COVID-19 Resources for Businesses
SBDC Resources
- Small Business Development Collaborative SBDC
- COVID-19 Business Resource Guide
- COVID-19 SBDC Business Resources
- Small Business Development Center Disaster Preparedness Toolkit
- Workforce Development
Government Resources
- UI Work Sharing Program – Staff Reduction Alternatives
- Unemployment Insurance - Reduced Work Hours
- Disability Insurance – Sick or Quarantined
- Paid Family Leave – Caregiving
- Delayed Filing – State Taxes
- Delayed Filing – Federal Taxes
- Low-Income Home Energy Assistance Program – Financial/Energy Assistance
- California Department of Alcohol Beverage Control
Agency
Program
U.S. Federal (Various Agencies)
CARES ACT (FEDERAL STIMULUS PROGRAM)
Program Administration and Details Pending
Key Components (not inclusive of all relief measures)
Keeping American Workers Paid and Employed Act
- Paycheck Protection Program
- $349 billion for small business loans; for businesses < 500 employees and sole-proprietors, independent contractors and other self-employed
- Borrowers shall be eligible for loan forgiveness equal to the amount spent by the borrower during an 8-week period after the origination date of the loan on payroll costs, interest payment on any mortgage incurred prior to Feb 15, 2020, payment of rent on any lease in force prior to Feb 15, 2020, and payment on any utility for which service began before Feb 15, 2020
- Loans equal to lesser of 2.5 months of payroll or $10M to maintain payroll, lease, and utility payments; Loan period Feb 20 to Jun 30, 2020; Max. interest rate of 4%
- Eligibility based on operational status as of Feb 15, 2020 vs. repayment ability
Expanded Eligibility of Economic Injury Disaster Loan (EIDL)
- Expanded for individual operating as sole proprietor or independent contractor for Jan 31 to Dec 31, 2020
- Emergency Grant of $10,000 advance payment to eligible EIDL applicant; repayment not required if loan denied
Business Provisions
- Refundable payroll tax credit for 50% of wages paid by employers
- Deferred employer payroll tax over two years
- Modifications on treatment of net operating losses, loss limitations, recovery of alternative minimum tax credits, interest expenses and others
General Labor Related Provisions
- Limitations on employer paid leave and sick leave
- Provides employee laid off by an employer March 1, 2020 or later to have access to paid family and medical leave in certain instances if rehired by employer
- Employers to receive advance tax credit from Treasury
Rebates to Individuals
- All U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible social security number, are eligible for $1,200 ($2,400 married) rebate and additional $500 per child
- Eligibility based on 2019 tax return filed and include those with no income or on SSI
- For income above $75,000, $5.00 will be deducted for every $100 above $75,000. Individuals above $99,000 will not be eligible
- The federal government will send checks automatically either by check or direct deposit in April
Unemployment Insurance Provisions
- Expanded to include self-employed, independent contractors, those with limited work history, furloughed workers, and “gig economy” workers (e.g. Uber, Lyft, etc.) to Dec 31, 2020
- Additional $600 per week for up to four months
- Additional 13 weeks of unemployment benefits through Dec 31, 2020 to help those who remain unemployed
- Grants for 50% of costs incurred by States which provide a “short-time compensation” program
Foreclosure Moratorium and Consumer Right to Forbearance
- Prohibits foreclosures on all federally-backed mortgage loans for a 60-day period beginning Mar 18, 2020
- Provides up to 180 days of forbearance for borrowers of a federally-backed mortgage loan
Education Provisions
- Defer student loan payments, principal, and interest for 6 months through Sept. 30, 2020 without penalty for all federally owned loans
Emergency Relief and Taxpayers Protections
- $500B Emergency Treasury Exchange Stabilization Fund to provide loans, loan guarantees, and other investments
- For direct lending, borrowers must maintain employment levels (no less than 90%) as of Mar 24, 2020 until Sept 30, 2020
- Special facility targeted at nonprofits and businesses between 500 and 10,000 employees subject to criteria to retain no less than 90% of workforce with full compensation and benefits through Sept 30, 2020
U.S. Small Business Administration (SBA)
SBA DISASTER LOAN
- Low-interest federal disaster loans for working capital to California small businesses suffering substantial economic injury
- Up to $2M; Eligibility based on impact
- Interest rate is 3.75% for small businesses and 2.75% for private non-profit organizations
- https://disasterloan.sba.gov/ela
- Phone: 800-659-2955 (TTY/TDD: 1-800-877-8339)
- Email: [email protected]
U.S. Department of Labor’s Wage and Hour Division (WHD)
FAMILIES FIRST CORONAVIRUS RESPONSE ACT (FFCRA)
- Requires certain employers to provide their employees with expanded family and medical leave
- Up to 2 weeks paid sick time
- Up to additional 10 weeks paid sick leave
- For effective period April 1, 2020 to Dec 31, 2020
- Covered for certain public employers, and private employers with fewer than 500 employees
- https://www.dol.gov/agencies/whd/pandemic/ffcra-employer-paid-leave
- https://www.dol.gov/agencies/whd/pandemic/ffcra-questions
U.S. Department of Treasury, Internal Revenue Service
FEDERAL TAX RELIEF
- Tax day for filing and payment extended to July 15 regardless of amount
- Treasury, IRS and Labor announce plans to implement paid leave for workers and tax credits for small and midsize businesses
- https://www.irs.gov/coronavirus
U.S. Department of Housing Urban Development (HUD)
HOMEOWNERS RELIEF
- Suspension of all foreclosure and evictions for single family homeowners with FHA-insured mortgages for 60 days
- https://www.hud.gov/press/press_releases_media_advisories/HUD_No_20_042
U.S. Department of Education (For Students)
FORBEARANCE INFO FOR STUDENTS, BORROWERS, AND PARENTS
California Office of Governor Gavin Newsom
90 DAY MORTGAGE PAYMENT RELIEF
- Governor Newsom secured support from Citigroup, JPMorgan Chase, U.S. Bank, and Wells Fargo and nearly 200 state-chartered banks, credit unions, and servicers to protect homeowners and consumers
- https://www.gov.ca.gov/2020/03/25/governor-gavin-newsom-announces-major-financial-relief-package-90-day-mortgage-payment-relief-during-covid-19-crisis/
California Infrastructure and Economic Development Bank (IBANK)
IBANK
A unit within California Governor’s Office of Business and Economic Development (GO-Biz), that offers the following loan programs for businesses from one to 750 employees (small businesses):
DISASTER RELIEF LOAN GUARANTEE PROGRAM (DRLGP)
- For declared disaster areas to help lenders and small businesses by providing loan guarantees of up to $1 million
JUMP START LOAN PROGRAM
- Loans from $500 to $10,000 to low-wealth entrepreneurs in the declared disaster and emergency areas
California State Treasurer Office
CALIFORNIA CAPITAL ACCESS PROGRAM (CalCAP)
- Designed to provide up to 100% coverage on certain loan defaults
- https://www.treasurer.ca.gov/cpcfa/calcap/sb/index.asp
California Franchise Tax Board & Department of Tax and Fee Administration
CALIFORNIA STATE TAX RELIEF
- California Franchise Tax Board
- Various tax file and pay deadlines extended to July 15, 2020 https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/index.html?WT.ac=COVID-19
- California Department of Tax and Fee Administration
- Request for a 60-day extension to file state payroll reports and/or deposit state payroll taxes without penalty or interest
- https://www.cdtfa.ca.gov/services/covid19.htm
California Employment Development Department (EDD)
DISABILITY INSURANCE
- For sick or quarantined
- Request a claim for short-term benefit payments
- Benefit amounts are approx. 60-70% of wages (depending on income) and range from $50-$1,300 a week
- https://edd.ca.gov/Disability/How_to_File_a_DI_Claim_in_SDI_Online.htm
PAID FAMILY LEAVE
- For caregivers
- Request for a claim for up to six weeks of benefit payments
- Benefit amounts are approx. 60-70% (depending on income) and range from $50-$1,300 a week
- https://edd.ca.gov/Disability/How_to_File_a_PFL_Claim_in_SDI_Online.htm
UNEMPLOYMENT INSURANCE (UI) CLAIM
- For school closures or reduced hours
- UI provides partial wage replacement benefit payments to workers who lose their job or have their hours reduced, through no fault of their own
- https://edd.ca.gov/Unemployment/Filing_a_Claim.htm
DISABILITY INSURANCE ELECTIVE COVERAGE
- For self employed
- To be eligible, either you or an employer had to make contributions in the past 5 to 18 months
- https://edd.ca.gov/disability/Self-Employed.htm
SMALL BUSINESS GRANTS PROGRAM
- Cash grants and ad credits for up to 30,000 eligible small businesses
- https://www.facebook.com/business/boost/grants
ADDITIONAL RESOURCES
Agency
Program
California Labor and Workforce Development Agency
Guidance for California Employer and Workforce
Centers for Disease Control & Prevention
Workplace Health & Safety
- Information on interim planning and responding
- https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?
Cal/OSHA Guidance on COVID-19
Workplace Health & Safety
- Information on protecting workers
- https://www.dir.ca.gov/dosh/coronavirus/Health-Care-General-Industry.html
California Employment Development Department (EDD)
Rapid Response Services
- Teams to provide early intervention assistance to help avert potential layoffs, and immediate on-site services to assist workers facing job losses
- https://edd.ca.gov/pdf_pub_ctr/de8714rrb.pdf
California Labor Commissioner’s Office
FAQs regarding employee leave options, compensation, and salary
California Department of Public Health
COVID 19 Updates