Napa Sonoma SBDCSanta Rosa and Napa, California

Economic Assistance for Businesses

Information below provides full details and/or links for funding programs for small businesses.
DISCLAIMER: Legislation and information related to the COVID-19 economic crisis is rapidly changing. See Full Disclaimer

If you need immediate help, you can call us at 833-ASK-SBDC (833.275.7232)

NEW GRANT PROGRAMS

  • SONOMA COUNTY BUSINESS STABILIZATION GRANTS - available to Sonoma County businesses with between 1 and 30 employees will be able to apply for between $2,500 and $15,000 in Covid-19 relief funding to use towards expenses including payroll, utilities, rent or mortgage expenses - READ MORE AND APPLY
  • HELLO ALICE GRANTS - Grants up to $50,000 to support business growth, including $10,000 emergency COVID-19 funding. DEADLINE SEPT 25 - READ MORE AND APPLY

1. Federal Funding Programs

BUSINESS FUNDING UNDER THE CARES ACT

OTHER CARES ACT FUNDING (not just for small businesses)

NON-CARES ACT FEDERAL FUNDING

  • Businesses can begin applying for FEMA Disaster Assistance while we await a disaster declaration to release additional disaster funds.
  • SBA Bridge Loans are available to small businesses who currently have a business relationship with an SBA Express Lender, providing access to up to $25,000 quickly.

2. State of California Programs


Details about the CARES Act - Federal Funding for Small Businesses

The CARES Act, or the Coronavirus Aid, Relief and Economic Security Act, is a $2 trillion economic stimulus package geared towards helping businesses, individual employees, and families mitigate the financial impacts of the COVID-19 outbreak. Below is an overview of the programs outlined, for a good overview of these programs, see the SBDC Guide to Understanding the CARES Act:

View SBDC CARES Act Guide


Economic Injury Disaster Loans (EIDL)

EIDLs are long-term loans used to pay fixed debts, payroll, accounts payable and other costs, but are not intended to replace lost sales or profits and cannot be used for certain purposes, including to refinance debt, make payments on loans owed by another federal agency, to pay tax penalty obligations, repair physical damages, or to pay dividends to stockholders. Actual loan amounts are based on amount of economic injury, though there is a limit. At this time, the specific amount of the limit is unclear.

WHO IS ELIGIBLE: Small businesses suffering substantial economic injury due to COVID-19 including:

  • Businesses that offer services directly related to the businesses in the declaration
  • Other businesses indirectly related the industry that are likely to be harmed by losses in their community
  • Businesses of 500 employees or fewer including:
    • Sole proprietorships, with or without employees
    • Independent contractors
    • Cooperatives and employee owned businesses
    • Tribal small businesses

HOW TO APPLY:

ADDITIONAL RESOURCES


Small Business Debt Relief Program Loans

This program will provide immediate relief to small businesses with existing non-disaster SBA 7(a) loans, covering your loan payments for 6 months.

WHO IS ELIGIBLE: Existing recipients of SBA 7(a) loans (not through PPP), 504 loans or microloans.

LEARN MORE AND APPLY:


Paycheck Protection Program (PPP) Loans: THIS PROGRAM HAS NOW ENDED


Employee Retention Tax Credit for Employers Subject to Closure or Experiencing Economic Hardship

This is a refundable payroll tax credit for employee retention, for 50% of wages paid to employees by employers during the crisis.

  • Important: If you receive a Paycheck Protection Program loan, you cannot also receive the Employee Retention Credit. The Employee Retention Credit is an alternative CARES Act relief measure for businesses. Because you cannot claim both the tax credit and forgivable loan, you must determine which would most benefit your business. We suggest talking to your accountant about options for a payroll tax credit.
  • Like PPP, the Employee Retention Credit is a fully refundable tax credit employers can claim if they don’t receive a PPP loan. 
  • This tax credit is equal to 50% of qualified wages eligible employers pay employees between March 12, 2020 – January 1, 2021. Eligible employers are those who must fully or partially suspend operations during any quarter in 2020 as a result of coronavirus. Employers whose gross receipts significantly decline are also eligible.

HOW TO APPLY:

No application needed. To claim the Employee Retention Credit, you will report your qualified wages and related credits for each calendar quarter on your federal employment tax returns (e.g., Form 941, Employer’s Quarterly Federal Tax Return). You can learn more about the Employee Retention Credit on the IRS’s website.

WHO IS ELIGIBLE: Small business employers whose operations have been affected, fully or partially suspended due to a shut-down order, or whose gross receipts declined by 50% or more compared to the same quarter last year. Available to employers, including non-profits, whose operations have been fully or partially suspended as a result of a government order limiting commerce, travel or group meetings.

THE 'FINE PRINT':

  • For employers with 100 or fewer full-time employees, all employee wages qualify for the credit, whether the employer is open for business or shut down due to a shelter order.
  • Credit to be provided for first $10,000 of compensation, including health benefits, paid to an eligible employee from March 13 through December 31st. 
  • Please download the Small Business Owner’s Guide to the CARES Act (pdf) for details:
    SBA Small Business Guide to CARES Act



CARES ACT PROVISION FOR EARLY WITHDRAWAL FROM RETIREMENT ACCOUNT

You can also withdraw from your retirement account without penalty, for up to $100,000 for eligible coronavirus-related purposes. Eligible withdrawals are limited to:

  • Those who contract COVID-19, or whose spouse or dependent has contracted the virus,
  • Those who experience adverse financial impacts as a result of being furloughed, laid off, quarantined, have hours reduced or are unable to work due to lack of childcare, the closing of or reduced hours of a business owned by the individual,
  • "Or other factors determined by the Treasury Secretary." (this text taken from the CARES Act).

*DISCLAIMER:

  • This is the most up to date information that we know, compiled by SBA and the US Treasury Dept.
  • If you filed an EIDL before Mar 30th (loan confirmation beginning with a '2') and have not heard back from the SBA, you should reapply.
  • The SBDC has no control over federal changes or revisions to the CARES Act. SBDCs are funded by the SBA and hosted by local municipalities, colleges, etc.
  • We're doing our best to help clients in creating economic impact during this time of need. We will use this platform to continually update our communities as best we can.

 

Need Help Starting or Growing your Business?

It all starts here. Complete the application and submit your request. A member of the SBDC will follow up with you and help you achieve your small business goals -- at no cost to you.

COVID-19

As concerns continue about coronavirus (COVID-19), we’re here to help you navigate available resources, answer your business questions and be a trusted partner for your business
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Funded in part through a cooperative agreement with the U.S. Small Business Administration. All opinions, conclusions or recommendations expressed are those of the author(s) and do not necessarily reflect the views of the SBA or HSU Sponsored Programs Foundation.