COVID-19: The Latest News & Resources for Your Business (Rev. 3/18/2020)

Summary

A business resource guide, COVID-19 The Latest News & Resources for Your Business, revised March 18, 2020, from an SBDC funded in part through a Cooperative Agreement with the U.S. Small Business Administration and a grant with the Governor's Office of Business and Economic Development. Its table of contents covers the SBA Economic Injury Disaster Loan, EDD for business owners, EDD for business employees, business interruption insurance and the Finance Center. The EIDL section states that the SBA can provide up to $2 million at an interest rate not exceeding 4 percent per year and a term not exceeding 30 years. The EDD sections describe the Unemployment Insurance Work Sharing Program, Rapid Response services, a 60-day extension for state payroll reports, and Disability Insurance, Paid Family Leave and Unemployment Insurance benefits.

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COVID-19
The Latest News & Resources for Your Business

1-800-616-SBDC | OCIESMALLBUSINESS.ORG
Rev. 3/18/2020
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1-800-616-7232

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TABLE OF CONTENTS
3-5 SBA: Economic Injury Disaster Loan
6-8 EDD For Business Owners
9-14 EDD For Business Employees
15-16 Business Interruption Insurance
17-19 The Finance Center

2
THE THREE STEP PROCESS:
ECONOMIC INJURY DISASTER LOANS

3
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ECONOMIC INJURY DISASTER LOAN
If you have suffered substantial economic injury and are one of the following types
of businesses located in a declared disaster area, you may be eligible for an SBA
Economic Injury Disaster Loan (EIDL):
• Small Business
• Small agricultural cooperative
• Most private nonprofit organizations

LOAN AMOUNT AND USE
Substantial economic injury means the business is unable to
meet its obligations and to pay its ordinary and necessary oper- HOW TO APPLY
ating expenses. EIDLs provide the necessary working capital to
help small businesses survive until normal operations resume
after a disaster. STEP 1: You can apply online for
an SBA disaster assistance loan.
The SBA can provide up to $2 million to help meet financial
obligations and operating expenses that could have been met STEP 2: You must submit the
had the disaster not occurred. Your loan amount will be based completed loan application and a
on your actual economic injury and your company's financial signed and dated IRS Form 4506-T
needs, regardless of whether the business suffered any proper- giving permission for the IRS to
ty damage. provide SBA your tax return infor-
mation.
ELIGIBILITY AND TERMS
The interest rate on EIDLs will not exceed 4 percent per year. STEP 3: For additional informa-
The term of these loans will not exceed 30 years. The repay- tion, please contact the SBA
ment term will be determined by your ability to repay the loan. disaster assistance customer
service center. Call 1-800-659-2955
EIDL assistance is available only to small businesses when SBA (TTY: 1-800-877-8339) or e-mail
determines they are unable to obtain credit elsewhere. A busi- disastercustomerservice@sba.gov.
ness may qualify for both an EIDL and a physical disaster loan.
The maximum combined loan amount is $2 million.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 4
and Economic Development.
1-800-616-SBDC
1-800-616-7232

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SMALL BUSINESS DOCUMENTS REQUIRED FOR
SBA DISASTER LOAN
Documents
• Copy of Credit Bureau Report with Credit Scores from the three primary reporting
agencies for all owners of the business with minimum 20% ownership.

• Personal Financial Statement (SBA Form 413) for all owners of the business with
minimum 20% ownership interest.

• Federal Personal and business tax returns for the last 3 years (include personal tax
returns for each owner with minimum 20% ownership interest in the business).

• Business Financial Statements for year to date (both income statements and balance
sheet is Preferred). Schedule of all business assets and liabilities.

• Provide Monthly sales figures beginning 3 years prior to the disaster and continuing
through the most recent month available. (SBA Form 1368).

• Written explanation of the amount you are seeking and how it will be used. Describe
the loss.

• SBA Loan Application (SBA Form 5).

• IRS Form 8821 / 4506-T for each owner with minimum 20% ownership interest in the
business.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 5
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS OWNERS
What can I do if my business has slowed due to COVID-19?
If COVID-19 has impacted your business or services, you can avoid potential layoffs by participating in
the Unemployment Insurance (UI) Work Sharing Program. This program allows you to retain your work-
ers by reducing their hours and wages no more than 60 percent and partially offsetting the wage loss
with UI benefits. This helps you avoid the cost of recruiting, hiring, and training new workers and helps
your workers keep their jobs and receive some financial support with UI benefits. You and your workers
can also be prepared to quickly adjust when business improves.

What if I have to let go of some of my workers temporarily until business improves?
Your workers can file for unemployment benefits as long as they are unemployed and otherwise eligible.
Workers who expect to return to work for you within a few weeks are not required to actively seek work
each week as long as they are able and available to return to work during their unemployment and meet
all other eligibility criteria. The EDD will explain the requirements to your workers when they apply for
benefits.

What can I do if I have to shut down my business permanently?
If you are facing potential layoffs or plant closures, you can get help through the Rapid Response pro-
gram. Rapid Response teams will meet with you to discuss your needs, help avoid layoffs where possi-
ble, and support your workers through the process. Services can include upgrades to current worker
skills, customized training, career counseling, job search assistance, help with filing unemployment
insurance claims, and information about education and training opportunities. For more information,
refer to Rapid Response Services for Businesses Fact Sheet (DE 87144RRB) (PDF). You can also contact
your local America’s Job Center of California for more information about available Rapid Response
services.
What if I can’t ﬁle or pay my payroll taxes on time because of COVID-19?
With the Governor’s emergency declaration, if your business is directly affected by COVID-19, you can
request up to a 60-day extension to file your state payroll reports and deposit state payroll taxes with-
out penalty or interest. The written request for extension, noting the impact of COVID-19, must be
received within 60 days from the original delinquent date of the payment or return. For the address to
send the request, along with other information, please see the State of Emergency or Disaster Fact
Sheet (DE 231SED) (PDF).
You can also call the EDD Taxpayer Assistance Center with any questions you may have about your pay-
roll tax responsibilities.
• Toll-free from the U.S. or Canada: 1-888-745-3886
• Hearing impaired (TTY): 1-800-547-9565
• Outside the U.S. or Canada: 1-916-464-3502
Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 6
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS OWNERS
What can I do to protect my workers from COVID-19?
The Centers for Disease Control and Prevention Guidance for Business and Employers includes basic
precautions like proper handwashing and cleaning, as well as making sure your sick leave policies are
flexible and consistent with public health guidance. Visit Cal/OSHA Guidance on Coronavirus to learn
more about workplace requirements.

State Postpones Tax Deadline
• More time to file, pay for California taxpayers affected by the COVID-19 pandemic. Read More

More Resources
• At California's Small Business Finance Center, small businesses can access a range of financial prod-
ucts, including loan guarantees and direct loans: www.ibank.ca.gov/small-business-finance-center

• California maintains two credit enhancement programs to help small business obtain loans from tradi-
tional and nontraditional lenders, including the Small Business Loan Guarantee Program and a Small
Business Loss Reserve Program.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 7
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS OWNERS
Program Why What Benefits More How to File
Information
Disability If you're unable to work due Short-term benefit Approximately 60-70 Learn more about File a Disability Insurance
to medical quarantine or payments to eligible percent of wages your eligibility for claim
Insurance illness related to COVID-19 workers who have a full (depending on Disability Insurance
(certified by a medical or partial loss of wages income); ranges from
professional) due to a non-work- $50-$1,300 a week for
related illness, injury, up to 52 weeks.
or pregnancy.

Paid Family Leave If you're unable to work Up to six weeks of Approximately 60-70 Learn more about File a Paid Family Leave
because you are caring benefit payments to percent of wages your eligibility for claim
for an ill or quarantined eligible workers who (depending on Paid Family Leave
family member with COVID- have a full or partial income); ranges from
19 (certified by a medical loss of wages because $50-$1,300 a week for
professional) they need time off work up to 6 weeks.
to care for a seriously ill
family member.

Unemployment If you have lost your job or Partial wage Range from $40-$450 Learn more about File an Unemployment
have had your hours replacement benefit per week for up to 26 your eligibility for Insurance claim
Insurance reduced for reasons related payments to workers weeks. Unemployment
to COVID-19. who lose their job or Insurance
have their hours
reduced, through no
fault of their own.

Paid Sick Leave If you or a family member The leave you have Paid to you at your Learn more about If accrued sick leave is
are sick or for preventative accumulated or your regular rate of pay or your eligibility for denied, file a Wage claim
care when civil authorities employer has provided an average based on Paid Sick Leave
recommend quarantine to you under the Paid the past 90 days.
Sick Leave law.

Workers' If you are unable to do your Benefits include TD generally pays two- Learn more about File a Workers'
usual job because you were temporary disability thirds of the gross your eligibility for Compensation claim
Compensation exposed to and contracted (TD) payments, which wages you lose while Workers'
COVID-19 during the regular begin when your doctor you are recovering Compensation
course of your work, you says you can't do your from a work-related benefits
may be eligible for workers’ usual work for more illness or injury, up to
compensation benefits. than three days or you maximum weekly
are hospitalized amount set by law. In
overnight. You may be addition, eligible
entitled to TD for up to employees are
104 weeks. TD stops entitled to medical
when either you return treatment and
to work, your doctor additional payments if
releases you for work, a doctor determines
or your doctor says your you suffered a
illness has improved as permanent disability
much as it's going to. because of the illness.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 8
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES
Information that is supporting both employers and employees through the state of California
(EDD):
What beneﬁts are available if I’m sick and can’t work?
If you’re unable to work due to having or being exposed to COVID-19 and if you have the necessary
supporting medical documentation (see question #2), you are encouraged to file a Disability Insurance
(DI) claim. DI provides short-term benefit payments to eligible workers who have a full or partial loss of
wages due to a non-work-related illness, injury, or pregnancy. Most California workers are covered by
DI through deductions from their paychecks (noted as “CASDI” on most paystubs). The Governor’s
Executive Order waives the one-week unpaid waiting period, so you can collect DI benefits for the first
week you are out of work. If you are eligible, the EDD processes and issues payments within a few
weeks of receiving a claim.

What kind of medical documentation is required to support a claim for Disability
Insurance beneﬁts?
To be eligible for Disability Insurance (DI) benefits, you must submit certain medical documentation.
This requirement can be met by a medical certification signed by a treating physician or a practitioner
that includes a diagnosis and ICD-10 code, or if no diagnosis has been obtained, a statement of symp-
toms; the start date of the condition; its probable duration; and the treating physician’s or practitioner’s
license number or facility information. This requirement can also be met by a written order from a state
or local health officer that is specific to you. For fastest processing of your claim, submit your claim
online and have your supporting medical documentation submitted online immediately after.

You may also request that the EDD send you a Claim for Disability Insurance (DI) Benefits (DE 2501)
(PDF) form, which can be ordered online and sent to you. Submit the completed form to the EDD using
the envelope provided. If your medical documentation is provided in any other form other than EDD’s
designated claim form, it should be submitted separately by mail to: Employment Development
Department

How much can I earn in disability beneﬁts?
Benefit amounts are approximately 60-70 percent of wages (depending on income) and range from
$50-$1,300 a week. The EDD provides a Disability Insurance Calculator to estimate your potential bene-
fit amount. Disability benefits are paid through the date your doctor certifies or when you exhaust your
available benefits, whichever comes first within a 52-week period.

The Governor’s Executive Order waives the one-week unpaid waiting period, so you can collect DI ben-
efits for the first week you are out of work. If you are eligible, the EDD processes and issues payments
within a few weeks of receiving a claim.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 9
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES

Can I qualify for disability beneﬁts if I’m quarantined?
Yes, if your quarantine is certified by a medical professional or a state or local health officer. If you are
not found eligible for DI, you are encouraged to apply for an Unemployment Insurance (UI) claim. See
question #9.

Are there are beneﬁts available to me if I’m sick and I’m self-employed or otherwise
not covered by the State Disability Insurance (SDI) program?
You may be eligible for benefits if you pay into Disability Insurance Elective Coverage (DIEC). DIEC is an
option for self-employed individuals (such as independent contractors) and employers to apply for cov-
erage under SDI. That includes school district and state employees who are exempt from SDI, but can
negotiate to participate in the DIEC. For more information, see the Information Sheet: Elective Cover-
age for Employers and Self-Employed Individuals (DE 231EC) (PDF).

In addition, California law allows your employer to offer you a Voluntary Plan (VP) Disability Insurance
(DI) option instead of the SDI program. You should check with your employer’s personnel or benefits
office about filing a DI claim under this program.

What beneﬁts are available if a family member is sick and I have to miss work to care
for that person?
If you’re unable to work because you are caring for an ill or quarantined family member with COVID-19,
you are encouraged to file a Paid Family Leave (PFL) claim. PFL provides up to six weeks, this extends
to eight weeks starting July 1, 2020, of benefit payments to eligible workers who have a full or partial
loss of wages because they need time off work to care for a seriously ill family member or to bond with
a new child. For the purposes of PFL coverage, a family member is defined as seriously ill child, parent,
parent-in-law, grandparent, grandchild, sibling, spouse, or registered domestic partner.

How much can I earn in Paid Family Leave beneﬁts?
Benefit amounts are approximately 60-70 percent of wages (depending on income) and range from
$50-$1,300 a week. You can use the Paid Family Leave Calculator to help estimate your potential benefit
amount.
If you are eligible, the EDD processes and issues payments within a few weeks of receiving a claim.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 10
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES
What kind of medical documentation is required to support a claim for PFL beneﬁts?
To be eligible for PFL benefits, you must submit certain medical documentation regarding the family
member in your care who is either ill or quarantined due to COVID-19. This requirement can be met by
a medical certification for that person from a treating physician or a practitioner that includes a diagno-
sis and ICD-10 code, or if no diagnosis has been obtained, a statement of symptoms; the start date of
the condition; its probable duration; and the treating physician’s or practitioner’s license number or
facility information. This requirement can also be met by a written order from a state or local health offi-
cer that is specific to your family member’s situation. Absent those documents from a physician or
health officer, you may be eligible for an Unemployment Insurance (UI) claim instead. See question #9.
For fastest processing of your claim, submit your claim online and have the supporting medical docu-
mentation submitted online immediately after.
You may also request that the EDD send you a Claim for Paid Family Leave (PFL) Benefits (DE 2501F)
(PDF) form, which can be ordered online and sent to you. Submit the completed form to the EDD using
the envelope provided. If your medical documentation is provided in any other form other than the
EDD’s designated claim form, it should be submitted separately by mail to: Employment Development
Department PO Box 45011, Fresno, CA 93718-5011

What beneﬁts are available if I am subject to quarantine, am not ill, and am not found
eligible for a Disability Insurance claim?
You are encouraged to apply for Unemployment Insurance (UI) benefits if you are unemployed, which
includes reasons such as:
• Your hours are reduced due to the quarantine.
• You were separated from your employer during the quarantine.
• You are subject to a quarantine required by a medical professional or state or local health officer.
You can be eligible for benefits if you have enough earnings over the past 12-18 months and meet other
eligibility criteria. The Governor’s Executive Order waives the one-week unpaid waiting period, so you
can collect UI benefits for the first week you are out of work. If you are eligible, the EDD processes and
issues payments within a few weeks of receiving a claim.
EDD representatives may need to set up a phone interview with you to collect more details.
• If you are temporarily out of work and plan to return to the same employer, you do not need to meet
the usual requirement of looking for work while you are collecting unemployment benefits. The EDD will
inform you if you are not required to look for work each week.
• If you are not connected to a certain employer with a job to return to, you are required to look for
work while collecting benefits. Looking for work can be done from home including using online chan-
nels, mailing job applications, calling about job openings, registering in CalJOBSSM (the state’s online
labor exchange system), etc. The EDD will inform you if you are required to look for work each week.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 11
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES
Would I qualify for beneﬁts if I choose to stay home from work due to underlying health
conditions and concerns about exposure to the virus?
You could be eligible for unemployment benefits. Our EDD representatives will seek details from you to
determine eligibility based on the reason you are unemployed and the reason for restricting your avail-
ability to work. You may be required to actively seek work each week to show that you are still making
yourself available for work. The work search could include looking for work through online channels,
mailing job applications, calling about job openings, registering in CalJOBSSM (the state’s online job
exchange system), etc.

Would I qualify for beneﬁts if my child’s school shuts down and I have to miss work to
care for that child who is not ill?
You may be eligible for unemployment benefits. Our EDD representatives will determine eligibility on a
case-by-case basis by scheduling a phone interview with you. For example, you may be eligible for
unemployment benefits if your employer has temporarily allowed you to work less than full-time hours
due to your child care situation. In such case, you may be eligible for reduced benefits based on the
amount of your weekly earnings, as long as you meet all other eligibility requirements. The EDD will con-
tact you and your employer for information to determine your eligibility.

Can I collect beneﬁts if my child’s school shuts down and I have to stay home to care for
my child if I’m not currently employed or I had to quit work because of my child care needs?
You may be eligible for unemployment benefits. Our EDD representatives will determine eligibility on a
case-by-case basis by scheduling a phone interview with you.

Are beneﬁts available if my employer reduces my hours or shuts down operations due
to impacts of the coronavirus?
If your employer reduced your hours or shut down operations due to COVID-19, you are encouraged to
file an Unemployment Insurance (UI) claim. UI provides partial wage replacement benefit payments to
workers who lose their job or have their hours reduced, through no fault of their own. Workers who are
temporarily unemployed due to COVID-19 and expected to return to work with their employer within a
few weeks are not required to actively seek work each week. However, they must remain able, available,
and ready to work during their unemployment for each week of benefits claimed and meet all other
eligibility criteria.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 12
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES
How much can I collect in beneﬁts with an Unemployment Insurance (UI) claim?
Eligible individuals can receive benefits that range from $40-$450 per week. Depending on your maxi-
mum award for your UI claim and your weekly benefit amounts paid, the number of weeks you can
potentially receive benefit payments ranges from 13 to 26 weeks if you are paid at your full weekly ben-
efit amount for each of those weeks. Your payments could stretch to a longer duration if you perform
some work for pay or if you receive other deductible income during the course of a claim, and you
receive reduced unemployment benefits as a result during those weeks.
You can use the Unemployment Insurance Calculator to help estimate your potential weekly benefit
amount.
The Governor’s Executive Order waives the one-week unpaid waiting period, so you can collect UI ben-
efits for the first week you are out of work. If you are eligible, the EDD processes and issues payments
within a few weeks of receiving a claim.

Can I still collect unemployment beneﬁts if I am able to work remotely from home?
Working your full normal hours remotely would not qualify you for benefits. However, you could collect
some Unemployment Insurance benefits if your usual number of work hours are reduced through no
fault of your own. The first $25 or 25 percent of your wages, whichever is the greater amount, is not
counted as wages earned and will not be reduced from your UI weekly benefit amount. For example, if
you earned $100 in a week, the Department would not count $25 as wages and would only deduct $75
from your weekly benefit amount. For someone who has a weekly benefit amount of $450, they would
be paid a reduced amount of $375.

Can I collect disability and unemployment beneﬁts at the same time?
You have the right to apply and file a claim for unemployment and disability benefits at the same time,
but you can only collect payments under one benefit program at a time. You’re encouraged to file a
claim under one program based on your circumstances or file under both programs if you are unsure of
which program is most appropriate. The EDD will review the facts and determine your eligibility for the
appropriate program.

Can I start collecting disability beneﬁts and then transition to an unemployment claim
if my workplace operations continues to be impacted with a slowdown or shutdown?
Yes. If your employer shuts down operations or reduces hours for workers while you are on your disabili-
ty claim, you may apply for unemployment benefits at that time. The EDD will help determine the start
of your Unemployment Insurance claim as long as you meet all other eligibility requirements.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 13
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

EDD FOR BUSINESS EMPLOYEES
Can I start collecting unemployment beneﬁts because I am laid off or have had my work
hours reduced, and then switch to a disability claim if I become sick?

Yes. If you become sick while you are out of work, you can apply for a disability claim, which can pro-
vide a higher benefit amount if you’re eligible. A medical certification is required to substantiate your
illness. If you are approved for a Disability Insurance claim, your Unemployment Insurance (UI) claim
will be suspended. If you recover but remain unemployed, you may then return to the remainder of
your UI claim benefits as long as you remain out of work and are otherwise eligible. You will need to
reapply to reopen your UI claim.

Can I start collecting unemployment beneﬁts because I am laid off or have had my work
hours reduced, and then switch to a Paid Family Leave claim if I have to care for a family
member who is sick?
Yes. If you have a family member who becomes sick while you are out of work, you can apply for a
Paid Family Leave claim which can provide a higher benefit amount if you’re eligible. A medical certifi-
cation is required to substantiate your family member’s illness. If you are approved for a Paid Family
Leave claim, your Unemployment Insurance (UI) claim will be suspended. If you complete your Paid
Family Leave claim and remain unemployed, you may then return to the remainder of your UI claim
benefits as long as you remain out of work and otherwise eligible. You will need to reapply to reopen
your UI claim.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 14
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

UNDERSTANDING BUSINESS INTERRUPTION INSURANCE
Almost all businesses carry insurance and for many, business interruption insurance
exists within their policy. The detailed information below will outline the basic prem-
ise of business interruption insurance and what could generally be considered a
claim. You should check with your insurance provider to understand your coverage
and what, if any claims you may have.

WHAT IS BUSINESS INTERRUPTION INSURANCE?
Business interruption insurance is insurance coverage that
replaces business income lost in a disaster. The event could be, for
example, a fire or a natural disaster. Business interruption insurance is
KEY TAKEAWAYS
not sold as a separate policy but is either added to a property/casualty • Business interruption insurance
policy or included in a comprehensive package policy as an add-on or
is insurance coverage that
rider.
replaces income lost in the event
• Business interruption insurance is not sold as a separate that business is halted for some
policy but is an add-on to an existing insurance policy.
reason, such as a natural disaster.
UNDERSTANDING BUSINESS INTERRUPTION INSURANCE • This type of insurance also
Business interruption insurance premiums (or at least the covers operating expenses, a
additional cost of the rider) are tax-deductible as ordinary business move to a temporary location if
expenses. This type of policy pays out only if the cause of the business necessary, payroll, taxes, and
income loss is covered in the underlying property/casualty policy. The loan payments.
amount payable is usually based on the past financial records of the
• Business interruption insurance
business.
also applies if government
Business interruption insurance coverage lasts until the end of the actions cause operations to
business interruption period, as determined by the insurance policy.
cease temporarily, which results
Most business interruption insurance policies define this period as the
in a loss for a firm.
date that the covered peril began until the date that the damaged
property is physically repaired and returned to the same condition
that existed prior to the disaster.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 15
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

WHAT BUSINESS INTERRUPTION INSURANCE COVERS
Most business insurance cover the following items:

Profits. Based on prior months' performance, a policy will provide reimbursement for profits
that would have been earned had the event not occurred.

Fixed costs. These can include operating expenses and other incurred costs of doing busi-
ness.

Temporary location. Some policies cover the costs involved with moving to and operating
from a temporary business location.

Commission and training cost. In the wake of a business interruption event, a company will
often need to replace machinery and retrain personnel on how to use the new machinery.
Business interruption insurance may cover these costs.

Extra expenses. Business interruption insurance will provide reimbursement for reasonable
expenses (beyond the fixed costs) that allow the business to continue operating while the
business gets back on solid footing.

Civil authority ingress/egress. A business interruption event may result in government-man-
dated closure of business premises that directly cause financial loss. Examples include forced
closures because of government-issued curfews or street closures related to a covered
event.

Employee wages. Coverage of wages is essential if a business does not want to lose employ-
ees while shutting down. This coverage can help a business owner make payroll when they
cannot operate.

Taxes. Businesses are still required to pay taxes, even when disaster hits. Tax coverage will
ensure a business can pay taxes on time and avoid penalties.

Loan payments. Loan payments are often due monthly. Business Interruption coverage can
help a business make those payments even when they are not generating income.

SPECIAL CONSIDERATIONS FOR BUSINESS INTERRUPTION INSURANCE
Note that the insurer is only obligated to pay if the insured actually sustained a loss as a result
of the interruption. The amount that will be recouped by the business will not exceed the limit
stated in the policy.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 16
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

THE FINANCE CENTER
The Finance Center was designed to be the liaison between your business and the
correct funder. Our consultants specialized in loans provide guidance in the loan
packaging process, and picking the right loan for them from our network of more
than 100 financial institution partners. In order to save you time and resources, we
partner directly with underwriters to make the funding process easier and obtain a
quicker response.

HOW IT WORKS
STEP 1:
Sign up for a face-to-face consultation or a conference call with one
of our Finance Center consultants. Sign Up Now >>>

STEP 2:
The SBDC consultant will then explain and ask for the necessary
documents needed in order to begin the loan packaging process.
These documents may include but are not limited to tax returns,
financial statements, as well as an explanation for the use of funds.
View funding checklist for a more detailed list of documents.
All the services provided by the
Finance Center are at no cost, they STEP 3:
are paid for by your tax dollars so After the consultant has obtained all the required documents, they
will start the process of sourcing potential funders. Your consultant
take advantage! This resource is will be in contact with both you and the lender’s underwriter
offered to for-profit business with through the process.
less than 500 employees. Any ser-
vices are either conducted through STEP 4:
confidential in-person meetings or Once the Finance Center consultant has finished packaging the
loan, they will present it to the lender and the lender will evaluate
video conference calls at California
State University, Fullerton. STEP 5:
Two things will either happen, the lender will accept your loan
package and your consultant will stop investigating other lenders.
Sign Up Now! The interested lender will be given seven days to provide a Letter
of Intent. However, if the lender does not accept the loan package,
the SBDC consultant will resume reviewing your loan package with
other prospective lenders.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 17
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

THE FINANCE CENTER FAQS
What types of lending partners does The Finance Center work with?
Our goal is to find the most suitable fit for our client and the lending institution that is why we have part-
nered with over 100 lending institutions. Some of those lenders include: traditional banks, SBA backed
lenders, Community Development Financial Institutions, non-profits, state guaranteed lenders, county
and city lending programs, and many more.
How much does The Finance Center charge?
The Finance Center provides its services at no charge to both clients and lenders. This is possible
through the funding given to the OCIE SBDC Network by SBA, the state of California, California State
University, Fullerton, the Orange County Hispanic Chamber of Commerce, as well as grant and founda-
tion funding.
I was declined from my bank for a loan, I’m not sure why. Can The Finance Center help me?
Yes we can! First we will review your situation and asses the probable cause of the declination. We will
then guide you in finding other funding choices through our hundreds of lending partners. Each lender
has different requirements and parameters therefore we will assist you in finding the best lender for you
and your business. We carefully explain and look for other options with you. We’ve already helped
others in their process!
I’m looking to reﬁnance my debt, can the Finance Center help me?
Of course! With our network of over 100 lenders we’ll find the best fit for you and connect you with
them. Our partners will help you refinance your loans and they may even be able to aid you in acquiring
a lower rate. Several of our lenders may be able to lend in as little as five days!* We also assist in obtain-
ing a quick turnaround for working capital.
What if I’m missing documents from the “Funding Checklist”? Does the lending
institution really need all of these documents?
We can work with you to get all the necessary documents! Our Finance Center consultants will answer
any questions regarding any of the documents and also assist you in obtaining any items that are miss-
ing from the checklist. We can aid you in asking for your credit reports; however, we cannot help in
acquiring your tax returns.
We ask for all of these documents in order to provide the lending institutions with all the information
necessary to make an informed decision regarding your loan. The items listed on the checklist not only
serve as a guide but are also a requirement for presenting your loan package to our lending partners.

Funded in part through a Cooperative Agreement with the U.S. Funded in part through a Grant with the Governor’s Office of Business
and Economic Development. All opinions, conclusions, and/or
Small Business Administration. Funding is not an endorsement
of any product, opinion, or service.
recommendations expressed herein are those of the author(s) and do
not necessarily reflect the views of the Governor’s Office of Business 18
and Economic Development.
1-800-616-SBDC
1-800-616-7232

OCIESMALLBUSINESS.ORG
CALIFORNIASBDC.ORG

OCIE SBDC LOAN PACKAGE DOCUMENTATION CHECKLIST
In order to apply for a business loan, here is a list of documents required to be
submitted for review by SBDC
Advisor to explore funding options.
1. Copy of Credit Bureau Report with Credit Scores from the three primary reporting agencies
(Experian,Trans Union and Equifax) for all owners of the business with minimum 20% ownership
interest. You can get the credit reports for a small fee at Freecreditreport.com or
Annualcreditreport.com (At minimum, the Experian Credit Report with FICO Score is preferred).

2. Personal Financial Statement (SBA Form 413 – attached) for all owners of the business with
minimum 20% ownership interest. Documents that your will need:
• Checking and savings account statements showing balances
• IRA, 401(k), and other retirement account statements showing balances
• Life insurance documents showing current cash surrender value
• Stocks, bonds, and other investment documents showing current value
• Pay stub showing current annual salary
• Statements for pensions, real estate income, or other sources of income
• Mortgage statements, auto loan statements, credit card statements, and statements for
other types of loans showing your account number, payment amount, and current balance

3. Federal Personal and business tax returns for the last 3 years (include personal tax returns for
each owner with minimum 20% ownership interest in the business).

4. Business Financial Statements for year to date (both income statements and balance sheet is
preferred – current within 45 days).

5. Latest A/R and A/P Aging reports for the business.
6. Personal resumes for all owners of the business with minimum 20% ownership interest.

7. Proof of current income (most recent paycheck information) for all borrowers.
8. Business plan or Company Overview / Executive Summary. Brief history and explanation of your
business.

9. Written explanation of the amount you are seeking and how it will

File and source

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Our copy: COVID_19_-_Rev3.pdf
Original: www.sba.gov