Gov. Newsom to help small businesses struggling during pandemic
OAKLAND, Calif. - Gov. Gavin Newsom will announce plans on Thursday to help small businesses struggling during the pandemic.
The "California Comeback" plan includes $100 billion in assistance and investments to get the state back on track.
This includes putting $20 billion toward schools, $12 billion toward the state’s homeless crisis, $5 billion toward drought response, and stimulus checks for residents.
Newsom will also announce plans to expand the state’s support for small businesses.
Small businesses have been hit especially hard during the pandemic.
There are more than 4 million small businesses in California.
Many were forced to close because of COVID restrictions.
Some are finally reopening for the first time in a year.
There are also inflation concerns as the Bureau of Labor Statistics showed year to year consumer prices jumped by 4.2 percent in April from 2.6 percent in March.
Jim Wilcox, a UC Berkeley Haas Business school professor and former fed economist, says inflation was no surprise as the economy reopens – and he expects to see a stronger economy the rest of the year.
"The fed has correctly said that we should expect a small inflation bump because the economy and its prices would bounce back a little bit once we started to reopen," he said.
Newsom will meet with the California Chamber of Commerce and will speak with business leaders during a virtual address as well.
Newsom proclaimed May as "Small Business Month."