What COVID-19 relief help is open to Modesto, Stanislaus small businesses right now?
You’re a small business owner, and you’re struggling through the pandemic.
Sometimes it seems like you’re doing through it alone, hustling to keep the doors open and find customers. The good news — and, yes, there is still some good news — is there are many programs and organizations that can and want to help.
You can look toward existing programs from the local, state and federal government. Other community organizations are also pitching in with innovative projects meant to make surviving the ongoing coronavirus crisis just a little easier.
Granted it can be confusing trying to navigate what’s out there, what’s expired and what is still coming. But local groups like the Valley Sierra Small Business Development Center and Stanislaus County Workforce Development are happy to help guide small business owners through the variety of federal and state programs available at no cost. And more focused groups like the Downtown Modesto Partnership and others can provide targeted help as well.
The Valley Sierra SBDC saw the number of clients it counseled double from 2019 to 2020, a sign of the pandemic’s impact and the need for help out there. A lot of the influx came from restaurants and personal service providers like hair stylists and nail salons, which have seen shutdowns throughout the coronavirus crisis.
“It has been a blessing to be able to help the businesses that need this help, especially the micro-businesses don’t have CPAs and other resources,” director Katy Winders said of the free services. “So many places were so hard hit.”
Here is a rundown of some of the programs, projects and incentives available to small business owners in the Central Valley and surrounding region.
Available federal COVID-19 relief programs
The federal government through the CARES Act and other stimulus has established a number of programs aimed at giving small businesses cash, either through low-interest or forgivable loans, and other help. They include:
Paycheck Protection Program: Perhaps the most high-profile program out of the CARES Act, PPP became a lightning rod for its messy roll-out and running out of funds when it was introduced last spring. Now the program is back for another round offering both first- and second-time applicants forgivable loans up to $10 million and $2 million respectively.
The federal Small Business Administration administers the program, but business owners must go to local banks and lenders to apply for the loan. The funds come with a 1% interest rate and can be completely forgiven if used on approved expenditures.
The first-draw applicants have largely the same criteria as the first round of PPP, open to those with no more than 500 employees. The second-draw applicants must have no more than 300 employees and must show a 25% reduction in gross receipts to be eligible. The deadline to apply is March 31 for both first and second draws. For help applying contact the local Valley Sierra SBDC, your bank/lending institution or your CPA for more details.
Economic Injury Disaster Loans: Another federal COVID-relief loan for businesses suffering through the pandemic is aimed at those who perhaps don’t qualify for the PPP or in addition to any PPP funding. The money can also be used on more business expenses than the PPP loans. The loans are administered directly through the SBA, which determines the amount based on need, and have a fixed interest rate of 3.75% that can be paid off over a 30-year span. Deadline to apply is Dec. 31, 2021. Contact the SBA directly or get help through the Valley Sierra SBDC to apply.
Shuttered Venue Operators Grants: A new program aimed at helping hard-hit arts, culture and live entertainment venues shuttered by the pandemic, it is also administered by the SBA. The program is not yet accepting applications, but is expected to start soon. Eligible venues must have suffered at least a 25% revenue loss year-over-year (with priority given to those with a higher percentages of loss). The grants, which award up to $10 million per venue and do not need to be paid back, can cover a variety of operating costs. Once the program is live, apply through the SBA of contact the Valley Sierra SBDC for additional help.
Employee Retention Credit: The CARES Act established a tax credit for employers who retained employees during the pandemic. The IRS will apply the credit to 2020 taxes and through the first two quarters of 2021. For 2020, the credit is for 50% of wages up to $10,000 per employee. For 2021, the credit is 70% of wages up to $5,000 per employee. The employer needs to show a decline in gross receipts to qualify. Talk with your CPA about the credit. The credit can be combined with PPP funding.
State, local programs aimed at small businesses
State and local programs are also aimed, sometimes at more focused groups, with ways large and small to help businesses. These include:
California Rebuilding Fund: A new state program is trying to get more help to underserved and disadvantaged communities. The fund is aimed at small businesses with 50 or fewer employees and gross revenue under $2.5 million annually. The three-to-five year loans have an interest rate of 4.25% and provide up to $100,000 in relief. Unlike the PPP program, the loans are not administered through banks but Community Development Financial Institutions. The program seeks to bolster aid to low-income communities that have perhaps not found success getting funding or credit from traditional lending institutions. Follow the state’s online portal to apply or contact the Valley Sierra SBDC for help.
Email Marketing Seminar: The local Valley Sierra SBDC is hosting a free, virtual webinar for small business to help them jump-start their online marketing. The pandemic has forced many business owners to learn social media and other marketing on the fly. An expert will walk attendees through the basics and best practices to attract more customers. The free webinar is from 10 to 11:30 a.m. Thursday, Feb. 18. Visit valleysierrasbdc.com for more information or to register.
DoMo Parklet Program: The DoMo Partnership will reimburse downtown Modesto restaurants up to $3,000 to build parklets in parking spaces in front of their businesses to expand outdoor dining. The money goes toward reimbursing building supplies and costs. Contact the DoMo Partnership for more information.
DoMo Winterization Program: Last winter the DoMo Partnership launched a program to reimburse downtown businesses up to $1,000 for their costs associated with cold-weather outdoor dining expenses, including buying heat lamps and canopies. While the winterization program technically ended at the end of 2020, the group has money leftover and interested parties should contact them soon to express interest. DoMo will decide in the next few weeks whether to extend the program.
DoMo Blanket Program: DoMo Partnership has also launched a winter blanket sales initiative. The Mexican woven blankets are purchased through the group and sold at participating downtown businesses with a portion of the proceeds going to the business. Contact DoMo Partnership to be a part of the program.
RAD Card: Another DoMo Partnership program aimed at helping small businesses and customers alike is the RAD Card. Launched last summer, the digital gift-card app offers up to a $100 match for buyers and zero service fees for sellers. The popular program got a big boost from $2 million in CARES Act funding provided from Stanislaus County and has expanded past its downtown Modesto roots to downtown business in all county cities. So far close to $1 million in purchases have been processed through the app and there is talk of extending it beyond downtown areas as well.
OpenAir Initiative: The City of Modesto created an expedited program for restaurants wanting to create and expand outdoor dining spaces. Restaurants can apply through the city for permits.
Downtown Economic Development Incentives Program: Established well before the pandemic, the city program isn’t aimed at relief but rebuilding. Eligible businesses wanting to open in downtown Modesto can apply for up to $2,500 as well as various tax incentives, fee waivers and priority processing. As the pandemic takes its toll and businesses close, opportunities are out there for those looking to rebuild. The city of Modesto administers the program.
In addition to these existing programs, as Congress is expected to pass another COVID-19 relief stimulus bill soon, additional funding could become available. The city of Modesto and Stanislaus County gave out up to $10,000 and $25,000 grants to small businesses after the first round of stimulus. More could be coming if the new bill passes.
For more help contact:
- Valley Sierra SBDC — 209-422-6416 or valleysierrasbdc.com
- Stanislaus County Workforce Development — 209-558-4140 or www.stanworkforce.com
- Downtown Modesto Partnership — 209-303-0411 or www.domopartnership.org
With all these programs, it’s important for business owners to apply quickly as many of the programs have finite funds which are given out first-come, first-serve. So ask for help; it’s out there.
