A great for $500 million dollars for a program opened up for California small businesses and nonprofits 2023. This is a laudable step for thousands of local small businesses and nonprofits still struggling to stay afloat from the most recent Coronavirus related shutdowns. The grants are made available depending on your revenue, your business could be eligible for grants ranging from $1,000 to $25,000 in assistance.
The $500 million grant is part of a larger package of financial relief announced by Governor Newsom. Furthermore, with the grant program, it is estimated that eligible businesses can also choose to have their sales tax-deferred, plus they can get additional access to loans, and other incentives to help grow their business to greater heights. Additionally, the federal stimulus bill is also expected to bring additional financial help to struggling businesses across the state.
The eligibility criteria for these grants is that you must be a small business or small nonprofit. You must also meet the following criteria for your business to be considered for a grant award:
- First and foremost, you would have to meet the criteria of being one of the following —- You must be a sole proprietor, independent contractor, 1099 work, and or registered “for-profit” business entity (e.g., C-corporation, S-corporation, limited liability company, partnership).
- Your business must have yearly gross revenue of less than $2.5 million (but at least $1,000 in yearly gross revenue) based on the most recently filed tax return.
- Small nonprofits must be registered as a 501(c)(3) or 501(c)(6) nonprofit entity. They must have yearly gross revenue of less than $2.5 million. Annual revenue must be at least $1,000 – based on the most recently filed Form 990.
- Your businesses or nonprofits should be 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 the re-opening of the business.
- Business must be negatively impacted by COVID-19. 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 organizing documents including 2018 or 2019 tax returns or Form 990s, 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.
- Businesses must be able to provide an acceptable form of government-issued photo ID.
- Applicants with multiple business entities, franchises, locations, etc. are not eligible for multiple grants. They are only allowed to apply once, using their eligible small business with the highest revenue.
Accessible Grant Amount
The amount of grant funding that is available for businesses to apply for ranges from $5,000 to $25,000. Eligibility is based on the organizations’ annual revenue as documented in their most recent tax return:
|Annual Revenue||Grant Amount|
|$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|
Currently, there are over 270 California small business grants listed on AfricanAmericanGrants.org. There are over 7,450 United States nonprofit grants listed for Black-owned businesses. Remember to check other options for grants, especially if you do not qualify for the California residents’ grant.
This is helpful in cases where if the amount being awarded in a particular grant is not enough, or you do not qualify to apply for the said grant, or if you are not granted said grant after applying and waiting for months to years unendingly, you will have other options to fall back on. We offer those options you can seamlessly access on AfricanAmericanGrants. You can also e-mail us at firstname.lastname@example.org for help!
Happy New Year!