The Small Business Development Center in Norfolk has seen a surge in requests for small business funding solutions in Hampton Roads since the onset of the coronavirus pandemic. Many businesses are seeking help in applying for federal loan programs such as the Paycheck Protection Program, designed for companies with fewer than 500 employees, and the Economic Injury Disaster Recovery program, which provides up to $10,000 to companies impacted by the pandemic. The development center is set to receive some federal stimulus funding to hire staff and purchase tools to assist small businesses. As the economy looks towards reopening, the center is also working on guidelines to help businesses adjust to the new normal.
Access to Capital
Since the coronavirus pandemic began, business owners have been bombarding the Small Business Development Center in Norfolk with the same request.
They all need money.
“Basically, it is trying to get capital,” said Jim Carroll, the assistance organization’s executive director. “That is — the first, second, third and fourth priority is access to capital.”
Federal Loan Programs
Many of the callers need help applying for two federal loan programs being offered right now by the federal government. The Paycheck Protection Program is designed to keep employees on the payroll for companies smaller than 500 people. The Economic Injury Disaster Recovery program provides up to $10,000 for companies suffering during the pandemic.
Congress originally set aside $349 billion and $10 billion, respectively, for the programs, but that funding ran out on April 16. On April 24, President Donald Trump signed and approved an additional $310 billion for the paycheck loans and $60 billion for the disaster loans.
Assistance and Funding
Carroll said that even though many of their clients received loans, he had numerous complaints about the disaster loan program, because “once you submit your loan package, there’s no way for you to find out what’s going on with it.”
The development center itself will be receiving some federal stimulus funding. Carroll said the organization will get $347,000 of $4 million allocated to development centers in Virginia. The organization will use the funding to hire staff and buy tools needed to help small businesses.
The organization also was recently awarded a $40,000 grant from Truist Bank — formed by the merger of BB&T and SunTrust Bank. With the grant, the development center has hired Mike Austin as a part-time small business counselor. Austin will give advice on commercial and Small Business Association lending. He has more than 30 years of experience in those fields.
Preparing for Reopening
As the economy eventually reopens, the development center will help businesses adjust to the “new normal,” Carroll said. He said guidelines will soon govern everything from customer limits to mask-wearing to whether retails stores should install sneeze guards around cash registers.
“It’s going to fundamentally stand business practices on their heads,” he said.
To that end, Carroll said he’s assisting other development centers in creating a guidebook to prepare businesses for reopening once distancing measures are lessened.
Contact Information
Trevor Metcalfe, 757-222-5345, trevor.metcalfe@insidebiz.com
Question & Answer
What are some of the funding solutions sought by small businesses in Hampton Roads during the pandemic?
Many businesses in Hampton Roads are seeking help in applying for federal loan programs such as the Paycheck Protection Program and the Economic Injury Disaster Recovery program.
What is the purpose of the Paycheck Protection Program?
The Paycheck Protection Program is designed to keep employees on the payroll for companies with fewer than 500 employees.
How is the Small Business Development Center in Norfolk planning to assist small businesses with federal stimulus funding?
The development center is set to receive federal stimulus funding to hire staff and purchase tools to assist small businesses in the area.
What is the focus of the development center as the economy looks towards reopening?
The development center is working on guidelines to help businesses adjust to the “new normal” as the economy reopens, including customer limits, mask-wearing, and other safety measures.
