here
3. Facebook Small Business Grants Program:
Facebook is awarding qualified businesses affected by Covid-19 a combination of grant and advertising credit, amounting up to $100m grant money and advertising credit. About 30,000 businesses including international regions will be included. What’s good about this funding program is the Facebook Ads credit that comes with it. If I remember correctly, it was around $1000 dollars worth of ads credit that comes with the capital. If you’re new to Facebook ads, you need to know it’s one of the top platforms for paid marketing, that is least expensive, when compared to Google Ads. Through Facebook ads, you have the ability to target specific audiences for campaigns, down to user behaviour, interest, geography and other specific details. Also, because a lot of users use Facebook and Instagram so it’s definitely a source to use for your target marketing. To learn more visit the Facebook Small Business Grants Program:
https://www.facebook.com/business/boost/grants
4. Salesforce Care Small Business Grant:
Still waiting for more information on this, but it was lightly touched on during Marc Cuban’s web presentation and interview on how small business leaders can adapt and pivot during this period of uncertainty. This grant program, called the Salesforce Care Small Business Grant, will award up to $10,000 to provide capital to help keep businesses afloat. However, still no information is available about this grant as of this writing. Marc Cuban’s video recording btw, can be accessed from their Salesforce website. What’s interesting about Saleforce, is it is an e-commerce service platform available to anyone, like Shopify, and Squarespace. However, it appears to cater to more bigger brands and clients. So it’s less popular among smaller to medium size businesses, because the company tends to provide more of its services to larger clients like Nautica, Kipling, Loreal - companies that have bigger budgets, sales expectations, and requirements for their e-commerce operations. Salesforce grant:
5. Verizon Small Business Recovery Fund:
Big names in entertainment are coming together to put on weekly performances called, Pay it Live, in the comfort of their homes via live streaming performances. Notable artist include Dave Mathews and more will be revealed as the event progresses. Performances include music, comedy, talk shows, etc. Verizon in tangent with this supported event, and the Local Initiatives Support Corporation (LISC), will provide grants of up to $10,000 to businesses affected by Covid-19, to about a potential of $5m funding total throughout the duration of the event. Currently, round 1 of their funding is closed. More info on application is available on their LISC partner website:
That’s it for now. I know that the application for these programs are very competitive right now, but I hope you’ll be lucky and these resources will help you in some way and keep your business floating during these uncertain and troubling times. As I find more sources of program funding, I will update the list here and announce it under new blog entries. If I missed out on anything, do let me know by emailing me at allen@e-comfashion.com. Stay safe everyone!
About the Author:
Allen Ray Sales is an e-commerce consultant for E-Com Fashion (www.e-comfashion.com). He brings in over 7 years of e-commerce experience working in the fashion, accessories, and luxury industry. He brings in e-commerce and technology experience from working for several high profile retail brands. Additionally, his multi-disciplines in fine arts, graphic design, evolving internet technologies, and digital marketing, gives him a unique creative edge and talent for building businesses and luxury brands in the e-commerce space.
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