New Business Relief Programs Announced

New Sales Tax Extension: The state announced an automatic three-month extension for taxpayers filing less than $1 million in sales tax on their returns and extended the availability of existing interest and penalty free payment agreements to companies (with up to $5 million in taxable sales). The program is likely to be extended to larger businesses soon.

Small Business Relief Grants: A $500 million grant program to provide up to $25,000 grants to small businesses impacted by COVID-19 restrictions will be available in early 2021. Sign up here to receive updates on the availability of this program.

Full Capitalization of the California Rebuilding Fund: The State added $12.5 million to the fund, which is expected to enable the fund to raise up to $125 million for low-interest loans to small businesses.

Small Business Hiring Tax Credit: Senate Bill 1447 (Bradford, 2020) allows a small business hiring credit against California state income taxes or sales and use taxes to certain California qualified small business employers that receive a tentative credit reservation. The reservation system opened on Dec. 1 and the $100 million total credits will be allocated on a first-come, first-served basis.

UPDATE:

USDA Coronavirus Food Assistance Program (CFAP): The deadline for applying for the CFAP is Friday, Dec. 11. Grape growers who sustained losses as a direct result of the pandemic are eligible for direct payments and can find more details at farmers.gov/cfap.