COVID-19 Business Information and Resources
California Capital continues to provide business training and counseling services to our communities. Please visit our calendar for a list of classes that are now offered online.
For one-on-one assistance with your business, counseling services are available by internet and telephone. Please visit our Women’s Business Center or Procurement Technical Assistance Center for more information.
New Funding For the California Relief Grant Program Announced
Governor Newsom has signed a legislative package that includes $2.1 billion to the California Relief Grant Program. This is a four-fold increase in the funding already designated for the program, and comes with new application rounds that will allow small businesses and non-profits to access grants of up to $25,000. The funding rounds are:
- Round 3: Opens 3/5; Closes 3/11. Exclusively for waitlisted applicants from Rounds 1 & 2 (reapplication not necessary).
- Round 4: Opens 3/16; Closes 3/23. Exclusively for non-profit cultural institutions.
- Round 5: Opens 3/25; Closes 3/31
- Round 6: Date to be announced soon
Updated information and eligibility can be found at CaReliefGrant.Com
Paycheck Protection Program: Round Two
First-time borrowers and eligible second-time borrowers can now apply for renewed Paycheck Protection Program funds.
- This second round of funding prioritizes access for small and traditionally underserved businesses, so the SBA is initially only accepting applications from participating Community Financial Institutions (CFIs).
- As of Tuesday, January 19, all participating PPP lenders will be able to submit first- and second-draw applications.
- Small businesses hoping to access funds can apply through a participating lender. Click here to be matched with a lender.
We are hosting an informational webinar on PPP Round 2 Tuesday, February 23, at 3pm. Click here to register.
Additionally, Umpqua Bank has created two informational videos about applying for first and second draw PPP Loans.
Applying For Your First PPP Loan
Applying For A Second Draw PPP Loan
California COVID-19 Relief Grant Program
The application period for the first round of the California Relief Grant Program ended January 13. Here’s what you need to know:
- Application review begins January 14, and application approval notifications will be sent out between Friday, January 15th and Friday, January 22nd.
- Fund disbursement will take place over a 45-day verification period beginning January 22nd.
- Second round application period will begin February 2nd. It will end February 8th.
- If you met eligibility requirements and submitted all documents for the first application period, but did not receive a grant, you do not need to reapply. Your application will automatically be considered in Round 2.
Congress Passes Stimulus Package with Refreshed PPP Program, new EIDL funding for small businesses Tuesday 12/22
A new Covid-19 recovery stimulus bill has passed both houses of Congress, with significant funds earmarked for small businesses. A new round of PPP (Paycheck Protection Program) loans will be administered, with certain issues of the previous program being fixed. 60 percent of funds borrowed must be dedicated to payroll, and the expenses that the remaining 40 percent can go towards have been expanded. Click here to read more about updates to the program. In addition, Congress has dedicated $20 billion to the Economic Injury Disaster Loan program, to make up for certain shortfalls in the initial round of funding and to administer grants of up to $10,000 to small businesses who had applied before but were denied because funds had run out. For more information, click here. Small businesses can apply for each through the Small Business Administration.
Governor Newsom Signs New Executive Order With Tax Provisions for Small Businesses Monday 12/14
As of Monday, December 14, Governor Gavin Newsom signed an executive order increasing provisions for marginalized communities, and allowing the California Department of Tax and Fee Administration (CDTFA) to offer a 90-day extension for tax returns and tax payments for all businesses filing a return for less than $1 million in taxes. Small businesses will have until the end of July to file their first-quarter returns. Click here to read the full Executive Order.
New Grants and Temporary Tax Relief Announced Monday 11/30
On Monday, November 30, Governor Gavin Newsom announced a package of assistance for small businesses affected by the prolonged Covid-19 crisis. This includes:
- $500 million in grants. Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Non-profits would also be eligible for these grants. CalOSBA is establishing the program and will make it available to small businesses as soon as possible. Sign up for updates on availability.
- Temporary Tax Relief. Applications for the Main Street Small Business Tax Credit are now open. Apply for a tentative small business hiring credit, which can be applied against California state income or sales and use taxes. Small businesses that employed 100 people or less as of 12/31 2019 AND suffered a 50 percent decrease or more in income tax gross receipts when comparing Q2 2020 to Q2 are eligible to apply. Apply here.
- California Rebuilding Fund. An additional $12.5 million was added to the fund. Determine your eligibility for a low-interest loan.
The California Rebuilding Fund
Announced on November 20, 2020, The California Rebuilding Fund is a public-private partnership that is aggregating funding from private, philanthropic, and public sector sources – including a $25 million anchor commitment from IBank – to address the capital and advisory needs of California’s small businesses as they reopen and recover from the COVID-19 health and economic crisis. This program is built to serve the smallest of small businesses that make up an essential part of the California economy, and will focus on historically under-resourced communities.
Designed to ensure equitable recovery and adaptation to the ongoing effects of the COVID-19 pandemic on California’s small businesses and the people behind them, the CRF program will offer free services and affordable loans. To learn more and to determine the eligibility of your business, head to their website: California Rebuilding Fund.
City of Sacramento
The City of Sacramento is committed to seeing the community move forward together. Support services and financial relief are available to Sacramento businesses, including:
- Disaster assistance loans and temporary funding programs through the U.S. Small Business Administration, including Express Bridge Loans, Debt Relief, the Paycheck Protection Program, and Economic Injury Disaster Loans.
- California Relief Loan Guarantee: The State of California has allocated $50M to the IBank Small Business Finance Center to assist small businesses that may not qualify for federal funds. The program provides guarantees for loans up to $50K for small business borrowers in declared disaster areas. Check your eligibility and apply.
- State of California Employment and Taxes: The State of California is providing broad assistance to qualifying small businesses and employers impacted by COVID-19. Learn more.
- “Resilience, Repurpose, Recovery” Webinars: In an effort to support local businesses as they navigate the COVID-19 outbreak and its economic repercussions, the City of Sacramento’s Office of Innovation and Economic Development has launched a video webinar series. Check for upcoming webinars.
Important Changes to PPP Loan Forgiveness
The U.S. Small Business Administration, in consultation with the Treasury Department, has released a simpler loan forgiveness application for Paycheck Protection Program (PPP) loans of $50,000 or less.
This action streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses while also ensuring sound stewardship of taxpayer dollars.
- Simplified Loan Forgiveness Application
- Instructions For Completing the Simplified Loan Forgiveness Application
- Interim Final Rule on the Simplified Forgiveness Process for Loans of $50,000 or less
Disaster Loan Assistance
Disaster loan assistance is available through multiple agencies.
- The U.S. Small Business Administration (SBA) is offering loan assistance through a streamlined process. Check your eligibility and apply.
- The SBA is also providing updated information and resources regarding the CARES Act and the Paycheck Protection Program. View the latest updates.
- If your business does not qualify for SBA Disaster Loans, you may be eligible to apply for disaster financing up to $50,000 through the California Disaster Relief Loan Guarantee Program. Check your eligibility and apply.
- If you are outside of the Greater Sacramento area, please contact your local Financial Development Corporation (FDC) for more information about resources available in your community. Map of California FDCs.
- Personalized advising is available to help your business navigate the various Disaster Loan programs. Please visit the Small Business Development Center (SBDC) to sign up for free services. Sign up today.
State and Federal Government Resources
California Capital FDC is committed to working with federal and state governments to match small businesses with the resources they need to make it through this prolonged shutdown. We know that having access to the most current guidelines and resources is crucial to the health of your business and your community.
Resources from The State of California
- State of California Covid-19 Updates (Website Translated into over 70 languages)
- California Department of Public Health Website (Website Translated into over 70 languages)
- Guidance on Public Gatherings, Entertainment Venues, Bars, Restaurants, and Nursing Homes from California Department of Public Health
- Governor Newsom’s Executive Orders regarding California’s response to COVID-19
- Decisive Determination of Eviction and Foreclosure Policy in California.
Resources from the federal government:
Resources To Help Your Business Maintain Operations
Agencies and non-profits at the state and local level want to see your business thrive. Read below for more information on the organizations dedicated to your success through the Covid-19 pandemic.
- The California Office of the Small Business Advocate is available to help businesses identify resources and obtain answers to key questions where they can. View their How We Can Help page and their FAQ for Small Businesses page for continued updates.
- Find your local small business assistance center through the California Technical Assistance Providers Guide. These state- and federally-funded business assistance centers provide free individualized counseling and training for small businesses and nonprofits. They will also discuss options for accessing capital.
- The California Small Business Development Centers resource page includes both state and federal information for small businesses. The California Resource Guide has detailed information about federal programs serving California, including the SBA Disaster Economic Injury Loan Program. Connect with California SBDCs at AskSbdc.com.
- GO-Biz is hosting a Covid-19 resource webpage with links to the IBank, Labor and Workforce Agency, Franchise Tax Board, and Department of Tax and Fee Management.
- USDA Rural Development has launched a Covid-19 resource page. It features a broad range of resources from affordable housing and business development to utilities.
Extension of Certain State and Federal Filing Deadlines
- California State Income Taxes: The deadline for filing personal and corporate income taxes has been extended to July 15, 2020. The Franchise Tax Board’s Covid-19 webpage has important information about filing state income taxes, including a page for Frequently Asked Questions.
- State Sales and Use Taxes: The California Department of Tax and Fee Administration has offered immediate interest-free deferred payment plans for small businesses.
- Federal Income Taxes: The deadline for filing federal personal and corporate income taxes was extended to July 15, 2020. The IRS has established a special section to assist taxpayers, businesses, and individuals impacted by coronavirus. Updates will be shared on this webpage, and IRS guidance on deferring tax payments can be found under “News Releases”.
- State Payroll Taxes: Employers experiencing a hardship as a result of Covid-19 may request an extension of up to 60 days to file their state payroll reports and/or deposit state payroll taxes without penalty or interest through the Employment Development Department. A written request for an 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 at 1-888-745-3886.
Accessing Capital: Public and Private Financial Resources
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). California also offers a loss reserve-style credit enhancement program, the California Capital Access Program, to encourage private lenders to provide small business loans.
Federal Programs: The federal Small Business Administration has activated its Economic Injury Disaster Loan Program, which offers low interest loans with a deferred initial repayment date of next year, as well as a range of other disaster and non-disaster loan programs. Information about these programs, including those funded under the recently enacted CARES Act is available at the SBA’s Covid-19 webpage.
Existing Loans: On March 20, 2020, State and federal regulators of financial institutions issued a special directive to lenders to work constructively with businesses in modifying existing loans.
Employer Guidance from California Labor Agency
- Guidance on how to protect workers from exposure to COVID-19.
- Guidance on reduced work hours, potential closures, and layoffs.
Employer Guidance From The Federal Government
- The federal Centers for Disease Control and Prevention guidance for businesses and employers can be found here.
- The federal Small Business Administration (SBA) is providing guidance and consistently updating information about loans, contracting opportunities, and other resources available here.
Resources Available To Employees
- State of California worker benefits chart for employees who are impacted by COVID-19, including unemployment, disability, and paid sick leave.
- Labor and Workforce Development Agency’s primary website for COVID-19, including information on support services for workers and interim guidelines for protecting workers.
- Governor Gavin Newsom’s Executive Order waiving the one-week waiting period for unemployment. Workers can receive unemployment the first week of missed work.