The number of business owners expecting better business conditions over the next six months declined 24 points, according to the NFIB Small Business Optimism Index.
“A lot of owners feel the wheels of Main Street are not moving as quickly as they ought to,” said John Kabateck, California state director for NFIB. “Government is erratic and unpredictable relative to COVID shutdowns, which is not only making it hard for small business owners to plan accordingly but also to hire accordingly.”
In response to the business climate, NFIB California joined 186 business associations in signing and sending a letter on Jan. 13 to Gov. Newsom and the legislature, requesting specific steps be taken to improve the local economy.
The steps include temporarily suspending property taxes as well as suspending compliance with the California Family Rights Act and CalOSHA Mandatory Testing and Paid Leave for six months.
“Our hope is that Republican and Democrat leaders alike will understand that when small businesses are not successful, they aren't feeding our state or local coffers and although the state coffers are flush with $15 billion, that can rapidly disappear,” Kabateck told the Southern California Record.
It was widely reported a week ago that Gov. Newsom is requesting $15 billion in emergency economic relief.
“We have some rightful concerns that our state leaders are going to take their foot off the accelerator because they are sitting there feeling that $15 billion and some anticipated money from the new Biden administration coming to all the States might give them a reason to pause on some of these very concerning laws and regulations but we sure hope they won't because it will only take a blink of an eye for these types of things to have a severe cost and impact on already fragile small business owners,” Kabateck said.
California Chamber of Commerce, California Food Producers, and AutoCare Association are among the organizations that signed off on the letter asking to expedite additional financial resources to small businesses.
“In addition to the Paycheck Protection Program (PPP) money from the feds, the rebuild fund, and the recent governor’s grant program, we would hope and pray that with the significantly more robust state coffers in tax dollars coming through the door, the governor and our leaders would just significantly build upon the good they have done through the grant programs and the rebuild fund,” Kabateck said.
The coalition of businesses is also requesting that employers be permitted to use net operating losses and tax credits.
“The governor expanded and enhanced funding from California Competes Tax program,” Kabateck said. “What that has done is not only helped tax credits for businesses that are hiring but also it's given tax credits for businesses that have chosen to remain in California or do business in California. It's been incentivizing businesses to do business here, remain here, and to move here.”