Do you have between 26 and 49 employees? Did you pay Covid-19 sick leave during the pandemic? If yes, you may be eligible for a grant from the State of California.

California Supplemental Paid Sick Leave Period Grant

About the California Small Business and Nonprofit Covid-19 Supplemental Paid Sick Leave Relief Grant Program

The Program will award funds to eligible businesses and nonprofits that have incurred costs for COVID-19 Supplemental Paid Sick Leave pursuant to Sections 248.6 and 248.7 of the Labor Code. Funds are limited and will be awarded based on eligibility and availability of funds.

This Program was created in accordance with California AB 152 and is administered by the California Office of the Small Business Advocate (CalOSBA). Application portal powered by Lendistry.

For the purposes of this Program, “qualified small business or nonprofit” means a business or nonprofit that meets all the eligibility criteria (listed below) established in California Government Code Section 12100.965, as confirmed by the California Office of the Small Business Advocate (CalOSBA) or fiscal agent through a review of revenue declines, other relief funds received, credit history (solely for the purposes of verifying Office of Foreign Controls compliance), tax returns, and bank account validation.

The deadline to apply is: Friday, June 30, 2023 by 5 p.m.

The application is found at https://caspsl.com/

For-profit businesses and nonprofits which meet the following criteria should apply:

  • Had 26-49 employees between Jan 1 2021 and Dec 31 2022
  • Paid supplemental Covid-19 required sick leave
  • Operating in the State of California

  1. Must meet the definition of a qualified small business or nonprofit as confirmed by CalOSBA or a fiscal agent through review of revenue declines, other relief funds received, credit history, tax returns, and bank account validation (see Definitions).
    • Must be one of the following:
      • A “C” corporation, “S” corporation, cooperative, limited liability company, partnership, or limited partnership.
      • A registered 501(c)(3), 501(c)(6), or 501(c)(19).
    • Began operating before June 1, 2021.
    • Is currently active and operating.
    • Had 26 to 49 employees between January 1, 2021, and December 31, 2022, and provide payroll data and an affidavit, signed under penalty of perjury, attesting to that fact.
      • For employers covered by Industrial Welfare Commission Order No. 16-2001 only, the number of employees shall be calculated as the number of full-time employees that have worked for the employer, without any break in employment, for the past 24 months.
    • Provided COVID-19 Supplemental Paid Sick Leave as per the requirements of Sections 248.6 and 248.7 of the California Labor Code.
    • Provides organizing documents, including a 2020 or 2021 tax return or Form 990, and a copy of official filing with the Secretary of State or with the local municipality, as applicable, including, but not limited to, Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or government-issued business license.
  2. Must have an owner – or in the case of a nonprofit, an officer – identified as the authorized signer on the application that is at least 18 years of age.
  3. Able to provide acceptable form of identity verification through acceptable government-issued photo ID (i.e., through Lendistry’s designated identification verification service).
  4. Applicants with multiple business entities, franchises, locations, etc. are not eligible for multiple grants and are only allowed to apply once. Only one entity from any member of a “controlled group of corporations” as defined in California Revenue and Taxation Code Section 23626 may apply. No more than one entity that are related under sections 267, 318, or 707 of the United States Internal Revenue Code may apply for the grant.

The following small businesses or nonprofits shall be deemed ineligible:

  • Businesses or nonprofits without a physical presence in the state.
  • Nonprofit businesses not registered as a 501(c)(3), 501(c)(6), or 501(c)(19).
  • Government entities, other than Native American tribes, or elected official offices.
  • Businesses primarily engaged in political or lobbying activities, regardless of whether the entity is registered as a 501(c)(3), 501(c)(6), or 501(c)(19).
  • Passive businesses, investment companies, and investors who file a Schedule E on their tax returns.
  • Financial institutions or businesses primarily engaged in the business of lending, such as banks, finance companies, and factoring companies.
  • Businesses engaged in any activity that is unlawful under federal, state, or local law.
  • Businesses that restrict patronage for any reason other than capacity.
  • Speculative businesses.
  • Businesses with any owner of greater than 10 percent of the equity interest in it who meets one or more of the following criteria:
    • (i) The owner has, within the prior three years, been convicted of or had a civil judgment rendered against them, or has had commenced any form of parole or probation, including probation before judgment, for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract under a public transaction, violation of federal or state antitrust or procurement statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property.
    • (ii) The owner is presently indicted for or otherwise criminally or civilly charged by a federal, state, or local government entity, with commission of any of the offenses listed in clause (i).

Grant awards canonly be used for reimbursement of COVID-19 Supplemental Paid Sick Leave provided between January 1, 2022, and December 31, 2022. Applicants must provide proof of employee payroll records that verify all COVID-19 Supplemental Paid Sick Leave provided by the applicant following the requirements of Sections 248.6 and 248.7 of the California Labor Code that match the amount of the grant request.

Advising Support

The SBDC provides free 1:1 business advising for all business matters. Complete this brief form for assistance.

We have webinars/office hours two time per week

Tuesday, June 6 2:00 PM – 3:00 PM https://sdsbdc.ecenterdirect.com/events/17152

Thursday, June 8th, 11:00 AM to 12:00 PM https://sdsbdc.ecenterdirect.com/events/17148

Tuesday, June 13 2:00 PM – 3:00 PM https://sdsbdc.ecenterdirect.com/events/17153 

Thursday, June 15, 11:00 AM to 12:00 PM https://sdsbdc.ecenterdirect.com/events/17149

Tuesday, June 13 2:00 PM – 3:00 PM https://sdsbdc.ecenterdirect.com/events/17154

Thursday, June 22, 11:00 AM to 12:00 PM https://sdsbdc.ecenterdirect.com/events/17150

Tuesday, June 27, 2:00 PM to 3:00 PM https://sdsbdc.ecenterdirect.com/events/17151

Thursday, June 22, 11:00 AM to 12:00 PM https://sdsbdc.ecenterdirect.com/events/17155

The following documents are required to apply for this Program:

1.Applicant Certifications •Complete and upload the Applicant Certifications applicable to your business/organization only

2.Official filing with the California Secretary of State (which must be active) or local municipality, as applicable, for your business or organization, such as one of the following:

  • Articles of Incorporation;
  • Certificate of Organization;
  • Fictitious Business Name filing;
  • Professional license;
  • Government-issued business license or permit

3.Proof of Revenue: 2020 or2021 filed federal business tax filing (complete and unaltered)

  • For-profit businesses: 2020 or 2021 IRS Form 1040, 1065, 1120, or 1120-S
  • Nonprofit organizations: 2020 or 2021 IRS Form 990, 990-N, or 990-Z)

4.Proof of IRS tax-exempt status (required for nonprofit organizations only): Copy of IRS 501(c)(3), 501(c)(6), & 501(c)(19) exemption determination letter

5.Proof of Employee Count and Costs Incurred: 2021 and2022 Payroll Records: Needed to verify employee count for both 2021 and 2022 and costs incurred for providing COVID-19 Supplemental Paid Sick Leave between January 1, 2022, and December 31, 2022.

6.Proof of Employee Count: 2021 and2022 IRS Form W-3: Needed to verify employee count between January 1, 2021, and December 31, 2022

7.Acceptable Government-Issued Photo ID uploaded via Persona, which will be embedded in the application. Acceptable forms of government-issued photo ID: Driver’s license, State ID, United States Passport or Foreign Passport

8.Valid bank account linked via Plaid, which will be embedded in the application

Lendistry may contact you by email, phone, and/or text (if authorized) to request additional documentation to verify the information you submitted in your application.