SACRAMENTO, Calif. (KION)
On Thursday, California Governor Gavin Newsom announced a plan for more assistance to the state's small businesses.
Businesses with $5 million in sales or less will have a 12-month reprieve from state sales tax, up to $50 thousand.
“In essence, it is a bridge loan. The money that you have already collected, you will not have to pay back to the state for 12 months,” said Newsom. “No penalties, no interest. De facto a loan.”
Governor Newsom also discussed the paycheck protection program (PPP) that was part of Congress and the Trump Administration's $2 trillion dollar stimulus package signed into law last week.
The program would reimburse businesses up to $10 million as long as they commit to using the money to pay and retain employees at current levels.
1.6 million California residents have applied for unemployment insurance benefits since March 12. Roughly 6.6 million Americans filed for unemployment benefits last week, the Department of Labor reported Thursday, double the number of applications reported last week and 10 times the previous weekly record set in 1982.