By Eli Walsh, Bay City News Service
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.