During his daily COVID-19 briefing on Thursday, Governor Gavin Newsom said he was ordering that small businesses in California receive a one-year reprieve on sales tax payments. Speaking from the Governor's Office of Emergency Services in Sacramento, the Governor said small businesses have been devastated by the coronavirus pandemic.
Newsom said California small business owners will pay no fines or penalties on upwards of 50-thousand-dollars in what amount to loans from the state in the form of the tax reprieve. He also announced that his administration is arranging for $50-million to transferred into the state's infrastructure bank for those who are not eligible for federal funding.
Newsom highlighted that the federal government stimulus package, known as the Cares Act, provides businesses up to ten-million-dollar loans if you continue to pay your employees.
The Governor also noted that people who are looking for work during the virus outbreak can be match to available jobs thanks to a website created by The onwardca.org site was developed by Bitwise Industries in Fresno.
the Governor 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.
Newsom also signed an order that protects consumers who may not be able to pay for their water service from shutoffs. Already, over 100 public and private water systems across California have voluntarily suspended water shutoffs for non-payment as a result of COVID-19. Under the order, the State Water Resources Control Board will issue best practices and guidelines on support for the state’s water systems during this time.
"This executive order will help people who have been financially impacted by the COVID-19 pandemic by ensuring they have water service," said the Governor. "Water is critical to our very lives, and in this time, it is critically important that it is available for everyone."
Additionally, the executive order will restore water for occupied residences that may have had their water shut off as of March 4, 2020, which is when the Governor proclaimed a state of emergency due to COVID-19.