Applications are now open for California small businesses and nonprofits to apply for a COVID-19 Relief Grant. Applications for Round 1 closes on January 13, 2021 at 11:59 PM. There is $475 million of funding available for this program. Half of the funds will be awarded in Round 1 and the other half will be awarded in Round 2. If an eligible business applies in Round 1 and is not selected, they will join a waitlist for Round 2. The grant amounts are based on eligible business annual revenue as documented in the most recent tax return.
| Eligible Businesses Annual Revenue | Grant Amount Available Per Business |
| $1,000 to $100,000 | $5,000 |
| Greater than $100,000 up to $1,000,000 | $15,000 |
| Greater than $1,000,000 up to $2,500,000 | $25,000 |
Revenue is determined based on the IRS tax form definition of “Gross Sales” (less any returns and allowances) as reported on the most recently filed tax returns (2019 or 2018)
- Line 1.c. on both the 1120 (corporate return) or 1120S (S-Corp return)
- Line 3 on IRS Schedule C for single member LLCs and sole proprietorships
- Line 1.c. on Form 1065, for partnerships
- Line 1.c. and Line 2 on Form Schedule F for farming businesses
- Line 12 on Form 990 for non-profits
- Schedule E is not eligible
Eligibility
A small business or small nonprofit must satisfy all of the following criteria to be eligible to receive a grant award:
- Must meet the definition of an “eligible small business”
- Sole proprietor, independent contractor, 1099 work, and or registered “for-profit” business entity, C-corporation, S-corporation, limited liability company, or 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
- 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
- Active business or nonprofit operating since at least June 1, 2019
- Businesses must currently be operating or have a clear plan to re-open once the State of California permits re-opening of the business
- 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
- Business must be able to provide documents including
- 2018 or 2019 tax returns or Form 990
- 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
- acceptable form of government-issued photo ID
- 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
How will grant recipients be determined?
Applications will be reviewed to determine whether the applicant meets the eligibility requirements. Eligible businesses will then be scored based on COVID-19 impact factors incorporated into the Program’s priority criteria so that distribution can take into account priority key factors, including the following:
- 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
- Industry sectors most impacted by the pandemic
- Underserved small business groups served by the State supported network of small business centers including businesses:
- Majority owned and run on a daily basis by women
- Majority owned by minorities/specific racial and ethnic groups
- Majority owned by veterans
- Located in low-to-moderate income and rural communities
Ineligible Businesses
- Businesses without a physical location in California
- Nonprofit businesses not registered as either a 501(c)(3), 501(c)(19), or 501(c)(6)
- Government entities (other than Native American tribes) or elected official offices
- 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))
- Passive businesses, investment companies and investors who file a Schedule E on their personal tax returns
- Churches and other religious institutions (regardless of whether such entities qualify as a 501(c)(3), 501(c)(19), or 501(c)(6))
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies and factoring companies
- Businesses engaged in any activity that is illegal under federal, state, or local law
- 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
- 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
- Businesses that restrict patronage for any reason other than capacity
- Speculative businesses
- 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
- “Affiliated” companies (as such term is defined in 13 C.F.R. § 121.103)
- 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
Required Documents to Apply
- Application Certification – Signed certification used to certify your business. This is also when you indicate if you are an underserved small business group.
- For Profit Application Certification
- Nonprofit Application Certification
- Government Issued Photo ID – Such as a Driver’s License or Passport
- Most recent tax return filed (2019 or 2018) – provided in an electronic form for online upload, such as PDF/JPEG or other approved upload format
Required Documentation for Applicants Chosen for a Grant
- 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
- Copy of official filing with the California Secretary of State, if applicable,
How to Apply
Go to www.careliefgrant.com and select the link “Find a Partner”, select “By County”, select your county, and finally select one of the partners in your county. Do not apply more than once.
Wheeler is here to help
Please contact us if you have any questions about this grant program or any other relief programs available to small businesses. There is a long list of them that we can help you navigate eligibility and application requirements.