The City of Goleta is sharing this information from the Economic Development Collaborative
State Aid for Businesses, Individuals and Families
Recently, Governor Gavin Newsom reached an agreement on a package of immediate actions that will speed needed relief to individuals, families and businesses facing significant economic hardship from the COVID-19 Recession. The items detailed below are a part of the Immediate Action Agreement. Please note that many details on how these resources will be rolled out are still being developed.
Immediate Action Agreement
Immediate Relief for Small Businesses Quadrupled
- The agreement conforms California tax law to new federal tax treatment for loans provided through the Paycheck Protection Plan, allowing companies to deduct up to $150,000 in expenses covered by the PPP loan. All businesses that took out loans of $150,000 or less would be able to maximize their deduction for state purposes. Larger firms that took out higher loans would still be subject to the same ceiling of $150,000 in deductibility.
- The agreement provides up to 25K for small businesses. (Details are still forthcoming).
Direct Relief to Individuals and Families
- For those earning less than 30K a year a $600 stimulus check will be given after 2020 taxes have been filed.
- A $600 one-time payment will be given to taxpayers with Individual Tax Identification Numbers (ITINs) who were precluded from receiving the $1,200 per person federal payments issues last spring and the more recent $600 federal payments. The agreement would provide the $600 payments to households with ITINs and income below $75,000.
- A $600 one-time grant will be given to households enrolled in the CalWORKS program and recipients of SSI/SSP and Cash Assistance Program for Immigrants (CAPI).
Fee Waivers for Most Impacted Licensees
- The agreement provides for two years of fee license fee relief for those seeking renewal through the state’s Department of Alcoholic Beverage Control.
- The agreement also reflects fee relief for individuals and businesses (barbering and cosmetology) licensed through the Department of Consumer Affairs.
More Resources for Critical Child Care
- The agreement will provide stipends of $525 per enrolled child for all state-subsidized child care and preschool providers. The new federal resources will extend care for children of essential workers through June of 2022, and funds increased access to subsidized child care-who are not currently served in the system – through June of 2022.
Additional aid for individuals and families can be found in the full press release HERE.
Important Updates to the Payment Protection Program
On Monday February 22nd, 2021, the Biden-Harris Administration and the Small Business Administration (SBA) announced steps the agency is taking with the Paycheck Protection Program (PPP) to further promote equitable relief for America’s mom-and-pop businesses.
Please review the following changes to the Paycheck Protection Program:
- On February 24th, 2021, the SBA began establishing a 14-day exclusive PPP loan application period for business and nonprofits with fewer than 20 employees.
- The SBA will allow sole proprietors, independent contractors and self-employed individuals to receive more financial support by revising the PPP’s funding formula for these categories of applicants.
- The agency will eliminate an exclusionary restriction on PPP access for small business owners with prior non-fraud felony convictions, consistent with a bipartisan congressional proposal.
- Also, the SBA will eliminate PPP access restrictions on small business owners who have struggled to make federal student loan payments by eliminating federal student loan debt delinquency and default as disqualifiers to participating in the PPP.
- Ensure access for non-citizen small business owners who are lawful U.S. residents by clarifying that they may use Individual Taxpayer Identification number (ITIN) to apply for the PPP.
Please Call if You Need Assistance
The EDC SBDC call team and financial advisors are available to answer questions and help you navigate today’s complex financial environment. The Economic Development Collaborative hosts the Small Business Development Center and is funded in part through a cooperative agreement with the U.S. Small Business Administration. Signing up as a client takes just a few minutes and provides you lifetime access to all of our no-cost services.
Get started today with our no-cost consulting by calling 805.409.9159 (ENGLISH) or 805.309.5874 (SPANISH). Learn more about the Economic Development Collaborative at https://edcollaborative.com.