On Thursday, Governor Gavin Newsom announced that a financial relief package will be given to small businesses in California. Additionally, new resources to help job seekers will be provided. This is one of the ways on how the state is handling the negative economic effects of the COVID-19 crisis, says an article.

For Small Businesses

For small businesses with taxable sales not exceeding $5 million will be allowed to delay payments of not more than $50,000 in a year. This grant is allowed without being required to pay a fine or penalty for the delay, said Newsom. Newsom calls this a 'bridge loan.'

However, these plans are still subject to approval by the state legislature.

An executive order signed by Governor Newsom had allowed for the extension of the tax deadline for small businesses until July 31. This latest measure proposed by the governor will be beyond that.

Relief Program for Small Businesses

Governor Newsom also announced a program for small businesses that still employs and pays the salary of their employees amid the COVID-19 crisis. The program allows providing relief of up to $10 million for these businesses.

New Job Searching Website

The governor also announced that a comprehensive new job search website will also help the people of California who were laid off due to the COVID-19 crisis. The website aims to help them find employment.

The website was created in partnership between LinkedIn, Salesforce, and Bitwise Industries in Fresno. The website works by matching job vacancies with the skillset of people.

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Issue with Unemployment

In California, unemployment is an issue. Approximately, 900,000 of the state's population had applied for jobless benefits in the previous week.

Since March 12, 1.9 million of the state's population had already filed for unemployment. This number was a result of the suspension of operations of non-essential businesses in the state. This was after the stay-at-home order was announced in the state.

According to Newsom, almost half of the total working population of the state is employed by small businesses.

Typically, the Employment Development of California has a 21-day turnaround. However, due to the current health crisis, it has been struggling to keep up with that record.

Unemployment Benefits for Californians

The government of California pays a range of $40 to $450 in unemployment benefits per week. Additionally, the federal stimulus provides an additional $600 per week for eligible citizens.

COVID-19 Cases in the State

As the total number of COVID-19 cases in the state continues to increase, the governor said that the hospitals in the state can meet the demands. He attributes this to the residents who are staying at home and are strictly following social distancing guidelines when they leave their homes.

As of Thursday, California had reported 9,937 confirmed cases of the COVID-29. There were 203 deaths from the deadly virus as of that date. Approximately, there are 2,000 Californians who have been sent to the hospital, this includes the 816 people who were sent to ICUs.