Gov. Gavin Newsom signed bills Wednesday aimed to help small businesses affected by the COVID-19 pandemic.
“Businesses across the state have been hard hit by the COVID-19 pandemic and they need support to keep their doors open and their employees on the payroll,” said Newsom. “Today, we are taking action to keep money in the hands of small businesses while expanding job opportunities for those who lost their jobs because of this virus. We have much more work to do together, but I know these bills will make a big difference for small businesses.”
The first is Senate Bill 1447, by Sens. Steven Bradford, D-Gardena, and Anna M. Caballero, D-Salinas, and Assemblywoman Sabrina Cervantez, D-Corona, which authorizes a $100 million hiring tax credit program for qualified small businesses.
The hiring credit will be equal to $1,000 for each net increase in qualified employees, up to $100,000 for each qualified small business employer. Those eligible are businesses with fewer than 100 workers that have faced a revenue decline of 50% or more due to the pandemic.
Assembly Bill 1577, introduced by Assemblywoman Autumn Burke, D-Inglewood, conforms state law to federal law by excluding from gross income Paycheck Protection Program loans that were forgiven through the federal CARES Act and subsequent amendments in the Paycheck Protection Program and Health Care Enhancement Act of 2020.
Newsom also signed SB 115, by the Committee on Budget and Fiscal Review, which appropriates $561 million in the fiscal year 2020-21. This includes $411.5 million to advance economic stimulus with $230.5 million to help jumpstart construction projects.