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Golden State Stimulus package provides relief for small-businesses, low-income residents and more!

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Golden State Stimulus package provides relief for small-businesses, low-income residents and more!

Categories: Planning Residents Uncategorized

Published 02/23/2021

Photo by Vladimir Solomyani on Unsplash

Gov. Gavin Newsom signed a $7.6 billion coronavirus relief package into law on Tuesday, February 23rd. The relief package provides much-needed relief to the California small businesses and stimulus payments to low-income residents who may struggle with rent payments.

The new laws are apart of the Golden State Stimulus package, which will distribute at least $600 one-time payments to 5.7 million people, the majority of whom will get the money by claiming Earned Income Tax Credit on their California state tax returns. The package sets aside more than $2 billion in grants for struggling small businesses.

Businesses with annual revenues between $1,000 and $2.5 million are eligible for the funds. Grants will range from $5,000 to $25,000, with a priority given to businesses owned by women, minorities, and local businesses in areas with high unemployment rates. Approximately $50 million will be allocated for non-profit cultural institutions, too.

Money from this package builds upon the $500 million that has already been distributed to small businesses since the pandemic began, “and I want to remind you these are grants, not loans – a profoundly important distinction,” Newsom said. The package will also cancel the fees associated with licenses like cosmetology, barbering, and alcoholic beverages, for the next two years.

Newsom signed the law as Congress is debating a much larger stimulus package for the nation. The Golden State Stimulus package will give up to $25,000 grants to small businesses with revenues between $1,000 and $2.5 million.

The money will also go to people who earn under $75,000 per year and use an individual taxpayer identification number to file their income taxes. People without Social Security numbers, including immigrants who previously were ineligible for the federal stimulus payments Congress approved last year. Also included in the package is funding for family resources, critical child care, community colleges, and the UC and CSU systems.

The bills signed as part of the Golden State Stimulus package include AB 81, AB 82, AB 85, SB 87, SB 88, and SB 94. Tap here to look up the full text of these bills.

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