Signed by Governor Gavin Newsom

Vote Smart's Synopsis:

Vote to pass a bill that expands COVID-19 small business assistance.

Highlights:

• Defines “eligible nonprofit cultural institutions” as a registered nonprofit entity that satisfies the criteria and is one of the following North American industries, including (Sec. 1):

• Art dealers;

• Theater companies and dinner theaters;

• Dance companies;

• Musical groups and artists;

• Other performing arts companies;

• Promoters of performing arts, sports, and similar events with and without facilities;

• Agents and managers for artists, athletes, entertainers, and other public figures;

• Independent artists, writers, and performers;

• Museums and historical sites; and

• Zoos, botanical gardens, nature parks, and other similar institutions.

• Defines “qualified small business” as a business or nonprofit that began operating before June 1, 2019, is a sole proprietor, independent contractor, 1099 employee, C or S corporation, cooperative, limited liability company (LLC), or limited partnership that has an annual gross revenue less than $2.5 million but greater than $1,000, and has been impacted by the COVID-19 pandemic and related restrictions (Sec. 1).

• Appropriates grants to qualified small businesses to be rewarded in the following amounts (Sec. 1):

• $5,000 to applicants with an annual gross revenue of between $1,000 and $100,000 in the 2019 taxable year;

• $15,000 to applicants with an annual gross revenue of between $100,000 and $1 million in the 2019 taxable year; and

• $25,000 to applicants with annual gross revenue greater of between $1 million and $250 million in the 2019 taxable year.

• Appropriates $2.1 billion from the General Fund to the Golden State Stimulus Emergency Fund to be transferred to the California Office of Small Business Advocate (CalOSBA) which will allocate $50 million of those funds to eligible nonprofit cultural institutions (Sec. 5).

Full Bill Text