Los Angeles County, Governor visits small businesses supported by
federal Paycheck Protection Program loans and announces new tax relief
worth a combined $6.2 billion
FERNANDO – Today, Governor Gavin Newsom signed a bill that will give
small businesses hit hardest by this pandemic a $6.2 billion tax cut
over the next six years – a critical lifeline that will help get our
small businesses back on their feet and an important component of
California’s economic recovery strategy.
small businesses have been hampered and hammered by this pandemic, and
we are using every tool at our disposal to help them stay afloat,”
said Governor Newsom. “Help is on the way in the form of a $6.2
billion tax cut, which will provide support, not to large publicly
traded companies, but to the mom-and-pop businesses – the beauty
salons, restaurants and dental offices – which have been resilient
during this difficult time. This small business tax relief is exactly
what is needed to keep businesses open so they can continue paying
the legislation, AB 80 by Assemblymember Autumn Burke (D-Inglewood),
the forgiven PPP loans that businesses received from the federal
government during the pandemic will not be counted as taxable income,
and these businesses can also deduct the costs of expenses that those
loans paid for. This is additional state tax relief for the small
businesses that have been struggling most, and may very well make a
difference in their choosing to reopen, stay open, or shut down as they
look to the future.
Governor signed the legislation in San Fernando after meeting with
local business owners that have utilized federal Paycheck Protection
Program (PPP) loans to keep operating during the pandemic. He was
joined by actor, restaurateur and Los Angeles native Danny Trejo.
small businesses are drivers of economic growth – creating two-thirds
of new jobs and employing nearly half of all private sector employees.
California is home to 4.1 million small businesses, representing over
99 percent of all businesses in the state and employing nearly half of
the state’s total workforce.
new tax relief is in addition to the support that Governor Newsom has
already provided for small businesses and workers throughout the
pandemic. In February, the Governor signed into law a comprehensive
package of immediate actions that sped up much-needed relief to
businesses suffering the most significant economic hardship due to
COVID-19 – a package that provided $2.5 billion in grants worth up to
$25,000 each for small businesses across California, more than half of
which have gone to minority and underserved businesses.
For the full text of the bill, visit: http://leginfo.legislature.ca.gov.