SAN FRANCISCO, Calif. (KRON) - More help is now on the way to California businesses and restaurants after Governor Gavin Newsom signed a package of bills on Wednesday worth $6.1 billion in relief.
The bills will provide new tax cuts and funding to businesses throughout the state, in addition to extending paid COVID sick leave.
The relief funds included is $500 million in tax relief for restaurants and venues that have received federal relief grants, $150 million in small business grants and $5.5 billion in tax credits and deductions for business owners with employees.
While many restaurants and businesses just barely made it through the most difficult part of the pandemic with shutdowns, restricted capacities and more, Dustin Valette who owns Valette and the Matheson restaurants in Healdsburg says they're still feeling the impact of the last two years.
“The past couple years with COVID, our restaurant Valette has had a hard time along with Matheson. We lost about $600,000 with Valette and just south of a million dollars with The Matheson and I think having the ability to utilize those losses in the realm of tax breaks will be very beneficial and hopefully, keep us sustainable,” Valette said.
Plus, Valette says the industry is now struggling with newer challenges.
“There are a lot of challenges right now with the restaurant industry. The biggest challenge we have right now is the staffing shortage and compiling that with the additional raised costs of our food products. Our meat has almost doubled. Our scallops have tripled in the last two years. A lot of our core costs that restaurants sell, our COGS if you will, those have increased astronomically,” Valette said.
He says the package of bills signed Wednesday will help many businesses stay afloat.
The state previously approved $3.5 billion in pandemic relief grants to more than 300,000 businesses.
Newsom estimates the state will be able to help 13,500 more businesses with this funding package.
In addition to relief for small businesses, Newsom also signed Senate Bill 114, ensuring employees have access to extended COVID-19 paid sick leave through Sept. 30.
“Business cannot thrive in a world that's failing and that's why sick leave is foundational, keeping people healthy, keeping patrons safe is so important,” Valette said.
from KRON4 https://ift.tt/w6DPCfJ
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