The COVID-19 crisis continues to wreak havoc on local businesses. To mitigate this, California small businesses impacted by the pandemic can apply for a low-interest loan from the federal government.
These loans are first-come, first-serve and it is unknown whether an additional pot of money will be available should the initial funding for these loans be exhausted. The loans can cover 8 weeks of operating expenses and if 75% of the funds go to payroll of a small business as the new Federal CARES Act defines it, the entire loan amount can be forgiven. Further, California small businesses can now defer payment of up to $50,000 in sales and use taxes for up to a year—what amounts to an additional loan.
For those who do not qualify for federal loans because of low wealth or undocumented status, the state is allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses to help eliminate barriers to capital.
The California State Treasurer's Office is also providing a resource list for small business owners affected by the COVID-19 pandemic: http://bit.ly/stosmallbizlist. It includes resources from the federal, state, and local governments, nonprofits, and the private sector.
We will get through this.
Assemblymember Adrin Nazarian
46th Assembly District
P.S. For additional resources about the following programs, please see the websites below.