Small Businesses

Alcoholic Beverage Control Renewal Fee Waiver

Eligibility: Specified on-sale licensees may be eligible for fee waivers of licenses with expiration dates between March 1, 2021, and February 28, 2023.

Important Dates: Eligible licensees may request a fee waiver prior to the expiration date of the license as provided on the renewal notice.

Description: Governor Newsom has signed a relief package that authorizes Alcoholic Beverage Control (ABC) to waive license renewal fees for eligible licensees. 

Property Tax Penalty Cancellation

Eligibility: Small business owners and homeowners who complete and file a penalty cancellation request form and pay the base property taxes on their first and second secured bills by May 6, 2021

Important Dates: Penalty cancellation request form available now

Description: COVID-19 has probably had a significant impact on your employment or business, affecting your cash flow and liquidity. An option exists to delay your first and second property tax installment payments if you meet certain criteria, such as operating a small business or living in your home and are unable to deliver your payment by December 10, 2020 and/or April 12, 2021. Governor Newsom issued an Executive Order that allows the County Treasurer to cancel penalties for small business owners and homeowners who qualify.

Tax Relief

Important Dates: Ongoing

Description:  Eligible California businesses can receive a temporary tax relief that includes:

• An automatic three-month extension for taxpayers filing less than $1 million in sales tax on the return and extend the availability existing interest and penalty free payment agreements to companies (with up to $5 million in taxable sales)
• Opportunities for more businesses to enter into interest-free payment arrangements
• An expansion of interest-free payment options for larger businesses affected by significant restrictions 

California Rebuilding Fund

Eligibility: Businesses who employed 50 or less full-time equivalent employees (FTEs) and had gross revenues of less than $2.5 million or below in 2019

Important Dates: Application available now

Description: The California Rebuilding Fund helps impacted small businesses rebuild from the economic crisis and keep local economies strong. This program is built to be a resource in the market for the next year as businesses pivot and recover.

Economic Injury Disaster Loan Program

Eligibility: Small business (less than 500 employees), sole proprietorships, independent contractors, self-employed persons, private nonprofit organizations, 501(c)(19) veterans organizations

Important Dates: Application Available Now

Description: The Economic Injury Disaster Loan (EIDL) is a loan up to $2 million with an advance of up to $10,000 designed to provide immediate relief to small businesses. This loan will provide economic relief to businesses that are currently experiencing a temporary loss of revenue due to COVID-19. The loan advance does not have to be repaid. Funds will be made available through the Small Business Administration (SBA) following a successful application process. 

Refundable Tax Credits

Eligibility: Businesses with fewer than 500 employees that are subject to Emergency Paid Sick Leave Act (EPSLA) and Expanded Family Leave Medical Act (FMLA) and certain self-employed individuals in similar circumstances     

Important Dates: Credits based on wages and leave paid April 1, 2021 – September 30, 2021

Description: The Families First Coronavirus Response Act (the "FFCRA") provides small and midsize employers refundable tax credits that reimburse them, dollar-for-dollar, for the cost of providing paid sick and family leave wages to their employees for leave related to COVID-19. The FFCRA gives businesses funds to provide employees with paid leave for reasons related to COVID-19 and covers the costs by providing businesses with refundable tax credits. Additional information about eligibility, and how to claim these credits can be found online.

Employee Retention Credit

Eligibility: Employers and tax-exempt organizations experiencing either suspension in operations or significant decline in gross receipts as defined 

Important Dates: Ongoing

Description: The Taxpayer Certainty and Disaster Tax Relief Act of 2020, enacted December 27, 2020, made a number of changes to the employee retention tax credits previously made available under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act), including modifying and extending the Employee Retention Credit (ERC), for six months through June 30, 2021. Several of the changes apply only to 2021, while others apply to both 2020 and 2021. As a result of the new legislation, eligible employers can now claim a refundable tax credit against the employer share of Social Security tax equal to 70% of the qualified wages they pay to employees after December 31, 2020, through June 30, 2021.