COVID-19 Information for Small Businesses
I am committed to supporting small businesses and nonprofits experiencing economic hardship, especially those owned by people of color, women, veterans, and working families.
The American Rescue Plan of 2021 is a $1.9 trillion economic stimulus bill signed into law by President Joe Biden on March 11, 2021. Small business relief provided by the package includes:
Paycheck Protection Program (PPP)
An additional $15 billion for Targeted Economic Injury Disaster Loan Advance Payments for businesses in low-income communities;
An additional $7.25 billion for the Paycheck Protection Program (PPP) and expanded eligibility to agricultural groups and local digital news services;
The establishment of a Community Navigator pilot program to increase the awareness of and participation in COVID-19 relief programs for business owners currently lacking access, with priority for businesses owned by socially and economically disadvantaged individuals, women, and veterans.
Paycheck Protection Program (PPP) Businesses with 300 or fewer employees that can show at least a 25 percent decline in their gross receipts between comparable quarters in 2019 and 2020 are now eligible for a second-draw PPP loan.
Economic Injury Disaster Loan (EIDL)
Nearly four million businesses employing more than 20 million people have found financial relief through SBA’s Economic Injury Disaster Loans (EIDL), which provides low-interest emergency working capital to help save their businesses. However, the pandemic has lasted longer than expected, and businesses need larger loans.
That is why the SBA has lifted the loan limit for the EIDL program from six months of economic injury with a maximum loan amount of $150,000 to up to 24-months of economic injury with a maximum loan amount of $500,000.
This new relief builds on SBA’s previous March 12, 2021 announcement that the agency would extend deferment periods for all disaster loans, including COVID-19 EIDLs, until 2022 to offer more time for businesses to build back. In order to shift all EIDL payments to 2022, SBA will extend the first payment due date for disaster loans made in 2020 to 24-months from the date of the note and to 18-months from the date of the note for all loans made in the calendar year 2021.
To apply for an EIDL, please visit https://disasterloan.sba.gov/ela/.
Applicants may also call SBA's Customer Service Center at (800) 659-2955 (1-800-877-8339 for the deaf and hard of hearing) or email email@example.com
for more information on disaster assistance.
Targeted EIDL Advance
The American Rescue Plan included $15 billion in targeted EIDL grants for businesses in low-income communities that missed out on grants from previous authorizations. The Supplemental Targeted Advance for $5,000 is available for businesses in low-income communities that sustained more than a 50% economic loss and have 10 or fewer employees. Those who are eligible for this advance will receive a notification from the SBA. Recipients can use the advance funds to meet payroll, provide paid sick leave, pay mortgages, rent, or other obligations.
Shuttered Venue Operators Grant
The Shuttered Venue Operators Grant (SVOG) provides $16 billion in funding to help entities like live venue operators or promoters, theatrical producers, live performing arts organization operators, museum operators, motion picture theater operators, and more.
Restaurant Revitalization Fund
The American Rescue Plan Act amended the Economic Aid Act to allow those who applied for and received a PPP loan after Dec. 27, 2020, to also apply for a SVOG.
Applications for this grant are now open. Please click here to learn more.
Included in the American Rescue Plan was $28.6 billion to help restaurants, bars, food stands, and more recover from COVID-19. Entities can receive grants up to $5 million per entity and $10 million in total. They and are not required to repay the funding as long as it is used by March 11, 2023. Eligible entities include: restaurants, food stands, trucks, and carts, caterers, bars and taverns, snack and nonalcoholic beverage bars, bakers, breweries, wineries, inns, and more.
Registration for this program is now open exclusively for small business owned by women, veterans, or socially and economically disadvantaged individuals until May 24. It opens to all applicants on May 25 until all funds are exhausted. To register, please click here.
Small Business Guidance
The SBA's Resource Partners are providing quality free mentorship, guidance, and expertise to small business owners and entrepreneurs impacted by COVID-19. If you need additional assistance, please reach out to your local Small Business Development Center
, Women's Business Center
, SCORE chapter
, or SBA District Office
State and Local Resources
Los Angeles City Small Business Emergency Microloan Program
Los Angeles County Business and Worker Disaster Help Center
California Disaster Relief Loan Guarantee Program
Visit the Help Center's website, or call 833-238-4450, to receive guidance on loan applications, layoff aversion services, tax credits, and comprehensive support for workers.
Staff assistance is available in multiple languages, including Spanish, Korean, Mandarin Chinese, and Armenian.
For businesses that do not qualify for federal relief, like those owned by undocumented individuals, California has channeled $50 million into its infrastructure bank to create micro-lending opportunities.
The Small Business Finance Center (SBFC) is partnering with Financial Development Corporations to provide loan guarantees and direct loans to small businesses that experience barriers to capital access and do not qualify for SBA loans.