If you google this question, you should find your answer

california relief grant money taxable?

Bookmark and use this:

https://gpwcpas.com/grant-credit-loan-and-other-relief-comparison-chart/

Although it has not been updated for the recent SVOG change.

Unless it meets one of the exceptions (HVAC improvement, PPE, Food Bank) it is treated as ordinary business income for CA (not taxable for Fed, as noted) and you don't need to enter it as 1099-G at all.