The state Legislature has passed a new, $7.6 billion COVID-19 economic relief package, which Governor Newsom signed into law earlier today. The relief package will provide economic assistance for individuals as well as small businesses.
The package includes $2.1 billion of grant money for small businesses. Qualifying businesses can receive grants from $5,000 to $25,000 in a program administered by the state’s Office of the Small Business Advocate (CalOSBA).
To be eligible to receive a grant, a small business must:
– Have no more than $2.5 million, and no less than $1,000, in yearly gross revenue (based on most recently filed tax return)
– Have been in operation since at least June 1, 2019
– Be currently operating or have a plan to re-open when permitted by the state
– Have suffered business interruptions or closures as a result of the pandemic
– Be able to provide 2018 or 2019 tax return and a copy of an official filing with the state or a local municipality (i.e. Articles of Incorporation/Organization, fictitious business name, government-issued business license).
Applicants with multiple business entities, franchises, or locations are only eligible for one grant. Small non-profits may also be eligible for grants under the program, subject to similar criteria.
The package also includes relief specific to certain industries which have been especially hard hit by the pandemic. Bars and restaurants serving alcohol, as well as barbers and cosmetology licensees, will have their licensing fees waived for two years.
The full press release from the Governor’s office is available here.