Economy

More economic relief becomes available to businesses in California

Written by Taylor Fourier

Effective immediately, until the application deadline on January 13 at 11:59 p.m, small businesses and nonprofits that have experienced financial hardship due to the COVID-19 pandemic can apply for economic funding through a $500 million California grant program.

Governor Newsom stated that upon its availability, the aid is intended to cover business expenses and be an additive to the $600 federal stimulus that President Trump signed off on last month. 

In the community, the San Diego and Imperial Small Business Development Center, as well as the San Diego Foundation, will ensure resources like funding, information, and technical support are available.

Additionally, local entrepreneurs may receive no-cost business advice put forward by the San Diego and Imperial SBDC Network. According to Daniel Fitzgerald, Regional Director, more than 2o,000 hours of assistance to local small businesses have been provided by his team.

The Paycheck Protection Program (PPP), a loan program established by the Federal government for businesses impacted by COVID-19, will also be getting more funding.

Businesses can receive a sum equal to 2.5 times their monthly payroll if they have not acquired a PPP loan. 

An additional loan is obtainable for businesses that have already received a PPP loan if they have suffered a reduction in sales of at least 25 percent. 

Industries that have been most seriously affected, like the restaurant and hospitality industry, may receive up to 3.5 times their monthly payroll. 

$15 billion in grants is reserved for live venues, which have remained mostly closed due to the shutdown order.

Help and aid for businesses in San Diego County is important and needed to keep them financially viable through the rest of the pandemic. It remains, however, that businesses would not need the millions of dollars of economic support if they were permitted to open and operate.

Photo via KRWC