Cal Relief Grants: How California small businesses can apply for up to $25,000
The application period for the sixth and final round of funding opened up on April 28 and closes on May 4
The application period for the sixth and final round of funding opened up on April 28 and closes on May 4
More than $2 billion in new Cal Relief Grants is up for grabs for eligible small businesses in California that have been impacted by the COVID-19 pandemic and associated coronavirus restrictions. Grants range from $5,000 to $25,000.
But you better be prepared to move quickly because there is a quick deadline to apply. The application period for the sixth and final round of funding is now open and the deadline to apply through the state's intermediary, Lendistry, is May 4. Small businesses and nonprofits that have been waitlisted from previous rounds are being considered now, too.
Still, business owners don't have to worry about being first in line.
"We try to be specific in terms of making sure this isn't first come first serve," Lendistry CEO Everett Sands told KCRA 3's Maricela De La Cruz.
| Video below | Lendistry CEO explains grants available for eligible small businesses in California
Sands said it is hard to predict the exact number of how many businesses can expect to be awarded grants, but that it should affect "a couple hundred thousand."
Here's what else California small business owners should know about the application process, requirements and where to find more information.
What are Cal Relief Grants and Lendistry?
Gov. Gavin Newsom announced last November $500 million in aid available to small businesses struggling because of COVID-19 restrictions. In February, Newsom signed legislation to supercharge the program with $2.075 billion more in grants, which includes $50 million for nonprofit cultural institutions.
The California Small Business COVID-19 Relief Grant program is administered through the state's Office of the Small Business Advocate (CalOSBA) in partnership with Lendistry.
Los Angeles-based Lendistry is a small business and commercial real estate lender that ranks second nationwide in SBA Community Advantage lending, according to its website.
Of the more than $500 million that has been awarded from previous rounds of Cal Relief Grant funding, 55% of grants have gone to minority-owned businesses and 53% to women-owned businesses, according to Sands.
The program has 60 core partners and 500 sub-partners that help get the word out to different communities, Sands said. There is also an emphasis on marketing the program to underserved businesses and through ethnic media.
Besides being tasked with running the Cal Relief Grant Program, Lendistry's website says it has processed and approved more than $180 million in Paycheck Protection Program (PPP) loans in 12 states.
How to apply for Cal Relief Grant Round 6?
Even though the final round of funding doesn't open up until April 28 at 9 a.m. PT, applicants should prepare their applications now and can learn more at CAReliefGrant.com, according to Sands.
All that is required is to complete the application. From there, a call center and community organizations can help with the documentation.
CAReliefGrant.com also has application guides and certification forms you can download. The site lists resources for how you can apply through a community partner and has a tool to search for one in your county whose representatives speak your preferred language.
Required documents include a signed certification form, your most recent tax return filed, a copy of an official business filing with the California Secretary of State and your local municipality, and a government-issued photo ID.
The application period closes at 5 p.m. on May 4.
What if I previously applied for a Cal Relief Grant? Should I apply again?
No. Applicants who applied in rounds one, two, three and five and not selected will be automatically moved into round six.
What are the grant amounts?
- Businesses with $1,000 to $100,000 in annual revenue can apply for $5,000 grants.
- Businesses with more than $100,000 up to $1 million in annual revenue can apply for $15,000 grants.
- Businesses with more than $1 million up to $2.5 million in annual revenue can apply for $25,000 grants.
What are the Cal Grant requirements for getting a small business grant? Who is eligible?
- Eligible small businesses and nonprofits must have yearly gross revenue of between $1,000 and $2.5 million yearly gross revenue.
- Must have been operating since at least June 1, 2019.
- Must either be open or have a plan to reopen.
- Must have been impacted by COVID-19.
- Must be able to provide required documents, including tax forms and certain business records.
- Must provide a government-issued ID.
- Applicants with multiple businesses or locations can’t apply for multiple grants. Instead, they must apply once using their eligible small business with the highest revenue.
What kinds of businesses aren’t eligible for the grants?
- Doesn't have a physical location in California.
- Nonprofits not registered as 501(c)(3), 501(c)(19), or 501(c)(6).
- Is a government entity.
- Is primarily engaged in political or lobbying activities.
- Passive businesses, investment companies and investors who file a Schedule E on their personal tax returns.
- Religious institutions.
- Banks and other lending companies.
- Businesses engaged in illegal activity.
- Businesses "of a prurient sexual nature."
- Rent-to-own or check cashing businesses.
- Businesses "that restrict patronage for any reason other than capacity."
- Speculative businesses.
- Certain businesses where an owner with more than 10% of equity interest in the business has a record of fraud.
How are grant recipients prioritized?
The Cal Relief grant site says that Lendistry uses these criteria to prioritize applications:
- Geographic distribution based on COVID-19 restrictions under the state’s Blueprint for a Safer Economy plan and regional stay-at-home order.
- Most-impacted sectors beginning with these industries (and their associated NIAC code)
61 – Educational Services
71 – Arts, Entertainment, and Recreation
72 – Accommodation and Food Services
315 – Apparel Manufacturing
448 – Clothing and Clothing Accessory Stores
451 – Sporting Goods, Hobby, Musical Instrument, and Book Stores
485 – Transit and Ground Passenger Transportation
487 – Scenic and Sightseeing Transportation
512 – Motion Picture and Sound Recording Industries
812 – Personal and Laundry Services
5111 – Newspaper, Periodical, Book and Directory Publishers - “Nonprofit mission services most impacted by the pandemic,” which includes nonprofits that work in the areas of emergency food and housing, child care and workforce development.
- Disadvantaged communities as tracked by socioeconomic indicators.
When will I know if I was awarded a grant?
Notifications will begin on May 7, according to CAReliefGrant.com. Sands said that businesses that have pre-uploaded their documentation will get their grants fastest. Funds go out on Tuesdays and Thursdays, he said.
Where can I learn more information?
You can contact the program's call center at 888-612-4370 on weekdays from 7 a.m. to 7 p.m. PT.
You can also sign up for updates on the California Small Business Relief Grant program and other small business initiatives through CalOSBA's newsletter here.
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