Business Resources During Coronavirus Outbreak
Business News We Are Following
The House-passed Emergency Coronavirus Bill will provide significant relief to small businesses that cannot afford the employee costs associated with COVID-19. The bill provides the following (among more):
- $367 billion in loans for small businesses
- Expanded unemployment benefits that boost the maximum benefit by $600 per week and provide laid-off workers their full pay for four months. Eligibility is extended to independent contractors and the self-employed.
- Direct payments of $1,200 to most individuals making up to $75,000, or $2,400 for couples making up to $150,000. Each dependent child increases the amount by an additional $500. The amount decreases for individuals with incomes above $75,000, and payments cut off for those above $99,000.
Once more direct information comes into us about that, we will post it here.
Small Business Resources
Business Counseling: Free business counseling available through a network of 70 small business assistance centers located throughout the state. At these centers, business owners can learn about different disaster response programs and receive help in accessing these resources. A directory to identify which centers serve your district is available at: http://static.business.ca.gov/wp-content/uploads/2019/12/2019-TA-Providers-Guide.pdf
Federal Tax Credit to Cover the Cost of Paid Sick Leave: Two new refundable federal payroll tax credits to help small and medium-size businesses cover the cost of providing coronavirus-related leave for employees. These federal credits are designed to immediately and fully reimburse small and medium-size businesses for the cost of paid leave. The JEDE Committee, in collaboration with the Assembly Committee on Revenue and Tax, has requested the Governor’s Office of Emergency Services to provide guidance on how this tax credit applies to California businesses, which may have already laid workers off. More information about these new tax credits are available under “New Releases” on the IRS’ COVID-19 webpage: https://www.irs.gov/coronavirus
New Capital: Recognizing that businesses will need capital to make it through this emergency and get back on their feet, state and federal agencies are leveraging current programs and activating disaster loan programs. There are both state and federal direct loans, as well as state loan guarantees and other credit enhancements. The JEDE Committee is reviewing the programs to determine capacity and programmatic limitations to meeting the needs of small businesses in the COVID-19 emergency. Currently available programs include:
- State Programs: California’s Small Business Finance Center provides small businesses access to a range of financial products, including the Small Business Loan Guarantee (guarantee through private lenders) and the Jump Start Program (direct loans to businesses). More information is available at: https://www.ibank.ca.gov/small-business-finance-center/
- California also offers a loss reserve program to encourage private lenders to provide small business loans. More information about the California Capital Access Program is available at: https://www.treasurer.ca.gov/cpcfa/calcap/sb/institutions.pdf
- Federal Program: The federal Small Business Administration has activated its Economic Injury Disaster Loan Program, which offers low interest loans with a deferred initial repayment date of next year. More information is available at: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources#section-header-0
Existing Loans: State and federal regulators of financial institutions have issued a special directive to lenders to work constructively with businesses in modifying existing loans. This directive, issued on March 20, 2020, can be accessed at: https://www.federalreserve.gov/newsevents/pressreleases/bcreg20200322a.htm
More Small Business Resources:
- FAQs for small business, via Governor’s Office of Business and Economic Development.
- Resources for Restaurants and Workers Coping with the COVID-19 Emergency
- U.S. Small Business Administration Administrator Implements Automatic Deferment on Existing SBA Disaster Loans Through 2020
- Reach out to the Alameda County Small Business Development Center for consulting and free online webinars related to COVID-19, or refer to their COVID-19 survival guide for small businesses.
Other Business Resources
- Treasury, IRS and Labor Announce Plan to Implement Coronavirus Paid Leave for Workers and Tax Credits for Small and Mid-Size Businesses
- IRS Extends Tax Filing Date to July 15
- Interim Guidance from the CDC for Businesses and Employers to Plan and Respond to Coronavirus Disease
- COVID-19 Business Resources on Loans and Grants
- The Governor’s Office of Business and Economic Development (GO-Biz) has compiled helpful information for employers, employees, and all Californians.
- Visit the Employment Development Department website for employer assistance, such as tax assistance, protecting workers from Coronavirus, and information about work sharing programs.
- What employees are entitled to may be confusing. Check out this chart to understand what resources may be available to you.
- If your business is facing permanent closure: Rapid Response via Economic Development Department of California
- You can contact your local America’s Job Center of California for more information about available Rapid Response services or contact your local Small Business Development Center.
- The Alameda County Workforce Development Board is one such local entity which can help employers with the Rapid Response program.