Funding/Financial Resources
California Employment Development Department(EDD) Resources for Employers
(Tax Extensions, Rapid Response Layoff Aversion & Other Programs)
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Rapid Response for Small Businesses Threatened With Closure due to COVID-19:
If your business is experiencing drastic impacts such as mass layoffs or closure contact the EDD’s Rapid Response Team. Teams provide immediate on-site assistance to employers and employees. For information view the Rapid Response Services for Businesses Fact Sheet (DE 87144RRB) (PDF) or contact your local America’s Job Center of California. Alternatively, contact the Los Angeles Economic Development via email to: covid19response@LAEDC.org. -
Tax Assistance:
Employers suffering financial hardship resulting from COVID-19 may request a 60 day tax extension to file or deposit state payroll taxes without penalties or interest. Contact the EDD’s Taxpayer Assistance Center within 60 days of delinquency to request your extension.
How to Request Your Penalty Waiver
- Login or Register for Your EDD Online Services Account.
- Complete and Submit the online Penalty Waiver Request Form.
- Alternatively, Contact the EDD by phone at: (888)745-3886.
- Work Sharing Program: If you are a California business with a minimum of two employees and at least 10% of your workforce is affected by a loss of wages of between 10% and 60% you may be eligible for work sharing. The work sharing enables workers to keep their job while receiving supplemental unemployment insurance. Employers benefit by:
- Reducing or removing the need for layoffs.
- Allowing you to keep trained employees for a quick return to business as usual once conditions improve.
- Bypassing the need for costly recruiting, hiring, and training of new employees.
How To Enroll in the EDD Work Sharing Program (Employers)
- Download and complete the Work Sharing Unemployment Insurance Plan Application
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Return the form by mail to:
Employment Development Department Work Sharing Program
PO Box 989060
West Sacramento, CA 95798-9007. - Alternatively, Contact the EDD Special Claims Office by phone at: (916) 464-3343
Employee Information about the Work Sharing Program
- Information for your employees
Employees must meet the following criteria:
- Be permanent regular employees(not seasonal, contract, temporary).
- Have qualifying quarters for regular California Unemployment Insurance.
- Have a minimum reduction in hours and wages of 10% and not more than 60%.
- Have completed at least one week of normal hours without hour and wage reduction.
- To apply get the claim forms from your employer who must also be enrolled in the Work Sharing Program.
- Visit the Work Sharing Program or contact the EDD Special Claims Office at 916-464-3300 for more information.
Additional COVID-19 Disaster Relief Funding Sources for Small Businesses
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The Small Business Finance Center (SBFC) partners with Financial Development Corporations to provide loan guarantees and direct loans for small businesses that experience capital access barriers.
Southern California Small Business Loans through the SBCF are handled by the Pacific Coast Regional Small Business Development Corporation. Click here for more information or call:(866) 301-9989
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CalCAP SB can help Southern California Small Businesses affected by COVID-19 with working capital.
CalCAP SB is ideal for businesses experiencing difficulty securing financing. CalCAP is a loan loss reserve program working with banks and other financial institutions to provide up to 100% coverage on certain loan defaults. CalCAP SB enrollment increases the likelihood a lender will underwrite your loan. Visit CalCAP for more information and to enroll.
Coronavirus Federal Tax Relief
As of March 18, the Federal Tax filing date has been extended to July 19. Additionally, the Internal Revenue Service(IRS) and Treasury Department are allowing individual, non-corporate (including self-employment) tax filers (also applies to employees), deferment up to $1million dollars of Federal income tax without interest or penalties. This allowance is extended to $10 million dollars for corporate taxpayers.
Visit the IRS Coronavirus Tax Relief Page for more information.
