As of July 13, 2020

California Coronavirus (COVID-19) Responsse

Businesses and Employers

Tax Relief for Small Businesses

What do taxpapers need to do if they want to take advantage of relief from the California Department of Tax and Fee Administration?


Interested taxpayers should contact CDTFA by visiting cdtfa.ca.gov or calling 800-400-7115.




When will taxpapers start on these payment plans?


Given that the April deadline to file and pay sales and use tax returns has been extended to late July for all but the largest taxpayers, CDTFA expects that most participating taxpayers will begin their payment arrangements in late July of this year.




How will the payment plans work?


Qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments. No interest or penalties will be assessed against the liability.




Is this only for tax payments due fo the 1st quarter of 2020?


If taxpayers choose to use this program to distribute the burden of their May or June prepayments or their July return, CDTFA will work to accommodate those taxpayers.




What if taxpapers owe more than the $50,000 limit on the relief?


The maximum amount that any taxpayer can defer interest-free under this relief effort is $50,000.




Is the deadline for filing California tax returns extended?


Yes. All California taxpayers (individuals and businesses) can file and pay by July 15, 2020. See information from the CA Franchise Tax Board for more information.





Small Business Disaster Relief Loan Guarantee Program

What SBA programs are available to small businesses right now?


More about the SBA Paycheck Protection Program (PPP) The PPP is a loan program for small businesses, self-employed, independent contractors, nonprofits with a maximum of 500 employees, and it is intended to keep workers paid and employed. The loan amount is calculated based on payroll expenses with a maximum amount of $10 million at a rate of 1% for up to 2 years. The loan is forgivable if 75 percent of the loan amount is used for payroll, and no employees are laid off, or if laid off employees are rehired before June 30, 2020. In addition to payroll costs, allowable expenses include mortgage interest, rent, and utilities. Once pending funds become available, submit your application as soon as possible, even if you may need to rehire employees that have been laid off. Check the PPP Fact Sheet and Frequently Asked Questions, and see details at SBA.gov for more details. Find a lender to contact right away. More about the SBA Economic Injury Disaster Loans (EIDL) and EIDL Advances EIDL is a direct loan for up to $2 million at a rate of 3.75% for small businesses and 2.75% for nonprofits. Applicants can get an Advance of up to $10,000 within days of a successful application, and the Advance doesn’t have to be paid back. Apply directly with the SBA. Contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.




How does a small business get up to $10,000 advance through the Economic Injury Disaster Loan (EIDL) program?


In order to request the advance of up to $10,000, eligible businesses must apply for the SBA’s Economic Injury Disaster Loan Program at sba.gov. SBA has simplified the application, and the loan and loan advance can both be requested through the Small Business Administration. Businesses who applied before March 30 or those who did not receive a response or appropriate confirmation number will need to reapply or contact SBA for assistance.




Which banks are offering the Paycheck Protection Program forgivable loans?


Interested borrowers can contact any SBA participating bank, credit union, or nonprofit lenders to apply for the PPP. For more information, contact your local bank or reach out to SBA’s local district offices for assistance.




Where do I find more information on the allowable expenses for a forgivable loan under the Paycheck Protection Program?


SBA has published an interim final rule that includes more detailed information about the PPP.




How does a business know if it is eligible for an SBA loan or loan guarantee program?


Small businesses with 500 employees or less are eligible to apply for the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and/or the Small Business Debt Relief Program. Visit SBA’s comprehensive COVID-19 support website to find out more about SBA’s eligibility requirements for each program.




How do I reach SBA for any questions or assistance?


SBA has district offices in California that are open to answer questions. You can use the SBA’s Local Assistance Directory to locate the office nearest you. You can also contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.




How does a small business know which SBA loan or loan guarantee program is the right one? Can a small business apply to more than one?


Call or email the SBA to find out which program is right for you. While businesses can apply for and receive more than one form of capital assistance through the SBA, they cannot be used for the same purpose. The SBA can advise you on your options. Call 1-800-659-2955 / 1-800-877-8339 (TTY), or email disastercustomerservice@sba.gov.




How do I get SBA to cover my loan payments on my existing 7(a), 504, or microloan if I cannot pay due to COVID-19?


SBA has a Debt Relief program and will pay the principal and interest of existing SBA loans. Please contact your lender for information.




If I need help to figure out which program is best for me or to submit an application, where can I find support?


California’s network of small business support centers can help you figure out which loans and programs are best for your business, help you develop resiliency strategies, and find other resources. To find the closest center, go to business.ca.gov/centers.





U.S. Small Business Administration Stimulus Programs

What SBA programs are available to small businesses right now?


More about the SBA Paycheck Protection Program (PPP) The PPP is a loan program for small businesses, self-employed, independent contractors, nonprofits with a maximum of 500 employees, and it is intended to keep workers paid and employed. The loan amount is calculated based on payroll expenses with a maximum amount of $10 million at a rate of 1% for up to 2 years. The loan is forgivable if 75 percent of the loan amount is used for payroll, and no employees are laid off, or if laid off employees are rehired before June 30, 2020. In addition to payroll costs, allowable expenses include mortgage interest, rent, and utilities. Once pending funds become available, submit your application as soon as possible, even if you may need to rehire employees that have been laid off. Check the PPP Fact Sheet and Frequently Asked Questions, and see details at SBA.gov for more details. Find a lender to contact right away. More about the SBA Economic Injury Disaster Loans (EIDL) and EIDL Advances EIDL is a direct loan for up to $2 million at a rate of 3.75% for small businesses and 2.75% for nonprofits. Applicants can get an Advance of up to $10,000 within days of a successful application, and the Advance doesn’t have to be paid back. Apply directly with the SBA. Contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.




How does a small business get up to $10,000 advance through the Economic Injury Disaster Loan (EIDL) program?


In order to request the advance of up to $10,000, eligible businesses must apply for the SBA’s Economic Injury Disaster Loan Program at sba.gov. SBA has simplified the application, and the loan and loan advance can both be requested through the Small Business Administration. Businesses who applied before March 30 or those who did not receive a response or appropriate confirmation number will need to reapply or contact SBA for assistance.




Which banks are offering the Paycheck Protection Program forgivable loans?


Interested borrowers can contact any SBA participating bank, credit union, or nonprofit lenders to apply for the PPP. For more information, contact your local bank or reach out to SBA’s local district offices for assistance.




Where do I find more information on the allowable expenses for a forgivable loan under the Paycheck Protection Program?


SBA has published an interim final rule that includes more detailed information about the PPP.




How does a business know if it is eligible for an SBA loan or loan guarantee program?


Small businesses with 500 employees or less are eligible to apply for the Economic Injury Disaster Loan (EIDL), the Paycheck Protection Program (PPP), and/or the Small Business Debt Relief Program. Visit SBA’s comprehensive COVID-19 support website to find out more about SBA’s eligibility requirements for each program.




How do I reach SBA for any questions or assistance?


SBA has district offices in California that are open to answer questions. You can use the SBA’s Local Assistance Directory to locate the office nearest you. You can also contact the SBA by phone at 1-800-659-2955 / 1-800-877-8339 (TTY), or by email at disastercustomerservice@sba.gov.




How does a small business know which SBA loan or loan guarantee program is the right one? Can a small business apply to more than one?


Call or email the SBA to find out which program is right for you. While businesses can apply for and receive more than one form of capital assistance through the SBA, they cannot be used for the same purpose. The SBA can advise you on your options. Call 1-800-659-2955 / 1-800-877-8339 (TTY), or email disastercustomerservice@sba.gov.




How do I get SBA to cover my loan payments on my existing 7(a), 504, or microloan if I cannot pay due to COVID-19?


SBA has a Debt Relief program and will pay the principal and interest of existing SBA loans. Please contact your lender for information.




If I need help to figure out which program is best for me or to submit an application, where can I find support?


California’s network of small business support centers can help you figure out which loans and programs are best for your business, help you develop resiliency strategies, and find other resources. To find the closest center, go to business.ca.gov/centers.





Employers

How do I maintain a safe workplace?


If your business is in an essential sector and remaining open during the stay home order, you should take steps to ensure the safety and health of your workers.




What precautions should healthcare workers and organizations take?


See Cal/OSHA’s guidance on protecting workers from coronavirus.




How can I avoid laying off employees if my business is impacted by COVID-19?


Apply for the Unemployment Insurance (UI) Work Sharing Program.





Stay Home Order

What do taxpapers need to do if they want to take advantage of relief from the California Department of Tax and Fee Administration?


Interested taxpayers should contact CDTFA by visiting cdtfa.ca.gov or calling 800-400-7115.




When will taxpapers start on these payment plans?


Given that the April deadline to file and pay sales and use tax returns has been extended to late July for all but the largest taxpayers, CDTFA expects that most participating taxpayers will begin their payment arrangements in late July of this year.




How will the payment plans work?


Qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their tax due in 12 equal monthly installments. No interest or penalties will be assessed against the liability.




Is this only for tax payments due fo the 1st quarter of 2020?


If taxpayers choose to use this program to distribute the burden of their May or June prepayments or their July return, CDTFA will work to accommodate those taxpayers.




What if taxpapers owe more than the $50,000 limit on the relief?


The maximum amount that any taxpayer can defer interest-free under this relief effort is $50,000.




Is the deadline for filing California tax returns extended?


Yes. All California taxpayers (individuals and businesses) can file and pay by July 15, 2020. See information from the CA Franchise Tax Board for more information.