On June 29, California Governor Newsom signed the 2020 Budget Act which provides additional financing assistance to the state’s small businesses. Noting the critical role small businesses will play going forward as the state works toward economic recovery, the budget allocates $75 million to be administered through the California Infrastructure and Economic Development Bank, or IBank. The funds will be used as part of the Disaster Relief Loan Guarantee Program to help businesses secure the financing they need to remain viable and to grow. The IBank’s programs are available to the business community through seven Financial Development Corporations around the state which include Small Business Development Corporation of Orange County.
Toward further supporting the state’s small business community, the budget expands the $800 Minimum Franchise Tax exemption to all businesses, removing another barrier to sustainability. In total, the 2020 Budget Act approves $202.1 billion in support of public education and social service programs, with key investments in economic recovery as well as in public health and safety for personal protective equipment, hospital surge capacity, firefighting resources, seismic safety and earthquake preparedness. Additional details regarding the 2020 Budget Act can be found in the Department of Finance’s Enacted Budget Summary, located at www.ebudget.ca.gov.
