The Governor has announced he will sign two bills today that will provide cash payments to qualified small businesses impacted by COVID-19 and lower-income families. The Legislature is still negotiating a PPP/EIDL conformity bill that would allow businesses to deduct expenses paid with these loans/grants. It is hoped that this bill will be passed by the end of this week.
Yesterday, the Legislature passed the following bills:
- SB 87 would codify and provide an additional $2 billion to expand on the California Relief Program implemented under the Governor’s Executive Order E 20/21-182. The program provides grants of up to $25,000 for qualified small businesses (including nonprofits) with annual gross revenues of more than $1,000 and less than $2.5 million. These payments will be exempt from California tax are subject to federal tax. Details about the program are available at: https://careliefgrant.com/; and
- SB 88 would provide one-time Golden State Stimulus payments and grants of $600 each to:
- Families with a qualified child who are eligible for the Earned Income Tax Credit;
- Families with a qualified child using Individual Taxpayer Identification Numbers (ITINs) and have income no greater than $75,000; and
- Taxpayers who received CalWorks, SSI/SSP, or Cash Assistance Program for Aged, Blind, and Disabled Legal Immigrants (CAPI) benefits.
Families who qualify under both #1 and #2 will receive grants of $1,200.
More details will be provided in the upcoming issue of Spidell’s California Taxletter.®