California Covid Relief Grant
The Governor announced the creation of a $500 million COVID Relief Grant for small businesses that have been impacted by COVID and the health and safety restrictions. Funds would be awarded in amounts 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.
This grant is not awarded by a first come, first served process. All applications have until January 8, 2021 (Deadline has been extended to January 13, 2021) to complete and submit their application.
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
- 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
- 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.
HOW WILL GRANT RECIPIENTS BE DETERMINED?
First, applications will be reviewed to determine whether the applicant meets the eligibility requirements. Eligible businesses will then be scored based on COVID-19 impact factors incorporated into the Program’s priority criteria so that distribution can take into account priority key factors, including the following:
- Geographic distribution based on COVID-19 health and safety restrictions following California’s Blueprint for a Safer Economy and county status and the new Regional Stay At Home Order;
- Industry sectors most impacted by the pandemic; and
- Underserved small business groups served by the State supported network of small business centers (i.e., businesses majority owned and run on a daily basis by women, minorities/persons of color, veterans and businesses located in low-to-moderate income and rural communities).
INELIGIBLE BUSINESSSES
- 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 (regardless of whether such entities qualify as a 501(c)(3) or 501(c)(6))
- Passive businesses, investment companies and investors who file a Schedule E on their personal tax returns
- Churches and other religious institutions (regardless of whether such entities qualify as a 501(c)(3) or 501(c)(6))
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies and factoring companies
- Businesses engaged in any activity that is illegal under federal, state or local law
- Businesses of a prurient sexual nature, including businesses which present live performances of a prurient sexual nature and businesses which derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature
- Businesses engaged in any socially undesirable activity or activity that may be considered predatory in nature such as rent-to-own businesses and check cashing businesses
- 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 (including probation before judgment), for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state anti-trust or procurement statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property, or (ii) is presently indicted for or otherwise criminally or civilly charged by a government entity, (federal, state or local) with commission of any of the offenses enumerated in subparagraph (i) above
- “Affiliated” companies (as such term is defined in 13 C.F.R. § 121.103)
- 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
To apply to this program, please go to the following website: https://careliefgrant.com/
For additional information about this program or the application process, please feel free to contact us.
Source: https://www.californiasbdc.org/covid-19-relief-grant
