California’s $500 million grant relief program will soon be accepting applications for Round 2 of funding. Round 2 will open on February 2nd and close on February 8th. Those that were eligible but not approved in Round 1 will rollover for consideration in Round 2. No action is needed from those businesses. Round 2 is the final application window to receive a California Small Business Grant.
The program is administered by the California Office of the Small Business Advocate (CalOSBA) and funds are distributed through Lendistry, a Community Development Financial Institution.
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.
3. Government Issued Photo ID: Such as a Driver’s License or Passport
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
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: