Assistance for Small Businesses + Displaced Workers Due To COVID-19
Assistance for Small Businesses & Workers Displaced by COVID-19
California Governor Gavin Newsom unveiled a series of new resources to aid small businesses and help workers.
- The state is allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months. The announcement came just days after the governor signed an executive order granting a 90-day extension for small businesses to pay sales taxes.
- The state is also allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds, including low wealth and undocumented immigrant communities.
Additionally, the Governor joined Bitwise Industries and the Kapor Center to launch OnwardCa.org, a new platform connecting displaced California workers with more than 70,000 job opportunities in critical industries.
- The announcement also included $17.8 million in new state initiatives to support California workers impacted by COVID-19. The allocation will come from Workforce Innovation and Opportunity Act funds with $7.8 million going to the Los Angeles region and $10 million made available statewide.
Forgivable loans through the Paycheck Protection Program
- 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 if all employees are kept on the payroll for eight weeks and the money is used for payroll, rent, mortgage interest, or utilities.
The U.S. Department of Treasury issued additional guidance regarding the Paycheck Protection Program. Links to the resources provided by Treasury can be found on their their webpage or by clicking on the links below.
- For a top-line overview of the program CLICK HERE
- If you’re a lender, more information can be found HERE
- If you’re a borrower, more information can be found HERE
- The application for borrowers can be found HERE
- Paycheck Protection Program – Interim Final Rule
Treasury and the Small Business Administration are saying businesses can go to a participating SBA 7(a) lender, bank, or credit union, apply for a loan, and be approved on the same day.