Moving Forward. Together.
As the COVID-19 virus emergency unfolds, work is underway at NMSDC and its affiliate Councils to address the areas of concern for our minority businesses and corporate partners.
We are available and working virtually to keep us connected. While the necessary steps of social distancing are being observed, technology allows us to continue our work and our mission, and to stay connected to you.
Collectively, through our 23 affiliates across the U.S., we are providing information, assistance, and possible solutions to address your needs, especially as they pertain to your state and region. All NMSDC affiliates have posted information on their websites to address questions and offer support and assistance where they can.
Together, as a community, we will get through this unprecedented crisis.
Our first virtual Town Hall met on March 19, to answer questions directly and provide information that addressed the needs of our constituents. If you missed it, you can view the live recording on our website. We are scheduling additional online programming, including further virtual Town Halls, to assist and support your action plans.
Stay tuned here for updates on events and changes, as well as information we gather from our partner organizations to assist in the area of capital and financing.
Wishing you all health and safety.
The Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act”
The Coronavirus Aid, Relief, and Economic Security Act or the “CARES Act” passed the U.S. Senate last night and is headed to the U.S. House of Representatives for consideration as soon as today March 26. This is a $2 trillion stimulus bill which will provide economic relief to individuals, families, small businesses and other sectors of the United States economy that have been impacted due to the pandemic. Once this is passed in the House and signed by President Trump, most provisions are available to individuals and businesses almost immediately.
Summary of Key CARES Act Provisions
$500 billion in loans to eligible businesses
- Targeted at companies that do not receive adequate relief from other provisions of the bill, located in the U.S. and with a predominantly U.S. employee base
- Eligible businesses must maintain employment levels from March 24, 2020 to September 30, 2020
- Prohibits stock buybacks, dividend payments and increasing compensation for certain high wage employees
- $46 billion set aside for the airline industry: $25B for passenger airlines; $4B for cargo air carriers; and $17B for businesses important to national security
$350 billion in small business loans administered nominally through the SBA, called the “Paycheck Protection Program.” Loans will be administered through local and regional banks; any federally regulated bank may become an SBA lender for this purpose. The Department of the Treasury will issue regulations for these loans quickly. SBA lenders will be able to determine eligibility credit worthiness by determining whether a borrower was operational on March 1, 2020 and had employees that they paid salaries and payroll tax. The government guarantee of 7(a) loans would be increased to 100% through the end of 2020, at which point the guarantee would return to 75% for loans over $150,000 and 85% for loans less than or equal to $150,000. The complete deferment of 7(a) loan payments are permitted for up to one year.
- Targeted at companies with less than 500 employees or otherwise specified by SBA standards
- Loans can be used for payroll, mortgages, rent, insurance premiums and utility payments.
- Up to $10 million per company available
- Cannot apply for SBA disaster loan related to COVID 19 and loans under this program at the same time
- Loans can be forgiven up to the amount spent by the borrower during the eight weeks from loan origination on payroll costs up to $100,000 in wages, mortgage interest, rent or utilities
- Forgiveness is reduced by layoffs or pay reductions in excess of 25%.
- Forgiveness is not treated as taxable income
- Additionally, $24 billion is set aside for relief to stabilize the farm economy.
- Companies may use tax losses in 2018, 2019 and 2020 to offset income from the prior five years.
- The maximum amounts of business interest deductions are increased for 2019 and 2020 from 30% of to 50%.
- Allows an employer to defer its share of 2020 payroll tax and pay them over two years.
- The 2018 tax reform bill imposed a one-time tax on earnings held overseas, which could be paid over eight years. The IRS has taken the position that companies cannot receive refunds until the eight-year period is completed. The bill overturns the IRS position.
- Creation of a new, temporary refundable payroll tax credit for companies who keep workers on their payroll during the COVID-19 pandemic, up to $5,000 per worker.
- Companies may accelerate recovery of Corporate Alternative Minimum Tax (AMT) Credits.
- Businesses in retail, restaurants and hotels to write off certain facilities improvements immediately.
Health Care Provisions
- $150 billion for hospitals and other health facilities, which will come from the Department of Health and Human Services (HHS) and more funding for small and rural hospitals
- Provides permanent liability protections for makers of PPE that are called for public health emergency countermeasures.
- Clarifies no COVID-19 cost sharing for private insurance, requires free vaccine coverage without cost sharing following current vaccine practices guidelines and includes a range of public health measures to address COVID-19 treatment and response, including liability protections for doctors who volunteer.
- Removes barriers and facilitates telehealth services, especially for high deductible health plans that utilize health savings accounts. Provides $200 million to boost telehealth services.
- Sets a cap on maximum payments employers will be required to pay for new emergency paid leave requirements. The provision also allows employers to receive an advance tax credit on paid leave rather than having to be reimbursed on the back end.
- Provides individuals an additional $600 per week for up to four months on top of state unemployment benefits. The provision also establishes short-term compensation programs for states like Georgia that allow for employers to reduce workers’ hours while still providing employees a pro-rated unemployment benefit.
- CARES Act provides checks of up to $1,200 to single individuals and $2,400 to married couples (as well as $500 per child). Check amounts begin to reduce as income exceeds a threshold amount ($75,000 for individuals/$150,000 for married filers) and are completely eliminated once income reaches $99,000 for individuals/$198,000 for joint filers with no children.
- Waives the 10% penalty for distributions from certain retirement plans. Only applicable to individuals diagnosed with COVID-19, whose spouse or dependents have been diagnosed or who experience adverse financial consequences from the virus.
- $25 billion for food assistance programs
- $30 billion for emergency education funding for colleges, universities, states and school districts
- Waives the matching requirement for campus-based aid programs and it will allow institutions to transfer unused work study funding as a supplemental grant. This can be distributed to students who were unable to work due to workplace closures. Additionally, students who had to dropout due to COVID-19, grades will not affect federal academic requirements.
In the Network
COVID-19 Medical Supplies & Equipment
To sell medical supplies or equipment to the federal government.
Products Development Relate to the COVID-19
If you are a private company that wants to produce a product related to the COVID response.
Doing Business with FEMA
For non-medical supplies, services or equipment, if you are interested in doing business with FEMA, visit our Industry Liaison Program.
FEMA Industry Liaison Program
MBDA Business Center: Enterprising Women of Color
The Enterprising Women of Color program is a part of MBDA’s focus to promote the growth and global competitiveness of minority business enterprises. The agency program will promote women of color entrepreneurs as engines of economic growth in their communities. Click here to learn more
Four million suppliers. 20,000 categories. All for free.
SAP Ariba Discovery is opening access, so any buyer can post their immediate sourcing needs, and any supplier can respond to show they can deliver. Free to post, free to respond. Open to everyone.
Click here to apply for Ariba Discovery
NMSDC has opened an ongoing, network-wide conversation about how businesses are responding to the crisis, through a series of live virtual Town Halls. Each Town Hall solicits and answers critical questions about how businesses navigate in these difficult days.
- How are you coping?
- What can corporate customers do to answer the needs of MBEs?
- What support do federal, state, and local governments need to offer minority businesses?
- How are CPOs mitigating risks in their supply chains?
- Are they working with minority suppliers to reduce impact on their businesses?
- What strategies are corporations following to limit the risk to minority suppliers?
For answers to these and many other questions – in case you missed the live transmissions – visit the recordings of these Town Halls, available here for your review.
VDart | May 22nd
Supplier Diversity During COVID-19
Inc. and U.S. Chamber of Commerce Stimulus 2020 Q&A Town Hall Series
Billions of dollars are promised to small businesses. Learn how to get what your company needs in this virtual National Small Business Town Hall hosted by Inc. with the U.S. Chamber of Commerce.
IBM | May 5th – May 6th
Think Digital- 2 Day Event
PG&E | May 14th – June 4th
How to Participate in Strategic Sourcing – 4 Part Webinar Series
- Part I – Thursday May 14th, 10:00 AM to 11:00 AM PST
How to Present Your Capabilities and Ensure Your Fit with the Required Needs
- Part II – Thursday May 21st, 10:00 AM to 11:00 AM PST
How to Navigate the RFx
- Part III – Thursday May 28th, 11:00 AM to Noon PST
What to Think About When Negotiating a Potential Contract
- Part IV – Thursday June 4th, 11:00 AM to Noon PST
How to Manage and Grow the Relationship Once You Have a Contract
- Part I – Thursday May 14th, 10:00 AM to 11:00 AM PST
Grants & Loans
Women-Focused Grants & Loans
Tory Burch Foundation
Resource Hub for Women-led Small Businesses
Bumble Community Grant
Covid-19 Business for All Emergency Grant
Hello Alice, a Machine Learning Company Founded as a Women’s Virtual Accelerator
Ifw Covid-19 Relief Fund
Ifundwomen, a crowdfunding Platform
Red Backpack Fund
Backed by billionaire Spanx founder Sara Blakely
Sheamoisture Community Commerce Fund
Sheamoisture (beauty brand)
Assisther Emergency Relief Grant
Texas Woman’s University
Anonymous Was a Woman Emergency Relief Grant
Anonymous Was a Woman and the New York Foundation for the Arts
Visa Foundation Commits to Support Small and Micro Businesses
- 4 ways to boost cross-functional sourcing team effectiveness
- Where companies go wrong with learning and development
- How Corporations Can Better Work With Startups
- Everything your small business needs to know about managing multiple construction projects
- How to navigate procurement in a post-merger world
- What Supply Chain Transparency Really Means
- A multicultural supply chain demands social awareness and respect
- What are the most important supply chain ethics? 3 experts weigh in
- Customers are demanding more personalization and lower prices. How can supply chains deliver?
- The Top 4 Strategies When Negotiating With Powerful Suppliers
- The Biggest Supply Chain Management Challenges and How to Help Fix Them
- Cross-Silo Leadership
- Procurement ethics: yesterday, today and tomorrow