Small businesses and nonprofits are still struggling as we continue to face new COVID-19 variants and increased costs due to inflation. Under the recently-adopted state budget, California has allocated $2.3 billion to help them stay afloat.

Among the highlights of the relief package:

• Paid Sick Leave: $250 million in grants for small businesses and nonprofits with up to 150 employees to help offset the cost of offering up to two weeks of additional paid sick leave for COVID-19.
• Diesel Sales Tax Suspension: $439 million to temporarily suspend the General Fund portion of the sales tax on diesel fuel, reducing costs by about 23-cents a gallon.
• Unemployment Insurance Cost: All employers will face tax increases starting next year to pay back a large loan the state received from the federal government to cover the surge of Californians claiming unemployment benefits early in the pandemic. However, the budget sets aside $500 million in rebates to help small businesses offset the higher taxes starting as soon as 2024, and directs $1 billion towards paying down the loan principal. 

The small business and nonprofit communities are essential to the stability and growth of our local neighborhoods. The idea behind this allocation is to help them thrive during the COVID-19 pandemic. I am looking forward to seeing the impacts that this new budget will have on our state and valued small businesses.

PHIL TING
Assemblymember, 19th District