Round 2 of the Small Business COVID-19 Relief Grant Program will begin accepting applications for one week only from February 2 at 8:00 am through February 8, 2021 at 6:00 pm
The California Small Business COVID-19 Relief Grant Program announced that it will take applications from California small businesses impacted by COVID-19 for grants of between $5,000 and $25,000. The application period begins at 6 a.m. on December 30, 2020, and continues until 11:59 p.m. on January 13, 2021. The program will award $500 million to eligible entities.
Eligible businesses are those with between $1,000 and $2.5 million in annual gross revenues based on their most recently filed tax return, and include sole proprietorships and nonprofits.
The grant amount that will be awarded is:
- $5,000 for businesses with annual revenue of $1,000 to $100,000;
- $15,000 for businesses with annual revenue greater than $100,000 up to $1 million; and
- $25,000 for businesses with annual revenue greater than $1 million up to $2.5 million.
Grants will be awarded based on the following prioritization:
- Geographic distributions based on COVID-19 health and safety restrictions;
- Industry sectors most impacted by the pandemic; and
- Underserved small business groups (e.g., veterans, low-income or rural communities, and women or minority-owned businesses).
Grant awards will be announced beginning the week of January 13, 2021.
Specific documentation will be required at the time of application and applications must be made through participating lenders. Details about the program, required documentation, participating lenders, and how to apply are available at:
Eligible costs are only those costs incurred due to the COVID-19 pandemic and the health and safety restrictions such as business interruptions or business closures incurred as a result of the COVID-19 pandemic. The following are the eligible uses 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
The following are ineligible uses of grant funds:
- Human resource expenses for the State share of Medicaid
- Employee bonuses or severance pay
- Legal settlements
- Personal expenses or other expenses unrelated to COVID-19 impacts
- Expenses for repairs from damages already covered by insurance
- Reimbursement to donors for donated items or services
Please contact us if you have any questions.