California Economic Stimulus for Low Income Californians and Small Businesses
California has approved a $7.6 billion stimulus package for low income Californians and struggling small businesses. An additional $2 billion package of support for small employers is in the works and expected to be approved next week.
The $600 checks are targeted to individuals with incomes lower than $30,000 annually – a total of 5.7 million Californians. The checks will go to individuals with incomes who qualify for the state earned income tax credit (EITC) or in receipt of SSI or TANF (CalWorks) monthly checks. Payments will also go to individuals with incomes less than $75,000 who have a Taxpayer Identification Number (TIN), but are ineligible for the federal stimulus checks. This allows the undocumented who are ineligible for UI or federal stimulus checks to qualify for some state relief.
The small business grants will be administered by the Office of the California Small Business Advocate. Businesses with incomes of less than $2.5 million are eligible. The grants will be targeted to those industries such as restaurants, hospitality and entertainment most affected by the pandemic. They will be distributed based on geographic diversity and ethnic diversity. The grants will range from $5,000 to $25,000.
The follow-up legislation is expected to include tax deductions for expenses covered by PPP and fee relief for restaurants, bars, barbers and cosmetologists.
Prepared by: Lucien Wulsin
Dated: 2/23/21