Governor Newsom’s Budget Proposal Offers Critical Investment in Small Businesses

“We applaud and firmly support Gov. Gavin Newsom’s Equitable Recovery for California’s Businesses and Jobs plan released this week. The proposal for an additional $575 million for small business grants, on top of the current $500 million provided through the California Small Business COVID-19 Relief Grant and the $50 million for the California Rebuilding Fund, is a critical lifeline for small business owners who continue to face challenges in keeping their doors open during the pandemic. 

Our recent research revealed that California small businesses owners are making difficult decisions to stay afloat, with entrepreneurs of color more likely to have taken drastic actions that include reducing employee headcount, adjusting their business models and temporarily closing. What’s more, 28% of entrepreneurs of color report they may be forced to temporarily close their business in the next three months, and 17% say they are likely to close their business permanently. 

California has taken immediate and deliberate steps to ensure the preservation of our small business community, and this momentum must not be lost. This is why we call on the state legislature to take swift action in passing the proposed budget as we look to rebuild our economy. This additional investment will help foster the vitality of our small businesses as we look to retain quality jobs and drive development in communities most affected by COVID-19.”