Financial Assistance & Resources for Businesses
County Board of Supervisors Approves Moratorium on Residential and Commercial Evictions
On March 24, the Santa Clara County Board of Supervisors passed an Urgency Ordinance establishing a moratorium on residential and commercial evictions resulting from a substantial loss of income caused by COVID-19.
The moratorium applies to all cities countywide and is supported by the Governor’s order issued on March 16, 2020. The County’s moratorium will last until May 31, 2020, and can be extended if the Governor revises his statewide order beyond May 31.
The County Counsel’s office will soon be issuing a set of frequently asked questions for both landlords and tenants about how the ordinance will be implemented and what the dispute resolution process will be. It is important to note that nothing in the ordinance relieves a tenant of the obligation to pay rent or restricts a landlord’s ability to recover rent due. The measure does, however, prevent evictions from occurring in the midst of this crisis. Updated information will be provided when it becomes available. Key aspects of the ordinance include:
- Prohibits eviction for failure to pay rent for renters financially affected by the COVID-19 crisis
- Applies to renters who can document “substantial loss” as a result of the COVID-19 crisis
- Applies to both residential and small business commercial rentals
- Property owners cannot charge or collect late fees for rent delayed while the ordinance is in effect and 120 days after its expiration
- Lasts through May 31
More information and the full text of the ordinance is available from the County Board of Supervisors
Small Business Administration (SBA) Economic Injury Disaster Loans
The entire State of California is now designated as eligible for assistance. Interested businesses are encouraged to apply sooner rather than later as applications will be processed on a first-come-first-serve basis. SBA’s Office of Disaster Assistance is rapidly ramping up and will do its best to respond to demand.
The Coronavirus Preparedness and Response Supplemental Appropriations Act authorizes use of the Small Business Administration’s economic injury program to serve impacted small businesses in light of economic impacts caused by COVID-19. Through this program, the SBA can provide Economic Injury Disaster Loans (EIDL) up to $2 million to help meet financial obligations and operating expenses that could have been met had the disaster not occurred. Loan terms will not exceed 30 years.
On March 16, the SBA announced an economic injury disaster incident has been declared in California. Small businesses, small agricultural cooperatives and most private non-profit organizations in Santa Clara County can apply for loans if SBA determines businesses are unable to obtain credit elsewhere. The incident period is retroactive to January 31, 2020 and continuing to a future date to be determined. The application deadline is December 16, 2020. Access documents, instructions and additional information under the “Files” heading on the Disaster Declaration Details web page for details related to this specific declaration. Access the SBA’s Disaster Loan Assistance Application to get started. Applicants must select “Economic Injury” when beginning the application process.
Free assistance with reconstructing financial records, preparing financial statements and submitting the loan application is available from any of SBA’s partners: Small Business Development Centers (SBDC’s), SCORE, Women’s Business Centers (WBC), and Veteran’s Business Outreach Centers. Click below to learn which local SBA partner organizations are providing these services:
Local SBA partners providing loan assistance More infromation about SBA partners is available under the Local Resources tab.
The SBA advises small business owners to track costs related to declines in revenue, employee sick time and other disruptions to their businesses as a result of COVID-19 impacts. Please have current financial statements available such as current bank statements when preparing an application. SBA Form 1368 provides information needed to apply for an economic injury disaster loan. Examples of covered losses include:
- Loss of revenue from operations
- Loss in working capital unavailable from other sources
- Loss during the incident period
Login or register for a SBA Disaster Loan Assistance account. Account access may experience increased volume resulting in latency for users. Select “Economic Injury” when beginning the application process.
Read the SBA Economic Disaster Injury Loan Process which explains:
- Eligibility criteria
- Application requirements
- Screen shots and instructions on how to apply
- SBA Partner Organizations Offering Assistance
- Small Business Development Center of Silicon Valley
Loan and Grant Opportunities
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.
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.
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
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.
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.
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
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.
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 issued March 12, the CDTFA has the authority to assist individuals and businesses impacted by complying with a state or local public health official’s imposition or recommendation of social distancing measures related to COVID-19. This assistance includes granting extensions for filing returns and making payments, relief from interest and penalties, and filing a claim for refund through May 11.
Apply for special assistance including filing and payment extensions, and/or relief from interest and penalties. 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
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 email@example.com.
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.
Small Business Development Center of Silicon Valley
In addition to helping small business owners prepare and apply for SBA assistance loans, the 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 these webinars now via the Silicon Valley Small Business Development Center
Visit the SBDC for additional resources including:
- Small Business Survival Guide
- Additional federal and state resources
- A New America Women’s Business Center
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.
Zero-Percent Interest, Low-Interest, and Disaster Loans for California Small Business Owners
Host: Small Business Majority
Time: 11:00 AM to 12:30 PM
Coping with COVID-19: Repairing Your Credit
Time: 10:00 AM to 11:00 AM
Financial Management for Small Business Owners
This event will cover financial management tools such as bookkeeping, projections, financial statements, and financing. This event includes an overview of the SBA’s Economic Disaster Injury Loan program. Complete the participant information at the time of registration in order to participate.
Time: 5:30 PM to 7:00 PM
Register and learn more at Eventbrite.com. Complete the participant information at the time of registration in order to participate.
Maximizing Your Small Business’ Reach with Social Media Marketing Webinar
Attract clients through social media platforms and learn insider tips to make the platforms work best for you. Learn which platforms are best for you and your business and how to make best use of your time when using them.
Host: Small Business Development Center
Time: 6:00 PM to 9:00 PM
Register and learn more at Eventbrite.com. If you cannot attend after registering, please cancel your reservation so another person can attend as this event will fill up.
Michael Thomas, Economic Development Specialist
Phone: 408-866-2192 Email: firstname.lastname@example.org