SACRAMENTO, Calif. — Gov. Gavin Newsom on Friday announced his new $227 billion budget proposal for 2020-2021, and it includes plans to spend more than $4 billion to create jobs and help struggling small businesses in California.

What You Need To Know

  • Newsom announced his new $227 billion budget proposal for 2020-2021

  • He plans to spend $4.5 billion to create jobs and help small businesses

  • Hair salon owner Stephanie Hunter-Ray hopes that she’ll be granted state funds to help her business survive during this pandemic

  • Newsom says $575 million will be set aside for small business grants

Hair stylist Stephanie Hunter-Ray hopes that she will be granted some of that money to help her salon survive during this pandemic. For the past 15 years, she has been running her own business and growing her passion for beauty, but now her hair salon sits empty during the current stay-at-home order.

“It’s been rough, but it’s kind of helping open up other opportunities and avenues,” Hunter-Ray said.

She said she immediately had to come up with a game plan to figure out how to make ends meet. Hunter-Ray decided to turn her hair salon into a clothing boutique.

“You’re forced to just pretty much do whatever you can to keep your business and your livelihood afloat,” Hunter-Ray added.

When the pandemic first hit last March, she had to let go of four of her hair stylists. Hunter-ray said she was not approved for any government loans, so pivoting was her only option.

“When they closed everything down, shopping became big. Everybody wanted to shop,” Hunter-Ray explained.

However, she now has more hope her business can survive with help from the state after Newsom announced his 2021-2022 budget proposal. He plans to give $4.5 billion to generate more jobs and help small businesses recover from COVID-19.

Salena Pryor, the president of the Black Small Business Association of California, commends the governor for the $575 million that will be set aside for small business grants.

“I think it’s going to go a long way in helping small businesses. However, more is needed,” Pryor said. 

Pryor’s focus is to help small Black businesses, like Hunter-Ray’s, be aware of the funding available in California.

“We need to figure out how to get those businesses back and also provide resources for businesses that have just started and are opening up,” Pryor added.

Hunter-Ray said any additional money would help keep her in business during these tough times.

“Like I did last time, I’m going to apply for everything and just pray and see what happens,” Hunter-Ray said.

Hunter-Ray hopes that by running her clothing boutique and receiving extra money from the state, she can eventually get back to her hair salon and her passion.

California’s budget would usually take effect in July. However, this year Newsom said he would ask the legislature to approve the funding for small businesses early.