California Gov. Gavin Newsom signed $ 7.6 billion coronavirus aid package Tuesday that will give at least $ 600 one-time payments to 5.7 million people, while setting aside more than $ 2 billion in grants for struggling small businesses.
Newsom signed the law because Congress is discussing a much larger incentive package for the country, a proposal that could also put money in the pockets of most Americans. And that comes as the governor faces a recall attempt in the first term, fueled in part by widespread anger over his handling of the coronavirus, particularly its impact on businesses.
“The backbone of our economy is small businesses. We recognize the tension, the tension that so many small businesses have experienced,” Newsom said during a signing ceremony at Solomon’s Deli in Sacramento. “And we also recognize our responsibility to do more and to better help support these small businesses through this very difficult and difficult time.”
The Newsom government still bans indoor eateries in most of the state, while limiting how many people can enter stores at a time. Newsom said Tuesday the state will ease restrictions in five provinces, and in the coming weeks there will be even more, as the number of new infections has dropped in recent weeks, along with coronavirus-related hospitalizations.
In November, Newsom used its emergency powers to set aside $ 500 million for small business grants. In the first round of funding, the program received more than 334,000 applications, with a total of more than $ 4.4 billion in requests.
The law that Newsom signed on Thursday puts another $ 2 billion into the program. Businesses with an annual income between $ 1,000 and $ 2.5 million are eligible for the money, preferring businesses owned by women and minorities, and businesses in areas with a high unemployment rate.
The Legislature is likely to approve more aid to businesses next week. Lawmakers planned to pass a bill Monday that would allow businesses to deduct up to $ 150,000 in federal-covered expenses from their state taxes – a $ 2 billion benefit over six years. But they have decided to amend the bill to allow businesses to deduct more than $ 150,000 from their taxes, raising the price for the state to about $ 2.3 billion, Newsom said.
Once the law is passed, it will bring the state’s total incentive package to just under $ 10 billion.
“It even applies to California standards,” Newsom said.
The package includes $ 3.7 billion to pay at least $ 600 one-time payments to about 5.7 million people. Most of these people will get the money by claiming the California tax revenue on their tax returns. Generally, these are people who earn $ 30,000 a year or less.
The money also goes to people who earn less than $ 75,000 a year and use an individual taxpayer identification number to file their income taxes. These are people who do not have social security numbers, including immigrants who are not eligible for the federal stimulus payments that Congress approved last year.