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Financial Relief for California Businesses Impacted by COVID-19

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Business Consumer Alliance wants to remind California small businesses impacted by COVID-19 of available resources to help through the pandemic. California businesses may be eligible to receive government authorized tax relief, grants, and loans. Here’s what you need to know.

Tax Relief

Some of the tax relief provisions provided to eligible California businesses include:

  • Automatic three-month extension for taxpayers filing less than $1 million in sales tax on their return.
  • Extending the available existing interest and penalty free payment agreements to companies with up to $5 million in taxable sales.
  • Expansion of interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.

The California Department of Tax and Fee Administration has set up a Main Street Small Business Hiring Tax Credit Reservation System and additional tax relief for affected businesses. Interested businesses should contact CDTFA immediately for more information.

COVID 19 Relief Grants for Small Businesses

A $500 Million COVID Relief Grant program administered by the California Office of the Small Business Advocate (CalOSBA) has been established for small businesses impacted by the pandemic. The funds are awarded to selected intermediaries with established networks of Community Development Financial Institutions for distribution to micro and small businesses, as well as non-profits. Grants ranging from $5,000 to $25,000 will be available by early 2021. The deadline for the first round of applications for the Small Business COVID-19 Relief Grant Program ends January 13, 2021. Updates on the program and the next round of applications can be found at https://business.ca.gov/.

California Rebuilding Fund Loans

Businesses who employed 50 or less full-time equivalent employees and had gross revenues of less than $2.5 million or below in 2019 may apply for the California Rebuilding Fund loan program. The loans are especially of interest to small businesses located in economically disadvantaged and historically under-banked areas of the state. The main office or headquarters for the business must be in California to be eligible and the loan must be solely used to support a business’s California operations. The loan amount is determined by the lender after review of the business’s documentation and financial information. The maximum available loan amount is $100,000. No collateral is required for loan eligibility.

Some of the businesses that are NOT eligible include:

  • Firms engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted.
  • Businesses engaged in speculative activities that develop profits from fluctuations in price rather than through the normal course of trade.
  • Gambling facilities.
  • Businesses or firms engaged primarily in lobbying activities.
  • Passive real estate investments.

Detailed information on the program requirements and application process can be found on the California Rebuilding Fund website.

Additional Helpful Resources

California small businesses and employers can obtain information on available assistance, including debt relief options, employer policies and resources, and Federal financial assistance at https://covid19.ca.gov/business-and-employers.

Did you know that Business Consumer Alliance also has a multitude of benefits to help small businesses? Contact us for more information or to become a member. Remember to follow BCA on Facebook for tips, trending consumer issues, and scam alerts.

About Business Consumer Alliance Business Consumer Alliance (BCA) is a non-profit company that started in 1928. The broad purpose of BCA is to promote business self-regulation. BCA's mission is achieved by assisting consumers in resolving complaints with businesses and using that complaint information, along with other relevant information such as customer reviews, to forecast business reliability. With community support, BCA can identify trustworthy and ethical businesses and warn the public to avoid unscrupulous businesses whose purpose is to defraud the marketplace. BCA also helps businesses promote themselves by providing services and tools to protect their business and reach out to their customers. BCA obtains its funding from member businesses who support the mission and purpose of the organization and who agree to abide by high standards of ethical business practices.