Help Available in California During the COVID-19 Crisis

Individual/family assistance:

• OnwardCA.org, a centralized California Job-Loss resource center, connects those furloughed or now unemployed with training and job opportunities. Apply through the website here.

• United Way of Fresno/Madera Counties connects individuals/families with local aid organizations providing assistance with housing, utilities, legal, health, and other aid. Offering $500/family through their Coronavirus Relief Fund to those affected by job loss &/or medical issues during the pandemic. Find the application here, and their main website with connected local resources here.

• Major mortgage lenders in California now offer a 90 day mortgage relief program, with a suspension of fees and foreclosures for those who can document their reduced income due to the COVID-19 pandemic. This is not a forgiveness program, but your mortgage payments may be deferred for up to 3 months without penalty. Find California’s financial help page (with details of how to apply for multiple levels of relief) here. There is also a moratorium on evictions for renters who are unable to pay due to financial hardship.

• Utilities, including PG& E, SoCal Edison, and local municipalities are offering deferral of fees for late payments, as well as a moratorium on disconnection of services until the disaster has passed. Check your local municipality or water/garbage provider website for more information. Locally, Fresno and has issued a 30 day moratorium on water shut-off for non-payment.

• Unemployment or reduced employment due to the pandemic: California is offering a variety of assistance through employers and the unemployment program. Here is a comprehensive list of programs available, and here gives descriptions of the programs and assessment tools to see if you are eligible for the program. The federal government’s $600 weekly payout to unemployed workers will last for a period of up to four months through July 31. Additionally, the CARES Act will extend state-level unemployment insurance by an additional 13 weeks. For instance, whereas most state unemployment benefits last 26 weeks, the bill extends benefits in those states to 39 weeks. The extended benefits will last through Dec. 31, 2020. The normal requirement of employment history to receive unemployment benefits has been waived for the COVID disaster.

• Federal stimulus checks: as part of the emergency CARES Act passed by Congress on March 28, 2020, every individual in the United States will receive up to $1200 in tax relief. Those who received refunds or paid taxes through direct deposit or ACH transfers will receive their stimulus within the next 3 weeks. Those who receive paper checks may wait upwards of 3 months for their checks to arrive in the mail. To calculate how much you will receive go here.

• The IRS has also unveiled their new People First Initiative in response to the pandemic. Help includes extension of tax deadlines, renegotiations of tax installment agreements, and more. The IRS news release and links to appropriate program areas is here.

• Many economists have declared we are now in a Recession due to the pandemic, and/or will experience a recession for some time to come until our nation’s economic engine can restart. Here and here are short lists of steps you can take NOW to prepare financially for a recession.

• For a complete list of provisions in the CARES Act, including help for individuals and businesses, see this fact sheet.

• I can help with budgeting and debt reduction strategies, and give you simple strategies to reduce expenses and increase your income during this unprecedented time. See below for more information about how I can help.

small business resources

• As part of the CARES Act, the California Employment Development Department opened Unemployment Assistance to self-employed and 1099-Misc/Independent Contractors on April 28, 2020. To qualify for funds, you must be able to show that your business was adversely affected by the “shelter in place” orders due to the COVID 19 pandemic. See the EDD website here for more information and to apply.

• Small businesses in California can now apply for low-interest state and federal disaster loans to cover working capital, utilities, and other expenses. The COVID-19 response page with basic relief options is here. Currently, $10,000 cash advance grants (for working capital) are being processed through the SBA’s Economic Injury Disaster Loan (EIDL) program, as well as the Paycheck Protection Program (details below). All SBA loans are administered through your local business bank. Begin with the SBA web page here for the grant application, or your business bank website to apply for the PPP.

• As part of the CARES Act, small businesses can now apply beginning April 3, 2020 for funds to keep employees on the payroll. Called the Paycheck Protection Program, applicants can qualify for a loan that is 2.5x your normal monthly average payroll cost. Loaned funds will be forgiven if applicants document that 75% of loan proceeds were used to pay employees. Twenty-five percent (25%) of the loan may be used for rent, utilities, and other operating costs. Loans will be administered through your business bank. See here for basic description of the program, here for the application. A comprehensive article with details about the program is here. Unfortunately, Wells Fargo announced Sunday, April 5, 2020 that they will no longer be taking applications for the PPP, and limit their loans to existing business customers. See here for a statement from Wells Fargo. A second phase of funding was released on April 25, 2020, and applications for the PPP are being accepted as of April 27, 2020.

• Employers of less than 500 people will also qualify for tax relief for costs related to the mandated paid sick and family leave. See the IRS website here for their news release regarding required paid leave, and relief available to employers. Eligible employers who pay qualifying sick or child care leave will be able to retain an amount of the payroll taxes equal to the amount of qualifying sick and child care leave that they paid, rather than deposit them with the IRS. The payroll taxes that are available for retention include withheld federal income taxes, the employee share of Social Security and Medicare taxes, and the employer share of Social Security and Medicare taxes with respect to all employees. Small businesses with fewer than 50 employees will be eligible for an exemption from the leave requirements relating to school closings or child care unavailability where the requirements would jeopardize the ability of the business to continue. This draft form was released to give an idea of what information will be required for advanced Payroll tax credits.

• Employers may also qualify for a payroll tax credit of 50% of qualifying wages paid to each employee in a qualifying quarter, up to $10,000 per employee. These credits are not available to businesses that take advantage of the Payroll Protection loans.

• The IRS comprehensive page on Coronavirus Tax Relief is here.

• Independent Contractors and self-employed (Schedule C) can also apply for business loans for lost wages under the CARES Act. The application process begins April 10, 2020. Loans will be administered through the SBA funneled through your local business bank. See your bank website for more information and to apply. See here for the Paycheck Protection Fact Sheet for borrowers.

• The City of Fresno announced a 0% loan to local small businesses who can show a decrease of at least 25% in revenue due to the COVID-19 disaster. Find the City of Fresno emergency declaration here. The information website and application can be found here.

• Fresno business tax payments have been deferred to June 1, 2020.

• Banking institutions throughout the nation are offering and creating low interest business loans for the current crisis. For a current, comprehensive list, see the American Banker’s Association’s site here.

• Up to $50,000 in California Sales Tax liabilities can now be deferred for up to a year, and 1st quarter returns can be filed up until July 31, 2020. See the CDTFA page here for details.

• I am offering new clients reduced rate packages for the duration of this disaster. Please see below for more information on how I can help.

  
  
  

  
  
  

How I can help you navigate these uncertain times:

• I have much more information about resources available for individuals and businesses than I can cite here. I am offering reduced-rate phone consultations and/or Zoom meetings, where we can discuss your current finances and strategize how to best maximize your income and reduce your expenses. Use my contact form or the link below to call for more information.

• For the duration of the current crisis, I am offering new clients a monthly package bookkeeping service designed for individual circumstances. Service packages will be for 6-month contracts. Financial program subscriptions to either Quicken or QuickBooks will be at my wholesale subscription rate, with payroll services (if selected) at the lowest subscription rate. Please use my contact form, or use the link below to call for an initial consultation and review of packages and rates.

• I now offer a 4-session financial literacy class, “Back to Basics Finances,” tailored to individuals and small groups. This class (via Zoom) is designed to help you weather a recession/depression and will cover how to budget/reduce your expenses, reduce your debt, save & invest, and maximize your tax savings even in the current disaster. This class will be offered at a “pay as you can” rate, as I want to get what helpful information I can out to those hurt by this disaster. Please use my contact form, or use the link below to call for more information.