Federal and State Resources
Main Street Lending Program: Established by the CARES Act, the Main Street Lending Program supports lending to U.S. small and medium-sized businesses who were financially affected by COVID-19. The Federal Reserve Bank of Boston administers the program under the Federal Reserve. The lending program is fully operational, ready to purchase participations in eligible loans that are submitted to the program by registered lenders. Learn more about this this program here
Economic Injury Disaster Loan Program: The SBA has reopened its application form for the Economic Injury Disaster Loan (EIDL) Program. This program provides flexible working capital loans at a rate of 3.75% (2.75% for nonprofits) with a term of up to 30 years. Applicants also are eligible for an advance amount of up to $10,000 ($1,000 per employee).
SBA Debt Relief: This is another program created by the CARES Act. 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 about SBA Debt Relief click here.
*Update on Paycheck Protection Program: The PPP closed on August 8.
The Paycheck Protection Flexibility Act was signed into law June 5, 2020. This bill will provide businesses with more time and flexibility to keep their employees on the payroll and ensure their continued operations throughout the reopening process. The PPP loans are meant to help owners cover payroll costs, rent and utilities. The PPP Program closed on August 8, 2020. Visit the East Bay EDA website for frequent updates to federal loan programs.
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 about Express Bridge Loans click 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).
The California Capital Access Program for Small Business (CalCAP SB or Program) encourages banks and other financial institutions to make loans to small businesses that have difficulty obtaining financing. If you own a small business and need a loan for start-up, expansion or working capital, you may receive more favorable loan terms from a lender if your loan is enrolled in the CalCAP Loan Loss Reserve Program. This program helps communities by providing financing to businesses that create jobs and improve the economy.
CalCAP is a loan loss reserve program which may provide up to 100% coverage to participating lenders on losses as a result of certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans.
Check to see if your commercial lender or financial institution participates in CalCAP or find a participating lender. If your financial institution does not currently participate, it is easy for lenders to sign up. Please have your institution complete the Financial Institution Application and send it to CalCAP to get started.
For more information, please visit CalCAP website.
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