California Expands Business Relief Grants
California Expands Business Relief Grants

On May 13, 2021, California Governor Gavin Newsom announced an expansion of the state’s COVID-19 Small Business Relief Grant program from $2.5 billion to $4 billion. The expansion makes California’s business relief grants program the largest in the country.

To date, 198,000 businesses have received grants under the program, for a total of $475,001,244. While the application portal is currently closed, it is expected to reopen after the new grant's funds have been processed. The Governor’s office announced the following initiatives for businesses:

  • Estimated $895 million investment in the State Small Business Credit Initiative (SSBCI), which works to strengthen state programs that support the financing of small businesses;
  • Increasing the CalCompetes tax credit program to $360 million, and establishing a one-time $250 million grant program, to incentivize businesses to relocate to California;
  • $250 million investment in California’s ports to address revenue loss and bolster future economic activity;
  • $200 million to expand sales tax exclusions through the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) to promote, grow and incentivize green manufacturing in California;
  • $147 million for the Main Street Small Business Tax Credit to assist small businesses that have hired and retained workers since the second quarter of 2020; and
  • $95 million to jumpstart California’s tourism industry, one of the largest economic drivers in the state that was particularly impacted by the pandemic.
Tags: Reopening
  • Pooja S. Nair
    Partner

    Pooja S. Nair is a business litigator and problem solver with a focus on the food and beverage sector. She advises food and beverage clients, startups and other businesses on a comprehensive range of issues, including employment ...

Subscribe

Recent Posts

Blogs

Contributors

Archives

Jump to PageX

ECJ uses cookies to enhance your experience on our website, to better understand how our website is used and to help provide security. By using our website you agree to our use of cookies. For more information see our Privacy Policy and our Terms of Use.