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The state of California extended income tax deadlines for some small businesses and will issue some $500 million in relief grants to help small businesses stay afloat during the coronavirus pandemic, Gov. Gavin Newsom said Monday.
The state will extend the income tax deadline by three months for
small businesses that are filing less than $1 million in sales tax, according
to Newsom.
Companies filing up to $5 million will have access to existing
interest and penalty-free payment agreements while larger businesses can
access interest-free payment options.
According to Newsom, the deadline extension and penalty-free
payment options will save small businesses billions during the pandemic.
“We have to lead with health to reopen our economy safely and
sustainably while doing all we can to keep our small businesses afloat,”
Newsom said.
Small business owners will also have access to grants of up to
$25,000 to help prevent them from closing, according to Newsom. The COVID
Relief Grant program, totaling $500 million, will distribute funds to
eligible small businesses by early next year.
Some 4.1 million small businesses operate in California, employing
7.2 million workers, nearly half of the state’s workforce, according to
Newsom.
“By providing potentially billions in immediate relief and
support, our small businesses can weather the next month as we continue
partnering with the legislature to secure additional funding and investments
in small businesses in the new year,” he said.
