COVID-19 Resources for Business

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COVID-19 has led to business closures due to changes in consumer behavior and measures to reduce the spread of the virus. There are many programs that have been implemented to assist businesses which have suffered losses due to the coronavirus. Further, there are certain measures that businesses can take to reduce the impacts. These are summarized below.

You may find additional useful information by visiting our Resources for Impacted Employees page.

IMPORTANT UPDATE - ONGOING WEBINAR SERIES

Cal Coastal SBDC and MCBC, co-sponsored by the City of Salinas and County of Monterey, are partnering to present free weekly webinars on COVID-19 economic disaster assistance. This week's presentation will be conducted in Spanish - click here to register. If you missed the April 3 webinar, you can access the video recording here. A Fact Sheet on SBA Programs may be found here.

Updates

04/28/20 - Both the National Development Council (NDC) and Opportunity Fund are now Payroll Protection Plan (PPP) lenders. All businesses in Salinas and Monterey County are part of NDC's client community and can complete a PPP application online. Opportunity Fund will process PPP applications up to $150K for businesses that do not have an existing relationship with them. Click here to access OF's online application.

04/09/20 - The Monterey County Revolving Loan Fund is now able to accept applications for businesses which have been impacted by COVID-19. Visit Cal Coastal Rural Development Corporation's web page here for information on how to apply.

04/07/20 - The Treasury Department has launched a new webpage detailing the provisions of the CARES Act and providing helpful links to resources.

04/02/20 - Governor Gavin Newsom announced the allocation of $50 Million dollars to the California Infrastructure and Economic Development Bank (IBank) to provide up to 95% loan guarantees on qualified business loans made by local lenders. The purpose of these funds is to help eliminate barriers to access to capital for business owners who do no qualify for federal funds. More information may be found here and by scrolling down on this page.

03/27/20 - President Donald Trump signed into the law the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This estimated $2 trillion package includes many provisions to assist businesses struggling to get through these difficult times. Programs created or modified by the CARES Act include an expansion of Economic Injury Disaster Loans (including an up to $10,000 cash advance) and Paycheck Protection Program. Please look below under "Layoff and Business Closure Prevention" for additional information on these items.

03/23/20 - The Federal Housing Finance Agency (FHFA) is offering mortgage payment forbearance to multi-family property owners who suspend evictions of tenants for causes related to COVID-19. The announcement and details may be found here.

03/20/20 - City Manager Ray Corpuz issued an Order imposing substantial limitations on residential and commercial evictions within the City of Salinas. A copy of this Order may be found here.

Resources for Technical Assistance

Navigating these programs while trying to keep your business and/or personal finances afloat can be a daunting task. Fortunately, there are resources available to work with businesses one-on-one to help you find solutions tailored to your individual situation. The City of Salinas has contracted with El Pajaro CDC and the SBDC to provide information and technical assistance to businesses on an individual basis. Other technical assistance programs may be available as well. Please see below for a list of known organizations:

El Pajaro Community Development Corporation (El Pajaro CDC)

El Pájaro CDC has successfully helped thousands of people start, maintain and expand their small business by offering technical assistance, help in acquiring loans, developing business plans and crafting marketing and promotion campaigns, managing employees, navigating the legal system, and more. El Pájaro CDC helps entrepreneurs by taking the confusion, guesswork and complexity out of starting their own small businesses.

Cal Coastal Small Business Development Center (SBDC)

The Cal Coastal Small Business Development Center (SBDC) is affiliated with the SBA and promotes the development, growth and success of small businesses and aspiring entrepreneurs in Monterey and San Benito Counties. The SBDC is operated by Cal Coastal Rural Development Corporation, which is a recognized Financial Development Corporation (FDC) for the IBank’s Disaster Relief Loan Guarantee and Jump Start Programs.

Rapid Response Program

Employers planning a closure or major layoffs as a result of the coronavirus can get help through the Rapid Response program. Rapid Response teams will meet with you to discuss your needs, help avert potential layoffs, and provide immediate on-site services to assist workers facing job losses. For more information, refer to the Rapid Response Services for Businesses Fact Sheet (DE 87144RRB) (PDF) or contact your local America’s Job Center of CaliforniaSM.

Business Best Practices

Certain practices by businesses can reduce impacts from the coronavirus, help with recovery once the virus has stopped circulating, or help businesses take advantage of some of the assistance programs described below. Please review these 6 Business Practices for ideas. Additionally, the following practices could prove helpful:

Contact your landlord, request a moratorium on your lease, add the months to the end of your lease or arrange for deferred payment.
Contact all your creditors/vendors – let them know every step you have taken and ask for extensions on payments.
Check your insurance policy for interruption of service, product loss and loss of revenue.
Contact the El Pajaro Community Development Corporation 831-722-1224 or the Central Coast Small Business Development Center at 831-424-1099 or https://CalCoastalSBDC.com for free one-on-one counseling and technical assistance. Contact information is provided below.

Layoff and Business Closure Prevention

Layoffs and business closures can have long-term detrimental effects all those concerned. Although these are sometimes unavoidable, there are programs in place that can help you seek alternatives. If you are considering layoffs of your employees, or closing your business, we encourage you to review the links below to help you determine if other options may be available:

Small Business Administration (SBA)

The Federal Government has created a number of programs managed by the SBA. A few of these are described in more detail below; however, a complete list of these programs may be found here and on the SBA's COVID-19 Webpage.

The CARES Act includes an expansion of the Economic Injury Disaster Loan program. These loans can be for up to $2 million and have a 30-year repayment period. Under the CARES Act, the program has been modified to make it easier to obtain funding, including an up to $10,000 emergency cash grant that may be forgivable under certain conditions. Demand for this program is expected to be high - it is recommended that applications for this program be submitted as soon as possible.

The CARES Act also includes the Paycheck Protection Loan Program. This program authorizes up to $10 million for businesses in order to prevent job losses and maintain payroll. The program requires that certain employment levels be maintained - however, if program requirements are met for the first 8 weeks, the loan amounts spent on items such as payroll, rent, mortgage, and utilities may be forgiven. Summaries of the program from the Treasury Department may be found here and here.

The SBA Disaster Loan Program assists small businesses that have been impacted by federally declared disasters, including the City of Salinas. The program offers low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%. The loan term is up to 30 years. The process to obtain a loan is outlined here. Applications may be submitted here. The SBA Disaster Assistance Customer Service Center may be reached at 1-800-659-2955 (TTY: 1-800-877-8339) or by e-mail at [email protected].

Families First Coronavirus Response Act (HR 6201)

The Families First Coronavirus Response Act was passed into law and signed into law by President Donald Trump on March 18, 2020. Under the law, many businesses must provide paid sick leave and paid FMLA benefits to employees (as detailed here) who have been impacted by the COVID-19 pandemic. Information regarding a business's obligations under this law may be found here. The amounts vary based on several factors - however businesses offering this leave are able to be reimbursed for these expenditures through retaining otherwise payable payroll taxes. Please visit this page on the IRS website for more information and details on the paid sick leave provisions.

Work Sharing Program

Employers experiencing a slowdown in their businesses or services as a result of the coronavirus impact on the economy may apply for the UI Work Sharing Program. This program allows employers to seek an alternative to layoffs — retaining their trained employees by reducing their hours and wages that can be partially offset with UI benefits. Workers of employers who are approved to participate in the Work Sharing Program receive the percentage of their weekly UI benefit amount based on the percentage of hours and wages reduced, not to exceed 60 percent.

Taxes

Tax Return Extensions

Deadlines for Submitting both Federal and State Tax Returns have been extended to July 15, 2020. More information may be found at websites for the IRS and FTB.

Payroll Tax Extensions

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. For questions, employers may call the EDD Taxpayer Assistance Center.

Toll-free from the U.S. or Canada: 1-888-745-3886
Hearing impaired (TTY): 1-800-547-9565
Outside the U.S. or Canada: 1-916-464-3502

Emergency/Disaster Loans

IBank

The California Infrastructure and Economic Development Bank (IBank) is a unit within the Governor’s Office of Business and Economic Development (GO-BIZ). The IBank has two programs to support businesses that have been impacted by the coronavirus:

Under the Disaster Relief Loan Guarantee Program (DRLGP), IBank will issue loan guarantees up to 95 percent of the loan through its partner Financial Development Corporations (FDCs) to help small business borrowers who were impacted by disasters and who need term loans or lines of credit for working capital. This disaster program will help lenders and small businesses by providing loan guarantees of up to $1 million.

Under the Jump Start Loan Program, IBank is offering loans from $500 to $10,000 to low-wealth entrepreneurs in declared disaster and emergency areas through its Jump Start Loan Program, a small loan and financial literacy/technical assistance program designed for low-income small businesses in low-wealth communities, including businesses owned by women, minorities, veterans, people with disabilities and those previously incarcerated. Access to IBank’s Disaster Relief Loan Guarantee Program and Jump Start Loan Program can be made through its partner Financial Development Corporations (FDCs)

Information on these programs may be found by selecting this link and scrolling down the page.