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California Governor Gavin Newsom released a series of new resources Thursday to help small businesses and workers who have been economically impacted by the coronavirus pandemic. 

The state will allocate $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses who do not qualify for federal funds, including low wealth and undocumented immigrant communities. Small businesses can also defer payment of sales and use taxes of up to $50,000 for up to 12 months.

In addition, there will be $17.8 million in new state initiatives available to support California workers impacted by coronavirus, $7.8 million will be directed toward the Los Angeles region and $10 million will be made available statewide.

The governor also announced the launch of OnwardCa.org, an online platform that connects displaced California workers with 70,000 job opportunities in critical industries.

“The COVID-19 pandemic is having cascading effects for millions of California families and small businesses,” said Newsom in a statement. “Through no fault of their own, more than a million Californians have lost a job and countless more are seeing their businesses fail. California will emerge from this crisis stronger than before, and until then, the state will work overtime with the federal government and private sector to get families the help they need.”

JPMorgan Chase will not be accepting applications for the federal small-business loan program as early as Friday. 

Chase, the country’s largest lender, isn’t the only bank waiting on more specific guidance from the Small Business Association (SBA) on the Paycheck Protection Program, which allows employers to borrow up to $10 million from banks to cover the costs of salaries, bonuses, retirement benefits, parental leave and health care benefits. 

Per The Washington Post, other banks said they may accept applications, but would not process them immediately. Banks are concerned that the expedited review process, which allows borrowers to claim eligibility without the government approval, will have a high risk for fraud.

Goldman Sachs will not directly participate in the program but said Thursday it has $300 million earmarked for small-business lending. 

The Small Business Administration (SBA) increased the Paycheck Protection Program  interest rate to 1% on Thursday so lenders would be more incentivized to put cash into the hands of business owners. 

U.S. Treasury Secretary Steven Mnuchin and the SBA released updated guidelines for the program before it goes wide on Friday, according to Bloomberg. Banks and other lenders complained they lacked the necessary instruction on how to complete the loans, including what documentation is required.

The Paycheck Protection Program lets small businesses apply for up to $10 million from SBA associated lenders, with payments deferred for six months. Employers can use the funds to cover the costs of salaries, bonuses, retirement benefits, parental leave and health care benefits. Loans could be forgiven for the first eight weeks if employers pay their expenses and keep salary levels constant. Three-quarters of the loan must go toward payroll.

The government indicated that funds would be available to employers on the same day that they apply. However, lenders have criticized the program, saying it isn’t possible to process the loans as quickly as the government expects without having more guidance. 

Venture capital-backed startups will qualify for the $350 billion in small business loans now available to companies affected by the coronavirus pandemic. 

“I just got off the phone with Treasury Secretary Mnuchin and this is going to be solved,” House Minority Leader Kevin McCarthy (R-Calif.) told the Axios Pro Rata Podcast on Thursday.

In its current form, the stimulus package offers payroll tax relief and loans to businesses with 500 or fewer employees, but startups may be ineligible due to rules governing how businesses calculate employees, according to Business Insider.

Small Business Administration’s (SBA) “affiliation rule” requires companies to include workers they employ directly — and those employed by any affiliated companies. The SBA states that a company is affiliated with a second company if the second company owns a controlling stake, 20% or more, in the first company or if an investor owns a controlling stake in both. 

Many Silicon Valley startups have investors, so now Congress is working on a way to ease the affiliation rule in the “next day or two,” per McCarthy. 

The restrictions could easily be lifted for small businesses not controlled by a single outside shareholder, but that means there may still be issues for private equity-owned small businesses. However, McCarthy noted that there may be future legislation to address that need. 

Big banks in the U.S. may not be fully on board with the federal government’s rescue program for small businesses, citing concerns about financial and legal risk. 

According to Reuters, large banks have reservations about participating in the Paycheck Protection Program, which includes $350 billion in loans for small businesses to cover the costs of salaries, bonuses, retirement benefits, parental leave and health care benefits. 

On a conference call Wednesday the lenders voiced concerns about verifying borrower eligibility in an effort to prevent fraud. The banks expressed doubts that they could perform due diligence as they rushed to get loans approved. 

Reuters could not verify which banks expressed reservations on the call or might boycott the program. The Bank Policy Institute, which hosted the call, includes member lenders such as JPMorgan Chase & Co, Bank of America Corp, Wells Fargo & Co and Citigroup.

The payroll-tax deferment and tax credits are open to all businesses and can be put into action immediately to help with economic distress due to coronavirus

Businesses owners who keep their workers on payroll during the coronavirus health crisis are eligible for a refundable payroll tax credit, according to CNBC. The credit is available through 2020 and is equal to 50% of wages (including qualified health plan expenses) of up to $10,000 per worker. 

Employers can claim the credit against quarterly payroll taxes and can receive advance payments of the tax credit. 

The deferment acts like an extension on a tax filing deadline, while small businesses will still owe the payroll taxes, they won’t have to file them for the rest of 2020. Employees will still have their share taken from their own checks.

Businesses still have to pay the money back at a later time, but the measure allows them to free up cash now to keep staffers on payroll. Companies do not qualify for the deferment or credit if they take a loan via the new stimulus Paycheck Protection Program.

Business owners have two major loan choices for economic relief during the pandemic, the Paycheck Protection Program (PPP) or the economic injury loan (EIL). Which is right for you? 

Businesses are eligible for the EIL if they are unable to pay ordinary and necessary operating expenses during a disaster period until normal operations can resume and there is no physical damage to the business, per FOX News. To qualify for the PPP, businesses must have fewer than 500 employees and be under economic strain due to the coronavirus. 

In terms of lending limits, you can borrow only $2 million with an EIL, but up to $10 million with the PPP. The EIL has an interest rate of 3.75 percent and will not exceed 4 percent, while the initial interest rate for the PPP loan is 0.5 percent, but could also go as high as 4 percent. 

The EIL cannot be forgiven, while the PPP allows for forgiveness for the first eight weeks if employers pay their expenses and keep salary levels constant. Three-quarters of the loan must go toward payroll.

Business owners can apply for the EIL at SBA.gov. The PPP can be accessed via any existing SBA lender.

The Small Business Association (SBA) will post a tool as soon as Friday to help small businesses find approved lenders participating in the coronavirus stimulus loan program. 

The Paycheck Protection Program includes $350 billion for small businesses to cover the costs of salaries, bonuses, retirement benefits, parental leave and health care benefits. SBA-approved lenders and federally insured depository institutions, federally insured credit unions and Farm Credit System institutions will be able to make these loans if they opt in, per CNN. Some fintech companies may be able to make the loans as well.

If this is your first SBA loan, consider using your primary bank as lenders. They will be using the “Know Your Customer” regulations in an effort to streamline the process. You do not have to physically go to the bank to apply for a loan, owners are encouraged to apply online. 

The loans can be forgiven for costs during the first eight weeks of the loan, but only for companies that keep employees on payroll and continue to pay bills during the crisis. 

Forgiveness can include payroll costs, mortgage and rent and utility payments, according to The Washington Post. The total amount of forgiveness will be reduced if a business’s workforce is reduced or if wages go down. If you are forced to lay off employees because of economic conditions, you may be able to retain some of your loan guarantee by hiring them back.

As much as 75 percent of forgiven costs will likely come from payroll, per the SBA. Loan forgiveness can begin eight weeks following the loan origination date. 

Small businesses can qualify for loans up to 2.5 times the borrower’s average monthly payroll costs up to $10 million. 

Date ranges used for calculating average monthly costs can vary for seasonal businesses, nonseasonal businesses, and firms that opened in 2020, according to Fortune. The loans can cover the costs of salaries, bonuses, retirement benefits, parental leave and health care benefits. 

Employee’s incomes in excess of $100,000 are excluded in the payroll costs, but will be covered up to that amount. Restaurant owners can also use the federal stimulus loans to pay workers hourly wages plus tips.

Applications for the Paycheck Protection Program should be available online by Friday and application guidelines are also available on the Small Business Administration’s (SBA) website.

Small business owners can expect same-day loan approvals, according to The Washington Post. With no SBA review process, lenders will make the funds available to small businesses on the date of application. Loans will be granted on a first-come, first-served basis.

“The application has been really stripped down from what we normally use in the SBA,” a senior administration official told The Post.

There is no fee to apply for the loans, but businesses will be charged fixed interest of 0.5%, but the first payment is deferred for six months.

Lenders are moving quickly to make funds available to small businesses across the U.S. in the wake of the coronavirus pandemic. Is your business eligible? 

The coronavirus stimulus package, now called the CARES Act, includes $350 billion for a small business loan program called the Paycheck Protection Program. The effort should incentivize business owners to keep employees on the payroll. 

Who qualifies? Small businesses, nonprofits, and tribal businesses that meet the SBA’s standard size definition, meaning fewer than 500 employees according to The Washington Post. This also includes veterans organizations organized under 501(c)(19). In addition, self-employed workers, independent contractors and sole-proprietors can apply. The company must have been in business as of Feb. 15.

Food service companies can have up to 500 employees per location and still be eligible for the program. 

Borrowers must also certify that their company has been affected by the coronavirus slowdown, per Fortune. While credit scores will be evaluated, lenders will not need collateral or a personal guarantee.