Small Businesses

5th District Small Business Grant Relief Program

Eligibility: Small businesses located within the 5th Supervisorial District that satisfy the listed criteria

Important Dates: Application opens February 1, 2021

Description: This $2 million 5th District Small Business Grant Relief Program will support small businesses and nonprofit organizations, within the 5th Supervisorial District, impacted by COVID-19 by providing $10,000 (flat rate, single payment) awards to qualifying applicants. Awards will be made on a first come, first served basis.

California Competes Tax Credit

Eligibility: Any business can apply for the California Competes Tax Credit. The credit is available statewide to all industries. However, while there are no geographic or sector-specific restrictions, the purpose of the California Competes Tax Credit is to attract and retain high-value employers in California in industries with high economic multipliers and that provide their employees good wages and benefits.

Important Dates: Application available now

Description: The California Competes Tax Credit is an income tax credit available to businesses that want to locate to California or stay and grow in California. Businesses of any industry, size, or location compete for over $180 million available in tax credits by applying in one of the three application periods each year. Applicants will be analyzed based on twelve different factors of evaluation, including number of full-time jobs being created, amount of investment, and strategic importance to the state or region.

California Small Business COVID-19 Relief Grant Program

Eligibility: Small businesses or small nonprofits must satisfy the listed criteria to be eligible to receive a grant award

Important Dates: Round 2 application opens February 2, 2021 and closes February 8, 2021

Description: The California Small Business COVID-19 Relief Grant Program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions.

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

Main Street Hiring Tax Credit

Eligibility: Businesses that employed 100 or fewer employees as of December 31, 2019; and suffered a 50 percent decrease or more in income tax gross receipts (generally, all income less returns and allowances), when comparing second quarter 2020 to second quarter 2019

Important Dates: Application available now

Description: The Main Street Hiring Tax Credit authorizes $100 million in hiring tax credit for qualified small businesses. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer.

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.

Main Street Lending Program

Eligibility: Small and mid-size businesses employing 10,000 or less employees or with revenues less than $2.5 billion

Important Dates: Ongoing

Description: The Federal Reserve is establishing a Main Street Lending Program to support lending to small and medium-sized businesses that were in good financial standing before COVID-19 pandemic. A reserve bank will set up a special purpose vehicle (SPV) to purchase 95 percent of loans originated by eligible lenders and lenders will retain 5 percent of the loans. Loans may be obtained through eligible lenders and will have a four-year maturity with a one-year principal and interest payment deferral. The Federal Reserve is currently working to create the program.

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, 2020 – December 31, 2020

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 operating in 2020 experiencing either suspension in operations or significant decline in gross receipts as defined

Important Dates: Qualified wages paid after March 1, 2020 and before January 1, 2021

Description: The Employee Retention Credit is a refundable tax credit against certain employment taxes equal to 50 percent of the qualified wages an eligible employer pays to employees after March 12, 2020, and before January 1, 2021. Eligible employers can get immediate access to the credit by reducing employment tax deposits they are otherwise required to make. If the employer’s employment tax deposits are not sufficient to cover the credit, the employer may get an advance payment from the IRS.