State offers additional assistance for businesses affected by COVID-19 pandemic

SACRAMENTO, Calif. (KION) As we enter December, state officials are expressing concerns that the number of COVID-19 hospitalizations is expected to increase in the coming months, and that could mean a new stay at home order.

Meanwhile, the federal government has not provided additional stimulus to help businesses, so the state announced that it will provide temporary tax relief for eligible businesses affected by COVID-19 restrictions.

The tax relief would involve an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax. It would also extend the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provide expanded interest-free payment options for larger businesses affected by restrictions.

“California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away,” said Governor Newsom. “We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t."

Newsom said small businesses create two-thirds of new jobs and employ almost half of all private sector employees. Statewide, there are 4.1 million small businesses, and those represent 99.8% of all businesses in California. They also employ 7.2 million workers, 48.5% of the total workforce.

According to a Small Business Majority survey, 44% of small businesses are at risk of closing permanently, and the Census Current Population Survey found that minority-owned businesses have been impacted the most.