COVID-19 UPDATES & SMALL BUSINESS RESOURCES
Governor Newsom addressed the State of California yesterday, Thursday December 3rd regarding the new Regional Stay Home Order. This affects regions with less than 15% ICU availability. Ventura, Santa Barbara and Los Angeles Counties are in the Southern California Region, which is at 20.6% ICU capacity remaining as of December 3, 2020. It is anticipated this Region will reach the metrics by early December. All three counties remain in the Purple Tier at the time being, but each have their own protocol regarding this new order. Please refer to your specific county’s communications in regards to business operations. For more information
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View the recently announced programs below on tax extensions, tax credits, upcoming grant relief and state and local loan options for your small business.
NEWLY ANNOUNCED RESOURCES
State and Local Tax Extension
California businesses will experience immediate relief in the form of tax deferrals. Small businesses are encouraged to use the sale tax they have already collected to float any applicable obligations. The tax extension is based on sales made and sales tax collected as follows:
- Provides an automatic three-month extension for taxpayers filing less than $1 million in sales tax on the return.
- Extend the availability existing interest and penalty free payment agreements to companies with up to $5 million in taxable sales. Note- businesses in this category must fill out an online form.
- Broaden opportunities for more businesses to enter into interest-free payment arrangements.
- Expand interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.
Main Street Hiring Tax Credit
On September 9, 2020, the Governor signed Senate Bill 1447 establishing $100 million in hiring tax credits to small businesses with 100 or fewer employees as of December 31, 2019.
- An eligible small business can receive $1,000 tax credit for each net new hire that occurred during the second half of 2020 (up to a maximum tax credit of $100,000 per business).
- The tax credit can be used against personal and corporate income tax liabilities or sales and use tax liabilities from the 2020 tax year.
- To qualify, the small business must experience a 50% decrease in gross receipts in the Second Quarter of 2020 compared to the Second Quarter of 2019.
- In addition, the small business must have a net increase in new hires between July 2020 through November 2020 as compared with the prior quarter (April 2020 through June 2020).
Small businesses must apply for a tax credit registration between December 1, 2020 and January 15, 2021 with the California Department of Tax & Fee Administration (CDTFA). Applications will be processed on a first-come, first-served basis; it is important to apply as early as possible. For more information and to book your reservation
CLICK HERE COVID-19 Relief Grant for Small Businesses
The Governor announced the creation of a $500 million COVID-19 Relief Grant administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor’s Office of Business and Economic Development for small businesses that have been impacted by COVID-19 and the health and safety restrictions. Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Cultural institutions and non-profits would also be eligible for these grants. CalOSBA is establishing the program and will make it available to small businesses as soon as possible – to sign up for updates on availability
CLICK HERECONTINUING OPPORTUNITY FOR LOAN CAPITAL
There are ongoing and existing loan opportunities for your small business. To learn about our EDC Loan Program and other state loan opportunities, call the EDC today and connect with a no-cost business advisor to help address your needs.
Call 805.409.9159 (ENGLISH) or 805.309.5874 (SPANISH).
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