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CA Relief Grants available for small business: next round starts Feb 2

By December 23, 2020 No Comments

UPDATE 1/14/21:  First round has closed, and the second round has been announced.

State of California has opened up a round of grants to small businesses, under the program name California Small Business COVID-19 Relief Grant Program. The grants range in size from $5,000 to $25,000.  There will be two rounds of grants issued under this program, each funded with $237.5 million.

If your small business is suffering due to the pandemic, LAEDC urges you to apply.

The grant application can be found at this link:  https://careliefgrant.com/ 

HERE IS THE 1/14 UPDATE FROM GO-BIZ:

First Application Round Ends for Small Business COVID-19 Relief Grant Program
Second application round begins February 2nd

Funding will support small businesses that have struggled due to the COVID-19 pandemic
 

Sacramento, CA – California’s Office of the Small Business Advocate (CalOSBA), part of the Governor’s Office of Business and Economic Development (GO-Biz), today announced that Round 1 for the Small Business COVID-19 Relief Grant Program has closed. 

With more than 300,000 applications successfully completed, application approval notifications will be sent out Friday, January 15 through Friday, January 22. Funds will be disbursed over a 45-day verification period beginning Friday, January 22.

A second round of applications will open at 8:00 a.m. February 2 and will run through 6:00 p.m. February 8. Applicants who submitted all necessary documents in the first round and met eligibility requirements, but did not receive a grant, do not need to reapply; their applications will be rolled over for consideration in the second round. 

“There is no question that small business are hurting, and the reality of this pandemic demands urgent relief now to help those who need it most,” said Dee Dee Myers, GO-Biz Director. “Before COVID-19, the 4.1 million small businesses that call this state home created two-thirds of California’s net new jobs and employed nearly half of all private-sector employees. It is crucial that we do everything we can to put more money into the hands of impacted small business owners.”

On January 5, Governor Newsom previewed his Equitable Recovery for California’s Businesses and Jobs plan – part of his proposed 2021-22 state budget – which called for immediate legislative action on $575 million in additional grants for the California Relief Grant Program. This investment will add to the initial $500 million allocation announced November 30, bringing the total amount for the Small Business COVID-19 Relief Grant Program to $1.075 billion.

The Small Business COVID-19 Relief Grant Program offers grants up to $25,000 to micro and small businesses and nonprofits that have been impacted by the pandemic. It is not a first-come, first-served program, nor a rolling approval process. Grants will be distributed across the state, with priority given to regions and industries impacted by the COVID-19 pandemic, disadvantaged communities and underserved small business groups. All applications will be considered and prioritized based on impact.

Due to the overwhelming demand, the Round 1 application deadline was extended from January 8 to January 13 to ensure interested small businesses and nonprofits had the opportunity to apply.

Mission-based lenders and small business advisory and technical assistance providers will continue to help small businesses with the application process in multiple languages and formats in the second round. Many of the State-supported small business centers, which prioritize the expansion of technical assistance to underserved business groups, will also be also available to help. For more information on grant requirements and eligibility, please visit CAReliefGrant.com.
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Don’t delay.  If you need additional assistance, including with questions about grant eligibility or other resources, please contact LAEDC’s business assistance team for no-cost consulting.  Our team can also assist with other resources to help your business recover and keep your workers employed.

IMPORTANT VIDEO ON GRANTS

LAEDC’s business assistance services are funded by federal, county and city dollars, so that we may offer these services at no cost to businesses.  LAEDC thanks County of Los Angeles Rapid Response Business Assistance program and City of Los Angeles Keep LA Working program, and all our members and partners who support our nonprofit mission.

Reach LAEDC at [email protected]

What follows is the press release about this relief grant program, from the Governor’s office:

December 30, 2020

Applications for $500 Million in Grant Funding for Small Businesses Now Available

State funding supports small businesses and nonprofits impacted by COVID-19 pandemic

Sacramento, CA – The first round of applications for the Small Business COVID-19 Relief Grant Program is now open. On November 30, 2020, Governor Newsom and the State Legislature announced the allocation of $500 million available to small businesses and nonprofits that have been impacted by the COVID-19 pandemic. The program is administered by California’s Office of the Small Business Advocate (CalOSBA), part of the Governor’s Office of Business and Economic Development (GO-Biz).

“Small business owners and our nonprofits serve as the economic heart of every California community,” said Governor Newsom. “This grant program isn’t the end, it’s the beginning. It’s a bridge to help the millions of Californians, whose dreams and livelihoods are now on the line, as we work with the State Legislature to create additional support.”

Grants will not be issued on a first-come, first-served basis and will be awarded after the close of each application round. This first round of applications ends January 8, 2021 at 11:59 p.m. Details for the second round will be announced shortly.

“Inclusive, equitable relief is fundamental to the small business support developed by this administration,” said Isabel Guzman, CalOSBA Director. “This grant program provides that support through a network of Community Development Financial Institutions and Community Based Organizations ensuring reach to those highly impacted small businesses in disadvantaged communities, underserved small business groups, and industries disproportionately impacted by this pandemic.”

The California Small Business COVID-19 Relief Grant Program provides grants ranging from $5,000 to $25,000. Lendistry has been designated by the State to act as the intermediary for the Program to disburse the grant funds.

“As an organization dedicated to efficiently providing capital to underserved small businesses, and with a deeply experienced senior management team that mirrors the diversity of our home state of California, Lendistry is proud to partner with the CalOSBA in this bold and critical effort,” said Everett K. Sands, Lendistry’s founder and CEO. “Since the start of the COVID-19 pandemic Lendistry has assisted 20,000 small businesses in a dozen states and deployed nearly a half-billion dollars in capital, and we are bringing the full force of our technology, expertise and relationships with partner CDFIs and community organizations to bear on CalOSBA’s landmark commitment to California’s small businesses.”

The Program will prioritize distribution based on priority key factors, including the following:

  • Geographic distribution based on COVID-19 health and safety restrictions following California’s Blueprint for a Safer Economy, county status and the new Regional Stay-at-Home Order which can be found at https://covid19.ca.gov/safer-economy/
  • Industry sectors most impacted by the pandemic
  • 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)

Mission-based lenders and small business advisory and technical assistance providers can help small businesses with the application process in multiple languages and formats. Many of the State supported small business centers, which prioritize the expansion of technical assistance to underserved business groups, are also available to help. For more information on grant requirements and eligibility, please visit careliefgrant.com.
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