California Businesses Get Monetary Aid and Tax Relief

Small businesses in California struggling with pandemic restrictions will receive temporary tax relief and US$5 million in aid, The Associated Press reports.

The tax relief includes a three-month automatic extension of the income tax payment deadline for businesses paying less than $1 million in sales tax and expansion of a program that allows businesses with up to $5 million in sales to set up interest-free tax payments. Small businesses and nonprofits also will be eligible for grants of up to $25,000 using the additional $500 million in relief funds.

“California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away,” said California Governor Gavin Newsom “By providing potentially billions in immediate relief and support, our small businesses can weather December.”

The tax relief and grants will provide necessary aid until the state legislature can meet in 2021 and work with the Newsom to provide more relief.

Many small businesses are struggling to stay afloat after months of restrictions and a nearly statewide nighttime curfew on nonessential work, movement, and gatherings. California’s 4.1 small businesses employ 7.2 million workers.  

A from earlier this year by Small Business Majority, a national small business organization, that found 44% of small businesses are at risk of shutting down. Some businesses have stayed afloat with federal aid but Congress has yet to reach consensus on a new COVID-19 economic relief package.