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
More funding for federal programs
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 U.S. Small Business Administration has resumed 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 May 4, the U.S. SBA is only accepting new applications to EIDL and EIDL Advance from agricultural businesses. If you are an agricultural business, you are encouraged to apply. 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 from other business sectors 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.
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 county has received state approval to move further into the reopening roadmap, you may find your industry guidance on the County Variance page.
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)
- Los Angeles County
- Orange County
- San Bernardino County - COVID compliant business partnership program
- Better Business Bureau Grant Program
- CA Labor and Workforce Development Agency
- CA Employment Development Department
- CA Department of Tax and Fee Administration
- CA Department of Fair Employment and Housing
- CA Small Business Loan Program (nonprofits are eligible)
- Cal/OSHA Guidance on Requirements to Protect Workers from Coronavirus
- Governor’s Office of Business and Economic Development
- IRS Coronavirus Tax Relief
- IRS 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