On Thursday, Governor Gavin Newsom expressed how businesses damaged in the George Floyd protests and riots should be reimbursed for any accrued losses.
Newsom, in Stockton Thursday, called for government assistance and philanthropic organizations to help those businesses hurt by the protests and riots.
“These businesses otherwise simply cannot survive,” said Newsom.
Earlier in the week while surveying damage in Sacramento, Newsom had given a more tangible idea for helping those businesses.
“Businesses matter. We care and we have a special responsibility to help support them,” noted the Governor. “As a small businessperson myself with a lot of experience in this space, a few little grants here and there aren’t gonna do it. You need something much more concrete, rational, and robust. And it’s gotta be localized so each city, each county and the state in helping support them. Some haven’t recovered since 2008.”
“I already talked to legislative leaders about this. We have less than two weeks to get a budget done. We’ve got to be creative and I’m committed tow working with them and I’m confident we’ll do something to recognize this scale.”
While many businesses were insured for damages, many smaller businesses had either cut premiums or went without insurance as cost-saving measures during the recent coronavirus pandemic and economic downturn. mall businesses loans and grants that could have helped have also dried up due to budget cuts nationwide, with California small businesses in particular showing a great need due to hard hit areas such as Los Angeles and Oakland.
“This is why Newsom is trying to increase the number of small businesses grants and micro-loans,” explained small business financial adviser Quentin Sykes. “Small businesses have been slammed hard twice this year with the economy and the coronavirus shutting down many for months. Now some have been hit a third time and there isn’t much left. Not with a budget deficit, and not with so many other areas needing funding.”
“He’s also pushing non-government entities because there isn’t much left in the tank budget-wise. It’s odd. The same people he and his supporters have spoken out against are now being asked to help them out.”
While the Governor and state Legislature come to a budget compromise during the month and decide how to manage the $54.3 billion budget deficit, some small business help has been virtually assured of making the budget. Most notably, a $100 million micro-loan program for woman and minority owned small businesses has already been approved of in both the Governor’s budget proposal and the Legislature’s budget proposal.
“We have a budget to negotiate with the legislature that has $100 million in micro-loans targeting woman and minority owned businesses,” Newsom said in Stockton on Thursday. “That’s a small amount of money at the end of the day and we need to support that with federal loan programs.”
Businesses damaged by protesters will know for sure of any budget-approved grants, funding, or micro-loans by June 15th, the state budget deadline.
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