More financial assistance on the horizon for businesses impacted by COVID-19

In 2020, most small businesses were told to close doors or limit customers. Governor Gavin Newsom has proposed $4 billion in state spending to help them survive 2021. 

Newsom is expected to release his new budget proposal on Friday. However, on Tuesday he offered a preview of the new state spending aimed at creating jobs and assisting small businesses. 

According to Newsom, small businesses would get $575 million. The money would pay for grants of up to $25,000 each to small business owners. $25 million would be made available for small museums and art galleries that have been forced to close during the pandemic. 

Some businesses could also get a tax break if they hire more workers.

He says about $1.5 billion would go towards helping people transition to the use of electric cars and the construction jobs needed to build charging stations.

The new plan would also waive millions in fees that have been imposed on businesses during the pandemic, and offer tax incentives to large tech companies considering leaving California.