Under the USA’s official federal government guidance, a business grant in the United States is defined as a means to fund ideas and projects which provide public services and stimulate the US economy. Typical grants support critical recovery initiatives, innovative research, and other beneficial programs.
At the end of January, when the US Department of Health and Human Services first declared COVID-19 as a nationwide public health emergency, eligible applicants were immediately encouraged to apply for funding through the Disaster Recovery Dislocated Worker Grants (DWGs).
These DWGs were launched on 18th March 2020, with an announcement outlining the availability of $100 million in grants; made available to protect and sustain American workers and their families.
The key outlines of the United States DWGs
The launch of the DWGs was intended to provide eligible applicants with disaster-relief employment, training activities and in some cases alternative employment.
The participants who are eligible to apply include:
- Dislocated workers
- American workers who were laid-off as a result of the pandemic
- Self-employed individuals who are unemployed or underemployed as a result of the pandemic
- Long-term unemployed individuals
Additional Economic Recovery DWG’s have also been made available to states who are seeing mass layoffs due to the virus and its economic impact, eligible to those with 50 or more workers being laid off by any one employer. To find out more and apply for a DWG, visit this site.
On 28th March 2020, President Trump signed and agreed to a historical $2.2 trillion package which would prop up and support the US economy, which had been crippled by the Coronavirus.
This fund was to be split across three areas:
- EIDL Grants (Economic Industry Disaster Loan)
- Business Education Centre Grants
- Trade Grants
By 16th April, the SBA (Small Business Association) announced that it had run out of cash and was no longer able to accept new grant applications. This was topped up on 22nd April with an additional $300 billion as agreed by the White House and Congressional leaders.
On top of those allocated by the State, some large corporations have also pledged to support and offer grants to businesses that are struggling in the wake of the Coronavirus pandemic, including:
- Salesforce Care
These grants are subject to individual conditions as set out by the private corporations funding them.
A comprehensive list of the other grants on offer to businesses and non-profits within the USA can be found in this link published by Global Giving, towards the end of April.
The breakdown of the $500 billion rescue plan and $2 trillion federal aid allocation
The 12th April plan outlined the following allocation of federal funding:
- Commercial Airlines to receive $25 billion in loans and $25 billion in grants, under the basis that they do not cut salaries or furlough staff until September
- Defence and National Security companies to receive $17 billion in funding
- Automobiles to be supported in converting their factories for the manufacturing of face mask and ventilators
- Hospitality and Travel to be covered on individual company bases by the small business relied rant scheme