Hope this helps:
As of Feb 23, 2021 - The California Legislature is still negotiating a PPP/EIDL conformity bill that would allow California businesses to deduct expenses paid with these loans/grants. It is hoped that this bill will be passed by the end of this week.
https://leginfo.legislature.ca.gov/faces/billTextClient.xhtml?bill_id=202120220AB281
https://www.caltax.com/news/category/hot-news-and-notes
