SACRAMENTO, Calif. — Governor Gavin Newsom honed in on California's economy during his press conference Thursday, providing updates on conditions for workers and employers.
The coronavirus [COVID-19] pandemic shut down numerous businesses across the globe, but some relief has arrived for many employers and employees who have faced uncertainty in the last few weeks.
Governor Newsom provided updates on small businesses, encouraging people to apply for Federal programs recently passed through the CARES Act, including the Paycheck Protection Program [PPP], a program that offers up to $10 million to small businesses if they continue to pay their workers.
"This is a profoundly significant program that has $349 billion dollars of federal supports attached to it," Governor Newsom said of the PPP. "This program starts tomorrow, and that's why it's incredibly important people start filling out the application, filling out the form, to make sure they are aware of their eligibility."
Governor Newsom also introduced some California programs, aimed at stabilizing a rocky economy amid coronavirus. Addressing sales tax, Governor Newsom announced that small businesses will be able to take upwards of $50,000 and not have to pay the state sales tax receipts for 12 months. There would be no interest, no fines, and no penalties.
However, not everyone can take full advantage of these programs. As such, the state of California is offering micro-loans to businesses that wouldn't otherwise qualify for these disaster programs.
Governor Newsom also addressed the rise in unemployment in the last few weeks, introducing a job search engine, Onward California.
In regards to an increase in the number of Unemployment Insurance [UI] claims, there were several updates.
The Federal CARES Act has a number of different components that expand unemployment. Eligible employees will get an additional $600 a week for up to four months. Those payments could arrive as early as next week.
Independent contractors and self-employed workers, some of who had previously been left out under UI, can now receive pandemic insurance.
"We are working diligently to both get the information we need from the Federal government and to stand up some information here to make sure that as soon as the federal money is available that we are able to get it out," said Labor Secretary Julie Su.
Go to the California Labor Agency website for updates and information.
Governor Newsom also provided a local update on Sleep Train Arena, which is being turned into a 393-bed hospital for coronavirus patients.
Plans are underway, supported by the Army Corps of Engineers, for the alternate care facility. The project now has an on-site contractor, and the project is moving to the next phase of implementation.
Despite a lack of health news, Governor Newsom still addressed the importance of social distancing and staying at home.
"We look at our capacity in the system to surge, and we look at our capacity from a human resource perspective, and with the appropriate level of protective gear," Governor Newsom said. "If we continue through the appropriate physical distancing and the incredible work that 40 million Californians have done to help bend this curve and to help meet this moment… that gives us a few weeks to prepare for an upcoming peak that could come into the middle of May."
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