During this pandemic, we are bombarded with bad news as it comes to unemployment record highs, business closures, and the major economic impact of the global pandemic COVID-19. Many small businesses may be wondering if there is any hope or better yet, any help that they can receive during this very difficult time. Over the past few months, the top programs that have been in the news are the Payroll Protection Program (PPP Loan) and the Economic Injury Disaster Loan (EIDL). But what if you don’t want to get a payroll loan for your business? What if you don’t qualify for these types of loans, or don’t have the know-how to apply for them? Are there any other types of resources for small businesses during this time? Thankfully that answer is a resounding YES! There are a lot of other programs that the federal, state, county, and even city governments have put into place to help various businesses during these unprecedented times. Below are just a few of them and some links to the websites where you can apply for or request specific help.
Civil Unrest Disaster Assistance
Low-interest federal disaster loans are available to California businesses affected by civil unrest that began May 26, 2020. SBA can also lend additional funds to help with the cost of improvements to protect, prevent, or minimize the same type of disaster damage from occurring in the future. For small businesses, SBA offers Economic Injury Disaster Loans to help meet working capital needs caused by the disaster. Economic injury assistance is available regardless of whether the business suffered any property damage. The deadline to apply for economic injury is March 17, 2021. Apply directly with the SBA at https://disasterloanassistance.sba.gov/. Applicants may also contact SBA support personnel at the Virtual Disaster Loan Outreach Center. These services are only available for the California disaster declaration as a result of civil unrest that began May 26, 2020, and not for COVID-19 related assistance. Mondays – Fridays: 8 a.m. – 4:30 p.m.; Email the SBA at firstname.lastname@example.org; Telephone: (916) 735-1500.
CA Infrastructure and Economic Development Bank (IBank) Finance Programs
The State of California is allocating $50 million to the Small Business Finance Center at California’s IBank to mitigate barriers to capital for those small businesses (1-750 employees) that may not qualify for federal funds (including businesses in low-wealth and immigrant communities). The $50 million allocation will be used to recapitalize the IBank Small Business Loan Guarantee Program.
Disaster Relief Loan Guarantee Program: This disaster program provides guarantees for loans of up to $50,000 for small business borrowers in declared disaster areas. See this website for additional information https://www.ibank.ca.gov/small-business/loan-guarantees/
To contact IBank use the following email: IBank@IBank.ca.gov
California Capital Access Program (CalCAP) (1-500 employees)
CalCAP is a loan loss reserve program that may provide up to 100% coverage on losses as a result of certain loan defaults. Individual borrowers are limited to a maximum of $2.5 million enrolled over a 3-year period. Check out the brochure on the program here https://www.treasurer.ca.gov/cpcfa/calcap/sb/brochure.pdf Contact a Participating Lender to enroll from this list here https://www.treasurer.ca.gov/cpcfa/calcap/sb/institutions.pdf
To contact the California State Treasurer’s Office:
Email CalCAP at CalCAP@Treasurer.ca.gov
There are also many resources in California that you can work with to assist you to figure out which program and loan is best for you, here are just a few of them
CalOSBA - Small Business Assistance & Resources: California’s network of small business centers help businesses figure out which loans are best for them, develop resiliency strategies, and find other resources. Go to https://business.ca.gov/advantages/small-business-innovation-and-entrepreneurship/how-we-can-help/covid-19-resources-map/ to find the center nearest you.
If you need to talk to a specialist in GO-Biz’s Office of the Small Business Advocate directly, please contact the team here https://gobiz.zendesk.com/hc/en-us/requests/new
California Entrepreneurship Task Force has launched a series of Rapid Response Virtual Sessions to engage with fellow small business owners and entrepreneurs across our state. More details at https://business.ca.gov/advantages/small-business-innovation-and-entrepreneurship/help-us-advance-entrepreneurship/
Orange County and Inland Empire SBDC offices are here to assist you in a multitude of ways including free consultations for small businesses to figure out loan and grant programs. Check out their resources at https://ociesmallbusiness.org/covid-resources/
These are just a few of the many resources that are out there for small businesses in our county, state, and country. Many of these grants and loans require you to have some sort of financial record information, and some small businesses may not have a great habit of that. If that is you, we at Grandfield Tax and Business Services, Inc are here to assist you. Please call us at 714.921.2790 to set up an appointment for a meet and greet with our accounting and business consulting specialist to see how we can help you during this difficult time. Stay safe and stay healthy!