A new grant program, funded by the state of California, rolls out today. The grant, which is available to small businesses in California, aims to give funds to businesses that have been impacted by the Covid-19 virus and the subsequent safety and health restrictions. This grant is not awarded on a first come, first served basis. Applicants have until January 13, 2021 to complete and submit their application.
Anticipate issuing grants in the following two (2) rounds of distributions:
-Round 1 : approximately $237.5 million
-Round 2 : approximately $237.5 million
Round 1
-Application Opens: December 30, 2020 at 8:00 AM
-Application Closes: January 13, 2021 at 11:59 PM
-Start of Approval Notification: January 13, 2021
Round 2
-Application Opens: TBA
-Application Closes: TBA
-Start of Approval Notifications: TBA
Eligibility Requirements:
-Eligible businesses must have a physical address and operate in California.
-Must meet the definition of an “eligible small business”.
-Active businesses or nonprofits operating since at least June 1, 2019.
-Businesses must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business.
-Business must be impacted by COVID-19 and the health and safety restrictions such as business interruptions or business closures incurred because of the COVID-19 pandemic.
-Business must be able to provide organizing documents including 2018 or 2019 tax returns or Form 990s, copy of official filing with the California Secretary of State, if applicable, or local municipality for the business such as one of the following: Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration or Government-Issued Business License.
-Business must be able to provide acceptable form of government-issued photo ID.
-Applicants with multiple business entities, franchises, locations, etc. are not eligible for multiple grants and are only allowed to apply once using their eligible small business with the highest revenue.
Eligible Uses of Relief Grant Funds:
-All employee expenses including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.
-Working capital, overhead (including rent, utilities, mortgage principal and interest payments (excluding mortgage prepayments)), debt payments (principal and interest) incurred before March 1, 2020.
-Costs associated with re-opening business operations after being fully or partially closed due to state-mandated COVID-19 health and safety restrictions and business closures.
-Costs associated with complying with COVID-19 federal, state or local guidelines for reopening with required safety protocols, including but not limited to equipment, plexiglass barriers, outdoor dining, PPE supplies, testing, and employee training expenses.
-Any other COVID-19 related expenses not already covered (for the same period) through grants, forgivable loans or other relief through federal, state, county or city programs.
Grant Recipients Will Be Determined Based On:
1. Businesses located in areas impacted the most by the effects of COVID-19, based on COVID health and safety restrictions following California’s Blueprint for a Safer Economy, local county status, and Regional Stay At Home orders available at: https://covid19.ca.gov/safer-economy/.
2. Businesses impacted the most financially based on gross revenue losses.
3. Certain impacted industries including retail, food and hospitality, health and wellness, and personal care (beauty/nail salons, spas, and barbershops).
4. “Undeserved small business groups” meaning (I) women-owned, Minority/Person of Color-Owned, or veteran-owned businesses where at least 51% of the business is owned and run on a daily basis by said group(s), and (II) businesses located in Low-to-Moderate Income (LMI) and Rural communities.
Grant Funding Structure:
Annual gross revenue $1,000 to $100,000 – Grant reward available per business: $5,000
Annual gross revenue greater than $100,000 up to $1,000,000 – Grant reward available per business: $15,000
Annual gross revenue greater than $1,000,000 up to $2,500,000 – Grant reward available per business: $25,000
For complete grant eligibility, application requirements, and tips for applying, visit the California Relief Grant Program website. The grant application can be found here: https://sbdc.mylendistry.com/login; make sure to click “FIND GRANTS NOW” to begin the application.