House and Senate Approve Refunding Payroll Protection Program and Economic Injury Disaster Loan Program
Update: The CARES Act Paycheck Protection Program (PPP) which provides forgivable loans of up to $10 million to small businesses, were loosened on June 5, 2020. A small business now has the earlier of twenty-four (24) weeks after a PPP loan is originated or until December 31, 2020 to use PPP funds. This is a change from the original eight (8) weeks after the loan is originated. In addition, now, a borrower is only required to use 60 percent of PPP funds for payroll and may use up to 40 percent on mortgage interest payments, rent, and utility payments. Click here
- Paycheck Protection Program Loan Information can be accessed through Frequently Asked Questions for Lenders and Borrowers (04/26/2020), How to Calculate Loan Amounts. For affiliation rules applicable for the Paycheck Protection Program, click here. The Interim Final Rule for Applicable Affiliation Rules for the Paycheck Protection Program as posted in the Federal Register. Frequently Asked Questions for Faith-Based Organizations Participating in the Paycheck Protection Program and Economic Injury Disaster Loan Program.
- The U.S. Small Business Administration (SBA) can help connect businesses with working capital or provide emergency relief through the Economic Injury Disaster Loan Assistance Program offering up to $2 million in assistance with a 3.75% interest rate for business and a 2.75% interest rate for nonprofits.
- The U.S. Chamber of Commerce has introduced a Small Business Fund that offers a grant of $5,000 to qualifying businesses employing between 3 and 20 people having been harmed financially by COVID19. Click here.
- The California State Treasurer’s Office offers the California Capital Access Program (CalCAP) for small businesses by encouraging banks and other financial institutions to make loans to small business that have challenges obtaining financing.
- California’s Small Business Finance Center gives small businesses access to a range of financial products including loan guarantees and direct loans. Two credit enhancement programs to help small business obtain loans are the Small Business Loan Guarantee Program and the Small Business Loss Reserve Program.
- The UI Work Sharing Program is available for employers experiencing a slowdown in their businesses or services as a result of the coronavirus.
- The Rapid Response Program will connect a business with a team that will meet with you to discuss your needs, help avert layoffs, and provide on-site services to assist workers facing job losses
- The California Small Business Development Center (SBDC) can help with applying for COVID-19 relief guiding business through available resources, cash flow concerns, supply chain interruptions, insurance coverage--at no cost.
- The Office of the Small Business Advocate provides a network of small business centers throughout the state to offer consulting and training and access to capital
- The California Department of Tax and Fee Assistance (CDTFA) has been authorized by the Governor to provide relief to taxpayers during the 60-day window of the Governor’s Executive Order. Taxpayers are granted extensions for filing returns, making payments, and relief from interest and penalties. @(Model.BulletStyle == CivicPlus.Entities.Modules.Layout.Enums.BulletStyle.Decimal ? "ol" : "ul")>