State funding supports small businesses and nonprofits impacted by COVID-19 pandemic
Sacramento, CA – The first round of applications for the Small Business COVID-19 Relief Grant Program is now open. On November 30, 2020, Governor Newsom and the State Legislature announced the allocation of $500 million available to small businesses and nonprofits that have been impacted by the COVID-19 pandemic. The program is administered by California’s Office of the Small Business Advocate (CalOSBA), part of the Governor’s Office of Business and Economic Development (GO-Biz).
“Small business owners and our nonprofits serve as the economic heart of every California community,” said Governor Newsom. “This grant program isn’t the end, it’s the beginning. It’s a bridge to help the millions of Californians, whose dreams and livelihoods are now on the line, as we work with the State Legislature to create additional support.”
Grants will not be issued on a first-come, first-served basis and will be awarded after the close of each application round. This first round of applications ends January 8, 2021 at 11:59 p.m. Details for the second round will be announced shortly.
“Inclusive, equitable relief is fundamental to the small business support developed by this administration,” said Isabel Guzman, CalOSBA Director. “This grant program provides that support through a network of Community Development Financial Institutions and Community Based Organizations ensuring reach to those highly impacted small businesses in disadvantaged communities, underserved small business groups, and industries disproportionately impacted by this pandemic.”
The California Small Business COVID-19 Relief Grant Program provides grants ranging from $5,000 to $25,000. Lendistry has been designated by the State to act as the intermediary for the Program to disburse the grant funds.
“As an organization dedicated to efficiently providing capital to underserved small businesses, and with a deeply experienced senior management team that mirrors the diversity of our home state of California, Lendistry is proud to partner with the CalOSBA in this bold and critical effort,” said Everett K. Sands, Lendistry’s founder and CEO. “Since the start of the COVID-19 pandemic Lendistry has assisted 20,000 small businesses in a dozen states and deployed nearly a half-billion dollars in capital, and we are bringing the full force of our technology, expertise and relationships with partner CDFIs and community organizations to bear on CalOSBA’s landmark commitment to California’s small businesses.”
The Program will prioritize distribution based on priority key factors, including the following:
- Geographic distribution based on COVID-19 health and safety restrictions following California’s Blueprint for a Safer Economy, county status and the new Regional Stay-at-Home Order which can be found at covid19.ca.gov
- Industry sectors most impacted by the pandemic
- Underserved small business groups served by the State supported network of small business centers (i.e., businesses majority owned and run on a daily basis by women, minorities/persons of color, veterans and businesses located in low-to-moderate income and rural communities)
Mission-based lenders and small business advisory and technical assistance providers can help small businesses with the application process in multiple languages and formats. Many of the State supported small business centers, which prioritize the expansion of technical assistance to underserved business groups, are also available to help. For more information on grant requirements and eligibility, please visit careliefgrant.com.
The Governor’s Office of Business and Economic Development (GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit the GO-Biz website.
About CalOSBA
The Office of the Small Business Advocate (CalOSBA) helps support economic growth and innovation by working to ensure that California’s small businesses and entrepreneurs have the information, tools and resources they need to plan, launch, manage and grow their businesses successfully and be resilient. The CalOSBA serves to elevate their voices in state government and to advocate on their behalf to help ensure all aspiring and current small business owners and entrepreneurs are provided with the opportunity to access capital, access markets, and connect to the networks and resources they need to succeed. For more information visit the website.
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