As both Chair of the Budget Subcommittee #4 on State Administration, Assemblywoman Carrillo championed small business grants, tax credits, enhancements, investments and new resources to provide relief from the economic downturn generated by the COVID-19 g
- Edmundo Cuevas
- (916) 319-2051
(Sacramento, CA) – Assemblywoman Wendy Carrillo (AD-51, Los Angeles) commended Governor Gavin Newsom for proposing the largest small business relief program in the nation as a central tenet of the $100 Billion California Comeback Plan. Assemblywoman Carrillo has championed historic investments in small business relief. The Governor’s proposal expands the state’s COVID-19 Small Business Relief Grant program to a total of $4 billion, representing the largest such program in the entire country, with 50% of awards having already gone to minority owned businesses. This in addition to the $6.2 billion tax cut for those businesses hit hardest by the pandemic – the largest state tax cut of its kind in history – and hundreds of millions in grants and tax credits to attract business to our state have California poised to roar back.
“Mom and pop shops, local businesses, community serving nonprofits, and our cultural institutions are all at the heart of California’s recovery. The Governor’s proposal is a major step in the right direction to get resources into the hands of those who need them most. Through small business relief grants, investment in our ports, an expansion of film and television tax credits, federal funds for small business credit enhancement, and support for working families, the Comeback Plan is a blueprint for our future,” said Assemblywoman Carrillo.
The Governor’s proposed California Comeback Plan complements the series of early budget actions to invest in the sectors of the economy crucial to our state’s recovery, that Assemblywoman Carrillo advocated for as Chair of Budget Subcommittee #4 on State Administration, including:
- $895 million investment in the State Small Business Credit Initiative (SSBCI), which works to strengthen state programs that support financing of small businesses.
- Increasing the CalCompetes tax credit program to $360 million, and establishing a one-time $250 million grant program, to incentivize businesses to relocate to California.
- $250 million investment in California’s ports to address revenue loss and bolster future economic activity.
- $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to promote, grow and incentivize green manufacturing in California.
- $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020.
- $95 million to jumpstart California’s tourism industry, one of the largest economic drivers in the state that was particularly impacted by the pandemic.
California’s small businesses have faced unprecedented challenges over the past year. Historic investments to provide businesses with the support they need and jumpstarting our economic recovery are warranted. Assemblywoman Carrillo welcomes the Governor’s proposed implementation of the largest small business relief program in the entire country – expanding the small business grant program to $4 billion and providing $6.2 billion in small business tax relief – so more money can be put in the pockets of business owners who need to make payroll and cover the bills as California prepares to fully reopen the economy on June 15.
These grants are already supporting diverse small businesses throughout California, with 88.3 percent of grants in rounds one and two going to minority/people of color-owned businesses, women-owned businesses, veteran-owned businesses and businesses located in low to moderate income communities. To date, approximately 198,000 small businesses and nonprofits either have been or will be awarded grants, which includes finalized awards for 43,874 small businesses and nonprofits representing all 58 California counties for a total of $475,001,244. By expanding this successful program, we can ensure that even more small businesses can access this critical lifeline as we head toward full reopening on June 15.