As business owners, and former business owners, we at Milikowsky Tax Law know how challenging these times can be. Here are resources specifically focused on the Small to Mid-Sized Business Owner (under 500 employees). If you find yourself in an audit at this time, please reach out to us so we can help mitigate any financial burden you may be facing.
We are all in this together.
CA EDD’s work sharing program can help employers AND employees:
Employers can apply for the Unemployment Insurance (UI) Work Sharing Program if reduced production, services, or other conditions cause them to seek an alternative to layoffs.
The Work Sharing Program helps employees whose hours and wages have been reduced:
- Receive UI benefits.
- Keep their current job.
- Avoid financial hardships.
The Work Sharing Program helps employers:
- Minimize or eliminate the need for layoffs.
- Keep trained employees and quickly prepare when business conditions improve.
- Avoid the cost of recruiting, hiring, and training new employees.
The Small Business Administration is offering disaster relief loans:
The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19).
- The SBA’s Economic Injury Disaster Loans offer up to $2 million in assistance and can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing.
- These loans may be used to pay fixed debts, payroll, accounts payable and other bills that can’t be paid because of the disaster’s impact. The interest rate is 3.75% for small businesses. The interest rate for non-profits is 2.75%.
- SBA loans up to $10m based on 8 weeks prior average payroll plus 25%, can be forgiven (up to 8 weeks of payroll) if you maintain your workforce during this. Loan payments deferred
- Economic Injury Disaster Loans and Loan Advance, small business owners are eligible to apply for an advance of $10K. does not need to be repaid.
- SBA Debt Relief, SBA will pay principal and interest of new 7(a) loans issued prior to 9/27/20 and the principal and interest of current 7(a) loans for a period of 6months.
- SBA Express Bridge Loans, urgent need for cash, can qualify for up to $25K with fast turnaround, less paperwork, and can be repaid in full or in part by the EID Loan.
CA EDD allows employers to file a 60 day extension of payroll taxes
Employers statewide directly affected by the new coronavirus (COVID-19) may request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit payroll taxes without penalty or interest. This extension may be granted under Section 1111.5 of the California Unemployment Insurance Code (CUIC). A written request for extension must be received within 60 days from the original delinquent date of the payment or return.
The San Diego Small Business Relief Fund offers help of $10,000 – $20,000:
The City of San Diego has established a Small Business Relief Fund (SBRF) to help businesses impacted by COVID-19 retain employees and sustain continuity of operations. Financial assistance between $10,000 and $20,000 in grants, forgivable or low-interest loans will be allocated to eligible small businesses on a first-come, first-served basis. Funds awarded will be based on availability, program guidelines, and the submission of all required information and supporting documentation proving financial hardship related to COVID-19. Approximately $6.1 million is available in the SBRF, which is being administered by the City of San Diego’s Economic Development Department. (As of 4/2/20 the fund was said to be depleted)