Over the past few weeks we have seen the world change as we know it. In California, we are living under stay-at-home orders and have witnessed many of the people in our community, including small businesses in the food, retail, travel and many other industries struggle to stay alive.
I know that the impact of COVID-19 on all businesses, including those in the cannabis industry have been impacted. Below is a list of resources I compiled for small businesses and individuals affected by COVID-19. Please feel free to forward this information to any business or individual you think might find it useful. If you know of any additional resources, please send them to info@thecannabis.com and I will add them to the list. My goal is to update this list at least once a week, or as additional information becomes available.
We will get through this together.
FEDERAL
Federal Emergency Management Agency (FEMA) Disaster Assistance
The President declared a National Emergency on March 13. Small businesses can apply for FEMA Disaster Assistance as a result. Information about the program and how to apply can be found here.
Internal Revenue Service (IRS) – Extension of Tax Filing Date
The federal income tax filing due date is automatically extended from April 15, 2020, to July 15, 2020. Taxpayers can also defer federal income tax payments due on April 15, 2020, to July 15, 2020, without penalties and interest, regardless of the amount owed. This deferment applies to all taxpayers, including individuals, trusts and estates, corporations and other non-corporate tax filers as well as those who pay self-employment tax. Taxpayers do not need to file any additional forms or call the IRS to qualify for this automatic federal tax filing and payment relief.
Internal Revenue Service (IRS) – Economic Impact Payment
These are the checks everyone is expecting to receive from the U.S. Treasury in the coming days and weeks. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible.
Small Business Administration – Paycheck Protection Program
The Program authorizes up to $349 billion in forgivable loans to small businesses to pay their employees during the COVID-19 crisis. A link to the application is here.
You are eligible to apply for a loan if you are a nonprofit, veterans organization, Tribal business concern, sole proprietorship, self-employed individual, and an independent contractor – with 500 or fewer employees.
Loan amounts can be for up to two months of your average monthly payroll costs from the last year plus an additional 25% of that amount. That amount is subject to a $10 million cap. If you are a seasonal or new business, you will use different applicable time periods for your calculation. Payroll costs will be capped at $100,000 annualized for each employee.
The loan will be forgiven as long as:
- The loan proceeds are used to cover payroll costs, and most mortgage interest, rent, and utility costs over the 8 week period after the loan is made; and
- Employee and compensation levels are maintained.
Small Business Administration – Economic Injury Disaster Loan (EIDL) Program
Small business owners in the United States and territories impacted by COVID-19 are eligible to apply for a low-interest loans. EIDL funds may be used for paying fixed debts, payroll, accounts payable, employee sick leave, and other bills that cannot be paid due to the disaster’s impact. The third relief package allows for an advance on EIDL of $10,000 within 3 days to maintain payroll, provide paid sick leave, and to service debt obligations.
Small businesses can read more and apply for an EIDL here.
Small Business Administration – Express Bridge Loans
This program allows small businesses who currently have a business relationship with an SBA Express Lender to access up to $25,000 quickly. These loans can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing and can be a term loans or used to bridge the gap while applying for the Economic Injury Disaster loan. Click here to apply for the Bridge Loan.
Small Business Administration – Debt Relief
As a part of the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), additional funds were made available to offer debt relief on existing and new SBA loans. The relief includes:
- The SBA will automatically pay the principal, interest, and fees of current 7(a), 504, and microloans for a period of six months.
- The SBA will also automatically pay the principal, interest, and fees of new 7(a), 504, and microloans issued prior to September 27, 2020.
To learn more about the Debt Relief program, click here.
Find a Small Business Administration Lender
In order to facilitate the speedy release of loans to eligible small businesses, the SBA has made funds available through more than 800-certified lenders including banks, credit unions and other financial institutions. To locate a certified SBA lender, click here.
U.S. Department of Labor – Employee Paid Leave Rights
The Families First Coronavirus Response Act (FFCRA or Act), one of the first COVID-19 relief packages, requires certain employers to provide employees with paid sick leave or expanded family and medical leave for specified reasons related to COVID-19. The Department of Labor’s (Department) Wage and Hour Division (WHD) administers and enforces the new law’s paid leave requirements. These provisions will apply from the effective date through December 31, 2020. If you have employees, please take a minute to familiarize yourself with the most recent laws involving sick and medical leave for COVID-19 related issues. Click here to read an overview.
STATE
Employment Development Department – Unemployment Insurance Program
The EDD provides a variety of support services to people who have lost their jobs or have had their hours reduced due to the impacts of COVID-19 in California. To apply for unemployment benefits or to learn more about what benefits are available, click here.
Employment Development Department – Tax Assistance
Small businesses can request up to a 60-day extension of time from the EDD to file state payroll reports and/or deposit state payroll taxes without penalty or interest. A written request for extension must be received within 60 days from the original delinquent date of the payment or return. To request tax assistance, click here.
Franchise Tax Board – Extension of State Tax Filing Date
FTB is postponing until July 15 the filing and payment deadlines for all individuals and business entities for: 2019 tax returns, 2019 tax return payments, 2020 1st and 2nd quarter estimate payments, 2020 LLC taxes and fees, 2020 Non-wage withholding payments. Taxpayers who experience any difficulty in filing or paying, as a result of COVID-19, are included in this relief. Taxpayers do not need to claim any special treatment or call FTB to qualify for this relief.
California’s Infrastructure and Economic Development Bank – Small Business Finance Center
The Small Business Finance Center (SBFC) partnered with Financial Development Corporations to provide loan guarantees and direct loans for small businesses that experience capital access barriers and have been negatively impacted or experienced disruption by COVID-19. Small businesses and non-profits located in California with 1-750 employees are eligible to apply. Terms include:
- Guaranteed up to 7 years; term can be longer
- Guarantees up to 85% – 95% of loan
- Loan interest rates negotiated between lender and borrower
- Qualifications based on lender criteria
Loan can be used for continuance of business including, but not limited to rent, payroll, etc. To learn more, click here.
Governor’s Office of Business and Economic Development – COVID-19 Resources
The Governor’s Office of Business and Economic Development (GO-Biz) has compiled helpful information for employers, employees, and all Californians as it relates to the Coronavirus (COVID-19) pandemic. For a complete list of resources, click here.
Governor’s Office of Business and Economic Development – Small Business Support Centers Map
Click here to view a map of small business support centers in California.