Golden State Today

The NFIB California Main Street Minute for February 10-14 highlighted several issues impacting small businesses in the state. As of early February, the legislative session had seen only 876 measures introduced, with a looming deadline of February 21 for new bills. Tim Taylor, NFIB California Policy Director, is closely monitoring around 100 of these measures that could affect small businesses.

One such measure is Assembly Bill 265 (Caloza), known as the Small Business Recovery Fund Act. The bill proposes to allocate $100 million from the General Fund to aid small business recovery and rebuilding efforts following wildfires. The funds would be distributed as grants ranging from $2,500 to $100,000. NFIB is evaluating AB 265 for potential issues before deciding whether to support it.

NFIB referenced a past survey where 86% of small businesses reported not receiving state or local grants during the COVID pandemic. This contrasts with approximately 80% who accepted federal Paycheck Protection Program loans.

In response to recent wildfires, the State Treasurer’s Office has released a comprehensive guide for wildfire victims, providing information on resources like shelters and tax relief. Additionally, NFIB California plans to host a webinar on February 18 featuring discussions on rebuilding efforts with guests including Governor Newsom’s top economic policy advisor Dee Dee Myers.

Economic losses from recent wildfires near Los Angeles have been estimated at over $250 billion. Nearly 1,900 small businesses within affected areas are grappling with insurance claims and rebuilding decisions while facing operational challenges due to smoke damage and utility disruptions.

A significant issue raised by NFIB involves California's $21 billion debt to the federal government related to unemployment insurance loans. There are concerns about increasing payroll taxes as suggested by the Legislative Analyst’s Office unless alternative financial solutions are found.

On a national level, NFIB Federal Government Relations Principal Josselin Castillo shared updates on various advocacy efforts including support for tax legislation and involvement in Supreme Court cases affecting small businesses.

The next edition of the Main Street Minute will be available on February 17 on the NFIB website under the California tab.