California Small Business COVID-19 Relief Grant Program
California Governor Gavin Newsom has announced a grant of $500 million for small businesses and nonprofits that were impacted by COVID-19 and health and safety regulations. Through January 8, 2021, eligible businesses can apply for the grant and may receive amounts ranging from $5,000 to $25,000 based on annual revenue. The grants will be distributed in two rounds of funding with $237.5 million disbursed in each round.
Small businesses and nonprofits are eligible if they meet the following criteria:
- Yearly gross revenue of $2.5 million or less (with a minimum of $1,000 yearly gross revenue);
- Have been in operation since June 1, 2019 and;
- Have prepared a clear plan to re-open once permitted.
Applicants who have multiple entities are only eligible to apply once with their highest revenue entity.
Grants will not be issued on a first-come first-serve basis. The program notes that priority will be given to those located in areas most impacted by COVID-19, most financially impacted by gross revenue losses and those in certain impacted industries (retail, food, hospitality and personal care). Funds can only be used for costs incurred due to COVID-19: employee expenses, working capital and overhead, costs related to reopening businesses, and other COVID-19 related costs.
To be eligible for this grant, businesses will need to complete the grant application online via Lendistry (https://lendistry.com/ ) (a program funded by California) and provide the following documents electronically:
- Most recent tax return filed (2018 or 2019)
- Government-issued ID
- Copy of official filing of CA Secretary of State
- Evidence of minimum gross revenue of $1,000 per year
- If nonprofit, entity’s most recent IRS tax exemption letter
If you have any questions or need help with documentation, please reach out to your DKC representative.