SBA COVID-19 Funding

The CARES Act, passed 3/27/20, is a $2 trillion coronavirus relief/economic stimulus bill that provides debt forgiveness and offers two loan programs for small businesses, the Paycheck Protection Program Loan and the Economic Injury Disaster Loan (EIDL), also known as an SBA Disaster Loan. You can apply for both, however, not for the same use of loan proceeds.

Read more about different SBA COVID relief programs here to see which ones your business qualifies for.

Paycheck Protection Program

Have you applied for forgiveness?

If you received a PPP loan between March 2020 and May 31, 2021 you may be eligible to apply for full forgiveness. Read more on the SBA website to see if you qualify.

Economic Injury Disaster Loans (EIDL)

The SBA’s Economic Injury Disaster Loan program provides small businesses with low interest working capital loans of up to $2 million that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.

Notice: COVID EIDL is no longer accepting new applications but will continue to accept requests for increases, reconsideration, and appeals.

See SBA website for more information about the EIDL program and if you qualify for further funding.

Debt Forgiveness for Current Borrowers

The SBA is to make the loan payments for six months on 504 loans in regular servicing and not on deferment beginning with the first payment due after the enactment (i.e., April 1).

Those 504 loans on deferment on the date of enactment of the CARES Act will receive the loan payments for six months after the deferment ends.

SBA payments will be made NO LATER THAN 30 days after the date on which the first payment is due. The first payment is due April 1, thus SBA has until April 30 to make the payments on behalf of 504 borrowers.

For 504 loans, this debt forgiveness applies ONLY to the SBA second mortgage, it does not apply to the first mortgage. You do not need to request these payments – they will be made automatically.

Emergency Economic Injury Grants of $10,000

SBA will advance a $10,000 Grant, if requested, within 3 days of applying for EIDL
You are eligible for an advance of up to $10,000, whether or not you are approved for an EIDL
This is a grant and does not need to be repaid under any circumstances

Emergency Grants & Loans

SBA Disaster Loan: Disaster Loan Online Application

Los Angeles City: Los Angeles City Small Business Emergency Microloan

San Diego South County EDC: South County Business Emergency Loan Program

City of Sacramento Emergency Loan: Covid19 Relief Fund Loan

KIVA: Expanded eligibility and flexibility on loans

The City and County of San Francisco: grants of up to $10,000 to affected microbusinesses.

Metro’s Financial Assistance: Metro Business Interruption Fund

Relief Assistance

IRS tax payments 3 month delay. You’ll still need to file your returns by April 15, 2020 but will have until July 15 to pay.
CA State Payroll Tax Assistance: may request up to a 60-day to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. A written request for an extension must be received within 60 days from the original delinquent date of the payment or return. For questions, employers may call the EDD Taxpayer Assistance Center. Toll-free from the U.S. or Canada: 1-888-745-3886

The City and County of San Francisco is offering deferred business taxes and licensing fees to small businesses.
Tech solutions to support for remote work from OpenForBusiness.org
Philanthropy California has a regularly updated list of resources and response funds, which can be filtered by region and community

Informational

CDC Guidelines for Businesses
City of Oakland Business and Workers COVID-19 Resources
Benefits for CA Workers Impacted by COVID-19
Survival Tips for Small Businesses
California SBDCs are assisting businesses through the SBA loan application process.
The Governor’s Office of Business and Economic Development have compiled helpful information for employers and employees.
Discounts for prescriptions with RxGo.
Rapid Response Business Triage Hotline (1-833-391-1919) Available 8:00 am to 4:00 pm, Monday through Friday. Provides assistance in English, Spanish, Vietnamese and Mandarin.

Tips for Business Owners

Communicate openly with your customers about the status of your operations and your ability to provide services
Communicate proactive measures you’ve implemented to ensure safety and cleanliness
Communicate daily with your employees about your plans and any new and relevant news
Prioritize the health and wellness of your employees and customers
Give employees the option to work from home if possible
Encourage staff to be vocal if they have any symptoms or if they have come in contact with someone infected with the virus
Budget for the next 30, 60, and 90 days
Reduce overhead and all non essential expenses
Stay compliant with regulations
Don’t stop selling or marketing. Promote gift cards, offer discounts, encourage online sales, sign contacts for the future, etc.
Level up on your social media channels and branding
Use this time to upgrade solutions or add innovative technologies
Don’t panic! Remind yourself that this will pass eventually.

COVID-19 Small Business Guide