NEW: Small Business C-19 Relief Grant Program

Through the California Small Business COVID-19 Relief Grant Program, $475 million of funding will be distributed by the California Office of the Small Business Advocate, Lendistry, and additional third parties. The purpose of the funding is to provide financial support to small businesses and non-profits. Grants are available up to $25,000 per eligible business. RECORDING HERE

Eligibility

A small business or small nonprofit must satisfy the following criteria to be eligible to receive a grant award:

  • Must meet the definition of an “eligible small business”. An “eligible small business” means (i) a “small business” (sole proprietor, independent contractor, 1099 work, and or registered “for-profit” business entity (e.g., C-corporation, S-corporation, limited liability company, partnership) that has yearly gross revenue of $2.5 million or less (but at least $1,000 in yearly gross revenue) based on most recently filed tax return) or (ii) a “small nonprofit” (registered 501(c)(3) or 501(c)(6) nonprofit entity having yearly gross revenue of $2.5 million or less (but at least $1,000 in yearly gross revenue) based on most recently filed Form 990)

  • 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 as a result 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

Ineligibility

  • Businesses without a physical location in California​

  • Nonprofit businesses not registered as either a 501(c)(3) or 501(c)(6)​

  • Government entities (other than Native American tribes) or elected official

    offices​

  • Businesses primarily engaged in political or lobbying activities

  • Passive businesses, investment companies

  • Churches and other religious institutions

  • Financial businesses primarily engaged in the business of lending

  • “Affiliated” companies (as such term is defined in 13 C.F.R. § 121.103)

  • Businesses engaged in any activity that is illegal under federal, state or

    local law

  • Businesses of a prurient sexual nature

  • Businesses engaged in any socially undesirable activity or activity that may be considered predatory

  • Businesses that restrict patronage for any reason other than capacity

  • Speculative businesses

  • Businesses of which any owner of greater than 10% of the equity interest

    in it (i) has within the prior three-years been convicted of or had a civil judgment rendered against such owner, or has had commenced any form of parole or probation

Use of Funds

The use of funds must be related to COVID-19 impact, but are ineligible for the following: human resource expenses for the State share of Medicaid, employee bonuses or severance pay, taxes, legal settlements, personal/other expenses unrelated to COVID-19 impact, expenses for repairs from damages covered by insurance, and reimbursement to donors for donated items or services.

Application Process

Before applying, it is necessary to acquire the following documents:

  • Application Certification (Signed certification used to certify your business)

  • Business Financial Information

    • Most recent tax return filed (2019 or 2018)

      • Electronic form for online upload (PDF/JPEG or other approved upload format)

    • Copy of official filing with the California Secretary of State (if applicable, or local municipality such as Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration or Government-Issued Business License)

  • Government Issued Photo ID (Passport or DL)

After obtaining these documents, complete the Grant Program Application.

One complete application will qualify consideration for both rounds, so apply only once. Owners of multiple businesses, franchises, locations, etc. will be considered for only one grant and are required to apply for the business with the highest revenue.

Deadlines

The first round is open from December 30, 2020 at 6:00 AM PST to January 8, 2021 at 11:59 PST, and approval notifications will begin January 13, 2021. The second round is TBD.

Applicants who submitted their application with all documentation in the first round don’t need to reapply. Qualified applications will automatically roll over into the next funding round for consideration.

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