Governor Newsom announced the creation of a $500 million COVID Relief Grant administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor’s Office of Business and Economic Development for small businesses that have been impacted by COVID and the health and safety restrictions. Funds would be awarded to selected intermediaries with established networks of Community Development Financial Institutions to distribute relief through grants of up to $25,000 to underserved micro and small businesses throughout the state by early 2021. Non-profits would also be eligible for these grants.
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) 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 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) The 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:
|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|
Applicants who submitted their application and submitted all documentation in the first round do not need to reapply; qualified applications will be automatically rolled over into the next funding round for consideration.
To be determined.
For additional information please follow the link below or reach out to us for further guidance.