Small Businesses

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In addition to the programs listed below, more resources may be found at:

California Small Business COVID-19 Relief Grant Program

Eligibility: Small for-profit businesses having a yearly gross revenue of $2.5 million or less (min $1,000) based on most recently filed tax return. Small non-profits registered 501(c)(3) or 501(c)(6) having a yearly gross revenue of $2.5 million or less (min $1,000) based on most recently filed Form 990.

Important Dates: December 30, 2020, to January 13, 2021 (Round 1)

Description: The California Small Business COVID-19 Relief Grant Program provides micro grants ranging from $5,000 to 25,000 to eligible small business and nonprofits impacted by COVID-19 and the related health and safety restrictions. Grant amounts are based on revenue: $5,000 grant for those with an annual revenue of $1,000 to 100,000, a $15,000 grant for those with an annual revenue up to 1 million, and a $25,000 grant for those with annual revenue up to 2.5 Million. Additional information and the application can be found online at https://careliefgrant.com

Small Business Tax Credit

Eligibility: Small businesses that have employed 100 or fewer employees as of December 2019; experienced a 50% decrease in gross receipts in the second quarter of 2020 compared to the second quarter of 2019; had a net increase in employment between July - November 2020, compared to the prior quarter (April - June 2020); and applied for a tax credit registration between December 1, 2020, and January 15, 2021, with the California Department of Tax & Fee Administration.

Important Dates: December 1, 2020, to January 15, 2021

Description: California Department of Tax and Fee Administration (CDTFA) Small Business Tax Credit was established to ease economic hardships due to the response of the Covid-19 Pandemic. An eligible small business can receive $1,000 in credit for each net new hire that occurred during the second half of 2020, up to $100,000 per business. This tax credit can be used against personal and corporate income tax liabilities OR sales and use tax liabilities from the 2020 tax year.  Reservations will be accepted on a first-come-first-serve basis. The CDTFA has authority to accept up to $100 million in tax credits. Businesses can apply by visiting the California Department of Tax and Fee Administration (CDTFA).

Temporary Expanded Dining/Retail Program (TED)

Eligibility: For specific eligibility requirements, please call the City of Temecula at 951-694-6400 and ask to speak to the Planner of the Day

Important Dates: Application available now, program available until further notice

Description: To support businesses negatively impacted by COVID-19, the City of Temecula is offering temporary expansions to assist restaurants and retail establishments during these trying times. The Temporary Expanded Dining/Retail program (TED) consists of two opportunities for businesses to have additional flexibility: Temporary Use Permit (TUP) (COVID-19) - Private Property Temporary Expansion, and Special Event Permit (COVID-19) Public Right-of-Way Temporary Expansion for Old Town Temecula. Application and additional information can be found online at TemeculaCA.gov/TED

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. Additional information about eligibility, and how to claim these credits can be found online at irs.gov/newsroom/covid-19-related-tax-credits-for-required-paid-leave-provided-by-small-and-midsize-businesses-faqs#specific

Employee Retention Tax Credit

Eligibility: Employers and tax-exempt organizations operating in 2020 experiencing either suspension in operations or significant decline in gross receipts.

Important Dates: Qualified wages an eligible employer pays to employees after paid after March 1, 2020 and before January 1, 2021 

Description: The Employee Retention Credit is a refundable 50% tax credit for the first $10,000 of compensation for each eligible employee. 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. Additional information about eligibility and how to claim these credits can be found online at irs.gov/coronavirus/employee-retention-credit The Guide to the Employee Retention Tax Credit may also be found online at https://www.uschamber.com/report/guide-the-employee-retention-tax-credit

Express Bridge Loan

Eligibility: Small businesses that have current relationships with SBA Express Lenders

Important Dates: Application available now, Pilot Program to expire March 13, 2021

Description: The Express Bridge Loan Pilot Program (EBL) is designed to provide economic support to small businesses who have an existing relationship with an SBA Express Lender. The loans provide help to overcome the temporary loss of revenue a business may be experiencing. The loan amount is up to $25,000. The loan can be a term loan or used to bridge the gap while a business is waiting for a decision and disbursement on an Economic Injury Disaster Loan. Additional information on this pilot program, including program guidelines, can be found online at sba.gov/funding-programs/loans/coronavirus-relief-options/sba-express-bridge-loans

California Competes Tax Credit 

Eligibility: Business of any industry, size, or statewide location 

Important Dates: Applications accepted during three periods of Fiscal Year 2019-2020: July 27 - August 17, 2020, January 4 - 25, 2021, and March 8 - 29, 2021

Description: The California Competes Tax Credit (CCTC) is an income tax credit available to businesses that are expanding and adding full-time jobs in the state. Businesses of any industry, size, or statewide location may compete for over $180 million available tax credit by applying in one of the three application periods each year. Additional information is available online through the Govenor's Office of Business and Economic Development (GoBiz) www.Business.ca.gov/California-competes-tax-credit/

Paycheck Protection Program (PPP) Loan Forgiveness

Eligibility: Small business borrowers that received a Paycheck Protection Program (PPP) loan of $50,000 or less.  

Important Dates: Borrowers may submit a loan forgiveness application before the maturity date of the loan. Open the week of January 11 for new borrowers and certain existing PPP borrowers, authorizing up to $284 billion toward job retention and certain other expenses through March 31, 2021, and allowing certain existing PPP borrowers to apply for a Second Draw PPP Loan - read more

Description: Simple loan forgiveness application for PPP loans of $50,000 or less that streamlines the PPP forgiveness process to provide financial and administrative relief to America’s smallest businesses. The U.S. Small Business Administration (SBA) began approving PPP forgiveness applications and remitting forgiveness payments to PPP lenders for PPP borrowers on October 2, 2020.  SBA will continue to process PPP forgiveness applications in an expeditious manner. Read SBA's press release for more information and find links to view: the simpler loan forgiveness application, instructions for completing the simpler loan forgiveness application, and the Interim Final Rule on the simpler forgiveness process for loans of $50,000 or less. Answers to FAQs are found here.  

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

DescriptionThe Federal Reserve established the Main Street Lending Program to support lending to small and medium-sized for profit businesses and nonprofit organizations that were in sound financial condition before the onset of the 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. Additional information can be found online at federalreserve.gov/monetarypolicy/mainstreetlending.htm

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Farmers and Ranchers

USDA Provides $1 Billion in Loan Guarantees for Rural Businesses and Ag Producers.

Visit the USDA Farm Service Agency (FSA) website for California offices that can help with USDA assistance.

U.S. Small Business Administration Disaster Assistance includes Economic Injury Disaster Loan and Advance, now open to offering agricultural businesses low-interest, long-term loans, also available in Spanish.

Governor’s Office of Business and Economic Development (GO-Biz) offers financial and technical assistance for small business, labor and workforce support for business and employees, information about business tax extensions and more.

California State Treasurer offers small businesses contact information for federal, state and local program resources and tax relief.

California Infrastructure Economic Development Bank (IBank) offers a Small Business Disaster Relief Load Guarantee Program and other resources.

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