Santa Ana, Califor. – On September 9, 2020, Governor Newsom signed three small business related bills, including SB1447. The Governor explained these bills help small businesses recover from both COVID-19 and the economic downturn. Recent surveys discovered if California doesn’t provide assistance, almost 44 percent of small businesses would be at risk of closing down due to COVID-19 and the current economic crisis.
The Association of Financial Development Corporations (TAFDC) provided a letter of support for Senate Bill 1447, authored by Senator Steven Bradford (D-Gardena). “Because we are in these communities working with these small enterprises, we see the need for SB 1447. It will be another tool to help small businesses survive, create and retain jobs, and keep California’s economy strong,” said Michael Ocasio, TAFDC president. The bill establishes the Main Street Hiring Tax Credit, allowing businesses with less than 100 employees to get a tax credit against personal and corporate income taxes each year.
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The Association of Financial Development Corporations are comprised of seven non-profits who are strategically located throughout California and active in their local communities. The FDCs are overseen by the IBank which is under the Governor’s Office of Economic and Business Development (GoBiz). The FDCs operate independently under different names and provide loan guarantees through commercial banks, credit union and non-bank Community Development Financial Institutions (CDFI) within their respective markets. The FDCs also offer other critical assistance through regional, state and federal loan programs, financial literacy training and other aid. These services are a lifeline for small businesses allowing them to move past obstacles, expand their organizations, retain and create new jobs.
