resources for covid-19 relief

The following are general resources and general information compiled from government resources, and intended as a human courtesy to serve as a guide or starting point. It does not constitute legal advice or establish an attorney-client relationship. If you would like to consult with a business attorney regarding your specific options and information that is specific to your business, please contact us by email.

FEDERAL govt.

The US Senate Committee on Small Business and Entrepreneurship has prepared THIS GUIDE that provides an easy-to-follow overview of the Coronavirus Aid Relief and Economic Recovery (CARES) Act. One of the most inquired-about programs is the Paycheck Protection Program (PPP) Loans- I am attaching a PPP OVERVIEW and a PPP FACT SHEET. These PDF documents were prepared by the government, and can also be accessed here: https://www.sbc.senate.gov/public/index.cfm/guide-to-the-cares-act.

Many of these federal government resources can also be accessed through the Small Business Administration’s (SBA) website located at https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

The Internal Revenue Service (IRS) also has a list of resources and information available at https://www.irs.gov/coronavirus .

Many of the SBA and federal government’s programs will be administered by individual banks—check your bank’s online information because many of them have set up pages for business banking clients.

changes to the federal tax code. Note that the 2019 federal income tax deadline normally falling on April 15 has been extended until July 15, 2019 for all individuals and corporations. Several new tax laws have been adopted, including new deductions available, that may enable you to re-file previous year’s tax returns to offset this year’s losses. You need your accountant more than ever this year- don’t delay reaching out to her/him.

*pro tip: Remember that loans need to be paid back- if you take more than you need, or you use this funding recklessly, you will put yourself and your business in a bad position. Many people mistakenly believe that some of these loans will be forgiven by the government—that is NOT accurate. The PPP program has a possibility to be forgiven, but this will not happen automatically; you will have to file an application a few months down the line requesting it be forgiven—there are very specific requirements. Bottom line: expect to have to pay back your loans.

CA STATE & local GOVT.

The State of California has a list of state-level resources and programs viewable at https://covid19.ca.gov/business-and-employers/#top Those resources include a deferral of sales/use tax, state-backed loan programs, and possible state income tax extensions.

Check with your city and county governments as well, as they may have additional resources available for small business owners. For example, the City of San Diego has a list of local resources that includes a small business relief fund issuing grants (info. available at https://www.sandiego.gov/economic-development/resources/relief).

changes to state unemployment benefits. Note that the CARES Act has made self-employed business owners as well as 1099 independent contractors and gig economy workers eligible for unemployment and family leave programs that were previously reserved only for W2 employees. Family leave is now an available benefit for parents of school-age children who now have to care for their children full-time as a result of school closures. This means even if you did not lose your job, but you now cannot work due to school closures, this aid is available to you. State unemployment pay amounts vary (in California you receive between $40 and $450 per week, based on your last three quarters’ income). The CARES act has increased this amount by $600 per week. Resources and information for California are available at https://www.edd.ca.gov/about_edd/coronavirus-2019.htm. If you or your business are located out of state, check your state government’s homepage—most have a link for COVID-19 resources. You should search for “file for unemployment” on your state government site to be pointed in the right direction.

** PLEASE NOTE THAT THERE IS NO FEDERAL OR CALIFORNIA LAW OR POLICY THAT ALLOWS PEOPLE TO STOP PAYING THEIR RENT OR MORTGAGE!! YES- I AM SURE!! WHILE SOME PLACES, LIKE SAN DIEGO, HAVE HALTED EVICTIONS, THAT DOES NOT MEAN YOUR RENT ISN’T DUE. IF YOU CANNOT PAY YOUR RENT OR MORTGAGE, YOU SHOULD DISCUSS THE SITUATION WITH YOUR MORTGAGE LENDER OR LANDLORD. YOU WILL BE ON THE HOOK FOR WHATEVER LATE FEES EXIST IN YOUR CONTRACT. **

Private/ngo GRANTS

GRANTS. There are several other types of organizations stepping up during this crisis to offer grants to business owners. Remember that grants are different from loans in that you usually do not have to pay them back. grant search tips. Google is always a good place to start a search for available grants, but also think about any trade groups or industry organizations that might have funding available for your specific trade, or resources to point you in the right direction. If you are a minority business owner, or a veteran-owned business, use search terms that include those classifications, because there may be funds specifically earmarked for you. If you serve a historically underserved community, such as homeless people or victims of violence, use those search terms. There is money out there; finding the right grants is all about finding the right fit between the people/orgs donating the money, and the way you plan to use that money in your business.

PRIVATE LOANS. Private loans are the fastest way to get money into your account, because private lenders can process and fund your loan now, whereas the government relief loans and programs are experiencing a lot of delays—millions of people are all applying to the same programs, and it is overwhelming both computer systems and the humans in charge. Remember that private loans will have significantly higher interest rates than the federal relief programs; rates will vary based on your credit history; and you will have to start paying them back immediately (vs. federal relief, which has deferred payments built in). private loan tips. If you already have a line of credit available to you, try to negotiate a lower interest rate before you draw on it. Anytime you apply for a loan, make sure that you do not have prepayment penalties. One option you may consider is taking the more expensive private loans and using them as a bridge until government relief comes through—you have to carefully weigh the cost and risk of doing so to see if this is wise for your specific situation.

Remember that EVERYONE is in this together. Resist the urge to make it only about you.

While you may need help, you can probably also help someone else—remember to do that where and how you can.

Remember to be extra kind to the bankers or government staff helping to administer these policies and programs—long wait times and uncertainty are very stressful, but these people are all extremely overworked right now, so be kind always.

PATIENCE AND SOLIDARITY WILL GET US THROUGH. I am here for you to assist any way that I can; I will not be charging my normal rates—don’t hesitate to send me an email, I will do my best to help as many people as I can.

-Ana