Funding and grants are great resources for SMBs to strengthen finances – including your technology budget. Technology is more proactive, planned and flexible than ever. It’s not as simple as unboxing a laptop from Best Buy and getting to work.
Proper hygiene, security and disaster recovery are all key components to enabling business operations through IT and technology (as outlined in this blog, 3 Pillars to Protect Your Organization’s Future Through Technology). Of course, securing a budget to fund each area is half of the equation. The following list of resources are options to help your organization stretch every dollar. As always, Brite’s IT service, BriteStar, and its team of experts are always here to help advise for any technical questions and services.
Current funding and grants
- Paycheck Protection Program (PPP 2.0)
- Economic Injury Disaster Loan (EIDL)
- Employee Retention Credit (ERC)
- Small Business Capital Fund
Paycheck Protection Program (PPP 2.0) | Applications closed
The second round of the PPP funding allows recipients to use the funding for technology-related purchases to help facilitate business operations. Related purchases include business software or cloud computing service to help with remote work flexibility.
Economic Injury Disaster Loan (EIDL)
This loan is for companies experiencing revenue loss. The loan (with fixed interest rates) may be used on working capital and normal operating expenses. Recipients may apply for both PPP and EIDL funding, however, awards may not be used for the same purpose.
Employee Retention Credit (ERC)
While not specific to technology purchases, per the IRS this “is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees…”. Eligible employers include those who suspended operations due to COVID-19 or had a significant decline in gross receipts.
Our friends at RDG+Partners, an accounting and CPA firm shared this blog, “Is Your Company Eligible for the Employee Retention Credit?” to help you determine your eligibility. Or review this ERC overview.
Small Business Capital Fund | Private funding
Funded by Greenline Ventures, the target investment size of $250,000 to $2,000,000 is to provide capital to unserved small businesses across the U.S. Typical use of proceeds includes growth capital and general working capital, acquisitions, or expansion into new markets, equipment purchases and refinancing.
We hope these loans and grants are resourceful ways to help your ease the financial burden while focusing on continued growth and business success. Again, BriteStar’s IT service with a fixed monthly cost is available to be your dedicated IT support.