Several programs have been announced by various government agencies that are intended to help businesses and individuals with the financial strains related to our current challenging environment due to COVID-19.
As always, we are here to help if you have any specific questions about your companies situation!
The largest of these is the Federal Coronavirus Aid, Relief and Economic Security Act (CARES Act) was signed into law on Friday, March 27th, 2020. It includes several provisions that are helpful for small businesses that may want to take advantage of the programs offered.
- The CARES Act provides loans to businesses that meet the Small Business Administrations (SBA) definition of a small business as well as companies with up to 500 employees.
- These loans can be used to cover costs incurred such as payroll costs, rent, utilities and mortgage interest payments between February 15th, 2020 and June 30, 2020.
- A portion of the loan may be eligible for forgiveness when used for the purposes listed above.
- The loans will be made available through banks and lending institutions that are SBA approved lenders.
- If an employee applies for and receives unemployment benefits, the CARES Act has a provision that provides employees an additional weekly payment of $600 from the federal government.
For more information on the CARES Act including how to apply for a loan, please see our CARES Act – FAQs.
SBA Economic Injury Disaster Loan Program and Express Bridge Loans
SBA is offering low-interest disaster loans to help small business owners impacted by the Coronavirus (COVID-19). Eligible businesses may apply for SBA’s Injury Disaster Loan Program to request an advance up to $10,000. While waiting for decision and disbursement on Economic Injury Disaster Loan, small businesses with an urgent need for cash may qualify for the Express Disaster Bridge Loan.
New Resource for California Residents
On April 2nd, Governor Newson announced a new website resource, Onwardca.org, for California residents who have lost their jobs due to the coronavirus.
San Diego Small Business Relief Fund
The City of San Diego has set up a Small Business Relief Fund (SBRF) to provide grants and forgivable or low to zero-interest loans for business with less than 100 employees. The grants and loans will range from $10,000 to $20,000 and will depend on the eligibility of the funds. As of April 1st, the fund has approximately $6.1 million available.
The number of applications currently exceeds the amount of the funds available but the city continues to accept applications and solicit more donations in order to meet the needs of the businesses.
For more information and to submit your application, visit the SD Business Relief and Support Website.
Federal and California State Tax Filing and Payment
Both the federal and California government have postponed the filing and payment of individual and business taxes until July 15th, 2020.
For more information on the California guidelines including which tax payments can be postponed visit the California FTB Website.
For more information on the federal government, guidelines visit IRS Tax Day Guidelines.
Please note that if an employer does not seek loan forgiveness under the CARES Act they have the option to seek a temporary payroll tax holiday from the federal government. This would give the employer the option to defer payment of the employer share of Social Security taxes for the period beginning on the day of the enactment of the Act, March 27, 2020, and ending before January 1, 2021. The deferred amounts would then be due 50% by December 31, 2021, and the remaining amount by December 31, 2022.
As always, we are here to help if you have any specific questions about your companies situation! Contact us today or learn more about our COVID eShield Hotline that is complimentary for 90-days.