Financial Relief for Businesses and Non-Profits
I value the role that small businesses and non-profits play in our community. The resources below are intended to assist with the financial pressures that your business or non-profit is taking on, due to the Coronavirus (COVID-19).
The U.S. Chamber of Commerce has issued a guide to help small businesses and self-employed individuals prepare to file for a loan. To view the Coronavirus Emergency Loans Small Business Guide and Checklist, click HERE.
The Central California Small Business Development Center assists small businesses to identify which state and federal assistance programs you might be eligible for and can provide technical assistance during the application process including assistance applying for the SBA’s Economic Injury Disaster Loans (EIDL). Visit centralcasbdc.com/covid-19-resources-uc-merced-sbdc to learn more and to request assistance.
FEDERAL DISASTER ASSISTANCE LOANS: Disaster Assistance Loans, which are administered by the Small Business Administration (SBA), are working capital loans issued to help small businesses, small agricultural cooperatives, small businesses engaged in aquaculture, and most private, non-profit organizations of all sizes meet their ordinary and necessary financial obligations that cannot be met as a direct result of the disaster. These targeted, low-interest loans of up to $2M are intended to assist through the disaster recovery period. Visit www.disasterloan.sba.gov/ela/ and click "INFORMATION" in the upper right-hand corner to learn more.
PAYCHECK PROTECTION PROGRAM (PPP): The Paycheck Protection Program is a loan designed to provide a direct incentive for small businesses to keep their workers on the payroll. SBA will forgive loans is all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities. The Paycheck Protection Program will be available through June 30, 2020. Visit www.sba.gov/funding-programs/loans/paycheck-protection-program-ppp to learn more.
To view the Paycheck Protection Program Information Sheet, click HERE.
To view the Paycheck Protection Program FAQs for Small Businesses, click HERE.
STATE DISASTER LOAN ASSISTANCE: Small businesses and non-profits may also be eligible for loans through California State entities. The California Infrastructure and Economic Development Bank (IBank) offers loan programs for businesses (from one employee up to 750 employees) and eligible non-profits affected by disasters. Under the Disaster Relief Loan Guarantee Program, the IBank will issue loan guarantees up to 95% of the loan through its partner Financial Development Corporations to help small business borrowers who were impacted by disasters 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 and/or physical damage may apply. Visit www.ibank.ca.gov/small-business-finance-center/ to learn more.
FOR GENERAL TAX ASSISTANCE: Pursuant to Governor Newsom's Executive Order, through May 11th, the California Department of Tax and Fee Administration (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. Please visit www.cdtfa.ca.gov/services/covid19.htm to get in touch with CDTFA.
TO FILE FOR A PAYROLL TAX EXTENSION: Employers experiencing a hardship as a result of COVID-19 may request up to a 60-day extension of time from the 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. Please visit www.edd.ca.gov/about_edd/coronavirus-2019.htm to learn more.
TO FILE FOR AN INCOME TAX EXTENSION: The Franchise Tax Board (FTB) administers two of California’s major tax programs: Personal Income Tax and the Corporation Tax. FTB's COVID-19 relief responses include moving the various tax filing and payment deadlines.
- Partnerships and LLCs with tax returns are due on March 16 now have an extension to file and pay by July 15.
- Individual filers whose tax returns are due on April 15 now have an extension to file and pay by July 15.
- Quarterly tax payments due on April 15 now have an extension to pay by July 15.
The FTB will also waive interest and any late filing or late payment penalties that would otherwise apply. Visit www.ftb.ca.gov/ to learn more.