Newsom proposes using stimulus money to help small business

California governor's suggestion would push grants to $4 billion

SACRAMENTO, Calif. (KYMA, KECY) - California Gov. Gavin Newsom wants to use a portion of the state's federal coronavirus aid to help small business owners.

Newsom on Thursday announced he'll ask state lawmakers to add another $1.5 billion to a program that provides grants of up to $25,000 to businesses hurt by the pandemic. That would raise the total amount of funding available to $4 billion, if the legislature signs off on the plan.

California currently enjoys a nearly $76 billion budget surplus, and it anticipates another $27 billion in federal coronavirus relief. The governor says he wants to re-invest some of it in the state and the people who live there.

"All told, a hundred plus billion dollar opportunity to reimagine, reinvigorate this state's economy and get people back on their feet, particularly those that have been disproportionately impacted by this pandemic." said Newsom.

The governor will present his final budget proposal to state lawmakers Friday. Earlier this week he unveiled plans for combating homelessness, and boosting funding to California's public schools, as well as for providing rebates to taxpayers.