California Ag Network

Tag: COVID-19

  • Vaccination Update for Agriculture Workers

    The Almond Alliance has been in touch with County Health Officers about the number of vaccinations available in each county and to gather information on how the vaccinations are being distributed.  As you have heard and read, the process of vaccination has differed in each region and in many cases has been confusing.  

    Vaccinations are being distributed categorically as defined by the California Department of Public Health with input from the Community Vaccine Advisory Committee. Given the limited supply of COVID-19 vaccines, CDPH recommends balancing the prioritization of these scarce resources to maximize the goal of achieving community immunity for all Californians. 

    Vaccine Supply is Limited, But Preparations Are Underway for Phase 1B

    Preparations are underway to begin rolling out vaccines to those eligible in Phase 1B as soon as possible but that is dependent on vaccine availability.  For those eligible in Phase 1B, including educators, public safety, social services and food and agriculture workers some counties are evaluating and/or planning for worksite vaccinations, so you should expect that employees may start making inquiries.  The next phases of COVID Vaccine Distribution are as follows:

    Both federal and state distribution of vaccines has been delayed. As of January 13, a total of 971,829 vaccine doses have been administered statewide. As of January 13, a total of 2,948,350 vaccine doses, which includes the first and second dose, have been shipped to local health departments and health care systems that have facilities in multiple counties.

    Vaccination plans for each county are available at county websites. Find your county’s COVID-19 website, Click Here.

    It has also been reported that Phase 1B may be divided into two tiers. The first could include 1.4 million education and child-care workers including teachers, 1.1 million emergency services workers, 3.4 million food and agriculture workers including grocery store workers and 2.6 million people who are 75 or older.

    Recommendations from the Almond Alliance in preparation for food and agriculture vaccinations.

    1. Know your County Health Officer and Ag Commissioner (we can provide contact information and introduction). We are strengthening those relationships for our industry and are happy to share what we know. It will be critically important to familiarize yourself with your county’s vaccination plan and you should expect it to evolve as we move through initial phases of vaccine roll-out, e.g. the recent move-up in priority of those 65 and older.  It is likely there will be multiple vaccination pathways for you and your staff including worksites (mentioned above), community vaccination sites (e.g. schools, churches or fairgrounds), community clinics, pharmacies and healthcare providers

    2. Offer you site and a location to administer the vaccination if it makes sense.

    3. Provide your workforce educational materials about the vaccination.

    4. Make sure your workers understand what information they will need to receive the vaccination. No officials’ instructions have been provided, but we recommend the following:

    Staff should be prepared to show one or more of the following four pieces of identification to prove they are food and agriculture workers:

    • Employee badge with photo, OR
    • Professional license AND a photo ID, OR
    • Signed letter from employer on facility letterhead AND a photo ID, OR
    • Payment stub from employer with your name AND a photo ID.

  • NAPA Valley Grapegrowers & NAPA Valley Farmworker Foundation Reach Millions Through Covid-19 Response

    In the face of this year’s challenges, Napa Valley Grapegrowers (NVG) and the Napa Valley Farmworker Foundation (FWF) have maintained a steady focus and commitment to supporting the community through challenging times.

    In 2020, the organizations provided vital information and resources to grape growers, vineyard managers, vineyard workers, and their families. Together, NVG and FWF:

    • Formed a COVID-19 Taskforce to implement a multi-media, cross-county PSA campaign, including daily PSAs aired on Univision and Azteca, a 4-month digital billboard campaign, and a podcast, “Cuidándonos de COVID-19 con Napa Valley Farmworker Foundation”, to educate the community on COVID-19 health & safety

    • Distributed 2,500 COVID-19 Health & Safety Kits to grower and vineyard teams; the kits included a personal thermometer, thermal water bottle, cotton bandana, 9 ounce bottle of hand sanitizer, protective eyewear and anti-fog spray, drawstring bag, and an educational handout on safety protocols in the workplace

    • Contributed funds toward staffing and supplies for the St. Helena Hospital Foundation’s COVID-19 Mobile Testing Van, which visited vineyard sites and provided accessibility to tests for up to 200 farmworkers daily

    • Provided four months of free childcare for children of farmworkers through the Boys & Girls Clubs of Napa Valley; the program covered all fees and provided the children with meals and remote learning support

    • Distributed 15,000 reusable cloth masks and 25,000 N95 masks to Napa Valley’s vineyard workforce

    • Provided a bilingual library of resources, educational materials, and timely webinars to inform the community about the spread of COVID-19

      Through our work, millions of farm-working families have had access to bilingual COVID- 19 safety information.

      Even as exciting news of vaccines reaches us, we know that there is still more work to be done to carry our community to the other side of the pandemic. Under Napa County’s new stay at home order, agriculture remains an essential business, allowing for vineyard operations to continue. As the situation evolves, so do the resources that NVG and the FWF provide. This includes newly released updates to NVG & FWF’s COVID-19 Safety Protocols that, throughout the pandemic, have provided the farming community with the most comprehensive industry standards for prioritizing the health and safety of vineyard teams. Winter work will pick up again in January, so NVG and the FWF are focused on providing Napa County grape growers and vineyard managers with “Back to Work” safety protocols, tools to reinforce safety best practices to reduce virus transmission, a “Safe Holiday” PSA about avoiding non-essential travel and gatherings, paycheck stuffers promoting health and safety, as well as timely webinars on updates to state and the California Division of Occupational Safety and Health mandates, and more.

    NVG and the FWF are looking ahead to the new year with plans to do even more, extend our educational reach, and continue to serve as go-to resources for the Napa Valley grape grower and farmworker communities.

    For more information about NVG and FWF’s 2020 COVID-19 response, view the 2020 Annual Report or visit www.napagrowers.org

  • Storing and Preserving Fresh Nuts

    One of the many wonderful things about California’s climate is that in many regions of the state you’ll find orchards of walnut, almond, pecan, pistachio or chestnut trees. You may be growing or planning to grow one or more of these trees in your yard so you can enjoy consuming the nuts. But do you know how to safely store, and preserve these fresh nuts?

    There are just a few simple steps to follow. First, be sure to promptly remove the hull (the fibrous outer covering) that may still be remaining on some of the nuts. (If you have hulled walnuts before you will know they’ll stain your hands brown, so you should wear gloves to hull walnuts.)

    During this time of COVID-19, you may be tempted to wash your fresh nuts, but don’t. Washing the nuts in their shell could increase their moisture and provide the environment for mold or bacteria to grow. Although not required to safely store the nuts, to decrease the likelihood of walnuts, almonds, pecans and pistachios developing mold, you may want to dry them. For walnuts and almonds, spread them out preferably single layer on a flat screen or tray that allows good air circulation. To prevent birds and other critters from making off with them while they are drying, cover them with another screen or plastic netting. Stir and move the nuts around daily.

    It will take several days for them to dry. To determine when they are sufficiently dry, remove the shell from several nuts. Break apart the almond kernels, or walnut meat. If they are rubbery, they’re not dried sufficiently. If they are crisp or brittle when broken, then they are dried adequately.

    For pecans, they should be dried slowly in air temperatures 75–85 degrees Fahrenheit to prevent the shells from cracking. A fan blowing on the nuts will speed up the drying process, which can take up to 10 days. The pecans are dry when they’re brittle and the membrane between the kernel halves separate easily from the kernels.

    Pistachios can be dried in the sun on a plastic tarp, or they can be dried in the oven at 140–160 degrees Fahrenheit for 10–14 hours. They are dried when the kernels are crisp, but not brittle.

    Before consuming or storing at room temperature, fresh home-grown walnuts, almonds, pecans, pistachios or chestnuts, or those bought at farm stands, pasteurize them to kill any insects or insect eggs. To pasteurize, simply place them in the freezer for 48 hours. (Make sure your freezer is set at 0 degrees Fahrenheit or lower.)

    To store your walnuts, almond, pecans or pistachios, place them in clean moisture free, odor tight packaging, such as glass or plastic jars or other containers. The nuts can be stored shelled or unshelled. They can be stored up to a year in your refrigerator set at 40 degrees Fahrenheit or lower. Almonds can be stored in your freezer (set at 0 degrees Fahrenheit or lower) for a year or more, walnuts and pecans for two years plus, and pistachios for three years. 

    Chestnuts are different from the other nuts because they’re more like potatoes than tree nuts. They usually develop mold within two weeks if stored at room temperature. Unshelled chestnuts can only be stored for two to three months in the refrigerator, but shelled chestnuts can be stored for a year in the refrigerator. Both shelled and unshelled chestnuts can be stored in the freezer for one year or more.  Enjoy your stored nuts throughout the year! — By Kathy Low, UC Master Food Preserver of Solano & Yolo Counties

    For more information about the UC Master Food Preserver Program, including the Food Preservation Video Library, visit mfp.ucanr.edu.

  • Santa’s Reindeer Cleared for Entry into California by State Veterinarian

    California State Veterinarian Dr. Annette Jones has granted a 24-hour permit clearing all brand inspection and health requirements for nine reindeer scheduled to visit California on the evening of December 24 and in the early morning hours of December 25.

    The permit application was filed via email and followed by a Zoom meeting with Animal Health Branch staff and a rotund, jolly man with a red suit, white beard, and a pocketful of candy canes. The signature on the application reads, “K. Kringle.”

    State law mandates that all animals entering California be individually identified. The nine reindeer named on the permit are: Dasher, Dancer, Prancer, Vixen, Comet, Cupid, Donder, Blitzen and Rudolph.

    The permit was granted with two conditions: the nine reindeer may not co-mingle with other reindeer in the State of California, and the visiting reindeer may not be used for breeding purposes while in the state. They are, however, invited to partake of the Golden State’s famous and varied agricultural bounty if they need to refuel.

    “We are pleased to issue this permit to Mr. Kringle,” said CDFA Secretary Karen Ross. “We wish him safe travels and plenty of California milk and cookies as he and his reindeer make deliveries to the good children of our state.”

    Families concerned about COVID-19 risks for Santa Claus should know that the nation’s top infectious disease expert, Dr. Anthony Fauci, traveled to the North Pole to personally vaccinate Santa.

  • UFCW, Meat Institute Call on All 50 States to Prioritize Vaccination of Frontline Meat & Poultry Workers

    Today, the nation’s largest union for meatpacking workers and the association representing meat producers joined forces to urge all 50 U.S. governors to urgently prioritize COVID-19 vaccination for frontline meat and poultry workers across the United States, in accordance with official Centers for Disease Control (CDC) guidance.

    In a new joint letter to governors, the United Food and Commercial Workers International Union (UFCW) and the North American Meat Institute (Meat Institute) emphasized that quickly vaccinating the sector’s diverse workforce of some 500,000 employees across the country will maximize health benefits, especially in rural communities that often have limited health services, while keeping Americans’ refrigerators full and our farm economy working. Click here to read the full letter to governors.

    COVID-19 vaccinations can, in many cases, be administered through meat and poultry facilities’ existing health programs and staff. UFCW and the Meat Institute committed to assist employees with information and access to off-site vaccination, if needed, and to support vaccine information and education efforts.

    Meat Institute President and CEO Julie Anna Potts: “Health authorities around the world, employers, unions, and civil rights groups all agree – high priority access to vaccines is critical for the long-term safety of essential frontline meat and poultry workers who have kept Americans’ refrigerators full and our farm economy working throughout this crisis.” 

    UFCW International Vice President Mark Lauritsen: “America’s meatpacking workers are bravely serving on the frontlines so that millions of families can put food on the table during this crisis. To keep our nation’s food supply secure as the pandemic worsens, we need strong action now from our elected leaders to protect these essential workers in meatpacking plants. As the largest union for America’s meatpacking workers, UFCW is joining industry leaders today in a unified call for governors in all 50 states to immediately prioritize meatpacking workers for access to the COVID vaccine. American lives are at stake and these courageous men and women on the frontlines cannot wait any longer.”

    Prioritizing vaccines for frontline meat and poultry workers will build on more than $1.5 billion in comprehensive COVID-19 prevention measures the industry has implemented since the spring. 

    Average case rates amongst meat and poultry workers in November were more than 8 times lower than in the general U.S. population. Further details about COVID-19 health and safety measures and COVID-19 relief contributions are available here.  

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    UFCW International is the largest private sector union in the United States. UFCW International represents 1.3 million professionals and their families in healthcare, grocery stores, meatpacking, food processing, retail shops and other industries. Our members serve our communities in all 50 states, Canada and Puerto Rico. Learn more about the UFCW at  ufcw.org. 

    The North American Meat Institute is the leading voice for the meat and poultry industry.  The Meat Institute’s members process the vast majority of U.S. beef, pork, lamb, and poultry, as well as manufacture the equipment and ingredients needed to produce the safest and highest quality meat and poultry products. Learn more about at meatinstitute.org

  • GSA Expands Farm Worker COVID-Prevention Training Program to Yuma

    Replicating another of its Salinas Valley programs, the Grower Shipper Association of Central California (GSA) has established a COVID-19 training prevention program for food facility and farm employees in the Yuma in cooperation with the Regional Center for Border Health clinic. The program brings health professionals directly to work sites to provide multi-lingual information on virus prevention practices while on the job and at home as well as answer any questions employees may have, including about the availability and safety of the new vaccines.

    “This program was very popular among both employers and employees throughout last spring and summer and we are fortunate to bring this to the Yuma growing region where many of our members have farms and operations during the winter months,” says Christopher Valadez, GSA President.

    In addition to the onsite prevention training, GSA also replicated its programs to establish a quarantined housing programas well as virus testing for farm workers in this region. GSA’s quarantined housing program became a model for California Governor Gavin Newsom’s “Housing for the Harvest” program. GSA’s housing provides daily deliveries of meals and necessities as well as health checks by nurses for those workers who have been exposed to the virus, tested positive or are symptomatic.

    “As we have learned over the last several months and while we await the availability of the vaccine, prevention training, adequate testing and effective contact tracing combined with isolation alternatives through quarantined housing are needed to target the spread of this virus” Valadez says. “Bringing these programs to the desert growing region was a priority for GSA members to protect the farm workers who are essential to our industry and provide a consistent supply of healthy foods to consumers.”

    Farmers who want more information on the prevention training, expedited testing for employees or housing should contact Christopher Valadez.

  • USDA Dairy Roundtable Delivers Record Exports to Indonesia

    The USDA-sponsored “U.S.–Indonesia Dairy Roundtable” event, held in Jakarta on September 30, 2019, has delivered record results for U.S. dairy exports. In the year since the seminal event concluded, U.S. exports of dairy products to Indonesia surged to more than 160,000 metric tons, valued at more than $346 million. Moreover, U.S. market share of Indonesia’s nearly $1.4 billion dairy import market dramatically increased from 14 percent to 25 percent. In calendar year 2020, as of September, the U.S. had already exported a record volume of dairy products to Indonesia and is on track to reach a record value by the end of the year. The event was an excellent example of FAS collaboration with host government officials, local importers, and U.S. industry stakeholders to increase U.S. exports.

    Background

    Held at the Grand Hyatt Ballroom in Jakarta on September 30, 2019, the U.S.–Indonesia Dairy Roundtable was a groundbreaking event designed to increase trade in dairy products between the U.S. and Indonesia. Led by USDA Undersecretary for Trade and Foreign Affairs, Ted McKinney, U.S. Ambassador to Indonesia, Joseph R. Donovan, and Indonesia’s Minister of Trade, Enggar Lukita, the gathering brought together key stakeholders from both countries for day-long discussions on dairy trade and policy. In addition to hearing from senior level officials from both governments, participants engaged in one-on-one business meetings designed to expand importer knowledge of U.S. dairy products and exporter knowledge of Indonesian buyers’ requirements. Arranged by the U.S. Dairy Export Council (USDEC) and FAS Jakarta, industry representatives from 13 dairy exporters and producers met directly with buyers from 60 Indonesian companies representing importers, processors, and retailers. FAS Jakarta collaborated closely with USDEC to organize and manage this USDA- sponsored event. The event was an excellent example of how FAS can join with host government officials, local buyers, and U.S. industry stakeholders to increase U.S. exports.

    Ambassador Joseph R. Donovan speaks at the U.S. – Indonesia Dairy Roundtable event alongside Agricultural Counselor, Chris Rittgers (center) and USDA Undersecretary for Trade and Foreign Affairs, Ted McKinney (right).

    Results

    In the immediate months following the roundtable, exports of U.S. dairy products to Indonesia accelerated across key product categories including Non-Fat Dry Milk (NFDM), Whey, Lactose and Cheese. This strong performance in the final quarter led to a record quantity of U.S. exports to Indonesia in 2019. Despite market and demand disruptions related to Covid-19, strong demand for U.S. dairy products continued throughout 2020. Far outpacing the record 2019 year, in the year since the roundtable concluded (October 2019 – September 2020), U.S. exports of dairy products to Indonesia surged to more than 160,000 metric tons, valued at more than $346 million.

    Source: USDA – GATS

    Importantly, the gains for U.S. dairy were not solely derived from Indonesia’s growing dairy consumption. Global trade data in the year following the roundtable demonstrates the vast majority of growth in U.S. exports were a direct result of increasing market share. The U.S. market share for Indonesia’s $1.4 billion dairy import market increased nearly 80 percent in the year following the roundtable. This impressive growth, from 14 percent to 25 percent market share, came almost exclusively at the expense of dairy exports from the EU.

    The gains in U.S. exports have made Indonesia the fourth largest market for U.S. dairy by volume and the sixth by value. Significantly, this achievement is not the result of increased exports for any one particular product, but rather an upsurge across various dairy product categories:

    Top Destinations for Key U.S. Dairy Products by Value and Volume

    Seizing Opportunity

    The success of the U.S.–Indonesia Dairy Roundtable can in a large part be attributed to the fast response by U.S. Ambassador Donovan, FAS Jakarta, and the dairy industry to seize an opportunity to expand U.S. exports. Upon hearing reports of trade tensions between the EU and Indonesia related to palm and palm- derived products spilling over into trade of other commodities, FAS Jakarta and the dairy industry moved quickly to mobilize a high-level event that could capitalize on the changing trade environment. Ambassador Donovan spearheaded the engagement with the Ministry of Trade, which ultimately brought together U.S. exporters and Indonesian importers together at an opportune moment when Indonesia sought to diversify trade in dairy products away from the EU.

    Following the roundtable event, both FAS Jakarta and USDEC have continued to work aggressively to link U.S. dairy exporters with Indonesian buyers. This collaboration is perhaps most clearly demonstrated in the successful efforts to register new U.S. dairy facilities for export to Indonesia. Since concluding the roundtable, over 30 new U.S. dairy facilities have submitted applications to the Ministry of Agriculture seeking approval to export. Accordingly, USDEC has expanded its counseling to members on the application process and halal product requirements for Indonesia, while FAS Jakarta has actively engaged U.S. exporters to review and troubleshoot applications before submission and continually advocate with the Ministry of Agriculture for expedited review of U.S. applicants. As a result, 13 U.S. dairy facilities have been approved for export to Indonesia in 2020 and an additional 19 are undergoing the review process. Currently, 114 U.S. dairy facilities are approved for export to Indonesia, more than double the number of any other country. — By Garrett Mcdonald, USDA Foreign Agricultural Service

  • State Farm Service Agency Director named Almond Champion of the Year

    Connie Conway, Director of the USDA Farm Service Agency in California, has been honored as the Almond Alliance of California’s 2020 Almond Champion of the Year for the agency’s outstanding efforts in assisting almond growers with the Coronavirus Food Assistance Program (CFAP.)

    The Almond Champion of the Year Award is presented annually to those who have demonstrated extraordinary leadership in education, coalition building, partnerships and promoting legislation and policies that encourage the advancement and protection of California agriculture and the California almond industry.

    The CFAP consists of direct payments to almond growers for losses suffered as a result of COVID-19 as well as disruptions to the supply chain. The Almond Alliance advocated for federal funding for the original program and the subsequent program known as CFAP 2. To date, the California almond community has received over $125 million through the programs.

    The Farm Service Agency (FSA) administers the funding and provides technical assistance to potential applicants. Almond Alliance Chair Mike Curry praised Conway for her leadership in providing access to the program. “Some of these programs can be incredibly technical and complex. Connie and her team have been very attentive and worked with our industry members above and beyond what would normally be expected,” he explained. “Her team has conducted numerous educational webinars for our members and addressed literally hundreds of questions about the program and how it works. Her leadership and commitment to excellence in providing this assistance during these unprecedented times is truly appreciated.”

    Prior to her appointment, Conway ran her own consulting business, focusing on strategic planning, business development, and government relations services. She also served as an assemblywoman for the California State Legislature where she served as Minority Leader and on the Agriculture, Transportation, Labor and Health Committees. She also served as a member of the Tulare County Board of Supervisors.

    About the Almond Alliance of California

    The Almond Alliance of California (AAC) is a trusted non-profit organization dedicated to advocating on behalf of the California almond community. California almonds generate more than $21 billion in economic revenue and directly contribute more than $11 billion to the state’s total economy. California’s top agricultural export, almonds create approximately 104,000 jobs statewide, over 97,000 in the Central Valley, which suffers from chronic unemployment. The AAC is dedicated to educating state legislators, policy makers and regulatory officials about the California almond community. As a membership-based organization, our members include almond processors, hullers/shellers, growers and allied businesses. Through workshops, newsletters, conferences, social media and personal meetings, AAC works to raise awareness, knowledge and provide a better understanding about the scope, size, value and sustainability of the California almond community.


    For more information on the Almond Alliance, visit https://almondalliance.org/ or check out the Almond Alliance on Facebook, Twitter and Instagram.

  • The Essential Pieces of Protecting Ag Workers, Preventing COVID-19 Spread

    Christopher Valadez — As president of the Grower Shipper Association of Central California (GSA), I talk to farmers, farming companies, farm labor contractors and farm workers about the challenges faced when protecting essential employees from COVID-19 exposure. These conversations and hearing the needs firsthand formed the impetus for many of the programs established by GSA over the last few months to lessen or prevent the spread of COVID-19 among the farm worker community.

    But I also speak regularly with county health officials, local hospitals and health clinics, farm labor advocates, academics, state regulators, elected officials and local community leaders about COVID-19 and its impact on farm workers. Many have become important partners and have worked with GSA and the local ag community to develop on-farm prevention training programs led by health professionals, provide daily health checks for farm workers in GSA’s quarantined housing program, acquire additional PPE and establish expedited testing programs to provide faster results for farm workers.

    As we end the harvest season in our region, we have an opportunity to reflect and learn before workers return in the spring. What can we do better to enhance efforts to prevent the spread of this virus on the job and within our communities to keep our workforce healthy? At GSA, we hope to see more emphasis on contact tracing as well as a prioritization of farm workers to receive vaccinations against this virus. But let’s start with contact tracing.

    After a positive test is confirmed, contact tracing is the process of identification of persons who may have come into contact with an infected person and subsequent collection of further information about these contacts. It is vitally important that public health officials have the resources to conduct more extensive contact tracing once a positive test is obtained so we are effectively targeting prevention strategies with a focus on where the virus is spread – work, transit to work, at home or within our community. Otherwise we may be enacting rules and regulations in one area when better information on where the virus is being spread may indicate they are actually needed in another. Or, the solution may not address the real problem.

    While public health officials are integral to effective contact tracing, employers are also required to conduct their own tracing to determine if a COVID-positive employee may have exposed others and where – work or home. Once an employer learns of an employee potentially exposed or sick, they can then provide options and information about quarantined housing. GSA’s quarantined housing program provides COVID-positive or exposed farm workers with daily meal deliveries and health checks to ensure they can isolate or recover in a safe and comfortable environment.  And, California mandates that essential workers receive two weeks paid sick leave if they test positive or are sickened by the virus.

    Farmers and farming companies are spending significant time and monetary resources to protect workers through both regulatory compliance and their own best practices. And, as we learn more about the virus, prevention practices in agriculture are continually improving. But, we are not experts in public health and we are reliant on public health guidance. Adequate testing and effective contact tracing combined with isolation alternatives through quarantined housing is the best way to yield real results and target the spread of this virus at its source.

    While GSA will work collaboratively to ensure these crucial prevention strategies are improved and ready in 2021, it is the prioritization of providing vaccines to essential workers that will ultimately protect our workforce from this persistent and relentless virus. GSA will join with industry, local elected officials, labor groups and community leaders to advocate for vaccine prioritization so farm workers are among the first groups to receive them.

    We have learned a significant amount since the early days of the pandemic when farmers and farming companies had to quickly learn and implement prevention strategies while striving to provide healthy fruits and vegetables to consumers. I look back over these last few months and ponder what was accomplished, what has changed and what we could have done better. But one thing is clear: Our work to protect farm workers at the workplace as well as educate this community about prevention practices at home must continue to evolve and improve. The 2021 harvest season will be here before we know it. We must be ready.

  • Governor Newsom Announces Immediate Assistance for Businesses Impacted by COVID-19

    As the federal government fails to provide additional financial stimulus support to main street businesses, Governor Gavin Newsom today announced that California will provide temporary tax relief for eligible businesses impacted by COVID-19 restrictions. The temporary tax relief entails an automatic three-month income tax extension for taxpayers filing less than $1 million in sales tax, extends the availability of existing interest and penalty-free payment agreements to companies with up to $5 million in taxable sales and provides expanded interest free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions. The total tax relief, if fully utilized, is estimated to have billions in impact. These efforts are informed by recommendations made by the Governor’s Task Force on Business and Jobs Recovery.

    “California’s small businesses embody the best of the California Dream and we can’t let this pandemic take that away,” said Governor Newsom. “We have to lead with health to reopen our economy safely and sustainably while doing all we can to keep our small businesses afloat. With this financial assistance and tax relief, California is stepping up where the federal government isn’t. By providing potentially billions in immediate relief and support, our small businesses can weather the next month as we continue partnering with the Legislature to secure additional funding and investments in small businesses in the new year.”

    Small businesses are drivers of economic growth – creating two-thirds of new jobs and employing nearly half of all private sector employees. California is home to 4.1 million small businesses, representing 99.8 percent of all businesses in the state and employing 7.2  million workers in California, or 48.5 percent of the state’s total workforce.

    The COVID-19 pandemic has presented a significant challenge to small businesses, employers and employees. An August Small Business Majority survey data found that 44% of small businesses are at risk of shutting down. Data released through the Census Current Population Survey found that minority-owned businesses are disproportionately impacted: the number of active businesses owned by African-Americans dropped by 41%, Latinx by 32%, Asians by 25%,  and immigrants by 36%.

    “California’s small businesses continue to struggle as a result of COVID-19, and this latest round of action at the state level will help bridge the financial gaps that are vexing our state’s mom-and-pop business owners and nonprofits while we wait for congressional action, and as we prepare for additional legislative action at the start of the year,” said Senate President pro Tempore Toni G. Atkins (D-San Diego). “From widening access to grants, low-interest loans, and tax deferrals, to modifying fees incurred by restaurants and bars, these are critical supports for the small businesses and services that keep our communities going. Now, we need our federal partners to do their part and pass a federal stimulus so these businesses and nonprofits can survive 2020 and the year to come.”

    “While we wait for Congress and the White House to approve an economic relief package that responds to the current surge, California has a chance to help nonprofits, small businesses, and communities now,” said Assembly Speaker Anthony Rendon (D-Lakewood). “I thank the Governor and the Senate for their partnership.”

    Today’s announcements build on the state’s ongoing business support throughout the pandemic, including the Main Street Hiring Tax Credit, which authorizes $100 million in hiring tax credit for qualified small businesses. The credit is equal to $1,000 per qualified employee, up to $100,000 for each small business employer.The application opens tomorrow, December 1. A full list of existing state support for businesses can be found here.

    Building on the state’s ongoing support throughout the pandemic, which can be found here, the Governor announced the following immediate support and relief:

    Tax Relief for Businesses Impacted by COVID-19

    In April 2020, the Governor, through Executive Order, allowed taxpayers to apply for penalty and interest relief for 90 days for any taxpayer reporting less than $1 million in sales on their tax return. Through November 22nd, some 9,287 plans with almost $149 million in tax relief have taken advantage of this program.

    The Governor will direct the California Department of Tax and Fee Administration to do the following:

      • Provide an automatic three-month extension for taxpayers filing less than $1 million in sales tax on the return and extend the availability existing interest and penalty free payment agreements to companies (with up to $5 million in taxable sales)
      • Broaden opportunities for more businesses to enter into interest-free payment arrangements.
      • Expand interest-free payment options for larger businesses particularly affected by significant restrictions on operations based on COVID-19 transmissions.

    $500 Million for New COVID Relief Grant for Small Business

    The Governor announced the creation of a $500 million COVID Relief Grant administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor’s Office of Business and Economic Development for small businesses that have been impacted by COVID and the health and safety restrictions. Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Non-profits would also be eligible for these grants. CalOSBA is establishing the program and will make it available to small businesses as soon as possible – for updates on availability visit here.

    Increase Funding for the California Rebuilding Fund by $12.5 million.

    Last week, the Governor announced the opening of the California Rebuilding Fund which makes available $25 million to help impacted small businesses rebuild from the economic crisis and keep local economies strong. This program is built to be a resource in the market for the next year as businesses pivot and recover.

    An increase of $12.5 million would allow the Fund to be fully capitalized. The additional funding will help the 3rd party administrator of the fund raise $125 million to make more low-interest loans to small businesses with less access to loans from traditional banking institutions.