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

Download the SBDC COVID-19 Resource Guide

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

1. Federal Funding Programs

BUSINESS FUNDING UNDER THE CARES ACT

Download the Small Business Guide to the CARES Act (pdf)

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

3. Napa-Sonoma Programs

4. Other Support for Businesses

The SBDC does not support or endorse these organizations!

Grants (Check links to confirm if application period is open)

Loans

Free Advertising

  • Yelp is providing $25 million in coronavirus relief specifically for independent restaurant and nightlife businesses in the form of waived advertising fees, and free advertising, products and services.
  • Facebook is offering $100 million in cash grants and advertising credits to help small businesses.

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

The grants are backdated to January 31, 2020 to allow those who have already applied for EIDLs to be eligible to also receive a grant.

HOW TO APPLY:

ADDITIONAL RESOURCES

  • NOTE: To access the grant, you first apply for an EIDL and then request the grant. See above.
  • Watch our recording on Facebook Live for a full overview - English  |  Spanish
  • The SBDC Guide to Understanding the CARES Act provides great information, including a comparison of EIDL vs PPP.
    View SBDC CARES Act Guide
  • Download the Small Business Owner’s Guide to the CARES Act:
    SBA Small Business Guide to CARES Act

Emergency Economic Injury Grants

Advance emergency grants of UP TO $10,000 to small businesses and nonprofits that also apply for a SBA economic injury disaster loan. These emergency grants will be provided to applicants soon after applying for the loan (note that the documentation says 3 days but per SBA it is currently 12 days!) You must apply for an EIDL loan in order to qualify for a grant. If you have already applied and been declined, approved, or have not yet heard about your EIDL application, you must re-apply using the streamlined SBA EIDL application.

4/10/20 Updates:

  • Recent details indicate that the advance is $1,000 per employee.
  • Though original wording indicated that the advance would be provided in 3 days. The actual processing is longer and no clear period is determined. Last number discussed by SBA was around 12 days.

WHO IS ELIGIBLE: Same as EIDL, above.

HOW TO APPLY: Apply at the same time as you apply for an EIDL (there is a checkbox on the application form). See EIDL, above.

THE 'FINE PRINT': The advance (grant) up to $10,000 does not need to be repaid under any circumstance, and may be used to keep employees on payroll, to pay for sick leave, meet increased production costs due to supply chain disruptions, or pay business obligations, including debts, rent and mortgage payments.


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

The CARES Act allocates $350 billion for a new Paycheck Protection Program to make loans to businesses that are impacted. The goal is to help workers and encourage employee retention and re-hiring:

  • Loans up to 250% of a business’s monthly payroll costs, with a 100% federal guarantee. Payroll costs include salary, wages, and payments of cash tips.
  • Loan Forgiveness:
    • Borrowers would be eligible for loan forgiveness equal to the amount spent by the borrower on payroll costs during an 8-week period after the loan origination date (including additional wages to tipped workers), interest payments on a mortgage existing prior to February 15, 2020, rent payments on a lease in force prior to that date, and utility payments for service which began prior to that date.
    • Forgiveness amounts would be reduced in conjunction with the reduction of employees.
    • Loan amounts not forgiven after one year would be carried forward with a maximum term of 10 years, 4% interest rate, while 100% loan guarantee would remain intact.
  • Use is to rehire employees who have already been laid off due to the COVID-19 crisis, borrowers that re-hire workers previously laid off wouldn’t be penalized for having a reduced payroll at the beginning of the loan period.

WHO IS ELIGIBLE: Small businesses who are unable to pay the normal payroll to their employees or selves including:

  • Small businesses with 500 employees or fewer or that otherwise meet the current SBA size standard.
  • Self-employed individuals & gig economy workers.
  • Certain non-profits, including 501(c)(3) organizations, 501(c)(19) veteran organizations, and tribal businesses with under 500 employees.

HOW TO APPLY: Loans are available through more than 800 existing SBA-certified lenders, including banks, credit unions, and other financial institutions:

THE 'FINE PRINT':

  • Employers and self-employed would be allowed to defer social security tax they are otherwise required to pay to the federal government (6.2%), which would be repaid over the next two years.
  • Download the Small Business Owner’s Guide to the CARES Act (pdf) for details:
    SBA Small Business Guide to CARES Act

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 UNEMPLOYMENT SUPPLEMENT

The CARES Act creates the Temporary Pandemic Unemployment Assistance Program through Dec. 31st, 2020, expanding unemployment benefits as follows:

WHAT:

  • An additional $600/week payment of unemployment benefits for recipients up to four months. (Prior to the CARES Act, the average benefit in CA is $450 a week, so in total an unemployment recipient would receive about $1050/week moving forward. Traditionally, unemployment benefits are about 40-45% of a worker’s income.)
  • These benefits cannot exceed 39 weeks. The extra $600 for each recipient is intended to end July 31st.

WHO IS ELIGIBLE:

  • Those who are unemployed, partially unemployed, or who cannot work for a wide variety of coronavirus-related reasons, including freelance and gig-economy workers, will now most likely be elligible.
  • Not intended to cover: People who quit their jobs due to concerns that continuing to work increases their risk of contracting the virus, workers who are able to work from home, those receiving paid family or sick leave, or new entrants to the workforce unable to find jobs.

HOW TO APPLY:

California workers may apply for unemployment benefits at the California Employment Development Department (EDD). Business owners should also encourage employees who are now unemployed or on reduced hours to apply.
View EDD Online


CARES ACT PROVISIONS FOR INDIVIDUALS AND FAMILIES

Provides financial relief for all individuals and families:

  • Individuals may qualify for up to $1,200 in financial assistance.
  • Married couples may qualify for up to $2,400 in financial assistance.
  • Extra financial relief of $500 per dependent child.

WHO IS ELIGIBLE:

  • Individuals:
    • Individuals with gross adjusted income of less than $75,000* receive full amount ($1,200).
    • Individuals with gross adjusted income up to $99,000* will still qualify for partial financial assistance (recovery rebates will be deducted by $5 for every $100 of gross adjusted income over $75,000*).
  • Couples with gross adjusted incomes of less than $150,000* receive full amount ($2,400).
    • Couples with gross adjusted income up to $198,000* will still qualify for partial financial assistance (recovery rebates will be deducted by $5 for every $100 of income over $150,000*).
  • Most social security recipients, eligible unemployed people, and Veterans will be eligible for payments.
    • This payment cannot be garnished due to student loan payment defaults.

*Calculation is based on on 2019 taxes if they’ve been filed, 2018 if they have not.

HOW TO APPLY:

There is no need to file! The IRS will deposit the amounts directly into bank accounts of individuals who have set up direct deposit with the IRS and mail checks to those who haven’t.


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.
  • The US Treasury is actually still working on exactly how to roll out a lot of stimulus.
  • Therefore, SBA guidelines and application processes have changed, banks are overloaded and still working on their loan process.
  • 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.
  • That said, 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.

 

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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.