COVID-19

$6.2 Billion State Fund Will Shield Small Businesses from COVID-Related Taxes

The tax relief bill comes at a critical moment in Newsom’s time in office as state officials prepare for recall efforts his Republican opponents initiated.

Published

4 years ago

May 4, 2021

Mia Lane

California lawmakers have approved Assembly Bill (AB) 80 legislation spearheaded by Assemblymember Autumn Burke (D-Inglewood). The legislation will give a $6.2 billion tax cut to small businesses across the state that received loans under the federal government’s Paycheck Protection Program (PPP).

California lawmakers approved the bill, they say, to safeguard the financial future of small businesses as a supplement to the American Families Plan proposed by President Joe Biden in March this year. AB 80, signed by Gov. Gavin Newsom protects small businesses that received PPP loans from the federal government by ensuring that the loans will not count as taxable income. Expenses covered by the federal funds are also tax-deductible under this legislation.

State legislators passed a unanimous vote on the tax, “marking it as one of largest tax cuts in state history,” Burke said on Facebook.

“My bill will provide assistance to businesses who were financially harmed during the COVID-19 pandemic by allowing them to deduct all expenses paid for using forgiven PPP loans,” she said.

Small businesses play a key role in the economic recovery of the state especially since the state plans to reopen on June 15 this year.

“California’s small businesses have been hampered and hammered by this pandemic, and we are using every tool at our disposal to help them stay afloat,” Newsom said.

Also, “This small business tax relief is exactly what is needed to keep businesses open so they can continue paying their employees,” he said.

Maria Salinas, the president of the Los Angeles Chamber of Commerce, supported the state’s efforts to allow major tax cuts for small businesses that employ people from Black and Brown communities.

“We know that small businesses are what fuels the economy not only in Los Angeles but across the state of California and across this country,” said Salinas.

Despite small businesses receiving PPP loans to soften the financial blow of the pandemic, the tax bill also aims to remedy, “the tax burden that we saw in the differences between the federal and the state,” said Salinas.

According to state officials, in addition to the tax bill, California also legislated $2.5 billion in relief funds to support small businesses across the state earlier this year. Eligible businesses can receive grants up to $25,000 to make up for the financial loss incurred during the COVID-19 pandemic.

The tax relief bill comes at a critical moment in Newsom’s time in office as state officials prepare for recall efforts his Republican opponents initiated.

But the governor remained optimistic.

“We’re going to defeat the recall,” he said.

Despite the optimism, the state has validated over 1.6 million signatures exceeding the number of signatures required for California to move forward with re-election.

“We’re going to focus on getting people back to work,” said Newsom.

According to the California Association of Clerks and Elections Officials, a bipartisan government agency, re-election could cost the state $400 million based on previous election data and the current economic factors.

“We’re going to get this economy moving again and more important than anything else, we’re going to get vaccines in people’s arms so we can do all of that faster,” said Newsom.

Dr. Shirley Weber, the California Secretary of State, is leading efforts to prevent the projected fiscal setback expected to be triggered by the prospective re-election. According to the Secretary of State’s office, there is an allocated time period for people to withdraw their signatures from recall petitions in their respective counties.

State economic strategy for American Families Plan

State officials are combining federal and state initiatives to boost efforts to reopen by mid-June this year. The state is initiating programs to provide relief funds for individuals – some of the grants — for small businesses and organizations, including $600 stimulus checks for Californians who have low incomes.

“Right here in California, our stimulus programs have provided tax relief for small businesses and money in pockets for struggling families, and we’ve expanded childcare and made community college free,” said Newsom.

According to state officials, relief programs have helped more than 40,000 small businesses and nonprofits across California so far.

“These strategic investments, which are complemented by President Biden’s American Families Plan, will bolster California’s equitable economic recovery and bring us roaring back,” he said.

State officials are set on achieving their goal to reopen and restore job losses for small businesses and academic setbacks for schools across California.

California Black Media’s coverage of COVID-19 is supported by the California Health Care Foundation.

Mia Lane

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Bay Area

Authorities Warn: There’s a COVID Surge in California

According to data estimates by the Centers for Disease Control and Prevention (CDC), the coronavirus in California’s wastewater has spiked for eight consecutive weeks. Hospitalizations and emergency room visits have also increased since the rise of the new subvariants. Over the last month, Los Angeles County experienced an average of 389 hospital patients per day that tested positive for the coronavirus. The FLiRT subvariants such as KP.3.1.1. Made up over 2% of coronavirus samples nationwide, an increase of more than 7% last month.

Published

3 months ago

August 17, 2024

Oakland Post

Photo provided by California Black Media.

By Bo Tefu, California Black Media

California is experiencing a COVID-19 surge this summer, experts warn, as numbers of infections increased for the third month this year.

State public health authorities attribute the summer COVID surge to more infectious subvariants that have emerged as the coronavirus evolves.

Dr. Elizabeth Hudson, regional chief of infectious disease at Kaiser Permanente Southern California, stated that subvariants of COVID-19 called FLiRT increased in recent months, particularly one named KP.3.1.1 that has become the most common strain in the country.

Dr. Peter Chin-Hong, an infectious diseases expert at UC San Francisco, said that the subvariant KP.3.1.1 seems most adept at transmission.

“The subvariant is the one that people think will continue to take over, not only in the United States, but … around the world,” Chin-Hong said.

The majority of the people who tested positive for COVID-19 complained of a sore throat and a heavy cough. Risk factors that can increase the illness include age, underlying health issues, and vaccine dosage.

Health experts stated that the demand for the COVID-19 vaccine has increased in Northern California. However, people are having a hard time getting the vaccine due to the increasing number of cases.

Oakland Post

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Alameda County

Alameda County Supervisor Nate Miley Gives Small Business a $30,000 Boost

On Jan. 6, Alameda County Supervisor Nate Miley (D6) presented a $30,000 check to small business owner William “Bill” Owens, owner of Cascos Martial Arts Studio at 74th and MacArthur in Oakland. Miley, whose business has been facing financial challenges due to COVID Pandemic restrictions, says he was nearing bankruptcy. “This check will go a long way and is greatly appreciated,” he said.

Published

10 months ago

January 24, 2024

Oakland Post

Oakland Private Industry Council (OPIC) Business Managers Frank Smith, Diane Lewis with OPIC President Raymond Lankford, Alameda County Supervisor Nate Miley, Cascos Martial Arts Studio Owner William "Bill" Owens, OPIC Board Members Kitty Epstein and Developer Alan Dones, Oakland City Councilmember Kevin Jenkins, and OPIC Business Manager Andrew Rodrigues. Photo By Carla Thomas.

By Carla Thomas

On Jan. 6, Alameda County Supervisor Nate Miley (D6) presented a $30,000 check to small business owner William “Bill” Owens, owner of Cascos Martial Arts Studio at 74th and MacArthur in Oakland.

Miley, whose business has been facing financial challenges due to COVID Pandemic restrictions, says he was nearing bankruptcy. “This check will go a long way and is greatly appreciated,” he said.

For Miley, starting 2024 on a high note was important. “I can’t think of a better way to start the new year,” he said. “Small businesses are vital to our communities and when you help a committed business owner, you help a community. It’s an honor to add value by contributing to a small business that has trained so many young people, watched them grow up and have viable careers.”

OPIC Business Outreach Team Members Diane Lewis and Frank Smith celebrated the new collaboration with the martial arts studio.

“It’s always exciting to launch new programs,” said Lewis. “It’s encouraging to see Black men supporting one another and helping them rise to another level,” said Smith.

The check was presented to Owens along with the Oakland Private Equity Council (OPIC).

Pastor Raymond Lankford of the Oakland Community Church and president of the (OPIC) was also present.

“This is martial arts studio has been a big part of this community and helping support Mr. Owens is a win-win for the community,” said Lankford.

OPIC Board Member Kitty Epstein also praised Owens.

“It’s important to support this business and its contribution to the community,” said Epstein.

Cascos Martial Arts Studio has been in business for more than 50 years. Owens and his wife Mary have taught the community the art of self-defense together. “When COVID happened, we were hit with social distancing regulations in our small space,” explained Owens. “We went from having a couple hundred students to a few.”

After the check presentation, Owens invited attendees to see his training in action. For him, teaching the art of self-defense has included naming his moves and techniques after cultural icons like Martin Luther King, Jr. and other activists.

Owens says he bridged the innate rhythms and movements of African American culture with the techniques of Asian martial arts. However, upon traveling the world, Owens noticed many of the moves were less fluid.

“Often the moves are more frigid, and our influence has added more fluid movements,” said Owens as he moved, mimicking some boxing movements and fancy footwork.

“We want to ensure Owens is in business for years to come,” said Pastor Raymond Lankford, president of the Oakland Private Industry Council.

Owens also demonstrated how women and the elderly can protect themselves from theft, injury, or even being trafficked. 2022 statistics noted that of the 1500 people reported missing, over half were African American.

“We have to teach our young people these techniques. We can all support small businesses and expand services throughout the community,” added Owens who plans to add a mobile service to his business.

Oakland Post

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Activism

Business Owners Talk Future of Economic Development in Oakland at Downtown Event

The city of Oakland is taking steps to streamline permits for businesses to entice them to stay and bring new projects to the city. Additionally, the city is committing $200 million for affordable housing, which is “unprecedented in the city of Oakland” says Councilmember Nikki Fortunato-Bas, who was also at the event. “We have committed to supporting our community, supporting our local businesses and really showing that we can work together for safer communities,” Fortunato-Bas emphasized in an interview with the Post.

Published

12 months ago

December 11, 2023

Oakland Post

Improving downtown blight like the graffiti on this building façade in Oakland is one area business owners hoped would bring more foot traffic to the area. Photo by Magaly Muñoz.

By Magaly Muñoz, Post Staff

Developers and business owners in the Bay Area came together for the “Oakland Structures” event hosted by San Francisco Business Times to discuss economic development projects in Oakland last Thursday.

Mayor Sheng Thao opened up the event as the keynote speaker, sharing her experiences from her first year in office and the measures her administration has taken to address the key issues plaguing the city.

Thao inherited the largest deficit Oakland has ever seen- $360 million- and came into her position as the effects of the COVID-19 pandemic were hitting the city hard. The once bustling city has faced difficulties as people transitioned to hybrid or work-from-home jobs, which has caused foot traffic to slow down and businesses to lose clientele.

“I refuse to stop until we get our businesses back up and running at full capacity, and make sure that people feel safe, not just safe in the commercial corridors, but safe everywhere,” Thao said.

Thao shared that the economic development in Oakland is slowly, but surely, growing as new companies bring their business to downtown. PG&E has recently been among the bigger corporations that’s settled in Oakland, bringing 7,000 jobs with them, which will not only open up potential opportunities for Oaklanders, but also increase foot traffic for businesses in town.

Thao acknowledged several initiatives that have already been implemented to give the city a boost, including Five After Five, a cost-effective parking program; Activate Oakland grants, which gives businesses up to $15,000 to host events that will bring the community to downtown; and the film initiative to encourage filmmakers and TV shows to shoot their projects in Oakland.

“We have committed to supporting our community, supporting our local businesses and really showing that we can work together for safer communities,” Fortunato-Bas emphasized in an interview with the Post.

As the holiday season approaches, Fortunato-Bas urges the community to shop and dine locally, all the way from the Fruitvale to Grand Lake, areas she represents, as this will help boost and support these businesses.

During a panel with investors and business owners who have new projects breaking ground as early as 2024, a pressing question emerged among the attendees and panelists was “Is Oakland the right city to maintain and bring in businesses?”

Real estate developer Riaz Taplin, CEO and founder of Riaz Capital, said that people need to want to come back to the office and revitalize the commercial corridors of the city, but also that businesses need the support of the government sector to thrive.

He feels as though new entrepreneurs who are starting out in Oakland today do not have the advantage that many, like himself, did pre-COVID, where they could just walk into a city office and be helped on how to get the right permits because everything and everyone was so accessible.

More people would feel enticed to come back downtown if they felt that they were safe, so public safety needs to be high on the list of priorities for the city, Taplin said, emphasizing issues such as litter, vandalized business fronts and homeless encampments.

“Something needs to happen to make Broadway a place people want to go,” Taplin said after sharing a story about downtown Alameda being the busiest area with the most foot traffic out of Oakland and San Francisco.

Another panelist, Oakland Roots president Lindsay Barenz, shared that although Oakland is struggling to keep sports teams, the time is now to invest in those projects to keep the sports culture in the city.

“A sports team can be a critical component to that [a place where people enjoy living],” Barenz said.

She emphasized that the Oakland Roots see themselves as significant to the culture of Oakland as institutions like the zoo, museum, and Fairyland. She believes that the morale boost that a sports team can provide is what Oakland needs.

When asked to give a headline of what is to come in Oakland in the next five to 20 years, Taplin said, “Clean it and they will come.”