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California Small Business COVID‐19 Relief Grant Program Update as of Wednesday, December 30, 2020

California Small Business COVID?19 Relief Grant Program Update as of Wednesday, December 30, 2020

Updated Information as of 12/30/2020:

  • Thousands of small businesses have already applied; this large application volume is experiencing delays or challenges with the application portal.
  • If you are experiencing technical difficulties with the high volume demand today, please circle back to the application portal in lower peak demand times, today and throughout the holiday weekend.
  • The CA Relief Grant program is not setup as first come, first serve and will not close early, so if you face technical issues during the process, the application can be submitted for first round consideration any time between now and January 8, 2021 at 11:59PM.

Program Details:

The California Office of the Small Business Advocate (CalOSBA) announced the $500 million California Small Business COVID‐19 Relief Grant Program, approved by the California Governor and Legislature, which is supporting small businesses impacted by COVID‐19.

Visit CalOSBA’s website and apply!  Applicationsfor Round 1 will open on Wednesday, December 30, 2020 and close by end of day Friday, January 8, 2021.

Eligibility criteria includes:

  • a “small business” that has yearly grossrevenue of $2.5 million orless(but at least $1,000 in yearly grossrevenue based on most recently filed tax return)
  • Active businesses 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

Grant funding ranges from $5,000 to $25,000 based on annual revenue as documented in the most recent business tax return.  The award is a grant and is not a loan that is required to be repaid, and following are the eligible use 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 payments (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; or
  • Any other COVID‐19 related expenses not already covered through grants, forgivable loans or other relief through federal, state, county or city programs.