Small businesses in California get 1-year reprieve on sales taxes

SACRAMENTO, Calif. (KTVU) - The State of California is offering some relief for small businesses struggling to survive during the ongoing COVID-19 crisis. 

Gov. Gavin Newsom announced he is calling for a one-year reprieve on sales taxes for small businesses, which gives them up to $50,000 to be used in what he calls a "bridge loan," over the next 12 months. 

He also encouraged small employers impacted by the pandemic to apply for a loan from the federal government to cover certain costs. The loan amounts are up to $10 million and distributed on a first-come, first-serve basis.

For business owners who may not be eligible for the federal relief funds, including low-income or undocumented people, California is putting $50 million into the state's Infrastructure and Economic Development Bank for loan guarantees.

Newsom said since March 12, 1.9 million Californians have filed for unemployment. He also said within the last seven days, the state has averaged 111,000 unemployment insurance filings per day.  

“The economic consequences are profound,” Newsom said in response to the pandemic.

On a nationwide scale, 6.6 million Americans have applied for unemployment benefits, which doubles the record that was set the week prior.