The Following State and Federal Resources Are Available to Employers Affected by Coronavirus
As the travel industry undergoes unprecedented changes, LBHA is working to ensure you have the resources, information, and support you need. While we continue to work with government officials to obtain fiscal and regulatory relief for the industry, here are some state and federal resources available to employers to help support you over the coming days.
New COVID-19 Resources and More Updates from the U.S. Chamber [April 1]
- Coronavirus Emergency Loans Small Business Guide and Checklist
- Employee Retention Tax Credit Guide
- Economic Injury Disaster Loan (EIDL) Program Guide
Paycheck Protection Program – Applications Accepted Starting April 3
Small Business Administration
- Streamlined Applications for Economic Injury Disaster Loans – Financial Support – This program provides low-interest disaster loans to help businesses and homeowners recover from declared disasters. Increased funding for this program was included in the Coronavirus Emergency Supplemental Appropriations Bill signed into law by the President on March 6. Details for how these loans can be utilized can be found HERE.
- Paycheck Protection Program – Financial Support – The Paycheck Protection Program is designed to provide a direct incentive for small businesses to keep their workers on payroll by providing each small business a loan up to $10 million for payroll and certain other expenses.
- Local Assistance – Business Strategy Support – These offices focus on ensuring you are maximizing the disaster relief support that is available.
California State Treasurer’s Office
- California Capital Access Program – Financial Support –This program encourages banks and other financial institutions to make loans to small businesses that have difficulty obtaining financing. You may receive more favorable loan terms from a lender if your loan is enrolled in this program.
California Governor’s Office of Business and Economic Development
- Disaster Relief Loan Guarantee Program – Financial Support – This program guarantees up to 95 percent of the loan through its partner Financial Development Corporations to help small business borrowers who need term loans or lines of credit for working capital.
Office of the Small Business Advocate
- Local Assistance – Business Strategy Support – A network of small business centers throughout the state that offer consulting and training and access to capital.
California Employment Development Department
- UI Work Sharing Program – Staff Reduction Alternatives – This program allows employers to seek an alternative to layoffs — retaining their trained employees by reducing their hours and wages that can be partially offset with UI benefits.
- Unemployment Insurance – Reduced Work Hours – Available if an employee’s hours are reduced or operations are shut down due to COVID-19.
- Rapid Response Program – Potential Closure or Layoffs – Available if planning for a closure or major layoffs as a result of the coronavirus. Teams will meet with you to discuss your needs, help avert potential layoffs, and provide immediate on-site services to assist workers facing job losses.
- Payroll Tax Extension – Tax Assistance – This program allows businesses to request up to a 60-day extension of time from the EDD to file their state payroll reports and/or deposit state payroll taxes without penalty or interest. A written request for extension must be received within 60 days from the original delinquent date of the payment or return.
- Toll-free from the U.S. or Canada: 1-888-745-3886
- Hearing impaired (TTY): 1-800-547-9565
- Outside the U.S. or Canada: 1-916-464-3502
California Franchise Tax Board
- Delayed Filing – State Taxes – Partnerships and LLCs who are taxed as partnerships whose tax returns are due on March 15 now have a 90-day extension to file and pay by June 15. Taxpayers claiming the special relief should write COVID-19 in black ink at the top of the tax return to alert FTB of the special extension period.
Internal Revenue Service
- Delayed Filing – Federal Taxes – Corporate taxpayers may defer up to $10 million of federal income tax payments that would be due on April 15, 2020, until July 15, 2020, without penalties or interest. This guidance does not change the April 15 filing deadline.
California Department of Industrial Relations
- Commission Guidance – Taking Time Off – According to the California Department of Industrial Relations, employees should use paid sick leave when taking time off from work as a result of contracting COVID-19. Should they exhaust their paid sick leave, they may use other forms of paid leave. An employer cannot require an employee to use paid sick leave. If the worker decides to use paid sick leave, the employer can require they take a minimum of two hours of paid sick leave. The determination of how much paid sick leave will be used is up to the employee.
- Emergency Family and Medical Leave Expansion Act – Subsidized Leave – Among its provisions, provides a series of refundable tax credits for employers who are required to provide the Emergency Paid Sick Leave and Emergency Paid Family and Medical Leave. Employers are entitled to a refundable tax credit equal to 100% of the qualified sick leave wages or family leave wages paid for each calendar quarter.