SACRAMENTO (CBS SF) — California Governor Gavin Newsom has announced additional aid for businesses impacted by COVID-19 in the form of grants and tax relief.
Newsom made the announcement during a press conference Monday in which he and state Health and Human Services Secretary Dr. Mark Ghaly warned of possible new restrictions as a coronavirus case surge threatens to overwhelm hospitals by Christmas.
The tax relief would be in the form of an automatic three-month income tax extension for businesses filing less than $1 million in sales tax, and expands the ability for larger companies to make interest and penalty-free payments.
In addition, Newsom announced the creation of a $500 million COVID Relief Grant for small businesses impacted by COVID health and safety restrictions. The funds would go to established community development networks for distribution to underserved micro and small businesses, as well as non-profits, throughout the state by early next year.
The state will also provide an additional $12.5 million in funding for its California Rebuilding Fund which makes available $25 million to help impacted small businesses rebuild from the economic crisis and prop up local economies. The additional funding will help the 3rd party administrator of the fund raise $125 million to make more low-interest loans to small businesses with less access to loans from traditional banking institutions, according to a press release.
“We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t,” said Newsom in a prepared statement. “By providing potentially billions in immediate relief and support, our small businesses can weather the next month as we continue partnering with the Legislature to secure additional funding and investments in small businesses in the new year.”