On Friday, the Junior Secretary of Communications authored the following statement in reference to SB265, which was sponsored by Senator Andreas Borgeas in the California Legislature.
Senator Andreas Borgeas of the 8th district (R-Fresno) recently introduced Senate Bill 265 to give small businesses and nonprofits relief from tax liability on COVID state and federal grants or loans. Currently, these relief programs are considered taxable income. “People, businesses and entities that have received assistance during the pandemic should not be penalized by the state. SB 265 would assist struggling businesses that received COVID-19 relief funds by assuring that these grants and/or forgivable loans are tax-free,” stated Senator Borgeas.
Small businesses and nonprofits have suffered tremendous losses from mandatory lockdowns, and our government needs to take the necessary steps in supporting the entities affected. This bill helps progress the efforts the federal and state loans and grants aim to achieve -- once again stabilizing our economy and ensuring that small businesses do not close permanently. Taxing the relief loans and grants only minimizes the aid going to those suffering from the pandemic. As Jr. Secretary of Communications, I applaud the bill’s efforts to stabilize our economy and Senator Borgeas for supporting our local businesses in California.
Pursuant to the rules of the Young Leaders Political Action Committee, each statement from the Communications Department must be signed by a Governor in order to be released. This statement was submitted for approval by Secretary Alicia Alvarez on February 5, 2020, and authorized by Governor Samantha M. Hall on the same day.
Senator Andreas Borgeas speaking with his constituents on a District tour.
Photo Credit: The Office of Senator Andreas Borgeas
Comments