SACRAMENTO – Senator Ling Ling Chang issued the following statement after Senate Bill 1447 and Assembly Bill 1577 were signed into law. Senator Chang voted to support both bills that will provide financial relief for small businesses including a tax break of $1000 for each employee a small business rehires and tax relief for businesses who meet the requirements for the federal government Paycheck Protection Program (PPP) forgiveness loan.
“This COVID-19 pandemic has shuttered hundreds of small businesses in the Golden State and the state’s unemployment agency remains dysfunctional and mismanaged. In the meantime, these laws will help our small businesses keep their doors open. I remain committed to helping our job creators and voted in support of these bills to provide financial relief and assistance to them,” said Senator Ling Ling Chang.
Republicans voted to pass:
SB 1447 – $100 million will be allocated to help small businesses of less than 100 employees who are eligible to receive a hiring tax credit up $1000 for each employee that is rehired.
AB 1577 – will conform California to the federal Paycheck Protection Program's (PPP) Loan Forgiveness provisions. The CARES Act, and subsequent legislation, established and expanded the PPP, which provides small businesses with loans to help pay payroll costs, mortgages, rent, and utilities during the COVID-19 crisis. If certain conditions are met, recipients may have their loans forgiven, and those forgiven loans are specifically excluded from gross income.