Dear SCORE NYC Clients,
Today’s funding newsletter includes developments on federal funding programs, new private grant options, and resources from the New York Public Library and James Beard foundations.
For the most up-to-date information on funding options, visit SCORE’s Coronavirus Funding Support for NYC. If you have additional questions, please reach out to your SCORE NYC mentor or Find a Mentor through the New York City SCORE website.
Shared Work Program
New York’s Shared Work Program lets companies keep trained staff and avoid layoffs. Employees can receive partial Unemployment Insurance benefits while working reduced hours. Full-time, part-time and seasonal employees are eligible. Companies can apply online through the NY Department of Labor; additional explanations and FAQs for the program are available here.
Paycheck Protection Program (PPP)
Applications for independent contractors & self-employed individuals open Friday, April 10. The SBA has a tool for finding a lender based on your zip code, Fundera has also created a PPP Portal for navigating potential lenders.
Additional funding resources:
• To avoid fraud, companies should ONLY provide financial information to their bank or a website with a .gov address. SBA.com, for example, is not affiliated with the Small Business Administration
• NYC Employee retention grant (application period closed): the city is behind on responding to applicants, so if they have not heard back, they should expect to, as long as they completed the application
• NY Presbyterian’s Northern Manhattan Recovery Fund grants are now live, for businesses in Washington Heights, Inwood, and West Harlem (overview, application)
• The Hispanic Federation is offering grants of $10,000-25,000 to member agencies and Hispanic non-profits (overview)
• Renaissance is offering emergency loans covering Manhattan Chinatown, Koreatown, Jackson Heights, Flushing, Sunset Park, and other neighborhoods (overview)
• Facebook is offering $100 million in cash grants and ad credits for eligible small businesses (overview)
Cash flow management tips:
• Cash flow management focuses on tracking the actual money flowing into and out of your business.
• Understanding your business on a cash basis gains importance during periods of economic turbulence, as the risk increases that your customers may delay or fail to make payments.
• Managing your accounts receivable (incoming revenue) will all you to forecast a clear picture of expected money coming into the business
• For past sales: reach out to customers to understand their capacity and timeline for making payments for any revenue owed—prioritize accounts that are in the 30-90 day late buckets
• Contacting customers can be a high return-on-investment task for employees whose primary responsibilities have diminished (or are facing termination)
• Consider a payment plan taking into account the customer’s situation. In select cases, establishing accomodating payment plans can be more effective than forcing immediate payment and debilitating your customers (keep in mind: your customers may having similar conversations with their own customers)
• For new sales: developing a policy of being paid upfront for your services may be a good decision to guard against the chance of failed or delayed payments
• Managing your accounts payable (outgoing expenses) will allow you to manage costs and maximize your runway for weathering business headwinds
• Consider eliminating any expenses that are not fundamental to keeping your business going—evaluate costs and investments associated with future growth to ensure the core business has a buffer
• Renegotiate goods and service contracts, leases—discuss with your landlord a moratorium or temporary reduction in monthly rent
• Reduce the number of staff who have been issued credit cards.
Business news & guidance for small business owners:
• The James Beard Foundation has launched a series of webinars for the restaurant industry—the upcoming calendar is available here along with recordings of past webinars like “Retail Leases and Tenant Rights” and “Insurance: The Facts for Restaurants”
• The NYPL’s NYC Small Business Resource Center has an extensive list of COVID-19 funding and general business resources. Reference librarians are also providing consultation for businesses; clients can sign up for a 30-minute video session here.
Thank you — visit our website for more information or to connect with a business mentor.
SCORE NYC Team
SCORE NEW YORK CITY
26 Federal Plaza, Room 3100, New York, NY 10278
Tel: 212-264-4507 | newyorkcity.score.org