COVID-19 Relief Resources for California Co-ops

About these resources 

The information below is organized to help co-ops easily navigate to resources most relevant to their co-op sector.  The list begins with programs that are available to a wide variety of co-ops. 

Programs are continually changing in offerings, availability and eligibility.  Most are time sensitive, and some have limitations by co-op sector.  CCCD will update this page periodically, but it is important to also check with the source of the information to access the most up-to-date details. Please reach out to us with any additional grant/loan programs or resources to support California co-ops by emailing info@cccd.coop. 

At this time of great need, it is important to recognize the many cooperative associations that have been instrumental in assuring co-op eligibility for relief programs, including the National Cooperative Business Association. 

 

UPDATES

Paycheck Protection Program -- Round 2  

SBA has re-opened the Paycheck Protection Program (PPP) and currently accepting applications! First time applicants could apply beginning on January 11, 2021. Applications for Second Draw PPP loans opened on January 13 and will close on March 31. 

Loan terms for the Second Draw PPP loan are the same as the First Draw.  

Borrowers are eligible for a Second Draw PPP loan if they: 

  • Previously received a PPP loan and will or has used the full amount only for the authorized uses; 

  • Have no more than 300 employees; and 

  • Can demonstrate at least a 25% reduction in gross receipts between comparable quarters in 2019 and 2020 

Other important changes since the last round: 

  1. The maximum loan amount for the Second Draw is $2 million  

  1. Housing cooperatives and 501(c)6 organizations, which were excluded in the previous round, are now eligible for the PPP loans 

  1. For most borrowers, the maximum loan amount is 2.5x their average monthly payroll costs (2019 or 2020). However, borrowers in the Accommodations and Food Service industry that are applying for their Second Draw PPP loan can request up to 3.5x of the average monthly payroll costs (2019 or 2020). 

  1. In addition to payroll costs, mortgage interest, rent expenses, and utilities, allowable and forgivable uses for PPP funds now also include: 

  • Covered operational expenditures  

  • Covered property damage costs 

  • Covered supplier costs 

  • Covered worker protection expenditure 

However, borrowers are still required to use at least 60% of the loan for payroll costs. 

PPP Loan Forgiveness 

On January 19, 2021, the federal government released a simplified, one-page application form. Borrowers who received a PPP loan of $150,000 or less can apply for loan forgiveness using this form. Please reach out to your lender for more details. 

For additional information, visit the SBA website

 

California Small Business COVID-19 Relief Grant 

Eligible small business owners and non-profits can apply for a one-time grant up to $25,000. 

The first round of applications closed on January 13. If you missed the first round, applications re-open for the second round on February 2 and close on February 8.  

You can find more information here.

 

Additional Resources 

https://www.gtlaw.com/en/insights/2021/1/paycheck-protection-program-expected-impact-of-second-draw-loans  

https://www.wegnercpas.com/resources/ppp2-what-you-need-to-know-now/ 

 

GENERAL
Funding

Relief Programs from the Small Business Association 

NOTE: As of Friday, April 24, the federal government approved additional funding for the Economic Injury Disaster Loan Program and Payment Protection Program. Loan applications will continue to be processed in the order received so apply ASAP! The SBA resumed accepting Paycheck Protection Program applications from participating lenders on April 27. Applications reopened for the Economic Injury Disaster Loan Program on May 4; however, only new applications for U.S. agricultural businesses are being accepted. For EIDL applications submitted before April 15, the SBA has resumed processing them based on the order in which they were received. 

For additional information, visit the SBA website.   

Economic Injury Disaster Loan Program (EIDL) 

$10,000 Cash Advance 

  • Cash advance based on the number of employees for businesses with fewer than 11 employees. 

  • Cash advance calculation is $1,000 per employee with a maximum cash advance of $10,000. 

  • The cash advance will be forgiven. 

  • Loan applications are processed in the order received.  

If you have received an EIDL cash advance prior to the disbursement of a PPP loan, the EIDL advance may be deducted from the total of the PPP loan approval. 

Paycheck Protection Program (PPP) 

  • Interest Rate - 1%, with a portion of the loan forgiven 

  • Loan Term - 2 Years 

  • Non-Profit Eligibility: 501c3s, 501c19s, Religious Organizations, Tribal Businesses, Veteran Organizations 

  • Headcount determination: Lenders define whether it is actual employees or full-time equivalent 

  • Forgiveness may be prorated based on actual eligible payroll expenses during the performance period (8 weeks). 

  • The performance period (8 weeks) begins immediately following the disbursement of the loan proceeds. 

    • If you have laid off employees prior to receiving the PPP loan, you will have a short window to rehire them. 

    • You may not defer the spending until you are re-opened. 

    • If you are planning to utilize the funds when your business re-opens, you should delay your application until you are prepared to use the funds. Please keep in mind that these funds are first come, first serve and may not be available when it is convenient to participate. 

  • Seasonal businesses that had employees in 2019 but had not yet hired their 2020 staff may be eligible. Work with your lender to determine your eligibility and average monthly payroll calculations. 

  • Expenses that CANNOT be included in the average monthly payroll calculations for loan amount determination and/or forgiveness: 

    • Employer contributions of Social Security and Medicare

    • Worker's compensation, disability and/or unemployment insurance

    • Payroll processing fees 

  • For sole proprietors, self-employed individuals, independent contractors and LLCs filing as sole proprietors/partnerships: 

    • The lender will determine the mechanism for identifying the owner's average monthly payroll 

    • Each lender is likely to use a different approach to this determination and you will have to follow the guidance of your lender 

    • If you have multiple businesses, check with the lender as to how the multiple businesses should apply for the program 

    • The multiple businesses should be working with the same lender for the application processes

    •  The lender will need to verify that the total number of employees of the businesses qualify as a small business 

    • The lender may have the multiple businesses apply under one application or as separate applications 

    • The lender will have the final say on how to approve and process applications from owners with multiple businesses 

  • Loan forgiveness:

The loan will be fully forgiven if the funds are used for payroll costs, interest on mortgages, rent, and utilities (due to likely high subscription, at least 75% of the forgiven amount must have been used for payroll). Loan payments will also be deferred for six months. No collateral or personal guarantees are required. Neither the government nor lenders will charge small businesses any fees.

Forgiveness is based on the employer maintaining or quickly rehiring employees and maintaining salary levels. Forgiveness will be reduced if full-time headcount declines, or if salaries and wages decrease.

This loan has a maturity of 2 years and an interest rate of 1%.

If you wish to begin preparing your application, you can download a copy of the PPP borrower application form to see the information that will be requested from you when you apply with a lender.

Grants from the Cooperative Development Fund Disaster Recovery Fund

Aid funds directed toward cooperatives and cooperative support organizations.  

Emergency Loans from Shared Capital Cooperative

Loans to cooperatives to support business disruption. 

Small Business Grants Program from Facebook

Cash grants and ad credits to small businesses that are experiencing disruptions in their operations. Eligible businesses must be located near Facebook’s offices—in California, this includes the San Francisco Bay Area, Northridge and the Los Angeles metro area. 

WORKER
General

Funding

AGRICULTURE
Self-Care

Food & Worker Safety

  • Information on food safety protocol to mitigate or respond to the spread of COVID-19 among customers and employees, which includes guidance from the CDC and California Department of Public Health, presented by Community Alliance with Family Farmers 

  • Legal guidance surrounding health screenings, sick leave and unemployment as presented by Farm Commons 

Funding

Marketing & Sales

FOOD
General

  • Known as the COVIDeo Series, Food Co-op Initiative has launched a series of videos for start-up food co-ops. Each session is led by a start-up food co-op expert who will discuss impacts of the current crisis and ideas for how to respond.