California and the federal government are providing broad assistance to small businesses and employers impacted by COVID-19. This includes:
- Interest-free deferral of sales/use tax up to $50,000 for businesses with less than $5 million in taxable sales
- 90-day extension for businesses filing a return for less than $1 million in taxes
- $50 million in state funding for the Small Business Disaster Relief Loan Guarantee Program via IBank to provide potential capital for those who don’t qualify for federal funds
- Small Business Debt Relief for existing SBA borrowers
- Federal small business stimulus programs like PPP, EIDL, and EIDL Advance
- Federal tax credits to small businesses for COVID-19 employee paid leave
Additional funds are now available for the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan and Advance (EIDL and EIDL Advance) through the Paycheck Protection Program and Health Care Enhancement Act.
The new deadline to apply for a Paycheck Protection Program loan is August 8, 2020. The U.S. Small Business Administration is accepting PPP loan applications from approved lenders. You must apply directly through a lender. Find a PPP lender to contact right away. See details at SBA.gov.
As of June 15, the U.S. SBA is accepting new applications to EIDL and EIDL Advance from all eligible businesses. Visit U.S. SBA’s Disaster Loan Applications website for more information. The U.S. SBA will continue to process EIDL Loan and Advance applications already submitted on a first-come, first-served basis.
Small businesses may get reimbursed for paid leave costs related to COVID-19. This funding is available for businesses with fewer than 500 employees. Employers can receive a credit for wages paid for such leave between April 1 and December 31, 2020. Visit Paid Leave under the Families First Coronavirus Response Act (FFCRA) for more information. Also check frequently asked questions about tax credit reimbursement for paid leave.
Financial and technical assistance for small businesses
Labor and workforce support for businesses
- Check EDD’s resources for employers for information about workplace health and safety guidelines, reduced work hours, potential closure or layoffs, California WARN Act requirements, and tax assistance.
- Visit CA Labor and Workforce Development Agency’s employer resources and assistance.
- Check the CA Department of Fair Employment and Housing’s information about COVID-19 infection in the workplace.
- For information about recording and reporting requirements for COVID-19 infection, check the frequently asked questions provided by the CA Department of Industrial Relations.
Industry guidance for reopening
As California reopens, every business will need to create a safer, low-risk environment. If you own or manage a business, follow the industry-specific guidance that applies to protect your workers and customers.
As workplaces reopen, employees will need both childcare support and workplace flexibility. It’s also important that employees with COVID-19 know they should stay home. Your sick leave policies need to support that. See more information on:
- Government programs supporting COVID-19 sick leave and workers’ compensation
- Family friendly practices for employers (PDF)
- Support for working families (PDF)
Questions and Answers
Tax Relief for Small Businesses
Small Business Disaster Relief Loan Guarantee Program
U.S. Small Business Administration Stimulus Programs
- CA Labor and Workforce Development Agency: Coronavirus 2019 (COVID-19) Resources for Employers and Workers
- CA Employment Development Department: Coronavirus 2019 (COVID-19)
- Governor’s Office of Business and Economic Development: Coronavirus 2019
- California Department of Tax and Fee Administration: COVID-19 State of Emergency
- Cal/OSHA Guidance on Requirements to Protect Workers from Coronavirus
- Coronavirus Disease (COVID-19) – FAQs on laws enforced by the California Labor Commissioner’s Office
- CA Department of Fair Employment and Housing: COVID-19 Resources and Guidance
- CA Department of Industrial Relations: COVID-19 Resources and Workers’ Compensation
- U.S. Internal Revenue Service: Coronavirus Tax Relief
- U.S. Internal Revenue Service: COVID-19-Related Tax Credits for Required Paid Leave Provided by Small and Midsize Businesses FAQs
- U.S. Department of Labor: Paid Leave under the Families First Coronavirus Response Act