State of California Announces COVID-19 Relief Grants

Sung Wook (John) Lee, SW Logistics

$475 million in grant funds are available via a streamlined, online application process. Both businesses (including sole proprietors, home-based businesses, and independent contractors) and nonprofits can qualify for this California grant. The grant award ranges from $5,000 to $25,000 based on your operation’s annual gross revenue as reported in your most recent (2019 or 2018) federal tax return, as follows:

If your annual gross revenue was…	Then the grant award is….
$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

The award is a true grant, not a loan that has to be forgiven. The grant funds are to be used for working capital for your business’s operating expenses – e.g., for payroll, rent, business loan payments, COVID-protective measures, etc.
The grant process is being administered for the State of California by an experienced online lender called Lendistry, and it looks like it will be very straightforward to apply and qualify via the online process that has been developed.
The California grant opportunity will be offered in two “Rounds” – with the first Round running from December 30, 2020 at 8am to January 8, 2021 at 11:59pm. Everyone who applies during a Round will be given equal consideration. What is important is that you apply completely during the time the Round is open, and not the order in which your application is submitted. Awards will be announced shortly after the Round closes, around January 13, and a second final Round will be held probably sometime in February. If you apply in the Round 1 and are not successful, your application will be carried over for consideration in Round 2 without the need to reapply. A business can only receive one grant even though there will be two Rounds.

For more information about this CA Relief Grant, you can visit the California State website explaining the program: California Small Business COVID-19 Relief Grant Program (careliefgrant.com).

And you are strongly encouraged to attend one of the daily webinars being put on by California’s Small Business Development Center network to explain the program: Webinar Registration - Zoom