California Governor Gavin Newsom signed a bill of $ 7.6 billion coronavirus on Tuesday, an aid package that will provide at least $ 600 one-time payments to 5.7 million people, while more than $ 2 billion in grants is earmarked for struggling small businesses.
Newsom signed the law as Congress debates a much larger stimulus package for the nation, a proposal that could also put money in most Americans’ pockets. And it’s because the governor of the first term is facing a recall that’s partly fueled by widespread anger over his handling of the coronavirus, particularly its impact on businesses.
“The backbone of our economy is the small business. We recognize the stress, the strain that so many small businesses have undergone,” Newsom said at a signing ceremony at Solomon’s Deli in Sacramento. “And we also recognize our responsibility to do more and better to help these small businesses through this very difficult and difficult time.”
The Newsom administration still bans indoor dining in most of the state, while limiting the number of people who can enter stores at the same time. Newsom said on Tuesday that the state will ease those restrictions in five counties, with more to follow in the coming weeks as the number of new infections has fallen in recent weeks along with coronavirus-related hospitalizations.
Newsom used its emergency powers in November to set aside $ 500 million for small business grants. In its first round of funding, the program received more than 334,000 applications for a total of more than $ 4.4 billion in applications.
The law Newsom signed on Thursday put another $ 2 billion into that program. Businesses with annual sales of between $ 1,000 and $ 2.5 million are eligible for the money, with priority given to businesses owned by women and minorities and businesses in areas with high unemployment rates.
The legislator is likely to approve more support for businesses next week. Lawmakers planned to pass a bill Monday that would allow companies to deduct up to $ 150,000 in expenses covered by federal loans from their state taxes – a benefit of $ 2 billion over six years. But they decided to change the bill to allow companies to deduct more than $ 150,000 from their taxes, bringing the price tag for the state to about $ 2.3 billion, Newsom said.
Once that bill is passed, the total government stimulus package will come to just under $ 10 billion.
“That’s great even by California standards,” said Newsom.
The package includes $ 3.7 billion to pay at least $ 600 in one-time payments to approximately 5.7 million people. Most of these people will get the money by claiming the California income tax credit on their tax returns. Generally, those are people who make $ 30,000 a year or less.
The money also goes to people who earn less than $ 75,000 per year and use an individual taxpayer number to file their income taxes. These are people who don’t have a Social Security number, including immigrants who didn’t qualify for the federal stimulus payments that Congress approved last year.