Although few companies are aware of it, California has a program dedicated to reimbursing employers for the costs associated with providing job skills training to their employees. In fact, each year California’s Employment Training Panel (ETP) awards millions of dollars to qualifying companies!
The money comes from taxes you are already paying, including the $7 per employee that you, as a California employer, pay into the fund each year.
Here’s what you need to know about ETP funding:
• What types of companies qualify? While a broad spectrum of California employers can qualify, the ETP gives top priority to those in the following industries:
• Biotechnology and Life Sciences|
• Green Technology
• Information Technology Services
• Multimedia and Entertainment
• Nursing and Healthcare
• Transportation Logistics
• Is this available for small businesses? Technically yes, but from a practical standpoint this is best for businesses that have at least 40 employees.
• How much can you get? The answer depends on a variety of factors, but we’re talking real money here! Plus, these awards are actual checks in the mail—not tax credits. For example, June 2018 awards included $1,040 per trainee for a manufacturing company, $1,476 per trainee for a construction company, $1,058 per trainee for an accounting firm and $1,885 per trainee for an engineering services provider.
• What sort of training qualifies? Pretty much anything other than legally-mandated courses. So while it won’t reimburse you for your sexual harassment prevention training class, everything from computer skills and business skills to machinery operation, estimating, scheduling and a whole lot more is eligible.
• Who delivers the training? You’re responsible for the actual training. Either you design and deliver it, or you hire a third party to do so. Basically, this is “free money” to help pay for the training you’re doing anyway.
The bottom line is, ETP funding can be a significant competitive advantage for your firm. The only catch is that, being a government program, there are a lot of hoops to jump through to get the money. Rather than deal with the steep learning curve, though, most companies simply hire specialists to take care of the paperwork for them. As your part-time CFO, I can help you find the right ETP funding specialist for your company’s needs.