There are resources for businesses that need financial help because of COVID-19.

On this page:


Loans

COVID-19 Economic Injury Disaster Loan (EIDL)

Small businesses may be eligible for a COVID-19 EIDL up to $2 million. Businesses can defer repayment of the loan for 2 years. Businesses can use the funds for:

  • Payroll
  • Rent or mortgage
  • Utilities
  • Debt
  • Other regular business expenses

The U.S. Small Business Administration (SBA) is not accepting new applications for a COVID-19 EIDL. SBA will continue processing applications received on or before December 31, 2021, including:

  • Pending loan applications
  • Loan increase requests
  • Applications in reconsideration or appeal
  • Targeted advance EIDL applications and reevaluation requests

If you applied for or received a COVID-19 EIDL before December 31, 2021, you can request:

  • More funds. You have up to 2 years from the start of your first loan to request a loan increase.
  • Reconsideration of a declined loan. You have up to 6 months from the date of decline to request reconsideration.
  • An appeal of a declined reconsideration request. You have up to 30 days from the date of the declined reconsideration request to request an appeal.
  • Reconsideration of a declined targeted advance decision. You have up to 6 months from the date of decline to request reconsideration.

Visit U.S. SBA’s COVID-19 EIDL website for more information.

COVID-19 Disaster Relief Loan Guarantee

Businesses and nonprofits with 750 employees or less may be eligible for a COVID-19 Disaster Relief Loan Guarantee up to $1 million. The loan guarantee:

  • Can cover up to 95% of the loan if there is a default for up to 7 years.
  • Helps a business get access to capital from a bank. Banks have less risk because there is a guarantee of repayment and are more willing to lend. 

Visit the California Infrastructure and Economic Development (iBank) COVID-19 Disaster Relief Loan Guarantee Program for more information.


Tax relief and credits

Employers may be able to claim federal employer tax credits:

  • Employee Retention Credit for wages paid before October 1, 2021
  • Paid leave credit for sick and family leave paid before October 1, 2021. This includes leave paid to employees to get vaccinated or recover from vaccinations.

Visit the California Department of Tax and Fee Administration’s COVID-19 website for information about state tax relief, credits, and extensions.


Prevent layoffs with work sharing

Employers can apply for the Work Sharing Program.

Work sharing helps employers:

  • Prevent layoffs
  • Bring back laid-off workers
  • Avoid hiring and training expenses

With work sharing, employees:

  • Keep their current job
  • Get partial unemployment insurance benefits to supplement their reduced work hours and wages
  • Avoid financial hardships

Find more information about the California Employment Development Department’s Work Sharing Program.


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