Governor Proposes Additional $1.5 Billion in Small Business Relief Grants

Gov. Gavin Newsom on Thursday proposed adding $1.5 billion to a program providing grants of up to $25,000 to small businesses harmed by the COVID-19 pandemic in California, allowing thousands more to get financial help. The proposal would expand California’s small business relief grants to $4 billion, representing the largest small business grant program in the country.

The expansion is part of the Governor’s “Comeback Plan,” a $100 billion COVID-19 economic recovery plan that addresses some of the state’s most challenging issues, such as drought infrastructure, public education and homelessness. The plan also proposes a number of investments and strategies focused on helping businesses recover from the COVID-19 pandemic, including:

• Estimated $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.

Watch the Governor's comments at CalChamber's Sacramento Host Breakfast where he announced this proposal.