Gov. Newsom announces relief program for California small businesses

Gov. Gavin Newsom shared his plans to provide billions of dollars for small businesses hardest hit by the pandemic on Thursday.
Gov. Gavin Newsom shared his plans to provide billions of dollars for small businesses hardest hit by the pandemic on Thursday.

The relief program is part of the governor's $100 billion California Comeback Plan, an economic recovery plan aimed at addressing five of the state's biggest challenges.

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Newsom announced the proposal to business and civic leaders during a virtual event organized by the Sacramento Host Committee and the California Chamber of Commerce.

Part of that proposal is $4 billion from the governor's comeback plan in grants for small businesses. It also includes a $6.2 billion tax cut for businesses who have face hardship during the pandemic.

The new plan would increase the state's CalCompete's grant program to $360 million. The state would also establish a $250 million one-time grant program designed to incentivize businesses to relocate to California.

Newsom said another $147 million would go toward the state's existing payroll tax credit that gives $1,000 per employee up to $100,000 for small business employers that retained employees or hired new employees during the pandemic.

The governor said he would reveal more information about the small business relief plan on Friday.

Earlier this week, Newsom announced another round of stimulus checks, as well as relief funds for utility bills and rent -- all part of a weeklong rollout of proposals.

The governor also unveiled a $12 billion plan to tackle the state's homeless crisis and a $14.5 billion plan for California schools, including a proposal for free universal pre-K.

RELATED: Newsom says indoor mask mandate may not lift June 15, but experts say it will soon be safe to do so

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