Last week, Governor Gavin Newsom announced a $4.5 billion Equitable Recovery for California’s Businesses and Jobs plan, which incorporates the business and workforce recovery elements of his proposed 2021-22 State Budget. The plan, among other measures, includes $575 million more for the Small Business COVID-19 Relief Grant Program. This additional investment is part of emergency funding that the Governor will ask the legislature to pass this week.
The proposed budget also contains other investments aimed at keeping California’s small businesses afloat and competitive, including:
- $430 million for the California Competes Tax Credit
- $100 million to extend the Main Street Small Business Tax Credit, which encourages hiring new employees and rehiring former employees
- $35 million for the California Dream Fund to seed entrepreneurship and small business creation in underserved communities
- $50 million for IBank’s Small Business Finance Center to provide small business loan and disaster loan guarantees
- An additional $50 million for the California Rebuilding Fund
- $70.6 million in fee waivers for individuals and small businesses that haven’t been able to operate or operate at reduced capacity due to the pandemic.
These budget proposals reflect our commitment to an equitable, broad-based recovery that ensures California remains the best place to start and grow a business – and where all Californians have an opportunity to reach their dreams. I look forward to continuing to partner with the Legislature to advance these priorities so our economy can emerge stronger, fairer and more prosperous than before.California Governor Gavin Newsom