“It’s often said that budgets are statements of values. In America’s most populous and productive state, our state Budget is more than that. It is a blueprint for a better quality of life and brighter future for millions of individuals striving and succeeding together—in pursuit of their own version of the California Dream.”– Excerpt from Governor Newsom’s letter to the California Legislature upon submitting his proposed 2020-21 budget.
We were very pleased to see so many investments for the small business ecosystem. Thanks to the Assembly Committee of Jobs, Economic Development and the Economy for summarizing many of the pieces that could help small businesses and the business services organizations that ensure success.
$1 billion General Fund to continue the Earned Income Tax Credit (EITC). In 2020, the Administration proposes to continue the EITC, expand outreach to eligible households, and develop a model to provide monthly payments during the tax year. In 2018, the EITC was extended to cover self-employment. We would like to see an expansion to include ITN holders.
$100 million to reflect a first-year exemption from small businesses paying the minimum franchise tax, including limited liability companies, limited partnerships, and limited liability partnerships. This puts these small businesses on an equal footing with first-year corporate filings.
Renames the Department of Business Oversight the “Department of Financial Protection and Innovation” and expands the department’s supervisory and enforcement powers. This is much like the federal CFPB and will provide consumers and small business owners (many of which intermingle their personal and business finances) with more protection against unfair, deceptive, and abusive practices when accessing financial services and products.
$33 million[over three years] … for the establishment of the Fresno-Merced Food Innovation Corridor Grant Program, which is intended to stimulate research and development, commercialization, and innovation in advanced sustainable agricultural production and create high-quality jobs in the San Joaquin Valley.
$17 million… to support Fresno Integrated K-16 Education Collaborative’ s work on educational pathways that improve social and economic mobility in the greater Fresno region. CAMEO believes that entrepreneurship should be a part of the educational pathway to improve economic mobility.
$17 million General Fund for the Small Business Technical Assistance Expansion Program. Provides grants to existing federally designated nonprofit small business service providers to provide free or low-cost one-on-one consulting and low-cost training.
$3 million General Fund for the Capital Infusion Program. Supports free one-on-one business consulting provided by the Small Business Development Center Network.
$250 million General Fund totaling $1 billion over the next four years to establish the Climate Catalyst Fund. Establishes a revolving loan program to finance investments in low-carbon transportation, sustainable agriculture, and waste diversion. This fund will help small businesses who have trouble financing the scaling up of their innovations so they can bring them to market.
$10 million…to provide training and business startup support for targeted low-income populations including immigrants, regardless of immigration status, and refugees.
The budget also includes money for disaster preparedness and recovery that doesn’t explicitly include small business but we will work toward getting small businesses the help that they need.