For Businesses Forced to Lay Off Workers

Rapid Response

Are you a business owner or representative of an employer considering or who has already experienced work stoppages, layoffs or furloughs? The Rapid Response program may be able to help you. Contact us to discuss options and services that may assist impacted employees, including Unemployment Insurance information, tax assistance, Work Sharing program to avoid layoffs, financial planning, remote career services and more.

We can offer your affected workers information and resources on how to file for unemployment insurance, how to get re-employed as soon as possible, and provide additional resources that may be available.

On March 4, Governor Gavin Newsom signed Executive Order N-31-20 to ease the regulatory burden on employers who had to close before being able to provide employees advanced notice related to the Worker Adjustment and Retraining Notification (WARN). 

Labor Code sections pertaining mass layoff, relocation and termination, which normally requires a 60 day notice, have been temporarily suspended due to this emergency and now only require as much notice as is practicable is provided, and when the notice is given, a brief statement regarding the basis for reducing the notification period is included.

Contact Pamela Clemmons at 707-307-3986 for Rapid Response Information.

Click here for the Rapid Response Resource Flyer

Click here for Information on the California WARN Act during COVID-19
 

Other Services Available for Businesses

Solano Small Business Development Center

The Solano Small Business Development Center is a resource partner of the Small Business Association (SBA) and will provide for-profit small business owners with no-cost guidance through your recovery process, including applying for disaster recovery loans, if needed.

  • Locally based SBDC with 13 consultants available to speak with current and former business owners.
  • Knowledgeable on how to get access to capital, and how to create a strategy for navigating the business impacts of COVID-19
  • Advice from SBDC: Be cautious of online lenders charging high interest rate

Visit the Solano SBDC website for more information at: www.solanosbdc.org

Click here for the COVID-19 Small Business Survival Guide

Click here for the SBDC Guide to Covid-19 Loans and Forms

Click here for the SBDC COVID-19 Resource flyer

Coping with COVID-19 Webinars available here.

 

SBA Disaster Loan

Low interest, long-term loans of up to $2M for small businesses, private non-profit organizations of any size, small agricultural cooperatives and small aquaculture enterprises that have been financially impacted as a direct result of COVID-19. This is a working capital loan, can be amortized for up to 30 years, and may be used to pay fixed debts, payroll, accounts payable, and other bills that can’t be paid because of the disaster’s impact.

Businesses can apply online at: https://disasterloan.sba.gov/lea or complete and send manually. Online applications will be processed faster.  

Businesses must show their 2018 - 2019 income statement and profit and loss and project what the expected impact will be due to lost revenue in 2020 to show the projected economic injury.  

Loan payments will be deferred for at least 5 months and possibly longer depending on how long the pandemic lasts.

The window for applying will last until Dec 15th but applications will be handled on a first come first serve basis so if a business intends to apply, don’t delay getting application in. 

Answers on loan requests should come within 2-3 weeks of submitting the application.  The loan will be funded within 5 days of getting signed loan docs to the SBA.  

The Solano SBDC, while operating virtually (like most of us) is still very much up and running.  We encourage anyone looking for technical assistance in completing their application to contact us by going to our website SolanoSBDC.org and clicking on the Apply Now button or calling us at 707 646 1071. 

 

Small Business Finance Center

An existing program through CA Infrastructure and Economic Development Bank (IBANK), a unit within California Governor’s Office of Business and Economic Development (GO-Biz) to support small businesses (1-750 employees) impacted by disasters in California, including these programs:

  • Disaster Relief Loan Guarantee Program (DRLGP): Loan guarantees up to 95% of the loan for small business borrowers impacted by disasters who need term loans or lines of credit for working capital.
  • Jump Start Loan Program: Loans from $500-$10,000 to low-wealth entrepreneurs in declared disaster and emergency areas.

Click here to be redirected to the Small Business Finance Center (SBFC).

 

California Association for Local Economic Development 

CALED recognizes that as economic developers, you are the leaders in your communities and play an important role in providing good information to help your residents and businesses feel safe. As businesses and the local economy are hit hard by the virus and its effects, CALED has gathered federal, state, and local resources that provide guidance as well as examples of what communities are doing to help their local businesses.

Click here for Economic Development Resources for the novel Coronavirus and COVID-19

 

State Payroll Taxes

If payroll taxes cannot be paid on time: With the Governor’s emergency declaration, if your business is directly affected by COVID-19, you can request up to a 60-day extension to file your state payroll reports and deposit state payroll taxes without penalty or interest. The written request for extension, noting the impact of COVID19, must be received within 60 days from the original delinquent date of the payment or return. For the address to send the request, along with other information, please see the State of Emergency or Disaster Fact Sheet (DE 231SED) (PDF). You can also call the EDD Taxpayer Assistance Center with any questions you may have about your payroll tax responsibilities at 1-888-745-3886 or (TTY) 1-800-547-9565. Assistance also provided by https://www.cdtfa.ca.gov/services/covid19.htm

 

Avoiding Layoffs

EDD Employer Services (Partial Claims/Work Sharing)

Partial ClaimsFor employees whose employers want to keep them when there is lack of work. The employer certifies that the employee is expected to return to work and gives them a form to file an Unemployment Insurance (UI) claim.

Work Sharing ProgramIf COVID-19 has impacted your business or services you can avoid potential layoffs by participating in the Unemployment Insurance (UI) Work Sharing Program. This program allows you to retain your workers by reducing their hours and wages no more than 60 percent and partially offsetting the wage loss with UI benefits. This helps you avoid the cost of recruiting, hiring and training new workers and helps your workers keep their jobs and receive some financial support with UI benefits.

Other Changes to your business: If you are a registered employer, you must report any change in your business status, including if you no longer have employees but the business remains open, if you sell or close your business, or if you re-open your Employer Payroll Tax Account.


Protecting Workers from COVID-19

Centers for Disease Control and Prevention (CDC) has published an interim guide for businesses and employers to respond to COVID-19.

California Department of Industrial Relations has published a Cal/OSHA guide on requirements to protect workers from COVID-19.

California Department of Public Health has published many guidance documents and technical support resources to local health departments, health care facilities, providers, schools, childcare facilities, food industry, and more.