WATSONVILLE—Brian Orozco prides himself in putting his clients at Functional Fitness Training Center through a vigorous workout that challenges them both physically and mentally.
Weaving his way through the Employment Development Board’s system to file an unemployment claim put his strenuous workouts to shame.
He tried doing it online. That failed. He called in from home. His call was dropped—twice. He walked to their office in downtown Watsonville. The trials continued.
“They screened me—asked me some basic questions—and then sent me to a phone to call into their [state] office,” Orozco said. “I waited about an hour. That call was dropped… That whole process took about two hours.”
The end result?
Orozco, a sole proprietor for his Main Street business, was denied.
“I’m kind of in limbo as of now,” he said. “I don’t really know where to go.”
Since Gov. Gavin Newsom ordered the state’s roughly 40 million residents to stay home two weeks ago, demands for unemployment insurance benefits have skyrocketed. The EDD for the week of March 21 processed 186,809 claims, a significant increase from the 57,606 claims the week before.
Statewide more than one million unemployment claims have been filed, according to Newsom, as businesses big and small in various industries have had to cut staff or close altogether.
County officials did not have access to the number of claims submitted or processed locally since the beginning of the initial March 17 shelter-in-place order.
EDD does keep track of claims for each county but its most recent data available was from January.
The EDD in a press release said in order to keep up with increased demands it would be redirecting “hundreds” of staff from across the department and state government. It will also reach out to recent retirees for additional help and hire staff whenever possible.
The City of Watsonville, too, will be redirecting staff from its Parks and Community Services and Library departments to supplement County of Santa Cruz staff at the downtown Watsonville office.
They will provide bilingual support for people filing for unemployment, among other things.
“We know there are many Californians who are really struggling to provide for their families because of the massive economic impact created by the Coronavirus,” EDD Director Sharon Hilliard said in a press release. “Unemployment benefits provide critical financial support, and the EDD is employing all means necessary to get benefit payments out to those in need.”
In Santa Cruz County the headaches and long waits persist—physically and virtually.
Mike Cordeiro, who has worked at a local optics company for 15 years, had his hours slashed in half due to Santa Cruz County’s shelter-in-place order. He submitted a claim for a reduction of hours on March 20 through EDD’s website. The process took roughly 45 minutes, he said.
His coworkers did the same a few hours later but weren’t as lucky.
“[They tried] later that same day and couldn’t get it through,” he said. “The website was slammed.”
Cordeiro on April 1 received an email asking him to certify his claim online, the next move of the multi-step process which EDD on its website says typically takes three weeks.
He hopes help will come soon.
“If I don’t qualify for it, I’ll be looking at a real problem for next month,” he said.
Those that do qualify for unemployment will receive an additional $600 per week on top of the state’s normal rate for up to four months, thanks to the recently passed $2.2 trillion relief bill. In California, unemployment would top out at $1,050 per week.
That and the incoming $1,200 cash payment to most Americans will be the government’s answer for residents struggling to stay afloat through turbulent economic waters.
“The $1,200 is better than nothing but significantly underwhelming,” Cordeiro said. “It doesn’t even cover half of my monthly house payment, not even factoring in other expenses like food.”
For small business owners such as Orozco the unprecedented bill, dubbed the CARES Act, will offer a $10,000 advance on an Emergency Economic Injury Disaster Loan (EIDL) that does not have to be paid back, even if the borrower does not qualify for a Small Business Administration loan. The program provides loans up to $200,000.
Applicants can expect to receive funding within three days.
Orozco said he was looking into the SBA loan program for support after not qualifying for unemployment. Though the last two weeks have been emotionally and financially taxing, he did receive good news recently: his landlord at the historic Kalich Building agreed to waive rent for April.
“It’s was an incredible act of generosity,” Orozco said. “It was a stress reliever…I think we all need that in these times. It makes you feel like we can get through this.”
To file an unemployment claim online or for information on the process click here.
