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COVID-19 Updates

Posted on: December 23, 2020

California Small Business COVID-19 Relief Grant Program

SmallBusinessGrant_Website (1)

The California Small Business COVID-19 Relief Grant Program provides micro grants ranging from $5,000 to $25,000 to eligible small businesses and nonprofits impacted by COVID-19 and the related health and safety restrictions.

On November 30, 2020, Governor Newsom and the State Legislature announced the allocation of $500 million to the Program to be administered by the California Office of the Small Business Advocate (CalOSBA) at the Governor’s Office of Business and Economic Development.

Who is eligible?

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) 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

Important Dates

Round 1

  • Application Opens December 30, 2020 at 8:00 AM
  • Application Closes January 8, 2021 at 11:59 PM
  • Start of Approval Notifications January 13, 2021

Round 2

  • Application Opens February 2, 2021 
  • Application Closes February 8, 2021 
  • Start of Approval Notifications February 11, 2021

Additional Resources

Frequently Asked Questions can be found here

The Small Business Development Center is hosting a series of informational webinars to discuss the grant program, eligibility, what the funds can be used for, how to apply, and necessary documents. Register here

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