The Microenterprise Recovery Grant will provide grants of up to $5,000 to eligible microenterprises located in the City of Los Angeles that need financial assistance to aid in their recovery from the COVID-19 pandemic.
Donor Name: Economic & Workforce Development Department (EWDD)
State: California
County: All Counties
Type of Grant: Grant
Deadline: 12/10/2023
Size of the Grant: $1000 to $10,000
Grant Duration: Grant Duration Not Mentioned
Details:
Grants will be awarded to eligible businesses, prioritizing businesses that have yet to receive assistance through any City, State or Federal program. Funds can be used for operating expenses, including but not limited to payroll, lease payments, insurance, and inventory.
The grant is funded by Community Development Block Grant CARES Act (CDBG-CV) funding allocated to the City to prevent, prepare for, and respond to COVID-19.
Funding Priorities
Grant recipients will be selected based on the availability of funds, program guidelines, submission of all required information, and supporting documentation. If requests exceed the available funding, precedence will be given during the grant allocation process to qualified applicants who meet the following criteria:
- The business has not received any other financial assistance from federal, state, or local sources
- The business is located in a CDBG census tract
- Businesses with W-2 employees
- Businesses located in commercial “brick and mortar” locations
- The family income for the business owner is below 80% AMI prior to COVID-19, based on the previous year’s tax returns.
Uses of funds
The grant may be used for working capital. Eligible expenses include, but are not limited to:
- Payroll
- Rent or lease payments
- Utilities
- Insurance
- Payment of outstanding business expenses
- Adaptive business practices needed in response to the pandemic
- Technology and digital commerce expenses
- Marketing/communication, or other similar expenses.
Eligible Businesses
To be eligible to apply for the Microenterprise Grant Program, a business must demonstrate the need for financial support due to the impact of the COVID-19 pandemic.
- The business must be a for-profit business located within Los Angeles city limits. Home-based businesses are eligible if the owner is a Los Angeles resident; however, priority will be given to businesses operating from commercial locations.
- Annual revenue cannot exceed $1 million.
- The business must have an active Business Tax Registration Certificate (BTRC) with the City of Los Angeles that is current and in good standing.
- The business has been legally operating in the City of Los Angeles on or before March 1, 2020.
- The business must have five (5) or fewer W2 employees on their payroll, including the owner(s).
- The business must demonstrate that the grant funds will be used for recovery from the COVID-19 pandemic.
- The business must disclose whether they have received funding from other federal, state, or local sources (including PPP and EIDL). Applicants who have received funding are still eligible, provided the funds are not currently being spent on the same expenses covered by the Microenterprise Grant.
- Applicant has not previously applied for this grant program, or been awarded a grant through this program.
- If applicable, the business must be in good standing with the Secretary of State.
Ineligible Businesses
- Business/Owner that has previously applied for this grant program, or has previously received a grant award from this program
- Nonprofit organizations
- Businesses that were not in operation and were not located in the City of Los Angeles on or prior to March 1, 2020
- Rideshare businesses
- Landlords/Schedule E Passive Income
- Businesses or companies held in trust
- Businesses that do not have a physical location using P.O. Boxes as a business address
- Businesses engaged in illegal activities, such as selling drug paraphernalia or operating a motel that permits illegal prostitution
- Cannabis businesses or businesses that support cannabis businesses
- Corporate-owned franchises (a corporation is responsible for operations, profit and loss, business decisions and quality control; corporate hires and oversees all store staff)
- Publicly traded companies
- Private social clubs that limit the number of memberships for reasons other than capacity
- Payday loan stores, pawnshops and other firms involved in lending activities, such as banks, finance companies and any other firm whose stock in trade is money
- Insurance companies, such as life, auto, home, bail bonds and other similar entities
- Astrology, palm reading, tarot, etc.
- Liquor stores and smoke shops
- Night clubs
- Adult bookstores
- Businesses and Sole proprietors that provide massage services
- Businesses that present live performances of a prurient sexual nature and/or derive revenue through the sale of products or services of a prurient sexual nature
- Gambling businesses (i.e., track waging facilities, casinos, bingo parlors)
- Trailer-storage yards and junkyards
- Gun or ammunition stores
- Multi-sales distribution
- Firms involved in speculative activities (i.e., day trading, stock market exchange facilitators)
- Dealers of rare coins and stamps
- Lobbying firms or businesses that dedicate 50% or more of their time or resources to lobbying activities
- Churches or other religious organizations
- Government offices or agencies
- Real Estate Agent
For more information, visit EWDD.
