California small businesses can defer payment of up to $50,000 in sales and use taxes for up to 12 months, Democratic Gov. Gavin Newsom announced Thursday. Small businesses can also apply for a loan of up to $10 million from the federal government, according to a news release. The program is first come, first served, the release said.
Newsom also announced that the state would allocate $50 million to the California Infrastructure and Economic Development Bank for loan guarantees to eliminate barriers to capital for small businesses that do not qualify for federal funds.
The announcement builds upon an order Newsom signed Monday suspending interest and penalties through July 31 for individuals and businesses that file returns for a tax of up to $1 million.
That order also extended the statute of limitations for claiming refunds and the deadline for filing administrative tax appeals by 60 days for businesses unable to file a timely claim or appeal due to the state of emergency for the virus, which causes COVID-19, a respiratory disease.
--Editing by Robert Rudinger.
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