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COVID-19 Funding Resources for Spas and Salons [A GUIDE]

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PPP Loan

The COVID-19 pandemic shuttered nearly all spas, salons and skin care boutiques across the country, leaving many small beauty business owners in a state of financial uncertainty.

Although some states have made plans to reopen, many are already suffering financially and the future depends on funding. We have heard you, and we are here to help. Navigating all the financial loan options can be daunting, so we have assembled the below as a list that spas can turn to for financial relief, which we will update as they become available.

Professional Beauty Association (PBA), COVID-19 Relief Fund

www.probeauty.org/covid-relief-fund-application

The PBA has set up a fund to give $500 to licensed beauty professionals that were unable to work during COVID-19. Professionals must fill out the entire application, and funds granted are contingent upon donations received.

Unemployment

www.dol.gov/coronavirus/unemployment-insurance#find-state-unemployment-insurance-contacts

Claiming unemployment traditionally allows workers to get monetary relief while there are unable to work; however, the Cares Act extends this benefit to independent contractors and those self-employed. To claim unemployment, the professional needs to contact their state's unemployment office. The Cares Act awards another +600 to regular unemployment benefits.

Zenoti, Zenoti Gives Back Relief Fund

www.zenoti.com/the-zenoti-gives-back-covid-19-relief-fund.html

Any licensed  professional or W2 employee in the beauty and wellness industry, who is currently or formerly employed in a salon, spa, barbershop, nail salon, medspa or other wellness center can apply for this $500-$1,000 grant, but the deadline to apply is April. 30, 2020.

Applicants must be a resident in an area experiencing mandated closure of'non-essential business, shelter-in-place order, or living in an area otherwise impacted by loss of business, or closure of place of employment. You must have demonstrated financial need based on layoff, furlough, or temporary closure and you must not be participating in other beauty and wellness industry or government grant programs. Grants are awarded on an as-needed, as-available basis.

Small Business Association, Payment Protection Program

www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

This loan helps businesses keep employees paid during times of crisis. You must be in business since Feb. 15, 2020 with under 500 employees. Those who get it are eligible for up to  2 1/2 times their average monthly payroll expenses. SBA will forgive all loans if employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest or utilities. Businesses can apply through any existing SBA 7(a) lender or through any federally insured depository institution, federally insured credit union, and Farm Credit System institution that is participating. Other regulated lenders will be available to make these loans once they are approved and enrolled in the program. You should consult with your local lender as to whether it is participating in the program. The caveat to this program is that you may not file for it and unemployment.

Hairdressers At Heart COVID-19 Relief Fund, Coty

www.beautyenvisionawards.com/hairdressersatheart

This fund is granting 200 relief checks up to $1,000 to assist beauty professionals during financial hardship. Note that while the fund was designed for hairdressers at salons, it is also open to nail technicians, salon owners and educators, as long as they submit a cosmetology or nail license. To apply, submit the application with the link above. Applications close June 30, 2020.

Beauty Changes Lives, COVID-19 Relief Grant

https://beautychangeslives.org/beautyreliefgrants

A number of generous companies including the Horst Rechelbacher Foundation, CND and iSPA, have donated money to this grant to help beauty professionals that are struggling. BCL will give $1,000 to beauty professionals or beauty students that have seen hardship because of COVID-19. The applicant must have been in a student program or employed a year as a licensed professional before March 16, 2020. Those who are chosen to receive the grant will be notified by May 22, 2020.

Salon & Spa Relief Fund (Available Soon*)

https://salonandsparelieffund.org

The Salon & Spa Relief Fund will provide grants of $2,500-$5,000 to salons in need to help get them back up and running, thanks to a sizeable donation from Aveda. *Application information is not yet available, so check back to find out when you can apply for this one.

Small Business Association, Economic Injury Disaster Loan (*Currently Unavailable)

www.sba.gov/disaster-assistance/coronavirus-covid-19

*This loan is currently unavailable based on lack of current appropriations. However, more may be available soon, and we will update this listing as soon as it is available.

This loan provides a small business under 500 people up to $10,000 in funds (1,000 per employee). It may be available up to days after successful acceptance. Although called a loan, it does not have to be paid back under current guidelines. There is a helpful video to help you with application that has been made by our event partner Bronner Bros.