Greetings Redwood City Business Owner,
Over the past few weeks I have consulted with over 250 Redwood City businesses seeking guidance and/or assistance in response to the COVID-19 pandemic. Please know that we hear you. And, we will continue to be here as a resource for you. Many have asked for help identifying economic resources that could help their business survive during the Shelter-in-Place order. In response to those requests, the next few issue of this newsletter will focus on the economic relief programs that can provide financial relief due to the loss of income.
On March 27, 2020, the
Coronavirus Aid, Relief, and Economic Security Act
(CARES Act) was signed into law. It is an emergency relief bill that addresses the financial uncertainty created by the COVID-19 pandemic. The CARES Act contains over $350 billion in relief for American workers and small businesses. In addition to traditional SBA funding programs, the CARES Act established several new temporary programs to address the COVID-19 outbreak. Many of the SBA economic relief programs are being administered through
Coronavirus Relief Options
.
This issue will focus on the Economic Injury Disaster Loan and Advance Loan Program. We provide you with information to determine your eligibility for the program, documents you need to have in order to apply for the loan and how to complete the loan application.
Be sure to visit the City's
website
and Business Resources
page
, as information will continue to be updated.
If you need additional information or assistance please call me at (650) 780-7204 or email me at [email protected].
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Don Burrus
Economic Development Manager
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Unde
rstanding the
Economic Injury Disaster Loans and Loan Advance (EIDL)
The Small Business Administration (SBA)'s Economic Injury Disaster Loan program provides small businesses with working capital loans of up to $2 million that can provide vital economic support to help overcome the temporary loss of revenue they are experiencing. In response to the Coronavirus (COVID-19) pandemic, small business owners are now also eligible to apply for an Economic Injury Disaster Loan advance of up to $10,000.
The loan advance will provide economic relief to businesses that are currently experiencing a temporary loss of revenue. One of the reasons the loan advance is so beneficial to small businesses is that
the loan advance will not have to be repaid.
Applying for the Economic Injury Disaster Loan and Advance
To begin the application, review the
Three Step Process and be sure to download and complete the following documents
before attempting to apply as these documents are required.
Required Documentation for Business:
For help applying for the Economic Injury Disaster Loan and Advance, view the following step-by-step
vid eo prepared by the Small Business Administration (SBA).
If you have reviewed the (1) Three Step Process, (2) downloaded and completed the Required Documents, and (3) reviewed the How to Fill Out the Economic Injury Disaster Loan (EIDL) Application video, you are now ready to visit the SBA website, register and begin the loan application process. Click
here to apply.
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 State of California Relief for Small Businesses
Relief and Extensions for Filing Returns
On March 30, 2020, Governor Newsom signed a new
Executive Order
to help small businesses and workers displaced by COVID-19. On March 31, 2020, the California Department of Tax and Fee Administration (CDTFA) announced that all small businesses who file a return less than $1 million have three additional months to file returns and pay taxes administered by the department. Also, all businesses have an extra 60 days to file claims for refund from the CDTFA or appeal a CDTFA decision to the Office of Tax Appeals. If your business qualifies for the extension, it is automatic and you do not need to apply.
If your tax liability is more than $1 million, you may still request an extension. For more information, go
here.
Small Business Relief Payment Plans for Sales and Use Tax
Effective April 2, 2020, small business taxpayers, those with less than $5 million in taxable annual sales can take advantage of a 12-month, interest-free
payment plan for up to $50,000 of sales and use tax liability. Details can be found at the California Department of Tax and Fee Administration page
here.
Payment plan requests can be made through the
online services system in the coming months. Please fill out the form
here to be notified when the system becomes available. Alternatively, you may contact the customer service center at 1(800) 400 - 7115 if you are interested in being notified.
Here are some common questions about the payment plan:
Will a similar plan be created for special taxes accounts?
At this point, the program is only available for sales and use tax liabilities.
How will the payment plans work?
Qualifying sales and use taxpayers with deferred liabilities up to $50,000 will pay their taxes due in 12 equal monthly installments. No interest or penalties will be assessed against the liability.
What if taxpayers owe more than the $50,000 limit on the relief?
The maximum amount that any taxpayer can defer interest-free under this relief effort is $50,000. If a taxpayer owes more than $50,000 and needs a payment plan for the amount over $50,000, the taxpayer will enter into one payment plan and adjust the appropriate amount of interest toward the end of the 12-month period.
Go
here for more information.
California Disaster Relief Loan Guarantee Program
The Small Business Disaster Relief Loan Guarantee Program,
$50 million in loan guarantees
for small businesses that may not be eligible for federal relief. Below are some frequently asked questions.
Who qualifies? Is my business eligible?
Small businesses located in California with 1-750 employees that have been negatively impacted or experienced disruption by COVID-19 and eligible nonprofits can use the disaster relief loan guarantee program.
How does a loan guarantee work?
A loan guarantee mitigates the risk assumed by a traditional lending institution. A bank is more willing to provide access to capital if there is a guarantee in place that would repay up to 95% of the loan should there be a default.
What can loan proceeds be used for?
The funds are meant to help small businesses through this challenging time. Loan proceeds can be used for business continuance or to cure "economic injury" as a result of the COVID-19 pandemic.
What are the loan terms?
The loan can be guaranteed up to 7 years and cover up to 95% of the loan. The interest rates are negotiated between the lender and the borrower. Qualifications are based on lender criteria.
To apply and learn more about the Small Business Disaster Relief Loan Guarantee Program, click here.
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Other Business Resources
Facebook Small Grants Business Program
The Facebook Small Grants Business Program offers $100M in cash grants and ad credits to help businesses during this challenging time. Learn more
here.
Salesforce Care: Supporting Small Businesses Through COVID-19 Recovery
Salesforce will start to offer "Salesforce Care Small Business Grants" of $10,000 to provide capital to help keep businesses stay afloat. These grants will support small businesses as they work to replenish materials, pay salaries, or adapt their business model to overcome these difficult times. The grant application will be available to U.S. businesses in mid-April, and additional details on financial support to international small businesses will come out in the near future. Salesforce committed a total of $5 million to the program. Click
here to learn more.
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City Council Takes Action to Help Most Vulnerable Populations and Provide Relief to Small Businesses
On March 24, 2020, the San Mateo County Board of Supervisors approved $3 million in emergency funding (Measure K) to the San Mateo County Strong (SMC Strong) Fund. The SMC Strong Fund is a partnership with Silicon Valley Community Foundation and the San Mateo County Credit Union to support those most impacted by COVID-19 in San Mateo County.
To date, $1,000,000 in San Mateo County Measure K funds have been pledged to the SMC Strong to fund San Mateo County small businesses.
To support efforts to bring Redwood City small businesses relief, the City Council unanimously approved appropriating $300,000 to the San Mateo County Strong fund. This program is still being developed and is not accepting application yet, be sure to look for updates.
To learn more and to donate to San Mateo County Strong, click
here
. For FAQs, go here.
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Construction Update from the San Mateo County Shelter-In-Place Order
Health officers in seven Bay Area jurisdictions are extending a previous stay-at-home order through May 3, 2020 in order to preserve critical hospital capacity across the region. To view the latest update, go here. Read below for further clarification on construction during the San Mateo County Shelter-In-Place Order.
Is Construction Allowed During the Shelter-in-Place?
The City has received numerous requests seeking clarification on what kinds of construction projects are allowed under the Shelter-in-Place Order. Thank you for your patience as City staff continue to review the most recent San Mateo County Public Health Order.
The City will be restricting allowed construction sites per the order's directive and in the interest of community and staff safety during this public health emergency. The Community Development & Transportation Department is offering guidance as it relates to allowable construction.
Generally speaking:
- The City will not be permitting any single-family new construction and remodels and their subsequent inspections. These construction projects can only continue if there are life safety issues that impact the structure's habitability and sanitary condition. Per the County health order, ADU construction will also not be permitted as these are not income-restricted affordable units.
- The order does permit affordable housing and multi-family construction projects that contain at least 10% income-restricted units. Those permitted construction sites will need to follow specific life safety and social distancing protocols identified in the order. At present, the following construction projects meet county order eligibility: 707 Bradford, 612 Jefferson, 531 Woodside, 1409 El Camino Real, 353 Main, 330 Redwood, 1100 Island Dr, 1200 Bridge Parkway, 200 Cardinal and 905 Maple.
- Commercial/office construction projects continue to be prohibited. Hotel/motel projects are also not permitted.
- Healthcare construction projects may continue if they are directly related to a COVID-19 response. City staff will require documentation that these construction projects are specifically addressing COVID-19.
- Construction sites that must be shut down need to do so in a safe and secure manner and the attached document provides guidance as to how these sites must be secured.
- Essential infrastructure (gas, water, electric, telecommunication, etc.) and essential public works construction projects may continue. City staff is currently reviewing all infrastructure projects to determine public health order compliance and implementation of appropriate life safety and social distancing protocols.
- Generally, school construction projects are defined as essential construction activities and may continue under the public health order.
Please see guidelines
here
for City staff contact information should you have additional questions. We again thank you for your patience as we work through these challenging times.
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Support Local Businesses
Click
here
for a list of Redwood City restaurants open for take-out.
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CITY LAUNCHES NEW COMMUNITY SUPPORT MAP TO FIND OPEN BUSINESSES AND COMMUNITY SERVICES
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Earlier this month, the City's GIS team created a community support map to assist people in finding open businesses and community support services available during the shelter-in-place order. The interactive map can be accessed
here
.
Businesses include restaurants and grocery stores with details like store hours, senior hours, and delivery/takeout options. Community Support includes food pantries, box lunches, senior lunches, and hot meals with details like hours of operation and pick-up/drive through options and locations.
Let us know if you see something that should be included by emailing
[email protected].
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DOWNTOWN PARKING
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In light of the San Mateo County Shelter-In-Place Order, the City postponed parking enforcement and have redeployed our staff to focus on other emergent needs. Additionally, Theatre Way allows for temporary vehicle access for business and takeout food delivery.
It is important that restaurants and other essential businesses continue to provide take-out and delivery services. The City initiated a Temporary Short Term Parking Program to assist businesses in continuing their services. If you are interested in participating, download and complete the reserve parking application. When filling out the application, please select "loading" under the type of reserved parking. If you have questions related to the program or application,
and to submit the application, email Christian Hammack at [email protected].
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CONNECT WITH US ON LINKEDIN
Did you know the City of Redwood City is active on LinkedIn? Connect with us
here to see important updates, relevant news articles, job opportunities, and more.
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ave a friend you think might be interested in receiving Economic Development updates from the City?
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