California: Newsom signs pandemic economic relief package

On Feb. 23 California Governor Gavin Newsom signed into law a coronavirus relief package designed to provide at least $600 one-time payments to 5.7 million people while setting aside more than $2 billion in grants for impacted small businesses.

ICSC, the California Business Properties Association (CBPA) and other industry groups supported the package, which includes some direct relief for small businesses and waivers of certain business/licensing fees directly impacting restaurants, bars and some retail tenants.

Relief for Small Businesses: In November, Newsom used his emergency powers to set aside $500 million for small business grants. In the first round of funding, the program received more than 334,000 applications totaling more than $4.4 billion in requests. The new package adds another $2.1 billion to that program. Businesses with annual revenues between $1,000 and $2.5 million are eligible for the money, with a priority given to businesses owned by women and minorities and businesses in areas with high unemployment rates. Additional information regarding the CA Relief Grant Program will be located here once it is available.

Fee Waivers for Heavily Impacted Licensees: The relief package includes two years of fee relief for roughly 59,000 restaurants and bars licensed through the state’s Department of Alcoholic Beverage Control that can range annually from $455 to $1,235. The action also reflects fee relief for more than 600,000 barbering and cosmetology individuals and businesses licensed through the Department of Consumer Affairs.