Financial Assistance & Resources for Businesses

CA Small Business Relief Grant Deadline for Non-Profit & Cultural Institutions Extended Until March 26 at 5:00 PM

• Eligible applicants: Only nonprofit cultural institutions with any revenue size that meet eligibility criteria found at CAReliefGrant.com
• Eligible grant award: $5,000 – $25,000
• Eligible nonprofit cultural institutions must complete a new application even if they already applied in Rounds 1 and 2 
• Grants will only be available to nonprofits that did not receive funding in Rounds 1, 2 or 3
• Grants will be prioritized based on the documented percentage revenue declines based on a reporting period comparing Q2 and Q3 of 2020 versus Q2 and Q3 of 2019

More information on Round 4 for nonprofit Arts and Cultural Institutions can be found online at CAReliefGrant.com/arts-and-culture

New Round of California Small Business COVID-19 Relief Grant Funding Opens March 25

The California Small Business COVID-19 Relief Grant Program's new round of funding will be open between March 25 and March 31. Current waitlisted small businesses applicants and non-profits not selected in Rounds 1, 2, or 3 and new applicants that meet eligibility criteria will be considered. Waitlisted applicants do not need to re-apply, but new applicants need to apply. Visit CAReliefGrant.com for details. 

Grants up to $25,000 will be administered by the California Office of the Small Business Advocate and distributed to underserved small businesses throughout the state by Community Development Financial Institutions. Governor Newsom announced creation of the $500 million COVID-19 Relief Grant program on November 30. 

Resources

Grant Application Partners

Frequently Asked Questions

Other Grant Opportunities 

• $500 Matching Grants from Go Fund Me
• No Interest Loans up to $15,000 by Kiva.org
• No Interest Loans from ICA Rapid Response Liquidity Fund 
• Grants and Crowd Funding Opportunities from I Fund Women.com
• Small Business Loans Between $5,000 & $500,000 from PayPal
• Small business Recovery Grants up to $10,000 from Verizon 
• Competitive Small Business Grant Awards from $10,000 to $50,000 from Hello Alice and Verizon 

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 & Filing Deadline for Individuals Extended to May 17, 2021 

On March 17, The Treasury Department and Internal Revenue Service announced that the federal income tax filing due date for individuals for the 2020 tax year is automatically extended from April 15, 2021, to May 17, 2021. More details on this extension are available at IRS.gov. Additional resources and information are available at IRS.gov. 

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.

Business Owners May Be Eligible for Potential Business Equipment and Machinery Tax Savings from County Assessor's Office

The County Assessor’s Office is encouraging business owners to provide business equipment and machinery valuation information when filing their Form 571-L Business Personal Property Statement. While the 571-L filing deadline is April 1, business owners can file until May 7 without penalty.

The Assessor’s Office assesses business equipment and machinery value if a business’ total value of equipment and machinery exceeds $10,000. The Assessor’s Office will review potential value reductions if the market value of equipment and machinery has declined. More information is available from the County Assessor's Office.

Property Tax Payment Relief

On May 6, 2020, 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. For more details, visit the County Department of Tax and Collections. 

Eviction Moratorium

See the Eviction Moratorium and Rent payment Assistance webpage for details.

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 previous webinars on-demand from the 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. 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. 

April 14 & 28

SBA Disaster Relief Loan Updates 

The Northern California Small Business Development Center (SBDC) hosts a panel of expert financial advisors to answer questions about how small businesses can apply for an Economic Injury Disaster Loan and Paycheck Protection Loan and information on new loan options. The Attorney Coalition from CASEFORCE is scheduled will provide answers to COVID-relations business questions.

Host: Northern California Small Business Development Center

Time: 10:30 AM to 12:00 PM

Cost: Free

Register Here for April 14

Register Here for April 28

April 28-30

Virtual Job Fair 

Hosts: Work2Future and San Jose City College

April 28 will feature Business, Financial, and Technology Companies

April 29 will feature Healthcare, Government and Public Service companies

April 30 will feature Advanced Manufacturing, Construction and Trades companies

Time: 

Cost: Free

Register Here

May 8 & June 11

Laid Off Employee Webinars 

A panel of experts will cover filing and re-opening un-employment claims, securing healthcare coverage, no-cost career assistance services.

Host: Work2Future and the California Employment Development Department 

Time: 11:00 AM

Cost: Free

Register Here 

Upcoming Online Events

Work2Future, the job development service provider to Campbell, serves both workers and employers with job training  

The Silicon Valley Small Business Development Center has upcoming webinars covering topics including launching an e-commerce website, managing cash flow during COVID-19 and more. Visit SBDC's event calendar for details and to register.