Federal and State Resources
The Paycheck Protection Program (PPP) is being administered by the U.S. Small Business Administration and U.S. Treasury, and was created by the recent stimulus package to help small businesses impacted by COVID-19 maintain payroll and cover costs associated with rent, utilities, and other overhead payments. These loans can be forgiven if borrowers primarily use it to maintain their payroll. If you have laid off your employees due to lost revenue and qualify, this loan is also an opportunity to hire them back. SBA will forgive the portion of the loan that is used to cover the first 8 weeks of payroll and certain other expenses, including employer-provided health benefits, paid leave, rent, utilities and mortgage interest. Sole proprietors, independent contractors and self-employed may also qualify. Even if your business is closed as a result of the Shelter in Place order, you may be able to use the Payroll Protection Program to rehire and retain employees, and keep them on your payroll. To learn more about the loan program, which banks are participating in the program, and how to apply, visit Venturize.
If you are a Square, PayPal, or Intuit customer, they are now authorized lenders and you can apply for a forgivable PPP loan through their websites. PayPal is currently accepting applications in anticipation of funding.
Economic Injury Disaster Loan Program Update May 22,2020: The EIDL Program is currently not accepting applications, except for some agricultural businesses. We will update this section if the program receives more funds.
SBA Debt Relief: As part of SBA’s debt relief efforts, the SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months. The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020. Learn more here.
Express Bridge Loans: Allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 with less paperwork. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for a direct SBA Economic Injury Disaster loan. If a small business has an urgent need for cash while waiting for decision and disbursement on Economic Injury Disaster Loan, they may qualify for an SBA Express Disaster Bridge Loan. Terms : Up to $25,000; Fast turnaround. Learn more here.
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
Download a guide to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act).
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
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.
Cameo is a statewide micro-business network dedicated to small and microbusiness financing such as loans and credit, technical assistance and business management training. A micro-business is a firm with five or fewer employees, started for $50,000 or less in initial capital and that may not have access to traditional commercial loans.
Labor and Workforce Development Agency Resources for Employees: There are several compensation options available to employees, such as Paid Family Leave, Unemployment Insurance, and Paid Sick Leave. View this comprehensive chart to see what your employees may qualify for.
Great Plates Program: On April 24, the State of CA announced the Great Plates Delivered Program, which will help seniors and other adults at high risk from COVID-19 to stay home and stay healthy by delivering three nutritious meals a day, as well as provide essential economic stimulus to local businesses struggling to stay afloat during the COVID-19 crisis. Food provider meals must meet the following nutritional requirements and must fill out the food provider interest form here