Small and Medium Sized Businesses
SMALL BUSINESSES
SMALL BUSINESS FORGIVABLE LOANS AND GRANTS
• Congress secured $350 billion in forgivable loans and $10 billion in grants to small businesses, tribal business concerns, and certain nonprofits.
• Loans through a new SBA 7(a) Paycheck Protection Program can be forgiven when used for payroll costs (including paid leave, health care, and other costs) to retain workers, and other expenses such as rent, mortgage interest, and utilities. Independent contractors, sole-proprietors, and other self-employed persons are eligible for these loans.
• Small businesses can also apply for up to $10,000 in grants to retain workers and pay for debt obligations.
• Small businesses, tribal business concerns, 501(c)(3) nonprofits, and 501(c)(19) veterans organizations in your district should contact their lender and the Small Business Administration office directly. For a list of SBA offices by state with contact information please click here.
• California Small Business Loan Guarantee Program (via IBank) is making available $50 million in state funding, providing potential capital for individuals who do not qualify for federal funds.
• Small Businesses located in California with 1-750 employees that have been negatively impacted or experienced disruption by COVID-19 and nonprofits are eligible.
• U.S. Small Business Administration (SBA) has declared all California counties eligible for the Economic Injury Disasters Loans.
ADDITIONAL RESOURCES:
• Committee on Small Business fact sheet & FAQ on provisions in the CARES Act
• Application for SBA’s Economic Injury Disaster Loan (EIDL) and the up-to-$10,000 Advance
PAID SICK AND FAMILY LEAVE TAX CREDIT
• Employers who provide required leave to their employees and who employ less than 500 employees are eligible for a tax credit to offset the costs of such leave. This tax relief will be provided against quarterly payroll taxes (those paid in connection the Form 941). For additional guidance, please refer to the IRS’s website.
ADDITIONAL RESOURCES:
• Small Business Owner’s Guide to the CARES Act
• Committee on Small Business: SBA State and Regional Lenders
• Lead Small Business Development Centers (SBDCs) by State or Region
• Women’s Business Centers Master Contact List
• Committee on Small Business: The CARES Act for Small Businesses Flow Chart
MEDIUM-SIZED BUSINESSES
Included in the $2 trillion relief bill is a fund administered by Secretary Mnuchin designed to provide low-interest bank financing to medium-sized businesses and nonprofits with 500 to 10,000 employees. We will provide more information on the protocols for this fund as soon as we receive them.