Legislature Passes $9.6 Billion COVID-19 Early Budget Package to Support Struggling Small Businesses, Workers
SACRAMENTO — Today the Legislature passed a COVID-19 relief early action budget package on a bipartisan basis, clearing the way for the timely dispersal of $9.6 billion in additional small business grants, childcare funding, tax cuts, and $600 direct payments to millions of struggling Californians. Last week, Legislative leadership came to an agreement with the Governor on the details for the package after weeks of collaboration on how to meet the critical need for more relief to bolster the eventual recovery.
“Nearly a year into this crisis, our state finds itself at a tipping point — if we don’t act fast to get people the relief they need, we’ll be setting ourselves up for a longer, slower, and ultimately more expensive recovery” said Assemblymember Boerner Horvath. “This package represents a sizable investment in the foundations of our state’s economy and will provide a bridge for millions of struggling Californians to make it to the other side of this crisis. While I would have preferred to have total tax exemption for small businesses on the PPP and disaster loan money they’ve spent since last year, this compromise on a $150,000 cap still means a full deduction will be possible for nearly 90 percent of loan recipients. I look forward to working with this Administration to ensure the timely and equitable distribution of these funds to those in need.”
In addition to the tax deductions for federal loans spent, the early relief package allocates $2.1 billion to quadruple the state’s investment in its California Small Business COVID-19 Relief Grant program, which has administered grants of up to $25,000 to thousands of businesses and nonprofits to date. To support low-income Californians, the package provides $2.8 billion in tax rebates and another billion for $600 Golden State Stimulus payments for more than 5.7 million eligible recipients.
The package of budget-related bills now moves to the Governor for his signature so this essential relief can be delivered to millions of California families, workers, and businesses.