In the face of economic uncertainty caused by the coronavirus, businesses across the state are encouraged to take advantage of the many financial relief options available.
New federal legislation – the CARES (Coronavirus Aid, Relief, and Economic Security) Act – is designed to help employers and their workers weather the crisis, John Kabateck, state director for the National Federation of Independent Business (NFIB) in California, told the Northern California Record.
“CARES and its PPL (Paycheck Protection Loan) program are positive signs that our government leaders have taken the reins to provide immediate assistance to small businesses on the ropes right now,” Kabateck said.
That number has grown exponentially in just the past week. An NFIB poll released Thursday shows 92% of small business owners negatively affected by the coronavirus impact, up from 78% the week before.
Even before COVID-19, the small business owners faced high taxes, many regulations and a high number of frivolous lawsuits, Kabateck said.
“COVID-19 has them on the edge even more.”
According to California Employment Development Department (EDD) figures released Thursday, there were 878,727 unemployment claims processed in the week ending March 28. That’s up 370% over the week before when there were 187,000 claims, and far above the week ending March 14 when claims numbered 58,000.
Added frustration came from apparent glitches in the PPL application process that opened Friday, leaving many people unable to get through and prompting a pointed statement from the NFIB in Washington.
Meanwhile, Kabateck said Gov. Gavin Newsom has been very proactive. On Thursday, he announced a yearlong deferral of small business sales taxes and also has launched onwardca.org, which offers access to thousands of open jobs.
Kabateck urged business owners to also continue pursuing all avenues of relief.
“The state and federal leaders have done a remarkable job of acting and responding quickly with financial resources,” Kabateck said. “We just hope some of the bandwidth problems and politics don’t interfere with Main Street survival and recovery.”
“For small business owners, it’s essential for them to persevere in applying for state and federal loans for which they qualify,” Kabateck added. “It’s a new rodeo for most, small businesses are rushing in droves to apply and they should.”