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The proposed relief package requires state legislature approval before it’s signed into law.

Help could be on the way for California restaurants

State legislators have proposed a $9.6 billion relief package, which could include stimulus checks for residents, and $2 billion in grants for small businesses

California lawmakers have reached an agreement with Gov. Gavin Newsom on a $9.6 billion COVID-19 relief package introduced Wednesday that would include $2 billion in grants of up to $25,000 for small businesses, as well as two years of license fee relief for 59,000 California restaurants and bars that currently have liquor licenses.

The proposed package — a compromise based on Newsom’s original Golden State Stimulus bill announced in January — is designed to speed relief to individuals, families and businesses most impacted by the pandemic.

Here’s what is in the proposed relief package that would apply to the business community:

  • A fourfold increase in small business grants of up to $25,000, from $500 million to $2 billion.
  • Permission for small businesses to deduct up to $150,000 in expenses covered by Paycheck Protection Program and Economic Injury Disaster loans. Businesses that took out larger loans would be also allowed to deduct up to $150,000 for tax purposes.
  • Two years of liquor license fee relief for 59,000 restaurants and bars (with fees ranging from $455 to $1,235 annually).

These aren’t the only state-level efforts being taken by California legislators to help restaurants. California Assemblymember Jesse Gabriel announced Wednesday progress on legislation that would help restaurants “facilitate more outdoor dining” and expand options for takeout and delivery. The legislation is expected to be voted on in the coming weeks.

Read more about the proposed $9.6 billion in state COVID-19 relief, including grants for restaurants in NRN here.

Contact Joanna Fantozzi at [email protected]

Follow her on Twitter: @joannafantozzi

TAGS: Coronavirus
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