Up to $25,000 in grant funds available for CA small businesses & nonprofits
California recently announced a $500 million Small Business Covid-19 Relief Grant program for eligible small businesses and nonprofits who have been impacted by COVID-19 and the health and safety restrictions. Grants up to $25,000 will be given to eligible small businesses and nonprofits to help cover expenses during the pandemic.
There will be two rounds of awards. The applications for Round 1 will open at 6:00am Wednesday, December 30th, 2020, and close at 12:59pm on Friday, January 8th, 2021.
The program is administered by the California Office of the Small Business Advocate (CalOSBA) and disbursed through Lendistry, a Community Development Financial Institution serving as the Intermediary. Our good friends and colleagues at 3CORE have partnered with CalOSBA and Lendistry to distribute important program information in our region. Businesses and nonprofits can apply directly at https://3core.mylendistry.com/login.
Grant eligibility is as follows:
- Businesses/nonprofits with annual gross revenue below $100,000 are eligible for a grant of up to $5,000.
- Businesses/nonprofits with revenue between $100,000 and $1,000,000 are eligible for a grant of $15,000.
- Businesses/nonprofits with revenue between $1,000,000 and $2,500,000 are eligible for a grant of $25,000.
Applying is quick and easy – applicants just need a few key documents about their business:
- 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
- Government-Issued Business License
- Government Issued Photo ID, such as a Driver’s License or Passport
Applications are not first come first served. Applicants will be evaluated to determine grant approvals based on eligibility and pre-determined COVID-19 impact factors will be incorporated into the program’s priority criteria.
These criteria include:
- 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/.
- Businesses impacted the most financially based on gross revenue losses.
- Certain impacted industries including retail, food and hospitality, health and wellness, and personal care (beauty/nail salons, spas, and barbershops).
- “Underserved 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.
• "Minority/Person of Color-Owned Small Business” means the following racial or ethnic groups (as identified by the applicant): African-American/Black, Asian, Native American or Alaska Native, Native Hawaiian or Pacific Islander, or LatinX/Hispanic.
• “Low-to-Moderate Income (LMI)” means any census tract (or equivalent geographic area defined by the Bureau of the Census) in which at least 50% of households have an income less than 60 percent of the Area Median Gross Income (AMGI), or which has a poverty rate of at least 25%.
• “Rural areas” means all territory, populations, and housing units that are located outside of urban areas (50,000 or more people) and urban clusters (at least 2,500 and less than 50,000 people). Urban areas and clusters are determined by population density and size available per the most recently updated data available from the U.S. Census Bureau’s American Community Survey 5-year estimates thirty days prior to the first day of the applicable application period.
Applications not selected in the first round are automatically entered into the second round. Round 2 dates will be announced in the near future.
Feel free to reach out to any member of the Morrison Team if you’d like more information on this program and we can connect with you the best resources to determine if this is a good opportunity for your business or nonprofit!