Gov. Gavin Newsom signed a trio of laws on Wednesday intended to bolster struggling small businesses in California and encourage their owners to hire more workers, each of which received bipartisan support but only light scrutiny by the Legislature before its adjournment last week.
The governor, who used a delicatessen in Sacramento as the backdrop for a bill-signing ceremony, touted the three laws as important help for businesses that are “the lifeblood of California and its economy.”
“Small businesses are feeling vulnerable to the pressures of this pandemic — so much so that they believe they are likely to close in the not too distant future, ” Newsom said, citing a survey that he said found 44% of businesses were considering closure. “That is a jaw-dropping percentage of small businesses that are looking at the prospect of a financial cliff.”
One effort will ensure coronavirus loan funds that are forgiven aren’t treated as taxable income. Newsom says the second bill, enacted as part of the state budget, accelerates the use of various bond funds but includes a variety of proposals unrelated to helping businesses. The third offers up to $100 million in tax credits for small businesses that have suffered during the pandemic but also agree to hire new or laid-off workers.
Read the full story on LATimes.com.