San Diego County continues to experience a dramatic increase in COVID-19 cases, leading to perhaps the most challenging time of the pandemic for businesses amid the active Regional Stay at Home Order. So far, ICU projections still show an expected increase, meaning San Diego County is likely to have the current restrictions for at least the next few weeks.
To help address the impact, more resources have become available to support businesses through the surge.
Deadline for California Relief Grant Approaching
On Dec. 28, the California Governor’s Office of Business and Economic Development opened the portal to apply for the California Relief Grant, a program that provides grants between $5,000 – $25,000 for small businesses impacted by COVID-19. The application deadline is tomorrow, Jan. 13 at 11:59 p.m. Apply here.
To qualify, businesses must:
- Be active and operating since at least June 1, 2019 and have been impacted by COVID-19 and accompanying safety restrictions
- Be currently operating or have a clear plan to re-open once permitted
- Be able to provide evidence of between $1,000 and $2.5 million in annual gross revenue
- Be able to provide organizing documents such as: 2018 or 2019 tax returns, Form 990s, or copy of official filing
- Be able to provide an acceptable form of government-issued photo ID
- Applicants with multiple business entities, franchises, or locations are not eligible for multiple grants and may only apply once using their eligible small business with the highest revenue.
Other California relief programs
- The California Rebuilding Fund is a loan program to support California’s small businesses—especially those located in economically disadvantaged and historically under-banked areas of the state.
- Businesses who employed 50 or fewer full-time equivalent employees (FTEs) and had gross revenues of less than $2.5 million or below in 2019 are eligible to apply.
- Full eligibility requirements can be found here.
- Fill out a pre-application here
- Provides $1,000 per qualified employee, up to $100,000
- Must have employed 100 or fewer employees as of Dec. 31, 2019, and
- Suffered a 50% decrease or more in income tax gross receipts (generally, all income less returns and allowances), when comparing second quarter 2020 to second quarter 2019.
Tax deferrals
- Automatic three-month extension for business taxpayers with up to $1 million in sales tax
- Expanded interest-free payment agreements to larger companies with up to $5 million in sales tax
- Expanded eligibility to industries heavily impacted by operations restrictions including bars & restaurants, hair salons, hospitality industry, etc.
New Federal Relief Programs
Economic Injury Disaster Loan (EIDL)
- The EIDL grant program has reopened applications for grants up to $10,000.
- Businesses that did not previously receive the grant can apply, with priority given to small businesses with fewer than 300 employees, located in low-income neighborhoods, and that have experienced a 30% reduction in gross receipts. Apply now.
Paycheck Protection Program (PPP)
Businesses that applied for the first round of PPP are still eligible to apply in this round.
- Companies with fewer than 300 employees that have experienced a greater than 25% reduction in gross receipts will soon be able to apply for a second PPP loan, with priority given to hardest-hit industries.
- Companies may receive both a PPP loan and EIDL loan without compromising PPP forgiveness.
- PPP loans are nontaxable and will be forgivable if used for appropriate expenses.
- For more information and to apply, visit the SBA website.
Employee Retention Tax Credit
- Companies may now receive a credit against employment taxes for up to 70% on $10,000 in wages per quarter (or a maximum $14,000 per employee through June 30).
- Employers that experienced a decline of more than 20% in gross receipts may apply.
- For more information, visit the IRS website.
San Diego County Small Business Stimulus Grant Program – Additional Funds
The County of San Diego announced an additional $20 million in grant funds to support small businesses. Each county district has its own pool of funds for businesses. Any business impacted by COVID-19 may apply. Carlsbad is in District 5. To apply, determine eligibility, or read more about the program, click here.
Carlsbad Business Loan Program
The Carlsbad Business Loan Program provides funding to Carlsbad small businesses to keep operations going. There are two loan types for Carlsbad small businesses.
- Small business microloans of between $5,000 -$10,000 for businesses with $2,000,000 or less in gross revenue or 15 or fewer employees
- Small business recovery loans of between $10,000 – $25,000 for businesses with $3,000,000 or less in gross revenue and 50 or fewer employees
- Both loans types include scaled interest rates depending on how quickly the loan can be repaid. Neither loan type is forgivable. Apply here.
Additional Resources
Our partners at San Diego Regional Economic Development Corporation maintain a comprehensive list of available relief and resource programs for businesses impacted by COVID-19. Click here to see more.
Thank You
Thank you to our Carlsbad businesses that have adhered to the changing restrictions and health orders. After hearing from a number of businesses over the past month, we know the past few weeks has been the most challenging period of the pandemic for many. With a light at the end of the tunnel, we are confident that things will take a turn for the better, despite how difficult these times are. We hope the resources and programs listed above can help you get there.
In the meantime, if there is any other way we can be supportive, please reach out to us at [email protected]. The Office of Innovation & Economic Development is available to assist businesses with challenges they may be facing.
