Truist Financial commits $2M in grants for small businesses
Program will aid those affected by COVID-19
Truist Financial Corp. has announced the availability of grants for small businesses in communities it serves that have lost revenues as a result of the coronavirus (COVID-19) outbreak.
Truist will provide $1 million each to two community development financial institutions — Natural Capital Investment Fund and LiftFund — for the grant program.
As part of the program, grants will be made in amounts ranging from $5,000 to $25,000 for operating shortages and critical needs the businesses may have as a result of the continuing pandemic.
“Small businesses are significantly affected by the steps the nation is taking to combat COVID-19, and it’s important we support them,” Truist Chief Community Reinvestment Act Officer Sharon Jeffries-Jones, said in a statement. “Our purpose is to inspire and build better lives and communities, and small businesses contribute to our nation’s economic growth through job creation and innovation of products and services.” She added the grants will offer some relief to small businesses “during this difficult time.”
Small businesses that employ fewer than 10 full-time employees and have annual gross revenue no more than $1 million from all business activities at all business locations based on Small Business Association guidelines are eligible to apply for a grant.
“The businesses need to have been in business since Aug. 1, 2019; must be able to share their financials showing a 15 percent to 20 percent or more loss of revenue due to the crisis,” said Rick Larson, senior vice president and director of strategic initiatives for Natural Capital Investment Fund, which is administering the program. Natural Capital Investment Fund is a small business lender with a long-standing history with BB&T, according to Larson.
Businesses aren’t limited on what they can do with the grant money, Larson said, adding they can be used to meet loan payments, pay vendors or pay rent, “whatever they need this working capital for.”
Small businesses interested in applying for one of the grants should visit https://www.ncifund.org/news/newsletters and enter their name and email address. Natural Capital Investment Fund will follow-up with more details, according to a spokeswoman from Truist.
The application will ask businesses for information about the past 90 days of revenue to get a baseline of how they were operating, what they would use the funds for and what else are they doing to deal with this issue, according to Larson.
“Are they negotiating with landlords, negotiating with suppliers and their lenders? Part of the benefit here — in addition to making a grant — is we can help them think about other levers they have to help get them through this time period,” Larson added. “Information is out there — we may be able to suggest some things they can look at.”
With a total of $1 million with which to work, Larson said he expects the program will be able to award 40 to 60 grants before the funds are depleted, but he expects “many more” requests. He suggests businesses don’t wait to apply.
“This is a really generous program from Truist. Kudos to them for stepping up and providing the funding. This is by no means enough to help all the businesses in difficulty,” Larson added.
Larson said the organization intends to provide applicants with a decision within one week of submitting an application.
“It may take a little longer to get the cash in their hands, but they will know within a week,” he said.
The $2 million total commitment is part of the financial services company’s Truist Cares initiativewithafocusonTruistCares for Small Businesses. The initiative is a $25 million philanthropic pledge to support basic needs, medical supplies and financial hardship relief due to COVID-19, according to the company.
“We’re proud to partner with Truist to serve small businesses in this time of unprecedented need,” Marten Jenkins, president and CEO of Natural Capital Investment Fund, said in a statement. “Small businesses provide the lion’s share of jobs in the U.S. and bring diversity and innovation to our communities; they deserve our support.”
Truist Financial was created through the merger in 2019 of BB&T and SunTrust banks.
LiftFund will provide grants to small businesses in Alabama, Arkansas (Crittenden County), Florida, Georgia, Kentucky, Missouri (Desoto County), Tennessee and Texas.