Dear Neighbor,

Small businesses took a hit during this pandemic, and California is dedicated to providing the support they need to stay afloat and get back on their feet - a critical component of our recovery strategy. In February, we sent billions of dollars worth of grants and tax relief to small businesses impacted by the pandemic, including an additional $2 billion for small business grants - more than half of which have gone to minority-owned businesses.

Under legislation signed by Governor Newsom last week, 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. AB 80 will save our small businesses roughly $6.2 billion over the next 6 years.

Other key actions that bolster California's small businesses include:

• So far, California's Small Business COVID-19 Relief Grant Program has awarded or is in the stages of awarding $1.725 billion to 142,000 small businesses and nonprofits hardest by the pandemic.
• Providing ABC license fee waivers for two years to approximately 59,000 businesses heavily impacted by COVID-19 health and safety restrictions.
• Allocating $50 million to the Small Business Finance Center at California's IBank to mitigate barriers to capital for those small businesses (1-750 employees) that may not qualify for federal funds (including businesses in low-wealth and immigrant communities).
• Provided expanded services through California's 86 active small business centers in over 30 languages.
• Launched campaigns like Calling All Californians: #ShopSafeShopLocal encouraging Californians to support businesses in their neighborhoods and connected those businesses to state resources.

As we continue to see the lowest COVID-19 positivity rates in the country and approach 30 million shots in arms, California has been leading the nation in job creation and it's important that we continue to support our small businesses.

Sincerely,

Hon. Anthony J. Portantino
Senator, District 25