Gov. Gavin Newsom, pro Tempore Senate Speaker Toni G. Atkins and Speaker of the Assembly Anthony Rendon announced a $ 9.6 billion economic stimulus package, including immediate measures to significantly increase aid to California small businesses and nonprofits that have been devastated by the COVID-19 pandemic.
“It’s a great result. The momentum generated by Senate Bill 74 – the Keep California Working Act – has provided an additional $ 1.5 billion in immediate economic assistance to small businesses and nonprofits, ”said the SB 74 co-lead author Cottie Petrie-Norris (D-Laguna Beach). “When local businesses thrive, our entire community thrives. Investing the state’s budget surplus directly into Main Street will keep businesses open and protect jobs in California after the ravages of this pandemic. “
The budget accord reflects a fourfold increase – from $ 500 million to over $ 2 billion – in grants of up to $ 25,000 for small businesses affected by the pandemic, and also allocates $ 50 million to cultural institutions .
The agreement also partially conforms California tax law to the new federal tax treatment for loans made under the Paycheck Protection Plan, allowing businesses to deduct up to $ 150,000 in expenses covered by the P3 loan. All businesses that took out loans of $ 150,000 or less would be able to maximize their deduction for government purposes. Large businesses that take out larger loans would still be subject to the same $ 150,000 deductibility limit. More than 750,000 PPP loans have been taken out by small businesses in California. This tax treatment would also extend to loans in the event of economic disasters.
Senate Bill 74, with 36 Democratic sponsors and 27 Republicans, was a true bipartisan, bicameral small business relief package. Sixty-three of California’s 120 lawmakers, more than half of the legislature, have signed the Keep California Working Act. In addition, more than 80 chambers of commerce, cities, counties, state-wide trade associations and nonprofit groups have supported the bill.
This article was published by the Office of MP Cottie Petrie-Norris.