Governor Gavin Newsom has announced a series of COVID-19 relief efforts aimed at helping business owners in the State.
First, effective immediately, the Governor has implemented an automatic three-month income tax extension for business owners filing less than $1 million in sales tax. This new plan plan also extends the existing tax relief programs for companies with up to $5 million in taxable sales, and expands interest-free payment options for even larger businesses that have been affected by COVID-19 as well. For more information on these programs, click HERE.
$500 Million in New Grants
The Governor also announced the creation of a $500 million COVID Relief Grant, which will be administered by the California Office of the Small Business Advocate. The goal is to make funds accessible to micro- and small businesses across the state, in grants totaling up to $25,000 each per. business. The program is not accepting applications yet, but you can sign up to get alerts on the application process HERE.
$12.5 Million Added to Loan Fund
Finally, the Governor has moved to add $12.5 million to the newly established California Rebuilding Fund, bringing its total resources to $25 million. The goal is to raise $125 million more, so that the fund can make low-interest loans available to businesses that may have trouble securing loans from traditional banking institutions. Unlike the PPP program, these loans are NOT forgivable, and must be paid back in full over a three- or five-year term at a 4.25% rate of interest. Learn more and apply HERE.
Stay tuned to our coronavirus updates page for additional information, or visit the State site at https://covid19.ca.gov/.