COVID-19 Resource Center

At BII we want to provide our portfolio companies with the support you need during the COVID-19 pandemic and the months that will follow. We are moving quickly to put together resources, both internal and external that will help you stabilize, plan, and move your business forward. Beyond providing the list below, we will work with each of you to navigate these resources and get you the assistance that you need. We are also developing other pools of capital to fill the gaps.

Whatever the problem, community is the answer. -Meg Wheatley

Updated 1/12/21

BII Fund relief resources

When we started our work eight years ago, we said that we wanted to create an organization that put long-term relationship rather than short-term transactions at the center of our investing strategy. Our journey with our portfolio companies is through thick and thin, and they remain part of our family, even after they’ve completed their investment with us.

Which is why we’re working to help keep these enterprises and their workers afloat through this incredibly turbulent time. Here are three reliefs funds we created:

COVID-19 People Guarantee Pool

The People Guarantee Pool solicited grants to provide guaranteed income to workers from qualifying portfolio companies who were facing work shortages early in the COVID-19 pandemic. While these workers may have been eligible for unemployment through the federal stimulus package, we recognized that those funds may not get to them in time to address immediate needs. BII Fund provided each eligible worker with an immediate one-time payment of up to $1,200 to alleviate the lack of cash available to many working class families. 100% of donations went directly to workers.

This program is now completed.

COVID-19 Enterprise Relief Pool

The Enterprise Relief Pool alleviates the pressure of debt payment obligations by providing 90 days of debt forgiveness on interest and principal payments for eligible portfolio companies, starting April 1, 2020, followed by further relief and restructuring on a case-by-case basis. Given the magnitude of the crisis, we believe we need to go beyond deferring debt payments and simply take the immediate obligation off the books. Our portfolio companies are facing work stoppages, employee absences and both supply and demand disruptions. This is creating excessive pressure on cash flow as companies attempt to manage for an uncertain future.

This program is now completed.

The COVID-19 Business Resilience Pool is a recoverable grant pool to support the recovery efforts of entrepreneurs and communities of color facing significant business disruption due to COVID-19. Today, these enterprises are at risk of collapse due to the long-term impacts of the pandemic. Even after economic activity is restored, many companies will need access to working capital to rehire employees, rebuild inventory, re-launch marketing campaigns and fund badly needed new receivables. Government stimulus programs are unlikely to fulfill all cash needs, and traditional lenders may continue to be reticent to provide capital to entrepreneurs who have low credit scores and can’t provide personal guarantees—which particularly affects the entrepreneurs BII serves.

We are raising 0% recoverable grants that mature on December 31, 2025. Please contact us for more information.

Click here to download more detail about the Business Resilience Pool.

Technical Assistance offerings

Amine Benali – TA specialist providing targeted financial strategy and planning
Staff Support – Direct outreach from your relationship manager to understand how best to plan for your business during this uncertain time and to help you manage your cash flow needs.

local resources

LISC & IXL Center Beyond Six Feet Apart Accelerator helps minority-owned businesses return to work safely. Companies will work with consultants to adapt their business model and implement plans for returning to business with new safety protocols in place.

The COVID Relief Coalition is a group of law firms, nonprofits, and governmental agencies providing free legal advice to nonprofits and small businesses. Fill out an online form to see if you qualify for free legal assistance.

The Mayor’s Office of Economic Development has compiled updates and guidance for businesses and organizations, this includes a Delivery & Takeout Guidebook outlining resources like tech platforms and delivery services for businesses and employees.

The Boston Resiliency Fund will give grants to nonprofits that support residents most impacted by the Covid-19 pandemic by providing food to Boston’s children and older adults, technology to Boston Public Schools students for remote learning, and support to first responders and health care workers so they can effectively do their jobs.

CommonWealth Kitchen – Running a Food Business in the face of COVID-19 CWK has compiled resources specifically for food businesses that are impacted by COVID-19.

Lawyers for Civil Rights has set up a webpage providing legal guidance on a variety of topics including Medical Support, Food Security, Unemployment Assistance, Protecting Workers, and Immigration. They are also continuing to hold their legal clinics virtually. They are also hosting virtual meetings and videos everyday at 10am on Facebook.

MIRA Coalition put together a resource page that includes public health resources in multiple languages that can be shared with immigrant and refugee families; relevant information on immigration policy and enforcement; and other valuable resources, including details on key programs that sick or displaced workers may need.

Mutual Aid Organizations in various cities, towns and neighborhoods are organizing to get individuals’ and families’ basic needs met.

Solidary Supply Distro is currently distributing free groceries on Mondays in Boston.
Charles River Mutual Aid is connecting vulnerable community members and students adversely impacted by university policies for COVID-19 with resources for food, housing, and other needs.
Mutual Aid Medford and Somerville is connecting residents to a variety of goods and services from other residents, like childcare, transportation, food, housing, etc.
Organize your own mutual aid group using this template.

state resources

Mass Growth Community Capital – The Commonwealth of Massachusetts made an additional $668 million in grant funding available through the Sector-Specific Relief Grant Program for Massachusetts Businesses at MGCC. If you applied in the first round late last year and didn’t receive funding yet, you do not need to apply again. If you didn’t apply, now is your chance!

These grants of up to $75,000 can be used for payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations. MGCC is prioritizing certain sectors, such as restaurants and caterers, personal services and retailers, BUT you still qualify if your company experienced a significant reduction in revenue in 2020 due to the pandemic. Deadline is Friday 1/15.

MA Economy Reopening in Four Phases – Gov. Baker announced on May 11th that the Massachusetts economy will be reopened using a four-phase approach, based on public health guidance. Businesses and activities with a lower risk of COVID-19 transmission will open in earlier phases. Public health metrics will determine when the first phase of reopening begins, as well as when it is safe to move into later phases. If public health metrics worsen, the state may need to return to an earlier phase.

Mandatory Safety Standards for Workplaces – Gov. Baker also announced safety standards. These new standards will apply universally to all workplaces that are open in Phase 1, and are designed to reduce the risk of COVID-19 transmission to employees and customers.

Moratorium on Evictions and Foreclosures During COVID-19 – Our friends and partners at City Life/Vida Urbana and other grassroots organizers worked tirelessly to advocate for this moratorium on residential and small business evictions and foreclosures. Governor Baker signed the bill into law on April 20, 2020. Eligible small businesses can use the forms available here to provide the required notice to their landlord of their inability to pay rent. This moratorium ended on October 18th.

Here’s what Massachusetts’ moratorium did:

Stops landlords from sending Notices To Quit
Stops courts from hearing eviction cases or entering judgments
Stops sheriffs from enforcing executions for possession
Stops late fees + negative reporting for COVID-impacted tenants
Moratorium on residential foreclosures
Moratorium on evictions of small businesses

Governor Charlie Baker issued an emergency order requiring all businesses and organizations that do not provide “COVID-19 Essential Services” (click link to see a list of qualifying organizations) to close their physical workplaces and facilities to workers, customers and the public as of March 24th at noon until at least May 4th at noon. Businesses on the list of essential services may continue operating and businesses who wish to request an exception may do so request an exception may do so here.

The Baker-Polito Administration announced on March 19th administrative tax relief measures for small local businesses which have been impacted by the ongoing COVID-19 outbreak, especially in the restaurant and hospitality sectors. This tax relief includes postponing the collection of regular sales tax, meals tax, and room occupancy taxes. The deadline for filing returns and making payments otherwise due March 20, 2020 through April 30, 2021 has now been extended to May 20, 2021. Additionally, all penalties and interest that would otherwise apply will be waived.

Businesses that paid less than $150,000 in regular sales plus meals taxes in the year ending February 29, 2020 will be eligible for relief for sales and meals taxes, and business that paid less than $150,000 in room occupancy taxes in the year ending February 29, 2020 will be eligible for relief with respect to room occupancy taxes.

Pandemic Unemployment Assistance – PUA provides payment to workers not traditionally eligible for unemployment benefits (self-employed, independent contractors, workers with limited work history, and others) who are unable to work as a direct result of the coronavirus public health emergency. Workers who have previously exhausted their UI benefits may access Pandemic Emergency Unemployment Compensation (PEUC) by applying for PUA.

MA Department of Unemployment Assistance is conducting virtual town hall presentations most weekdays to help people with new unemployment claims due to the covid-19 outbreak.

MA State WorkShare Program The WorkShare program is an alternative for employers faced with a cut in workforce. Employers can divide available work between affected employees instead of laying off workers. It allows employees to receive a part of their unemployment insurance (UI) benefits while working reduced hours.

Massachusetts has waived the one-week waiting period for filing unemployment claims for those individuals whose workplaces have closed due to the Covid-19 outbreak.

LISC Small Business Recovery Grant Program APPLICATIONS CLOSED APRIL 24th. LISC will offer grants of up to $10,000 to address immediate financial peril, limit layoffs, avoid gaps in employee benefits or insurance, mitigate economic instability and increase the likelihood of business survival. BII has partnered with LISC as a Business Support Organization and we encourage all eligible portfolio companies to apply.

national resources

Paycheck Protection Program Loans that are distributed through SBA lenders. The program provides cash-flow assistance through 100% guaranteed loans to business and 501(c)3 employers who maintain their payroll during the covid-19 crisis. Businesses, non-profits, Veterans organizations, Tribal concerns, sole proprietorships, self-employed individuals, and independent contractors, with 500 or fewer employees.

Low interest rate – 0.5% to 1%
Short loan terms – 2-year maturity
Zero closing fees
No personal guarantees and no collateral
No loan payments for 6 months
Loan amounts up to $10 million
The SBA will forgive loans if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The program will be available retroactive from February 15, 2020, so employers can rehire their recently laid-off employees through December 31, 2020.

Apply through a local SBA lenders. First round of PPP loans closed on August 8, 2020.

Second Draw PPP Loans

Here’s how to determine if you qualify for a second PPP Loan:

You can show a loss of at least 25% of revenue in any one quarter last year.
You have used up your first PPP Loan Draw for authorized uses.
You have fewer than 300 employees.

There are updated rules about what qualifies as a covered expense that can then be forgiven. In this round, 60% must be spend on payroll and 40% can be spent on:
• Rent or interest on mortgage payments
• Business software
• Costs related to property damage during the upraising of 2020.
• Supplier costs that are deemed essential to the operation of the business
• Costs for PPE or other safety measures

PPP Flexibility Act

On June 5, the president signed the PPP Flexibility Act, which gives borrowers more freedom in how and when loan funds are spent while retaining the possibility of full forgiveness.

Key changes to the original Paycheck Protection Program:

Borrowers now have 24 weeks to spend loan proceeds, up from 8 weeks.
The Act also reduces mandatory payroll spending from 75% to 60%.
Two new exceptions let borrowers obtain full forgiveness even without fully restoring their workforce.
Time to pay off the loan has been extended to five years from the original two.
The Act now lets businesses delay paying payroll taxes even if they took a PPP loan.

PPP loan forgiveness

PPP Loan Forgiveness Application for any business that does not qualify to use the other forgiveness applications.

PPP Loan Forgiveness Application Form 3508EZ for sole proprietors and any employer who has not reduced wages more than 25% during the covered period.

PPP Loan Forgiveness Application Form 3508S for any business that borrowed less than $50,000.

PPP Loan Simplified Forgiveness Application for any business who has borrowed less than $150,000. (NEW)

Massachusetts Equitable PPP Access Initiative – Organizations that do not have a banking relationship with an SBA Lender can apply through this initiative. Berkshire Bank, BayCoast Bank, Eastern Bank, Reading Coop Bank, Leader Bank and several CDFIs will be processing PPP applications for non-customer businesses that meet the following criteria:

You are a minority-owned business, sole proprietor or independent contractor operating in Massachusetts
You have not previously applied for the PPP, or you applied and received notification from your bank that you were not approved in the first PPP round.
You do not have a banking relationship with an SBA PPP lender.

The SBA Economic Injury Disaster Loan (EIDL) Program – Small businesses, private non-profit organizations of any size and cooperatives can apply for this loan. These funds can be used as working capital to help organizations make payments—payroll, rent, debt service payments—that they would have made had the crisis not occurred.

Low interest – 3.75% interest rate for for-profit businesses and 2.75% rate for nonprofits
Long loan terms – up to 30 years
12 month payment deferral (although interest accrues)
Expedited loans for under $500k & don’t have to upload tax returns (private nonprofits must submit tax returns)
Approximately one month processing time
Up to $2 million

The SBA also announced Express Bridge Loans that provide up to $25,000 in emergency financing for disaster-related purposes. A business must have an existing relationship with the lender, either from a current loan or if the business is awaiting longer-term financing from the EIDL program.

The SBA has established a toll-free line to answer questions at 1-800-659-2955 Monday to Saturday 8am to 8pm.

#COVID Capital Relief created by the CASE Center at Duke University is a searchable national database of grants, loans and other cash equivalents for entrepreneurs, nonprofits, and businesses.

The IRS has extended the federal tax filing deadline to July 15, 2020. The MA State tax filing deadline has also been extended to July 15, 2020.

Most utility companies are waiving late fees and will not terminate service for inability to pay their bills on time. Check with your individual providers for more information.

Most banks and credit card companies are waiving late fees are deferring payments. Call your financial institutions for more information.

what activists are saying

Farhad Ebrahimi, Founder and President of the Chorus Foundation, wrote an article in Inside Philanthropy titled, Why Should It Take a Pandemic to Bring out the Best in Philanthropy? He notes that philanthropy has shown itself to be more flexible, supportive, and just during the pandemic and questions whether this could be a “new normal” for the sector rather than actions taken only in times of crisis.

Our community partners, Amplify Latinx, BECMA, and ICIC wrote an op-ed in the Boston Globe titled, Minority-owned businesses are being left behind — again. They warn that systematic barriers have excluded minority-owned businesses from Paycheck Protection Program relief funds from the SBA, and that if they are left out of the national recovery effort the whole country will suffer economic consequences.

Initiative for a Competitive Inner City (ICIC) wrote a policy brief titled Making the CARES Act Care for Under-Resourced Communities about how the CARES Act can address the COVID crisis in under-resourced communities. The brief points out that equitable access to benefits and information will be a first step in ensuring that these communities do not fall further behind the rest of the nation.

The Design Studio for Social Intervention (DS4SI) wrote Social Justice in a time of Social Distancing about how this moment of focus on the individual could produce negative longer term effects. They suggest using this moment to look outward and come together for action against the many global crises like climate change, violence and war, and immigration.

The Capital Institute wrote A Multisystemic Response to Covid-19 about the collapse of the interconnected system as we know it, and the response, which could lead us into a new reality: The Regenerative Economy.