Now Accepting Applications: California Small Business Grant Program

Happy New Year! As you settle back into your routine, we want TO alert you that California’s $500 million grant relief program is now accepting applications. Round 1 will close January 13th so it is imperative you begin the application process soon. The round 2 date for applications has yet to be determined.Those not approved in round 1 will rollover to round 2.

The program is administered by the California Office of the Small Business Advocate (CalOSBA) and funs are distributed through Lendistry, a Community Development Financial Institution.

Applications can be submitted at: www.CAReliefGrant.com

Necessary Documents

In addition to the application, the following documents must also be submitted:

  1. Application Certification: Signed certification used to certify your business
  2. Business Financial Information:
  • Most recent tax return filed (2019 or 2018) – provided in an electronic form for online upload, such as PDF/JPEG or other approved upload format.
  • 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.
  1. Government Issued Photo ID: Such as a Driver’s License or Passport

Eligibility 

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


  1. 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), 501(c)(19), 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)

  2. Active businesses or nonprofits operating since at least June 1, 2019

  3. Businesses must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business

  4. 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

  5. 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

  6. Business must be able to provide acceptable form of government-issued photo ID

  7. 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

Amounts Awarded

The amount of grant funding ranges from $5,000 to $25,000. Businesses are eligible based on their annual revenue as documented in their most recent tax return:

Eligible Businesses Annual Revenue Grant Amount Available Per Business
$1,000 to $100,000 $5,000
Greater than $100,000 up to $1,000,000 $15,000
Greater than $1,000,000 up to $2,500,000 $25,000

ELIGIBLE USE OF FUNDS

Only those costs incurred due to the COVID-19 pandemic and the health and safety restrictions such as business interruptions or business closures incurred as a result of the COVID-19 pandemic. The following are the eligible uses of 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 obligations (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