Businesses and employers

Interested taxpayers should contact CDTFA by visiting the CDTFA website or calling 800-400-7115.

Given that the April deadline to file and pay sales and use tax returns has been extended to late July for all but the largest taxpayers, CDTFA expects that most participating taxpayers will begin their payment arrangements in late July of this year.

Qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments. No interest or penalties will be assessed against the liability.

If taxpayers choose to use this program to distribute the burden of their May or June prepayments or their July return, CDTFA will work to accommodate those taxpayers.

The maximum amount that any taxpayer can defer interest-free under this relief effort is $50,000.

We recognize that some taxpayers, particularly in low margin businesses, with annual taxable sales over $5 million may also need this relief. Those taxpayers are encouraged to reach out to CDTFA, which will work with them to provide relief where appropriate.

Yes. All California taxpayers (individuals and businesses) can file and pay by July 15, 2020. See information from the CA Franchise Tax Board for more information.

A loan guarantee is a credit enhancement that helps mitigate the risk assumed by a lending institution when making a loan. With the Small Business Finance Center’s Disaster Relief Loan Guarantee Program, IBank agrees to guarantee up to 95% of the loan, removing the barriers to capital that often exist for small business borrowers that may not otherwise be eligible for traditional lending. This program also can assist those who may not be eligible for a U.S. Small Business Administration (SBA) loan.

Small business entities that have been affected by loss, damage or other economic injury due to the COVID-19 pandemic and meet the program’s eligibility requirements. 

The business must have between 1-750 employees and be established as an entity, including:

• Sole Proprietor – Individual using legal name as business name that files a Schedule C, Schedule F, or has a fictitious business name or DBA statement
  • If the loan appears to be in the name of an individual, evidence of Sole Proprietorship will be required and may include a Schedule C, Schedule F, Seller’s Permit, and/or fictitious business name or DBA statement
• Limited Liability Company 
• Cooperative
• Corporation
• Partnership
• S-Corporation
• Not-for-profit

The program will not accept an individual as the borrower. It is permissible for an individual to be a guarantor or co-borrower on the loan, but the primary borrower must be a small business. It does not consider citizenship or immigration status for eligibility requirements, as long as the entity/individual meets the above criteria. Trucking owners/operators are eligible as long as they are registered as a legal business entity.

AND

• The business activity must be eligible under the program and in one of the industries listed in the North American Industry Classification System (NAICS) codes list, and
• It must be located in a declared disaster area. A major disaster area declaration was made for the state of California on March 22, 2020 in regards to the COVID-19 pandemic.

Businesses that are not eligible include passive real estate businesses (rental income, etc.).

Yes, this program is designed for those who do not qualify for federal programs. 

The Small Business Finance Center’s Disaster Relief Loan Guarantee Program allows a maximum loan of $1.25 million and a maximum guarantee of $1 million. To serve as many California small businesses as possible, the COVID-19 disaster program is focused on serving small businesses, especially those in low-wealth and immigrant communities with needs from $500 to $50,000. 

The length of the loan can be negotiated with your lender, but the guarantee is good for up to seven years. The interest rate and loan criteria will be determined by the lender and could depend on the credit strength of the business. The guarantee is designed to lower the interest rate in exchange for a higher guarantee to your lender. 

The Small Business Finance Center partners with Community Development Financial Institutions (CDFIs), Community Lending Institutions, and Financial Development Corporations (FDCs) to provide loan guarantees for small businesses.  To apply,

• View the list of FDCs and participating lenders interested in this Small Business Disaster Relief Loan Guarantee Program. 
• Contact the lender on the list nearest to your business to apply.

The program is in place and businesses can apply immediately. Once you provide your lender with complete information, you could be funded in a matter of days.

The funds are meant to help small businesses through this challenging time. Loan proceeds can be used for business continuance or to cure “economic injury” as a result of COVID-19.

By working with the Community Development Financial Institutions (CDFIs) throughout the state of California, this disaster relief program can play an important role in generating economic growth and opportunity in some of our most distressed communities. CDFIs and mission-based lenders play a vital role across the state and have experience steering lending and investment to where it is needed and will matter the most, in particular in low-wealth and immigrant communities. CDFIs and our partner Financial Development Corporations (FDCs) that process the loan guarantees are embedded in communities across the state, speak several languages, and are invested in the community successfully managing its way through this pandemic.

Faith-based businesses (non-profit or otherwise) that have business activity outside of worship are eligible as long as they are a legal business that has been affected by the COVID-19 pandemic.

The U.S. SBA offers the Paycheck Protection Program (PPP) and Economic Injury Disaster Loan and Advance (EIDL and EIDL Advance).

More about Paycheck Protection Program (PPP):

The PPP is a loan program for small businesses, self-employed, independent contractors, nonprofits with a maximum of 500 employees, and it is intended to keep workers paid and employed. The loan amount is calculated based on payroll expenses with a maximum amount of $10 million at a rate of 1%. For all loans made on or after June 5, the minimum term is five years. For loans made before June 5, the two-year minimum maturity remains in effect unless both the borrower and the lender agree to extend it to five years. The loan is forgivable if 60% of the loan amount is used for payroll, and no employees are laid off, or if laid-off employees are rehired before December 31, 2020. In addition to payroll and benefits costs, allowable expenses include mortgage interest, rent, and utilities. Submit your application as soon as possible, even if you need to rehire employees that have been laid off.

The SBA is accepting PPP loan applications from approved lenders. The new deadline to apply for a PPP loan is August 8, 2020. You must apply directly through a lender. Find a PPP lender in your area to contact right away. See SBA.gov for more details. 

More about Economic Injury Disaster Loan and Advance (EIDL and EIDL Advance):

As of June 15, the U.S. SBA is accepting new applications from all eligible businesses, and will continue to process EIDL Loan and Advance applications already submitted on a first come, first-served basis. Check the U.S. SBA’s Disaster Loan Applications website for more information.

The EIDL is a direct loan for up to $2 million at a rate of 3.75% for small businesses and 2.75% for nonprofits. Applicants can get an Advance of up to $10,000 upon request within days of a successful application. This advance doesn’t have to be repaid. Apply directly with the SBA. For questions, you can contact SBA’s Customer Service Line at 1-800-659-2955 / 1-800-877-8339 (TTY), or send an email to disastercustomerservice@sba.gov.

Interested borrowers can contact any SBA participating bank, credit union, or nonprofit lenders to apply for the PPP. For more information, contact your local bank or reach out to SBA’s local district offices for assistance.

You can find this on the Paycheck Protection Program’s Loan Forgiveness Application. The application provides detailed instructions on how to apply for forgiveness of PPP loans. Once your business has expended the PPP funds and is ready to pursue loan forgiveness, please review the Loan Forgiveness Application and consult with your accountant, lender, or one of California’s small business centers for assistance.

Small businesses with 500 employees or less are eligible to apply for the Paycheck Protection Program (PPP) and/or the Small Business Debt Relief Program. Small businesses are also eligible to apply for the Economic Injury Disaster Loan (EIDL) program and the EIDL Advance. Visit SBA’s comprehensive COVID-19 support website to find out more about SBA’s eligibility requirements for each program.

SBA has district offices in California that are open to answer questions. You can use the SBA’s Local Assistance Directory to locate the office nearest you. You can also contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.  

Call or email the SBA to find out which program is right for you. While businesses can apply for and receive more than one form of capital assistance through the SBA, they cannot be used for the same purpose. The SBA can advise you on your options. Call 1-800-659-2955 / 1-800-877-8339 (TTY), or email disastercustomerservice@sba.gov.

SBA has a Debt Relief program and will pay the principal and interest of existing SBA loans. Please contact your lender for information.

California’s network of small business support centers can help you figure out which loans and programs are best for your business, develop resiliency strategies, and find other resources. Go to California’s small business centers to find the closest center.

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.

If your business is approved to reopen, you should take steps to ensure the safety and health of your workers. It’s important that employees with COVID-19 know they should stay home. Your sick leave policies need to support that. 

• Encourage sick employees to stay home if they are sick. See government programs supporting COVID-19 sick leave and workers’ compensation.
• Establish routine cleaning throughout the workplace.
• Reduce travel. If possible, encourage video conferencing and limit larger gatherings.
• See Cal/OSHA interim guidelines for general industry.
• Follow CDC guidance on keeping the workplace safe (PDF).

See Cal/OSHA’s guidance on protecting workers from coronavirus.

Apply for the Unemployment Insurance (UI) Work Sharing Program.