California Small Business COVID-19 Relief Grant Program

The State of California is offering relief grants to help small businesses and nonprofits, including farms, impacted by COVID-19. Grants range from $5,000 to $25,000 per business and can be used to cover a wide range of expenses incurred as a result of the pandemic. Grants do not need to be repaid.

$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”).

Update as of 9/9/2021: reopened for round 9 of funding. New applicants may apply and previous applicants waitlisted or not selected will be automatically re-entered for consideration.

A small business or small nonprofit must satisfy the following criteria to be eligible to receive a grant award:

1. Must meet the definition of an “eligible small business”. An “eligible small business” means (i) a “small business” (sole proprietor, independent contractor, 1099 work, and or registered “for-profit” business entity (e.g., C-corporation, S-corporation, limited liability company, partnership) that has yearly gross revenue of $2.5 million or less (but at least $1,000 in yearly gross revenue) based on most recently filed tax return) or (ii) a “small nonprofit” (registered 501(c)(3), 501(c)(19), or 501(c)(6) nonprofit entity having yearly gross revenue of $2.5 million or less (but at least $1,000 in yearly gross revenue) based on most recently filed Form 990)

2. Active businesses or nonprofits operating since at least June 1, 2019

3. Businesses must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business

4. 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

5. 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

6. Business must be able to provide acceptable form of government-issued photo ID

7. 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

Ineligible Businesses

1. Businesses without a physical location in California 

2. Nonprofit businesses not registered as either a 501(c)(3), 501(c)(19), or 501(c)(6) 

3. Government entities (other than Native American tribes) or elected official offices

4. Businesses primarily engaged in political or lobbying activities (regardless of whether such entities qualify as a 501(c)(3), 501(c)(19), or 501(c)(6)) 

5. Passive businesses, investment companies and investors who file a Schedule E on their personal tax returns 

6. Churches and other religious institutions (regardless of whether such entities qualify as a 501(c)(3), 501(c)(19), or 501(c)(6)) 

7. Financial businesses primarily engaged in the business of lending, such as banks, finance companies and factoring companies

8. Businesses engaged in any activity that is illegal under federal, state or local law

9. Businesses of a prurient sexual nature, including businesses which present live performances of a prurient sexual nature and businesses which derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature

10. Businesses engaged in any socially undesirable activity or activity that may be considered predatory in nature such as rent-to-own businesses and check cashing businesses

11. Businesses that restrict patronage for any reason other than capacity

12. Speculative businesses

13. Businesses of which any owner of greater than 10% of the equity interest in it (i) has within the prior three-years been convicted of or had a civil judgment rendered against such owner, or has had commenced any form of parole or probation (including probation before judgment), for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (federal, state or local) transaction or contract under a public transaction; violation of federal or state anti-trust or procurement statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property, or (ii) is presently indicted for or otherwise criminally or civilly charged by a government entity, (federal, state or local) with commission of any of the offenses enumerated in subparagraph (i) above 

14. “Affiliated” companies (as such term is defined in 13 C.F.R. § 121.103)

15. 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

The amount of grant funding ranges from $5,000 to $25,000. Businesses are eligible based on their annual revenue as documented in their most recent tax return:

• $1,000 to $100,000 Annual Revenue: $5,000 Grant Amount Available Per Business

• Greater than $100,000 up to $1,000,000 Annual Revenue: $15,000 Grant Amount Available Per Business

• Greater than $1,000,000 up to $2,500,000 Annual Revenue: $25,000 Grant Amount Available Per Business

• Application Guide

• Application Certification for For-Profit Businesses

• Application Certification for Non-Profits

• Frequently Asked Questions

• Webinars

• Application Tips