Business Funding Support

CALIFORNIA SMALL BUSINESS COVID-19 RELIEF GRANT PROGRAM

As of 11:59 pm, Wednesday, January 13, 2021, the California Relief Grant Round 1 closed for submissions.

The second round of applications will open at 8:00 a.m. February 2 and will run through 6:00 p.m. February 8. 

Applicants who submitted all necessary documents in the first round and met eligibility requirements, but did not receive a grant, do not need to reapply; their applications will be rolled over for consideration in the second round.

From December 30, 2020, to January 13, 2021, the California Small Business COVID-19 Relief Grant Program Round 1 will be accepting applications for grants ranging from $5,000 - $25,000 to underserved micro-businesses, small businesses, and non-profits throughout the state struggling under the pandemic shutdown.
Most questions can be answered at https://careliefgrant.com/.  

California Relief Grant Program and Application Guide 12/28/2020 (PDF)

Find out more about the California Small Business COVID-19 Relief Grant Program.

Business Assistance Program

FREE Counseling for Danville Small Businesses.

In response to the continuing COVID-19 pandemic, the Town of Danville has partnered with Townsend Public Affairs to offer a FREE program to help eligible Danville businesses access available funds and resources offered by the state and federal governments. 

If you would like support and guidance for your small business to help access available funds and resources offered by the state and federal governments, please fill out the Business Interest Questionnaire.

View the presentation from the business webinar on January 8, 2021, where we discussed this program and other funding programs available to support small businesses.  Business Funding Presentation 01/08/2021 (PDF)

Business Assistance Program Webinar 01/08/2021 Passcode: sX8qtXT! 

Find out more about Danville's Business Assistance Program.

FORWARD FOCUS BUSINESS GRANT PROGRAM PHASE II

On December 18, 2020, the Town Council appropriated an additional $250,000 towards the second phase of the Forward Focus Grant Program. As part of this round of funding, two grant tiers were developed and the eligibility criteria modified to focus on business sectors most impacted by the pandemic and the County Health Order.

Find out more about the Forward Focus Business Grant Program - Phase II

payroll protection program (PPP)

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/paycheck-protection-program

Paycheck Protection Program resumes January 11, 2021

Paycheck Protection Program Round 2 (PPP2)

When Do I Apply?

  • Friday, January 15th: Smaller Credit Unions and similar lenders with $1 billion or less in assets begin accepting applications
  • Tuesday, January 19th: All participating PPP-eligible lenders begin accepting applications
  • The deadline will be Wednesday, March 31st, or when funds are depleted 

How Do I Apply?

  • Applications for PPP2 are made through private financial institutions approved for lending by the SBA (banks, credit unions, and financial technology companies)
  • You will complete the entire application online through these private lenders’ websites.

Who Should I Apply Through?

 

Who Is Accepting Applications Right Now?

Please Note: This list is not exhaustive. Many more lenders will be available over the next few days. But here are a few small lenders already accepting PPP applications and are confirmed to not require a pre-existing banking relationship:

Second-draw PPP loans

If you received a PPP loan in 2020, you can apply for a “second-draw” if you meet all criteria below:

  • Have 300 or fewer employees.
  • Used or will use the full amount of your PPP1 loan before receiving PPP2; used PPP1 loan only on eligible costs.
  • Suffered a 25% or more drop in revenue when comparing any 2020 quarter to the same 2019 quarter.
  • (you do not need to have your PPP1 loan forgiven yet to receive PPP2)

First-draw PPP loans

If you have not received a PPP loan before, you can apply for a “first-draw” if you meet all criteria below:

  • Established on or before Feb 15, 2020 (“pre-pandemic”)
  • Have 500 or fewer employees.
  • Are one of the Eligible Organization Types.

Eligible Organization Types 

  • Corporations (C-Corp, S-Corp; LLC; etc.)
  • General Partnership
  • Sole Proprietorship
  • Independent Contractor
  • Self-employed Individual
  • 501(c)(3) nonprofit
  • 501(c)(6) nonprofit
    • 501(c)(6) must be 300 or fewer employees
    • 501(c)(6) lobbying activities cannot exceed $1 million or 15% of the organization’s total activities
  • 501(c)(19) veterans organization
  • Tribal Business

Calculating Total Loan Amount

  • Maximum loan amount is 2.5 times of your average monthly payroll expenses for the year 2019.
  • This includes any retirement and health insurance contributions.
    • As a business or nonprofit with employee payroll, most lenders will calculate your average monthly payroll through your 2019 IRS form 941.
    • As an independent contractor, most lenders will calculate your average monthly payroll through your 2019 IRS form 1099.
    • As a self-employed individual, most lenders will calculate your average monthly payroll through your 2019 Schedule C (also referred to as Form 1040).
  • Calculating Seasonal Businesses
    • For seasonal businesses, you may calculate average monthly payroll using the following periods:
      • February 15, 2019 – June 30, 2019
      • March 1, 2019 – June 30, 2019
      • January 1, 2020 – February 29, 2020 (only if you were not in business from February 15, 2019 – June 30, 2019)
  • Increased Assistance for Accommodation and Food Services Businesses
    • For borrowers in the Accommodation and Food Services sector, the maximum loan amount for a Second Draw PPP Loan is increased to 3.5x average monthly 2019 or 2020 payroll costs up to $2 million.
      • Applies to all businesses with a NAICS Code beginning in “72”. (click HERE to explore the eligible types of businesses) 
      • Only applies to Second-draw PPP loans, not First-draws.

Eligible Costs

  • Payroll (must make up at least 60% of all costs)
  • Rent
  • Mortgage interest
  • Utilities
  • Certain costs to comply with COVID-19 federal health and safety guidelines. (facility modification costs, employee PPE, etc.)     
  • Certain property damage costs related to vandalism or looting due to public disturbances in 2020 that were not covered by insurance.
  • Costs to pay suppliers that are essential to your current operations.
  • Certain operating costs to purchase business software or tech services that allow you to perform socially distanced operations. (product or service delivery; digital or online sales; digital payment, payroll, human resources, accounting, inventory, records, etc.)

What Do I Do If My Employees Won’t Come Back?

  • The purpose of the PPP is to provide payroll for your workforce. You must spend at least 60% of your PPP funds on payroll. 
  • Your business does not have to be open to use PPP funds. You are allowed to pay employees to simply shelter in place if you are unable to open. 
  • If an employee cannot or will not come back, you should document a letter or email offering to rehire them, and document their refusal.
    • Note: it is possible that this refusal could disqualify an employee from unemployment benefits. 
  • If you have extra PPP funds because an employee won't come back to work, you can spend it on the following:
    • Hiring a new employee
    • Increasing the payroll of your current workforce
    • Give back this portion of the funds to the SBA
    • Keep this portion of the funds as a 1% loan

Full Forgiveness Terms

The 1% interest, 5-year loan will be fully forgiven if you meet all criteria below:

  • Must spend funds once you receive them over a “covered period” of 8- to 24-weeks.

Must spend funds on eligible costs only.

  • Must spend at least 60% of the funds on payroll.
  • Must rehire all of your employees at their normal rates. (see exceptions explained above)

Simplified Forgiveness Process

  • This new process applies to both old and new PPP loans.
  • If you receive a PPP loan of $150,000 or less, the forgiveness process will include a signed certification that is not more than one page in length.
  • The SBA has yet to create the simplified application form but must do so by Jan. 20, 2021.
  • You are required to retain relevant records for four years, as the SBA reserves the right to audit loans to check for fraud.

Other Important Changes to PPP

  • Congress made clear that a forgiven PPP loan is completely tax-exempt and is not taxable income.
  • Eligible business costs paid for with PPP funds can now be claimed as business expenses in your taxes.
  • You are now allowed to apply for both a PPP loan and take advantage of Employee Retention Tax Credit (ERTC).
  • Employee health insurance benefits are now included in PPP payroll calculations. (including life insurance, disability benefits, vision, dental, etc.)
  • If you received PPP and the EIDL Advance (emergency SBA funds of $1,000 per employee), you do not have to reduce your PPP loan forgiveness by the EIDL Advance. 
  • Set-Asides for minority, underserved, veteran, and women-owned businesses.

Out of the $284 billion total, there will be certain pots of PPP funds set aside for new and smaller borrowers, and for community and smaller lenders:

    • $15 billion across first- and second-draw PPP loans for lending by community financial institutions;
    • $15 billion across first- and second-draw PPP loans for lending by insured depository institutions, credit unions, and Farm Credit System institutions with consolidated assets of less than $10 billion;
    • $35 billion for new first-draw PPP borrowers; and
    • $15 billion and $25 billion for first-draw and second-draw PPP loans, respectively, for borrowers with a maximum of 10 employees or for loans of less than $250,000 to borrowers in low- or moderate-income neighborhoods. The SBA has determined that at least 25% of each of those set-asides will go to each one of the groups: loans to borrowers with a maximum of 10 employees and loans of less than $250,000 to borrowers in low- or moderate-income neighborhoods.

IMMEDIATE RELIEF FUNDS FOR BUSINESSES

As more counties move into the Purple tier, the Governor noted that he is aware of the economic impact of the tightened restrictions on the small business sector and others. As such, the State is announcing the following remedies: 

  • California Department of Tax and Fee Administration will provide an automatic 3-month extension for small businesses with less than $1 million in sales tax 
  • Extend interest-free payment agreements to larger companies with up to $5 million in sales tax 
  • The sales tax assistance will expand to industries heavily impacted by operations restrictions including bars, restaurants, hair salons, etc.
  • The Legislature and Governor’s administration have also worked to create an Emergency Relief Package, which will provide up to $500 Million in COVID relief funds, to be administered by the California Office of the Small Business Advocate (CalOSBA). 
  • Funds will be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants up to $25,000 to underserved small business/non-profits/cultural institutions throughout the State by early 2021. 
  • CalOSBA is establishing the program and will make it available to small businesses as soon as possible. Updates on availability will be posted at: https://business.ca.gov/ 
  • This program will act as a bridge until the Legislature and Governor can take further actions in January, at the start of the 2021-22 Legislative Session. 
  • California launched its $100 Million Main Street Hiring Tax Credit Program
  • Businesses will receive $1,000 in tax credit when a qualified employee is hired 
  • Each business employer can receive up to $100,000 
  • The Department of Tax and Fee Administration will begin accepting applications on December 1st . 

Main Street Small Business Tax Credit Information and Application.

Layoff Aversion Funding

Layoff Aversion Funding (PDF)

If you have questions, call the WDBCCC COVID-19 Resource Hotline at 833-320-1919 or email bouncebackcoco@ehsd.cccounty.us.

federal assistance

The U.S. Small Business Administration (SBA) is an independent federal agency that councils, protects, and strengthens small businesses to enhance their growth. The SBA also offers several different loan programs to help start-up businesses.

For businesses affected by the pandemic, the SBA administers multiple CARES Act funding options, and is available to help you overcome the challenges created by this health crisis.

The Small Business Owner's Guide/FAQ to the Cares Act (PDF)

CARES ACT Q&A (PAGE 6 SMALL BUSINESSES) (04/02/20)

ECONOMIC INJURY DISASTER LOAN AND ADVANCE (EIDL)

The EIDL program provides small businesses with working capital loans up to $2 million that can provide economic support to small businesses, with terms up to 30 years and deferred payments for one year.  Apply Now Online.

Learn more about other relief options available for your business: https://www.sba.gov/funding-programs/loans/coronavirus-relief-options

SBA Economic Injury Disaster Loan Emergency
(EIDL)

Working capital loans of up to $150,000 that can provide vital economic support to small businesses to help overcome the temporary loss of revenue they are experiencing due to the COVID-19 crisis. 

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/economic-injury-disaster-loan-emergency-advance

SBA COVID-19 Express Bridge Loans

COVID-19 response-funded express loans for small businesses with existing SBA loan agreements. Up to $25,000 in additional loans added to existing SBA agreements.

https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

Main Street Lending Program

The Federal Reserve established the Main Street Lending Program (Program) to support lending to small and medium-sized for-profit businesses and non-profit organizations that were in sound financial condition before the onset of the COVID-19 pandemic. Provides large scales loans ranging from $250,000 to $300 million.

https://www.federalreserve.gov/monetarypolicy/mainstreetlending.htm

California Rebuilding Fund

The California Rebuilding Fund is designed to provide capital to support the rapidly increasing volume of lending activity to under-served California small businesses in dire need of low-cost loan capital.

https://www.ibank.ca.gov/small-business/california-rebuilding-fund/

EVICTION AND RENT FREEZE ORDINANCE

The Contra Costa Board of Supervisors voted unanimously to approve an emergency county ordinance prohibiting landlords from evicting both residential and commercial tenants impacted by the COVID-19 pandemic. Allows temporary deferment of rent and a prohibition on up to 12 months of late fees. Most recently extended to January 31, 2021. Expected to extend further in light of the State’s increased infections.

https://www.contracosta.ca.gov/7836/Eviction-and-Rent-Freeze-Ordinance-FAQs