New California Relief Grant Program For Small Businesses Opens Today

California small businesses can now begin applying for some extra relief as part of a $475 million grant program the state is offering. Round 1 for applications starts Wednesday, December 30th  and runs through Friday, January 8th at 11:59pm. These grants are limited to small businesses with gross revenue under $2.5 million.

Some highlights of the grant program include:

• $475 million of funding administered by the California Office of the Small Business Advocate will be distributed by Lendistry as the Intermediary, with certain third-parties designated by Lendistry to provide additional support (“Partners”).
• Anticipate issuing grants in the following two (2) rounds of distributions:
o Round 1 – approximately $237.5 million
o Round 2 – approximately $237.5 million
• The program is not on a “first come, first served” basis.
• The application portal for each round will open for applicants for a Open to active For-Profit businesses and Non-Profits.
• Grants will range from $5,000 to $25,000 per eligible business (based on gross revenue).
• Yearly Gross revenue must be at minimum $1,000 and maximum $2.5 million.

Funds from the grant can be used to pay for an establishment’s rent, utilities, resources, employee expenses and other relevant costs.

Eligibility requirements include:

• Must meet the definition of an “eligible small business”
• Active businesses or nonprofits operating since at least June 1, 2019
• 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
• Applicants will be required to certify eligibility, including that the grant will be used for the specific applicant and that such applicant is the business with the highest revenue
• 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.
• Business must be able to provide organizing documents and an acceptable form of government-issued photo ID

Grants will be awarded based on the following:

GRANT RECIPIENTS WILL BE DETERMINED BASED ON:
1. 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/.
2. Businesses impacted the most financially based on gross revenue losses.
3. Certain impacted industries including retail, food and hospitality, health and wellness, and personal care (beauty/nail salons, spas, and barbershops).
4. “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.

You can apply for the grant by going here: https://careliefgrant.com/ Those approved for the program will be notified by January 13th. For more information about this new grant program, please contact your Linkenheimer CPA.