California Gov. Gavin Newsum signed $ 7.6 billiona relief package on Tuesday that will give at least $ 600. one-off payments to 5.7 million people, while setting aside more than $ 2 billion in grants for troubled small businesses.
Newsom signed the bill as Congress discusses a much larger stimulus package for the nation, a proposal that could also put money in the pockets of most Americans. And this is happening as the first-term governor faces recall efforts, fueled in part by widespread anger at his handling of the coronavirus, especially its impact on business.
“The backbone of our economy is small business. We are aware of the stress and tension that so many small businesses are exposed to,”
The Newsom administration still bans indoor eating in most of the state, while limiting the number of people who can enter stores at a time. Newsom said on Tuesday that the state would ease those restrictions in five counties in the coming weeks, as the number of new infections has dropped in recent weeks along with coronavirus-related hospitalizations.
Newsom used its emergency powers in November to set aside $ 500 million in small business grants. In the first round of funding, the program received more than 334,000 applications totaling more than $ 4.4 billion in applications.
The Newsom Act, signed on Thursday, invests another $ 2 billion in the program. Businesses with annual revenues of between $ 1,000 and $ 2.5 million qualify for the money, with priority given to businesses owned by women and minorities and businesses in areas with high unemployment.
The legislature is likely to approve more business aid next week. Lawmakers planned to pass a bill Monday that would allow companies to deduct up to $ 150,000 in expenses covered by federal loans from their state taxes – a benefit of $ 2 billion over six years. But they decided to amend the bill to allow businesses to deduct more than $ 150,000 from their taxes, raising the price for the state to about $ 2.3 billion, Newsom said.
Once the law is passed, the total state stimulus package will result in just under $ 10 billion.
“It’s great even by California standards,” Newsum said.
The package includes $ 3.7 billion to pay at least $ 600 one-time payments for about 5.7 million people. Most of these people will receive the money by claiming tax credits acquired in California in their tax returns. In general, these are people who make $ 30,000 a year or less.
The money will also go to people who earn less than $ 75,000 a year and use an individual taxpayer identification number to file their income taxes. These are people who do not have Social Security numbers, including immigrants who do not qualify for federal incentive payments approved by Congress last year.