Financial Assistance & Resources for Businesses

Grants and No Interest or Low-Interest Loans

• $10,000 small business grants from Salesforce Care Small Business Grants. Visit Salesforce.com to sign up for info
• $15 Million Small Business Grants Program for Bay Area small businesses from Facebook. Learn about eligibility and sign up to receive information and be notified when applications are available at Facebook.com
  
• $5,000 Grants for Women-Owned Small Businesses from the Spanx by Sara Blakely Foundation’s Red Backpack Fund. Visit GlobalGiving.org to sign up for email updates. *Next Application Period Opens June 1* 
• $500 Matching Grants from Go Fund Me
• No Interest Loans up to $15,000 by Kiva.org
• No Interest Loans from ICA Fund  *ICA is in the process of raising funds to create a $5 million fund*
• Grants and Crowd Funding Opportunities from I Fund Women.com
• Food and Beverage Industry Relief Fund by the James Beard Foundation
• Small Business Loans Between $5,000 & $500,000 from Paypal
• Small business Recovery Grants up to $10,000 from Verizon Sign up to get info via email on the next application period  
• Competitive Small Business Grant Awards from $10,000 to $50,000 from Hello Alice and Verizon Apply Here ASAP

IRS Tax Relief for Businesses Impacted by COVID-19 

Employee Retention Credit

The is a refundable tax credit against certain employment taxes equal to 50% of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Visit IRS.Gov for details.

Deferral of Employment Tax Deposits and Payments

CARES Act allows employers to defer the deposit and payment of the employer’s share of Social Security taxes and self-employed individuals to defer payment of certain self-employment taxes. Visit IRS.Gov for details.

Net Operating Losses

Any business that claimed a loss in tax year 2018, 2019, or 2020, may be able to carry that loss back five years. Filing an amended tax return may generate immediate refunds. More information is available at IRS.Gov. For net operating losses arising in 2018, taxpayers have until June 30, 2020, to file Form 1045 or 1139 where applicable under Section 6411 for a refund. Read IRS Notice 2020-26 for details.

Employee Retention Tax Credit

As part of the CARES Act, the U.S. Treasury Department and the Internal Revenue Service launched the Employee Retention Credit on March 31, which is designed to incentivize employers of all sizes that face closure orders or suffer economic hardship caused by COVID-19 to keep employees on their payroll. The refundable tax credit is 50% on up to $10,000 of wages paid or incurred from March 13, 2020 through December 31, 2020. More information about this tax credit including eligibility and FAQ’s is available from the IRS and Treasury Department.

Other Tax Credits for Small and Midsize Businesses FAQ’s

Payroll Tax Deferral

To enhance cash flow so businesses can better maintain operations and payroll, employers and self-employed individuals can defer payment of the employer share of the Social Security tax they otherwise are responsible for paying to the federal government with respect to their employees. The deferred employment tax can be paid over the next two years—with half of the required amount to be paid by December 31, 2021 and the other half by December 31, 2022. The CARES Act also provides 

Families First Coronavirus Response Act (FFCRA) signed into Law on March 18, 2020

• Phase II of the federal government’s financial response to COVID-19 
• This assistance applies to businesses with more than 50 employees and less than 500 employees

Benefits for Employees 

• Normal FMLA is unpaid, but under the FFCRA, employees who are on sick leave because they are sick can receive their full pay, up to $511 per day, or $5,110 total.
• Leave taken to care for children whose schools or day care facilities have closed is paid at two-thirds the employee’s regular rate of pay, with a maximum of $200 per day or $10,000 total.
• Employers cannot force you to use up your vacation or other sick time before receiving this benefit.
• There is a 10-day waiting period before this benefit applies. Employees can use existing sick or vacation time to cover these days.
  

 Benefits for Employers

• Employers receive tax credits for 100 percent of what they pay out to employees, with the above-noted limits.
• For employers with 50 or fewer employees, the Secretary of Labor can exempt the business from these requirements.
• Employers with fewer than 25 employees do not have to restore employees to their previous positions.

IRS Income Tax Payment Deadline Extended to July 15, 2020 

The Treasury Department and the Internal Revenue Service are providing special payment relief to individuals and businesses in response to the COVID-19 Outbreak. Income tax payment deadlines for individual returns, with a due date of April 15, 2020, are being automatically extended until July 15, 2020, for up to $1 million of their 2019 tax due. This payment relief applies to all individual returns, including self-employed individuals, and all entities other than C-Corporations, such as trusts or estates. IRS will automatically provide this relief to taxpayers. Taxpayers do not need to file any additional forms or call the IRS to qualify for this relief. The IRS urges taxpayers who are owed a refund to file as quickly as possible. For those who can’t file by the April 15, 2020 deadline, the IRS reminds individual taxpayers that everyone is eligible to request a six-month extension to file their return. Visit IRS.gov got more details on this relief and additional information.

Banking

On March 9, the Federal Deposit Insurance Corporation (FDIC) encouraged banks and financial institutions to help meet the needs of customers and members affected by the coronavirus. That could include waiving fees on late or missed credit card or loan payments, and waiving early withdrawal penalties for out-of-work savers who need access to money locked up in CD’s for example.

Check with you bank or financial institution on assistance available to your business or visit the Federal Deposit Insurance Corporation for additional information.

Governor’s Office of Business and Economic Development (Go-Biz)

The Governor’s Office of Business and Economic Development (GO-Biz) has compiled helpful information for employers, employees, and all Californians as it relates to the Coronavirus (COVID-19) pandemic. Some of that information is provided below while additional resources are available at the Go-Biz website.

New Employment Assistance Platform OnwardCA.org Now Available

Launched on April 2, 2020, OwardCA.org is a one-stop resource for workers displaced by COVID-19 to help them find job opportunities in critical industries. Onward CA also connects displaced workers to resources for essential life services like food and shelter and retraining for new job opportunities. Onward CA is an initiative between Governor Newsom and a coalition of companies, foundations and people. Additional resources for employees is available by clicking the State Resources tab below.

Cal/OSHA

Workplace safety and health regulations in California require employers to protect workers exposed to airborne infectious diseases such as the coronavirus. Cal/OSHA has posted guidance to help employers comply with these safety requirements and to provide workers information on how to protect themselves. Visit Cal/OSHA for details.

Labor and Workforce Development Agency

While investigations to learn more about the virus are ongoing, workers and employers should review their health and safety procedures to help prevent exposure to the virus. The Labor & Workforce Development Agency (LWDA) provides guidance and resources for workers and employers.

Treasurer’s Office

Small Business Resource List

The Treasurer’s Office maintains a Small Business Resource List that includes financial assistance such as loans, grants and services from federal, state and non-profit organizations with links to resources and provider contact information. View the list here. Visit the Treasurer’s Office for more assistance options and information.

Resources for Employees

Pandemic Unemployment Assistance Program

Created by the CARES Act, the Pandemic Unemployment Assistance (PUA) Program, provides federally funded benefits for certain individuals out of work or partially unemployed individuals who are not eligible for regular unemployment insurance (UI) and who are unable or unavailable to work due to COVID-19 related circumstances. Examples of such individuals include self-employed individuals, independent contractors and individuals who lack sufficient work history. California’s Employment Development Department (EDD) is scheduled to begin accepting online applications for PUA benefits beginning Tuesday, April 28. Visit the Labor and Workforce Development Agency for information on eligibility, benefits, FAQ’s and more.

Paid Sick Leave

For answers to questions regarding sick leave resulting from COVID-19, read Paid Sick Leave FAQ’s provided by the Labor Commissioner’s Office.

Disability Insurance

Workers who are sick or quarantined due to COVID-19 exposure that is certified by a medical professional can file Disability Insurance (DI) claims.

Paid Family Leave

Employees unable to work due to caring for an ill or quarantined family member with COVID-19 (certified by a medical professional) can file a Paid Family Leave (PFL) claim. PFL provides up to six weeks of benefit payments to eligible workers who have a full or partial loss of wages because they need time off work to care for a seriously ill family member or to bond with a new child. Benefit amounts are approximately 60-70 percent of wages (depending on income) and range from $50-$1,300 a week.

Unemployment Insurance

If your employer has reduced your hours or shut down operations due to COVID-19, file an Unemployment Insurance (UI) claim. UI provides partial wage replacement benefit payments to workers who lose their jobs or have their hours reduced, through no fault of their own. Workers who are temporarily unemployed due to COVID-19 and expected to return to work with their employer within a few weeks are not required to actively seek work each week. However, they must remain able and available and ready to work during their unemployment for each week of benefits claimed and meet all other eligibility criteria. Eligible individuals can receive benefits that range from $40-$450 per week.

Resources for Employers

Business Interruption Insurance FAQ’s

The California Department of Insurance recognizes that COVID-19 is affecting many businesses throughout the state. With many businesses experiencing severe interruption, the Department is issuing guidance for businesses regarding insurance coverage and particularly about Business Interruption Insurance coverage. Business Interruption Insurance is optional coverage that may be purchased as part of a comprehensive multi-peril commercial policy. To read the FAQ’s and access resources, visit the Insurance Commissioner’s Office at Insurance.CA.Gov

Reduced Work Hours

Employers experiencing a slowdown in their businesses or services as a result of the coronavirus impact on the economy may apply for the UI Work Sharing Program. This program allows employers to seek an alternative to layoffs — retaining their trained employees by reducing their hours and wages that can be partially offset with UI benefits. Workers of employers who are approved to participate in the Work Sharing Program receive the percentage of their weekly UI benefit amount based on the percentage of hours and wages reduced, not to exceed 60 percent.

Potential Closure & Layoffs

Employers planning a closure or major layoffs as a result of the coronavirus can get help through the Rapid Response program. Rapid Response teams will meet with you to discuss your needs, help avert potential layoffs, and provide immediate on-site services to assist workers facing job losses. Refer to the Rapid Response Services for Businesses Face Sheet for details or contact the nearest American Job Center of California at the Work2Future office in San Jose.

Tax Assistance

Employers experiencing a hardship as a result of COVID-19 may request up to a 60-day extension of time from the Employment Development Department (EDD) to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. A written request for extension must be received within 60 days from the original delinquent date of the payment or return.

For questions, employers may call the EDD Taxpayer Assistance Center:

Toll-free from the U.S. or Canada: 1-888-745-3886

Hearing impaired (TTY): 1-800-547-9565

Outside the U.S. or Canada: 1-916-464-3502

Franchise Tax Board

As of March 18, 2020, the Franchise Tax Board (FTB) is postponing until July 15 the filing and payment deadlines for all individuals and business entities for:

• 2019 tax returns
• 2019 tax return payments
• 2020 1st and 2nd quarter estimate payments
• 2020 LLC taxes and fees
• 2020 Non-wage withholding payments

California Department of Tax and Fee Administration

Pursuant to Governor Newsom’s Executive Order N-40-20 issued March 30, all taxpayers who file a return less than $1 Million dollars will have an additional 3 months to file their return between now and July 31, 2020.If you qualify for this extension it is automatic and you do not need to apply for the extension. 

If your tax liability is $1 million or more, you may still request an extension if you are unable to file and pay timely. These requests will be evaluated on a case-by-case basis and taxpayers will be notified if their extension has been approved or denied.  

Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales, can take advantage of a 12-month, interest-free, payment plan for up to $50,000 of sales and use tax liability. Payment plan requests can be made through CDTFA’s Online Services Portal in the coming months.

To view new tax filing due dates or request extensions to file tax payments, claims for refunds and tax appeals, visit CDTFA’s website for details.

Office of the Small Business Advocate

The Office of the Small Business Advocate (OSBA) specialists help small business owners navigate California rules and regulations and educate about state programs and incentives. OSBA has a network of small business centers throughout the state to offer consulting and training and access to capital. Contact a specialist directly from here.

The following agencies and organizations can assist your business:

• A New America Women’s Business Center
• Minority Business Development Agency
• Small Business Development Center of Silicon Valley
• Small Business Development Center Hispanic Satellite
• SCORE

California Infrastructure and Economic Development Bank (I-BANK)

I-Bank offers loan programs for businesses affected by disasters in California. I-Bank, a unit within the Governor’s Office of Business and Economic Development (GO-Biz), offers the following loan programs for businesses from one to 750 employees:

Disaster Relief Loan Guarantee Program

I-Bank issues loan guarantees up to 95 percent of the loan through its partner Financial Development Corporations to help small business borrowers who were impacted by disasters or public safety power shutoffs, and who need term loans or lines of credit for working capital. Small businesses, including small farms, nurseries, agriculture-related enterprises and nonprofits that have suffered an economic loss and/or physical damage may apply. This disaster program will help lenders and small businesses by providing loan guarantees of up to $1 million for small business borrowers in declared disaster areas.

Jump Start Loan Program

I-Bank offers loans from $500 to $10,000 to low-wealth entrepreneurs in the declared disaster and emergency areas through its Jump Start Loan Program. This small loan and financial literacy/technical assistance program designed for low-income small businesses in low-wealth communities, including businesses owned by women, minorities, veterans, people with disabilities and those previously incarcerated. Access to I-Bank’s Disaster Relief Loan Guarantee Program and Jump Start Loan Program can be made through its partner Financial Development Corporations (FDC’s)

For more information on how to apply, visit the I-Bank’s Small Business Finance Center.

California Capital Access Program 

The California Capital Access Program (CalCAP) for Small Business 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. Loans are available up to $5 million.

CalCAP is a loan loss reserve program which may provide up to 100% coverage on losses as a result of certain loan defaults. With CalCAP portfolio support, a lender may be more comfortable underwriting small business loans.

If your financial institution does not currently participate, it is easy for lenders to sign up. Your institution must complete the Financial Institution Application and send to CalCAP to get started.

To find a participating lender, visit the California State Treasurer’s Office website.
Financial Institution Application available at the California State Treasurer’s Office website.        Email completed applications to calcap@treasurer.gov.

Property Tax Payment Relief

On May 6, Governor Newsom signed an executive order waiving penalties for property taxes paid after April 10 for taxpayers who demonstrate they have experienced financial hardship due to the COVID-19 pandemic through May 6, 2021. This relief applies to residential properties and small businesses. The executive order also extends the deadline for certain businesses to file Business Personal Property Statements to May 31, 2020, to avoid penalties. View FAQ’s on property tax collection at the Department of Tax and Collections. The County Office of the Assessor’s Business Division provides details on Business Personal Property Statements.

County Board of Supervisors Approves Moratorium on Residential and Commercial Evictions

On March 24, the Santa Clara County Board of Supervisors enacted a moratorium on "no-fault" evictions and evictions for non-payment of rent for residential and commercial tenants resulting from a substantial loss of income and/or substantial out-of-pocket medical costs caused by COVID-19. The moratorium applies to all cities countywide and is supported by Governor Newsom’s Executive Order issued on March 16, 2020. The County’s moratorium will last until May 31, 2020, unless extended or repealed by the County.

While the ordinance neither relieves a tenant of the obligation to pay rent nor restricts a landlord’s ability to recover rent due, the measure does prevent evictions from occurring in the midst of this crisis. Key aspects of the ordinance include:

• Prohibits eviction for failure to pay rent for renters financially affected by the COVID-19 crisis
• Applies to both residential and small business commercial rentals
• Applies to renters who can document “substantial loss” as a result of the COVID-19 crisis
• Landlords cannot charge or collect late fees for rent delayed while the ordinance is in effect and 120 days after its expiration

Information for Landlords 

Per the County’s moratorium, a landlord who initiates an eviction for non-payment of rent or a no-fault cause during the moratorium, must:

• Provide tenants with the Reason for Termination of Tenancy or Eviction stating the reason for the eviction and notice of the tenants’ rights when serving the notice of termination; and
• Provide resources for rental assistance programs

Landlords still have a right to collect rent if the tenant qualifies for protection under the moratorium. However, the tenant has until 120 days after the moratorium expires to repay rent and the landlord cannot charge a late fee This moratorium does not apply to otherwise lawful or at-fault evictions for reasons other than non-payment of rent due to a substantial loss and/or out-of-pocket medical expense caused by COVID-19.

Information for Tenants 

Per the County’s moratorium, renters can provide the Notice to Landlord of Eviction Protection with documentation of substantial income loss and/or substantial out-of-pocket medical expenses caused by COVID-19 as soon as possible.

Examples of substantial loss of income due to COVID-19 include:

Job loss or reduced work hours

Missed work to care for a family member infected with COVID-19 or a child due to school closure

If the business qualifies as a small business, closure of a place of business or substantial decrease in business income

Examples of documentation tenants can provide include:

Letters from your employer, a doctor, or your child’s school citing COVID-19 as the reason for reduced work, missing work, or school closure

Paycheck stubs from before and during the COVID-19 pandemic

Bank statements showing your financial situation before and during the COVID-19 pandemic

Landlords must provide tenants with the Reason for Termination of Tenancy or Eviction explaining why they are being evicted, and what their rights are, as well as assistance programs if landlords try to evict tenants.

County Moratorium Resources 

Forms, frequently asked questions and resources for tenants and landlords regarding the eviction moratorium are available from the County of Santa Clara and include:

• Frequently Asked Questions
• Reason for Termination of Tenancy
• Notice to Landlord of Eviction Protection
• Renter Assistance Resource Programs
• County Eviction Moratorium Web Page
• Full text of the ordinance is available from the County Board of Supervisors

A New America Women’s Business Center

ANew America Women’s Business Center provides training, counseling and other support services to help women entrepreneurs start and successfully grow their businesses. Consulting appointments will be handled via web meeting or phone. To schedule an appointment, visit the New America Women’s Business Center’s website. Information about the business center’s services and response to COVID-19 is available here.

Google for Small Business

Google provides tips and recommendations including modifying your business’ Google advertising campaign to help your business through this crisis. Visit Google for Small Business for information.

ICA Fund

The ICA Fund of Oakland is a certified Community Development Financial Institutions Fund by U.S. Treasury Department. ICA educates, advises and provides access to capital for businesses. ICA is in the process of raising funds to support its Rapid Response Liquidity Fund with a goal of $5 million. Learn about eligibility, how to apply and more at ICAFundGoodJobs.org.

SCORE

SCORE is a national non-profit organization operating under the auspices of the SBA and provides mentoring and education to small business owners at no cost and workshops and seminars at a modest cost. SCORE’s volunteer mentors are experienced successful business owners, and former corporate and non-profit executives Visit SCORE”s Silicon Valley office website to get started.

Small Business Development Center of Silicon Valley 

In addition to helping small business owners prepare and apply for SBA assistance loans, the Silicon Valley Small Business Development Center (SBDC) provides the following online resources to help small business owners get started:

Online Webinars led by financial and business experts and advisers regrading:

• Managing tight cash flow
• Preparing and applying for Economic Disaster Injury Loans
• Restaurants, bars and hospitality business management and assistance

View pre-recorded webinars now via the Silicon Valley Small Business Development Center

Visit the SBDC for additional resources including:

• Overview to the Paycheck Protection Program
• Small Business Owners Guide to the CARES Act
• Online webinars for Coping with COVID-19
• Guide to COVID-19 loans and forms
• Small Business Survival Guide
• Federal and state resources and FAQ’s

Contact Information

Small business owners who have questions and need assistance with loan applications, please contact the Small Business Administration’s San Francisco District Office, which serves the Bay Area or the Small Business Development Center of Silicon Valley.

Small Business Administration, San Francisco Office

Phone: 415-744-6820

Email: sfomail@sba.gov

Small Business Development Center of Silicon Valley

Phone: 408-385-9800

Small Business Majority

Small Business Majority is a national small business advocacy organization, founded and run by small business owners to ensure America’s entrepreneurs are a key part of a thriving and inclusive economy. SBM actively engages small business owners and policymakers in support of public policy solutions, and deliver information and resources to entrepreneurs that promote small business growth and drive a strong, sustainable job-creating economy. Visit SmallBusinessmajority.org to learn more.

View the Small Business Majority’s archived webinar from March 30, 2020 that covers federal and state assistance for small businesses from the Governor’s Office of Business and Economic Development, the Small Business Development Center, Opportunity Fund and the Small Business Majority. View other archived webinars and upcoming events from Small Business Majority.

Utility Companies Suspending Disconnection of Service

Pacific Gas and Electric and The San Jose Water Company have suspended service disconnections for non-payment of gas, electric and water service until further notice. More information on how each agency can assist customers and their responses to COVID-19 are available at PGE.com and SJWater.com. Per Governor Newsom’s Executive Order N-28-20, the Public Utilities Commission monitors public and private utility providers’ customer service protections for critical utilities like electricity, gas, water, internet,  and landline and cell phone service. Executive Order N-42-20 restricts water service shutoff to homes and small businesses while the state responds to the COVID-19 pandemic.

The following online events are to inform and educate small businesses on accessing capital and additional resources, as well as responding to and mitigating disaster impacts. Most online events are free, but some may charge a nominal registration fee. If you cannot attend an event you have registered for, please cancel your reservation so that someone else can attend. 

June 2

Laid off and Furloughed Employee Webinar

Host: Work2Future and the California Employment Development Department

Time: 11:00 AM

Note: This event occurs every Tuesday at 11:00 AM

Cost: Free

Register Here

June 3

The West Valley communities of Campbell, Cupertino, Los Gatos and Santa Clara invite small business owners to attend a webinar covering strategies and resources to help with adapting and operating during the COVID-19 pandemic. Join the Silicon Valley Small Business Development Center to learn about the following:

• Best practices on how to adapt business operations and business models during shelter-in-place
• How businesses can leverage technology and social media
• How SBA loan recipients can leverage EIDL and PPP loans for maximum benefit
• Other financial assistance options available to small business owners
• Updates on the County Shelter-in-Place Order

On the event registration form, space is provided to enter questions and comments. Please list one question you would like answered by the panelists and briefly comment how your business is adapting to the shelter-in-place order. You can also submit questions to the Small Business Development Center at lourdes@sbdchc.org as directed in your confirmation email. If you have questions specific to Campbell, please email Economic Development Specialist Michael Thomas at michaelt@campbellca.gov. 

Date: Wednesday, June 3

Time: 10:00 AM to 11:00 AM

Cost: Free

Register here 

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