On April 2nd, 2020, California Governor Gavin Newsom unveiled a series of new measures to aid small businesses and help California workers who have lost work due to the COVID-19 Pandemic.
In addition to encouraging small businesses to apply to the federal loans available, the Governor also announced that the state is allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses that do not qualify for federal funds.
The state is also allowing small businesses to defer payment of sales and use taxes of up to $50,000 for up to 12 months.
Additionally, the Governor joined Bitwise Industries and the Kapor Center to launch OnwardCa.org, a new platform connecting displaced California workers with more than 70,000 job opportunities in critical industries.
Earlier this week, Governor Newsom signed an executive order to help small businesses, granting a 90-day extension for small businesses to pay sales taxes.
Governor Newsom also today announced $17.8 million in new state initiatives to support California workers impacted by COVID-19. The allocation will come from the Workforce Innovation and Opportunity Act funds with $7.8 million going to the Los Angeles region and $10 million made available statewide.
“The COVID-19 pandemic is having cascading effects for millions of California families and small businesses,” said Governor Gavin Newsom. “Through no fault of their own, more than a million Californians have lost a job, and countless more are seeing their businesses fail. California will emerge from this crisis stronger than before, and until then, the state will work overtime with the federal government and private sector to get families the help they need.”
About the Author
Paren Knadjian, Practice Leader
Mergers & Acquisitions, Technology, PPP Forgiveness
Paren is the practice leader of the M&A and Capital Markets group at KROST. He comes with over 20 years of experience in mergers and acquisitions as well as equity and debt financings. In that time, Paren successfully completed over 200 M&A and Capital Markets transactions worth over $1 billion, acting as both a buy-side and sell-side advisor. » Full Bio