Many small businesses in Texas are suffering from forced shutdowns and/or declining revenues as a result of the adverse economic impacts brought on by the COVID-19 global pandemic. In addition to the relief provided by the Coronavirus Aid, Relief, Economic Security (CARES) Act, there are other financial resources small business owners can utilize. Here are just a few:
1. Your Bank or Credit Union. Contact your business’ bank or credit union to discuss options to minimize the impact on your small business. Many banks and credit unions are offering economic relief in the form of deferment of mortgage, loan and/or credit card payments, waiver of penalties for early withdrawal of certificates of deposit, waiver of ATM fees, and refunds of overdraft fees, including, without limitation, the following banks:
- Chase (https://www.chase.com/digital/resources/coronavirus)
- Ally Bank (https://www.ally.com/coronavirus-response)
- Union Bank (https://www.unionbank.com/learn/personal/help-center/covid-19-update)
The American Banks Association has compiled an extensive list of the banks that are offering economic relief at the following link: https://www.aba.com/about-us/press-room/industry-response-coronavirus#AlphaC.
2. Other Banks or Credit Unions. There are also several financial institutions offering collateral free, low interest or interest free or deferred payment loans, such as:
- TDECU (https://www.tdecu.org/assistance-loan/)
- US Bank (https://www.usbank.com/splash/covid-19.html)
- BBVA USA (http://bbvausa.investorroom.com/2020-03-25-BBVA-USA-announces-additional-client-and-employee-offers-in-response-to-the-ongoing-COVID-19-outbreak)
3. Credit Card Companies: Small businesses can apply for credit cards which have zero interest for long periods of time, such as:
- US Bank Visa Business Platinum Care – 0% interest for 20 months
- BankAmericard: 0% interest for 18 months
- Wells Fargo Platinum Card: 0% interest for 18 months
- Chase Freedom Card: 0% interest for 15 months
4. The Federal Government. Middle market businesses can utilize the emergency loans available through the Small Business Administration’s Economic Injury Disaster Loan Program, through which small-to-medium sized businesses can apply for up to $2 million in low-interest loans.