Governor Newsom Announces Relief Efforts for Entities Impacted by Pandemic
On Monday, Governor Gavin Newsom announced immediate relief efforts available to small businesses amid the ongoing COVID-19 pandemic. Newsom indicated that California will provide temporary tax relief for eligible businesses impacted by COVID-19 restrictions. The announcement offers an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales, and provides expanded interest-free payment options for largest businesses impacted by COVID-19 restrictions.
The Governor additionally announced the creation of a $500 million COVID-19 Relief Grant to be administered by the California Office of the Small Business Advocate (CalOSBA) within the Governor’s Office of Business and Economic Development (GoBIZ). Funds are being awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief grants of up to $25,000 each to micro and small businesses, nonprofit organizations, and cultural institutions. The grants are anticipated to be awarded through early 2021.
Governor Newsom also announced an increase of $12.5 million to the California Rebuilding Fund, providing additional financial support to impacted small businesses to rebuild from the current economic crisis.