State Budget Deal Allocates Hundreds of Millions to CA Small Business/Public News Service

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Small Business Groups Celebrate the new budget agreement reached between California state legislators. Then comes the final negotiations with Governor Gavin Newsom.

The deal includes more than $1 billion to offset the cost of paid sick leave and help cover unemployment insurance taxes. Carolina Martinez is CEO of CAMEO, the California Association for Microenterprise Opportunities.

Small businesses still need capital and also technical assistance,” Martinez said. “We are therefore pleased to see that the governor’s office as well as lawmakers are committed to continuing to support small businesses.”

The budget must be adopted before June 15 and promulgated before July 1. The budget includes $50 million for the California Investment and Innovation Fund$8 million for Business centers for womenand $500 million for the California Small Business Hard-Hit Industries Grant Program.

Luis Ramos is Director of Business Advisory for Accion Opportunity Fund, a community development finance institution. He predicts that the additional $50 million in funding means CDFIs will be able to mentor many other budding entrepreneurs.

“We can’t just provide small businesses with capital,” Ramos said, “but also support them through this whole process, just to make sure that capital is used effectively and efficiently.”

The budget also includes $150 million for COVID-19 Small Business Grants$75 million for drought relief grants for small state agricultural enterprisesand $1 billion to be split over four years by the California Energy Commission, in the form of grants to companies headquartered in California.

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