State allowing small businesses to defer sales, use tax payments of up to $50K for a year

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SACRAMENTO (KGET) – Governor Gavin Newsom unveiled a series of new resources today to help small businesses and people who have lost work due to COVID-19.

Beginning Friday, Newsom said small businesses impacted by the COVID-19 crisis can apply for a loan from the federal government for up to $10 million. The program is first-come, first-serve. The governor encourages all eligible businesses to contact their lender to learn more.

Newsom also announced that the state is allocating $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to small businesses to help eliminate barriers to capital for individuals who do not qualify for federal funds, including low wealth and undocumented immigrant communities.

The state is also allowing small businesses to defer payment of sales and use taxes of up to $50,000, for up to 12 months.

“The COVID-19 pandemic is having cascading effects for millions of California families and small businesses,” Newsom said. “Through no fault of their own, more than a million Californians have lost a job and countless more are seeing their businesses fail. California will emerge from this crisis stronger than before, and until then, the state will work overtime with the federal government and private sector to get families the help they need.”

Newsom announced the state has joined Bitwise Industries and the Kapor Center to launch, a new platform connecting displaced California workers with more than 70,000 job opportunities in critical industries.

Newsom also today announced $17.8 million in new state initiatives to support California workers impacted by COVID-19. The allocation will come from Workforce Innovation and Opportunity Act funds, with $7.8 million going to Los Angeles and $10 million made available statewide.

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