The Small Business Administration (SBA) offers various grant programs to help small businesses recover from the economic impact of the COVID-19 pandemic. While these grants are available to a wide range of small businesses, many cybersecurity companies are wondering if there is a specific grant program available for their industry.
The good news is that there are several SBA grant programs available to cybersecurity companies. Here are some of the most notable options.
Available SBA Grant Program for Cyber Security Companies
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Paycheck Protection Program (PPP)
The Paycheck Protection Program (PPP) is a forgivable loan program offered by the Small Business Administration (SBA) to help small businesses, including cyber security companies, cover their payroll and other expenses during the COVID-19 pandemic.
To be eligible, a cyber security company must have 500 or fewer employees, be in operation on February 15, 2020, and have suffered a 25% or greater reduction in gross receipts between comparable quarters in 2019 and 2020.
To apply, the cyber security company must complete the PPP loan application, provide the lender with supporting documentation, and wait for approval. If approved, the cyber security company can use the loan to cover payroll and other expenses and can apply for loan forgiveness after eight to 24 weeks.
Requirements (Eligibility)
To be eligible for the PPP, a cybersecurity company must meet the following criteria:
- Be a small business with 500 or fewer employees
- Be in operation on February 15, 2020
- Have suffered a 25% or greater reduction in gross receipts between comparable quarters in 2019 and 2020
In addition, the business must be considered a small business under SBA size standards and be in a for-profit industry.
How to Apply
To apply for the PPP, a cybersecurity company must follow these steps:
- Choose a lender: The PPP is administrated by SBA-approved lenders, so the first step is to choose a lender. Cyber security companies can choose a lender that they have an existing relationship with or find one online.
- Complete the PPP loan application: The cyber security company must complete the PPP loan application and provide the lender with all required information, including the number of employees, payroll costs, and other expenses.
- Submit supporting documentation: The cyber security company must provide the lender with supporting documentation, including payroll records and tax returns.
- Wait for approval: The lender will review the PPP loan application and supporting documentation, and make a decision on approval. If approved, the cyber security company will receive the loan and can use it to cover payroll and other expenses.
- Apply for loan forgiveness: After eight to 24 weeks, the cyber security company can apply for loan forgiveness. To do so, the business must provide the lender with documentation demonstrating that the loan was used for eligible expenses.
Economic Injury Disaster Loan (EIDL)
The Economic Injury Disaster Loan (EIDL) is a loan program offered by the Small Business Administration (SBA) to help small businesses, including cyber security companies, recover from economic injury caused by a declared disaster.
Requirements (Eligibility)
To be eligible for the EIDL, a cybersecurity company must meet the following criteria:
- Be a small business with 500 or fewer employees
- Be in operation on January 31, 2020
- Have suffered economic injury as a result of a declared disaster
In addition, the business must be considered a small business under SBA size standards and be in a for-profit industry.
How to Apply
To apply for the EIDL, a cybersecurity company must follow these steps:
- Visit the SBA website: The first step is to visit the SBA website and complete the EIDL application online.
- Provide required information: The cyber security company must provide the SBA with information about the business, including the number of employees, financial statements, and tax returns.
- Wait for approval: The SBA will review the EIDL application and make a decision on approval. If approved, the cyber security company will receive the loan and can use it to cover expenses, including payroll and other bills.
- Repay the loan: The loan must be repaid over a 30-year period, with interest and other fees.
3. Targeted EIDL Advance
The Targeted EIDL Advance provides financial assistance to small businesses in low-income communities that have been disproportionately affected by the pandemic. Cyber security companies in eligible low-income communities may be eligible for the Targeted EIDL Advance if they meet the eligibility requirements.
Requirements (Eligibility)
To be eligible for the Targeted EIDL Advance program, a business must:
- Be located in a low-income community
- Have suffered substantial economic injury as a result of the pandemic
- Be a small business, cooperative, ESOP, or tribal business with fewer than 300 employees
How to Apply
Cybersecurity companies may apply for the Targeted EIDL Advance by:
- Visiting the SBA website and completing the online application form
- Providing documentation to support the business’s eligibility and economic injury
- Waiting for the SBA to review the application and provide a decision.
Note: The Targeted EIDL Advance program ended as of January 8, 2021, and is no longer accepting new applications.
In conclusion,
In addition to these SBA grant programs, there are also several cybersecurity-specific grants and funding opportunities available from other sources.
For example, the National Institute of Standards and Technology (NIST) offers grants to small businesses for the research and development of cybersecurity technologies, and the Department of Homeland Security (DHS) offers grants for the development and implementation of cybersecurity solutions.
To determine if you are eligible for a specific SBA grant program, it’s important to review the eligibility requirements and application process for each grant. Be sure to provide all required information and documentation, and provide a clear and concise description of your business and the purpose of the grant.