The state is providing assistance to California’s businesses. If you own a business that is struggling during this time of economic hardship, consider applying to the following programs:

• The Small Business Hiring Tax Credit program. Eligible small businesses can receive up to $100,000 in tax credits if they meet the following qualifications:
  • Employed 100 or fewer employees as of December 31, 2019.
  • Suffered a 50% decrease or more in income tax gross receipts when comparing the second quarter of 2020 to the second quarter of 2019.
  • To reserve your tax credit today, visit the website here. [1]
• The California Rebuilding Fund. Low-interest loans are available for small businesses that meet the following criteria:
  • Small businesses in economically disadvantaged and under-banked areas of the state.
  • Employ 50 or less full-time equivalent employees.
  • Had gross revenues of less than $2.5 million in 2019. For information about the program and how to apply visit the website here. [2] 
• COVID Relief Grant. The California Office of the Small Business Advocate will be administering a $500 million grant program for small businesses impacted by COVID and economic restrictions.
  • These grants would be awarded starting in early 2021. The Governor’s Office of Business and Economic Development will be providing updates on this program on their website here. [3]

The state is also providing additional support:

• A three-month extension for taxpayers filing less than $1 million in sales tax.
• The California Department of Tax and Fee Administration is extending the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales. 
• For more information on the latest announcements, visit the Governor’s website here. [4]

Capital Programs

U.S. Small Business Administration (SBA) | disasterloanassistance.sba.gov [5]|sba.gov [6] [6]| 800-659-2955 SBA offers government-backed loans and resources and administers disaster loans in response to COVID-19 and California wildfires.

California Infrastructure and Economic Development Bank | www.ibank.ca.gov [7] | 916-341-6600 IBank offers government-backed loans for businesses in California including small business and disaster programs through its network of banking and mission based lending partners.

California State Treasurer’s Office | https://www.treasurer.ca.gov/cpcfa/calcap/sb [8]| 916-654-5610
California Capital Access Program for Small Business is another state government-backed loan program that operates through a network of lenders to offer credit.