Businesses Impacted by COVID-19 Temporary Tax Relief and Grants

Governor Newsom Announces Immediate Assistance for Businesses Impacted by COVID-19 Including Temporary Tax Relief and $500 Million in Grants

Billions in immediate, temporary tax relief will support businesses impacted by COVID-19, including an automatic three-month extension for taxpayers filing less than $1 million in sales tax and interest-free payment agreements to larger companies with up to $5 million in sales tax and expanded interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.

In partnership with the Legislature, California will provide $500 million in new COVID-19 Relief Grant funding for small businesses.

Additional $12.5 million added to the California Rebuilding Fund launched last week

SACRAMENTO – Governor Gavin Newsom today announced that California will provide temporary tax relief for eligible businesses impacted by COVID-19 restrictions. The temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions. The total tax relief, if fully utilized, is estimated to have billions in impact.  

The state would build on its ongoing support for businesses impacted by COVID-19 by providing immediate, temporary tax relief potentially worth billions and a new $500 million COVID Relief Grant program. The Governor also announced that the state would expand the California Rebuilding Fund by $12.5 million, bringing the total investment to $37.5 million. These efforts are informed by recommendations made by the Governor’s Task Force on Business and Jobs Recovery.   

“California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away,” said Governor Newsom. “We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t. By providing potentially billions in immediate relief and support, our small businesses can weather the next month as we continue partnering with the Legislature to secure additional funding and investments in small businesses in the new year.”  

Small businesses are drivers of economic growth – creating two-thirds of new jobs and employing nearly half of all private sector employees. California is home to 4.1 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.2 million workers in California, or 48.5 percent of the state’s total workforce.  

The COVID-19 pandemic has presented a significant challenge to small businesses, employers and employees. An August Small Business Majority survey data found that 44% of small businesses are at risk of shutting down. Data released through the Census Current Population Survey found that minority-owned businesses are disproportionately impacted: the number of active businesses owned by African-Americans dropped by 41%, Latinx by 32%, Asians by 25%, and immigrants by 36%.  

“California’s small businesses continue to struggle as a result of COVID-19, and this latest round of action at the state level will help bridge the financial gaps that are vexing our state’s mom-and-pop business owners and nonprofits while we wait for congressional action, and as we prepare for additional legislative action at the start of the year,” said Senate President pro Tempore Toni G. Atkins (D-San Diego). “From widening access to grants, low-interest loans, and tax deferrals, to modifying fees incurred by restaurants and bars, these are critical supports for the small businesses and services that keep our communities going. Now, we need our federal partners to do their part and pass a federal stimulus so these businesses and nonprofits can survive 2020 and the year to come.”  

“While we wait for Congress and the White House to approve an economic relief package that responds to the current surge, California has a chance to help nonprofits, small businesses, and communities now,” said Assembly Speaker Anthony Rendon (D-Lakewood). “I thank the Governor and the Senate for their partnership.”  

Today’s announcements build on the state’s ongoing business support throughout the pandemic, including the Main Street Hiring Tax Credit, which authorizes $100 million in hiring tax credit for qualified small businesses. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer. The application opens tomorrow, December 1. A full list of existing state support for businesses can be found here.

Building on the state’s ongoing support throughout the pandemic, which can be found here, the Governor announced the following immediate support and relief:  

Tax Relief for Businesses Impacted by COVID-19 In April 2020, the Governor, through Executive Order, allowed taxpayers to apply for penalty and interest relief for 90 days for any taxpayer reporting less than $1 million in sales on their tax return. Through November 22nd, some 9,287 plans with almost $149 million in tax relief have taken advantage of this program.  

The Governor will direct the California Department of Tax and Fee Administration to do the following:
Provide an automatic three-month extension for taxpayers filing less than $1 million in sales tax on the return and extend the availability existing interest and penalty free payment agreements to companies (with up to $5 million in taxable sales)
Broaden opportunities for more businesses to enter into interest-free payment arrangements.
Expand interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.   

$500 Million for New COVID Relief Grant for Small Business The Governor announced the creation of a $500 million COVID Relief Grant administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor’s Office of Business and Economic Development for small businesses that have been impacted by COVID and the health and safety restrictions. Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Non-profits would also be eligible for these grants. CalOSBA is establishing the program and will make it available to small businesses as soon as possible – for updates on availability visit here.

Increase Funding for the California Rebuilding Fund by $12.5 million. Last week, the Governor announced the opening of the California Rebuilding Fund which makes available $25 million to help impacted small businesses rebuild from the economic crisis and keep local economies strong. This program is built to be a resource in the market for the next year as businesses pivot and recover.   

An increase of $12.5 million would allow the Fund to be fully capitalized. The additional funding will help the 3rd party administrator of the fund raise $125 million to make more low-interest loans to small businesses with less access to loans from traditional banking institutions.

COVID-19 POSTER

COVID-19 BUSINESS POSTER  NOW AVAILABLE!  

The Madera County Public Health Department has created a poster for businesses to post at their entrances that will help them to safely operate during COVID-19. This poster is also a tool for businesses and their customers to easily understand how to conduct business and follow the State and County orders.                 

Posters can be printed directly from the Madera County Public Health Department website: maderacounty.com.


If you are unable to print your poster, the Madera Chamber of Commerce has colored 11 x 17.5 posters available in both English and Spanish. Please call the chamber office (559) 673-3563 to schedule your poster pick up. 

SBA Disaster Assistance The U.S. Small Business Administration

The U.S. Small Business Administration is offering designated states and territories low-interest federal disaster loans for working capital to small businesses suffering substantial economic injury as a result of the Coronavirus (COVID-19). Upon a request received from a state’s or territory’s Governor, SBA will issue under its own authority, as provided by the Coronavirus Preparedness and Response Supplemental Appropriations Act that was recently signed by the President, an Economic Injury Disaster Loan declaration. To learn more about the SBA Disaster Assistance Program, Click Here! 

Cal/OSHA Guidance on Requirements to Protect Workers from Coronavirus

Workplace safety and health regulations in California require employers to protect workers exposed to airborne infectious diseases such as the coronavirus. Cal/OSHA has posted guidance to help employers comply with these safety requirements and to provide workers information on how to protect themselves.

Cal/OSHA’s Aerosol Transmissible Diseases (ATD) standard (section 5199) requires protection for employees working at health care facilities, and other services and operations, including:

  • Hospitals, skilled nursing facilities, clinics, medical offices, outpatient medical facilities, home health care, long-term health care facilities, hospices, medical outreach services, medical transport and emergency medical services
  • Certain laboratories, public health services and police services that are reasonably anticipated to expose employees to an aerosol transmissible disease.
  • Correctional facilities, homeless shelters, and drug treatment programs
  • Any other locations when Cal/OSHA informs employers in writing that they must comply with the ATD Standard

To protect workers and prevent exposure to the virus, employers must develop and maintain the required programs and plans for their facility or operation. Cal/OSHA recommends the interim guidance, educational materials and model programs and plans below be reviewed with an employer’s existing procedures to ensure that workers are protected.

For more Cal/OSHA information, please Click Here

Interim Guidance for Businesses and Employers Plan, Prepare & Respond to Coronavirus Disease

This interim guidance is based on what is currently known about the coronavirus disease 2019 (COVID-19). The Centers for Disease Control and Prevention (CDC) will update this interim guidance as needed and as additional information becomes available.

CDC is working across the Department of Health and Human Services and across the U.S. government in the public health response to COVID-19. Much is unknown about how the virus that causes COVID-19 spreads. Current knowledge is largely based on what is known about similar coronaviruses.

Guidance on Preparing Workplaces for COVID-19 To read more about the updated interim guidance, Click Here!

Additional Help for Employers… Alternative to Employee Layoffs

EDD Work Sharing Program
Employers can apply for the Unemployment Insurance (UI) Work Sharing Program if reduced production, services, or other conditions cause them to seek an alternative to layoffs. The Work Sharing Program helps employees whose hours and wages have been reduced: Receive UI benefits. Keep their current job. Avoid financial hardships. The Work Sharing Program helps employers: Minimize or eliminate the need for layoffs. Keep trained employees and quickly prepare when business conditions improve. Avoid the cost of recruiting, hiring, and training new employees. Requirements To participate, employers must meet all of the following requirements: Be a legally registered business in California. Have an active California State Employer Account Number.At least 10 percent of the employer’s regular workforce or a unit of the workforce, and a minimum of two employees, must be affected by a reduction in hours and wages.Hours and wages must be reduced by at least 10 percent and not exceed 60 percent.Health benefits must remain the same as before, or they must meet the same standards as other employees who are not participating in Work Sharing.Retirement benefits must meet the same terms and conditions as before, or they must meet the same as other employees not participating in Work Sharing.The collective bargaining agent of employees in a bargaining unit must agree to voluntarily participate and sign the application for Work Sharing.Identify the affected work units to be covered by the Work Sharing plan and identify each participating employee by their full name and Social Security number.Notify employees in advance of the intent to participate in the Work Sharing program.Identify how many layoffs will be avoided by participating in the Work Sharing program.Provide the EDD with any necessary reports or documents relating to the Work Sharing plan.   Restrictions Leased, intermittent, seasonal, or temporary service employees cannot participate in the Work Sharing Program.Corporate officers or major stock holders with investment in the company cannot participate in the Work Sharing Program.The Work Sharing Program cannot be used as a transition to a layoff.

Click Here to go to the EDD Work Sharing Site

The SBDC Can Help Your Business Prepare and Recover

At the OCIE SBDC your business is top of mind for us. As concerns continue about coronavirus (COVID-19) we want to assure you that we’re here to help you navigate available resources, answer your business questions and be a trusted partner for your business. Despite the impact of COVID-19, rest assured the SBDC is here to help and we value the privilege to be of service.  Check out the resources, please Click Here! or for information contact 1-800-616-7232 for help now.

CALIFORNIA SBDC GUIDE ON COVID-19 FOR BUSINESSES

New Madera Business Now Open – Love’s Travel Stop & Country Store

Love’s Travel Stops & Country Stores, the nation’s industry-leading travel stop network, is now serving customers in Madera, California.

“We’re excited to add another location on the West Coast and our 12th location in California,” said Tom Love, founder and executive chairman of Love’s. “Professional and four-wheel drivers now have another safe, clean and well-maintained stop in this vital corridor to help get them back on the road quickly.”

The Madera store, located off Highway 99, adds 94 jobs and 95 truck and 57 car parking spaces to Madera County.

In honor of the grand opening, Love’s and the Madera Chamber of Commerce hosted a ribbon cutting ceremony.

The location is open 24/7 and offer many amenities, including:

  • More than 8,500 square feet.
  • Chester’s Chicken, Godfather’s Pizza and Arby’s.
  • Ninety-five truck parking spaces.
  • Fifty-seven car parking spaces.
  • Four RV parking spaces.
  • Nine diesel bays.
  • Seven showers.
  • Laundry facilities.
  • On-site Speedco.
  • Bean to cup gourmet coffee.
  • Brand-name snacks.
  • Fresh Kitchen concept.
  • Mobile to Go Zone with the latest electronics.
  • CAT scale.
  • Dog park.
madera california loves truck stop

Stay connected to Love’s operations by following the company on Facebook and Instagram.