Dear Neighbor,
To help California rebound from the pandemic, the state Legislature and Gov. Newsom have approved significant financial support for businesses impacted by the pandemic, particularly small businesses and nonprofits, as well as $3.8 billion in Golden State Stimulus payments to low-income Californians and $2.6 billion in rental assistance.
I'm writing now to provide an update on some of the financial assistance California is providing for small businesses and nonprofits and businesses that received federal PPP loans (paycheck protection loans).
Small Business/Nonprofits Grants:
- Building on the $500 million program that began in December 2020, the Legislature recently passed an additional $2.1 billion in grants for small business and nonprofits.
- Small businesses and nonprofits with 2019 revenues of up to $2.5 million are eligible, and grant amounts range from $5,000 to $25,000.
- The next round of grant applications opens Wednesday, April 28, and can be applied for through the same application process as the previous grants. Applicants not selected to receive a grant in a previous round do not need to re-apply and will be automatically moved into this one.
- Small arts, entertainment and cultural organizations that haven't yet received a grant or applied for one are eligible for this grant round opening on April 28. Applications can be submitted here: Careliefgrant.com.
Business Tax Relief:
- Under a program that Gov. Newsom is expected to sign soon, California businesses that received Forgiven PPP loans will be able to deduct from their California taxes all business expenses paid for using the Forgiven PPP loan.
- To be eligible, a business must have received a Forgiven PPP loan, experienced a reduction in gross receipts of 25% or more in 2020 as compared to the same time period in 2019, and not be a publicly traded company.
I hope you find this information helpful. It is an honor serving you in the state Senate.
Sincerely,
Nancy Skinner
State Senator, District 9
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