Federal, State Relief On The Way For Businesses Struggling During Coronavirus Pandemic
LOS ANGELES (CBSLA) — Businesses across the state, and the country, are looking for a lifeline amid shutdowns caused by the coronavirus pandemic.
"This happened overnight," business owner Norma Ruiz said. "It was just, from one week to another, just it's closed, and we have no idea even as of now what will be happening."
Ruiz owns 1st Impression All-Star Dance Studio in Los Angeles' Frogtown neighborhood and has been struggling to make ends meet as non-essential businesses across the state have been ordered to shutter.
"Utilities, the rent, the insurance, obviously, you know what I mean," she said. "I mean, everything that comes with the business."
But on Thursday California Gov. Gavin Newsom said help was on the way, and he urged business owners to act fast, because Friday marks the first day they can apply for loans and grants through the Paycheck Protection Program.
"This is a profoundly significant program that has $349 billion of federal supports attached to it," he said. "This program starts tomorrow, and that's why it's incredibly important that people start filling out the application, filling out the form to make sure they're aware of their eligibility."
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The federal program is intended to help companies keep paying their employees throughout the continued shutdowns.
"We're encouraging business large and small, again up to hundreds of employees, that are eligible for the status of these benefits to do just that and get prepared because tomorrow ... those will start being processed," Newsom said.
But the governor knows that not all businesses will be eligible for the federal program, so he announced other relief efforts at the state level.
"It's an additional contribution from the state to address those that may otherwise fall through the crack," he said.
Those state programs include relief from state sales tax of up to $50,000 for one year with no interest and no penalties as well as micro-loan opportunities.
And businesses owners like Ruiz say they will take all the help they can get.
"We need need every financial possibility, any assistance, any way to be able to hold on to just the location alone so that when we come back we need to come back even stronger," she said.
More information about both state and federal relief programs for businesses can be found on the state's website.
