California announced a new $500 million COVID relief grant program targeted to small businesses. The grants range from $5,000 to $25,000 based on annual gross revenues. The grants are also available to nonprofits. 

Act Quickly

While the grants will not be issued on a first come first serve basis, business should still act quickly because the first round of applications ends on January 8, 2021. Applicants with multiple businesses are not eligible for multiple grants and should apply with the eligible entity with the highest revenue.

Eligibility

To qualify for the grant, you must meet the following criteria:

1. Be a small business (including sole proprietor, 1099 freelancer, C or S corp, or LLC) or nonprofit organization.
2. Have annual revenues between $1,000 and $2.5 million.
3. In business since June 1, 2019 and still be operating or have plans to reopen once CA restrictions are lifted.
4. Be impacted by COVID-19 and health/safety restrictions.
5. Be able to provide necessary financial documents (i.e. 990s, entity filings with the State, articles of incorporation, etc.)
6. Provide government issued photo identification.

How will grant recipients be determined?

1. The previously mentioned eligibility criteria will be the first screening factor.
2. Businesses will then be scored based on the following factors:
   1. “Geographic distribution based on COVID-19 health and safety restrictions following California’s Blueprint for a Safer Economy and county status and the new Regional Stay At Home Order”
   2. Businesses most impacted by the pandemic.
   3. Minority owned, veterans, located in low to moderate income and rural communities.

Deadlines

Round 1

December 31, 2020: Application opens

January 8, 2021: Application closes

January 13, 2021: Start of approval notifications

Round 2 deadlines are yet to be determined. 

Ineligible Businesses

There is a long list of ineligible businesses. Applicants are highly encouraged to read through the list to ensure their business is eligible. 

More information about the program can be found at:

https://careliefgrant.com/

Looking for an independent fiduciary financial advisor who can advise you on investments, retirement, real estate, alternative assets, and taxes? Contact ACap Advisors & Accountants to schedule a free initial consultation. Our clients include individuals, small businesses, entrepreneurs, and anyone serious about saving and investing for their future.