Program Update:
As of August 29, 2024, Grant awards are no longer available for this Program. As a result, Round 2 has been canceled, and this Program is now closed. The viability of Round 2 was based on funding availability for this Program, but unfortunately, funding was limited.
We understand the importance of these funds to your business, so we encourage you to check for future grants and funding opportunities from the California Office of Small Business Advocate (CalOSBA) by clicking here.
You can also sign up to receive the CalOSBA Newsletter and stay updated on California small business initiatives.
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[Button linked to https://calosba.ca.gov/funding-grants-incentives/funding-programs/]
California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program
Program Overview
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.
PLEASE NOTE: Lendistry is the sole entity designated as the Intermediary of California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program (the “Program”).
This site (www.caspsl.com) and the other websites available on or through this site (the “Designated Sites”) are the only approved websites designated for the administration of the Program. Any other website purporting to administer or otherwise act as an Intermediary in connection with the Program may be fraudulent. As such, you should exercise extreme caution and avoid providing any information (personal or otherwise) in connection with the Program on or through any website other than the Designated Sites. Further, neither Lendistry nor any of its partners will charge any fees to apply for a grant under the Program and we recommend that you avoid any third parties purporting to charge fees for you to apply.
Important Information for 2023 Tax Returns
1099 Tax Forms Now Available for Download
If you received a grant for this program in 2023, you are required to report it on your upcoming 2023 tax returns. In order to do so, you will need to retrieve a copy of you 1099 tax form.
How can you retrieve your 1099 tax form?
Your 1099 tax form is available at https://tax1099.com/edelivery/login. CLICK HERE for a guide on how to retrieve your 1099 tax form with step-by-step instructions.
This guide also provides information on your username and password that is needed to sign in. Once signed in, you may elect to opt-in to download your 1099 tax form electronically or opt-out to receive it by mail.
For assistance with accessing your 2023 tax form please contact Lendistry’s dedicated Customer Experience Team at (888) 870-2203 (Monday – Friday, 8:00 a.m.-5:00 p.m. PST) or [email protected].
Important Note: Lendistry and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Readers should consult their own tax, legal and accounting advisors before completing their tax filings.
THERE ARE NO WARRANTIES, EXPRESSED OR IMPLIED, AS TO ACCURACY, COMPLETENESS, OR RESULTS OBTAINED FROM ANY INFORMATION POSTED IN THIS PRESENTATION OR ANY LINKED WEBSITE.
Quick Links
Definitions
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.
Eligibility Requirements
- Must meet the definition of a qualified small business or nonprofit as confirmed by CalOSBA or 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 provides 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.
- Has provided COVID-19 Supplemental Paid Sick Leave pursuant to 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.
- Must be one of the following:
- 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.
- Able to provide acceptable form of identity verification through acceptable government-issued photo ID (i.e., through Lendistry’s designated identification verification service).
- 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 may apply for the grant that are related under sections 267, 318, or 707 of the United States Internal Revenue Code.
Ineligible Businesses or Nonprofits
- 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 or organizations 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 or organizations engaged in any activity that is unlawful under federal, state, or local law.
- Businesses or organizations 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 or, in the case of nonprofits, organizations with any officer or board member who meets one or more of the following criteria:
- (i) The owner, or any officer or board member, has, within the prior three years, been convicted of or had a civil judgment rendered against the owner, 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, or any officer or board member, 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).
- Affiliated companies, as defined in Section 121.103 of Title 13 of the Code of Federal Regulations.
Award Information
Grant Awards
| Verifiable COVID-19 Supplemental Paid Sick Leave provided by Applicant (January 1, 2022 – December 31, 2022) | Eligible Grant Award Amount |
| $5,000 up to $10,000 | $5,000 |
| $10,000 up to $14,999 | $10,000 |
| $15,000 up to 19,999 | $15,000 |
| $20,000 up to $24,999 | $20,000 |
| $25,000 up to $29,999 | $25,000 |
| $30,000 up to $34,999 | $30,000 |
| $35,000 up to 39,999 | $35,000 |
| $40,000 up to $44,999 | $40,000 |
| $45,000 up to 49,999 | $45,000 |
| $50,000 or more | $50,000 |
Eligible Use of Funds
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 pursuant to the requirements of Sections 248.6 and 248.7 of the Labor Code that match the amount of the grant request.
Required Documents
This list of required documents to apply is not exhaustive. 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.
Please note: Download the Applicant Certifications and save the file to your computer. Applicants must upload completed Applicant Certifications in order to be considered for a grant.
Applicant Certifications
- Complete and upload the Applicant Certifications applicable to your business/organization only.
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.
Proof of Revenue: 2020 or 2021 Filed Federal Business Tax Return (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)
Proof of Employee Count: 2021 and 2022 IRS Form W-3
- Needed to verify employee count between January 1, 2021 and December 31, 2022.
Acceptable Government-Issued Photo ID uploaded via Persona
Acceptable forms of government-issued photo ID:
- Driver’s license
- State ID
- United States Passport or foreign passport
Proof of Employee Count and Costs Incurred: 2021 and 2022 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.
Valid bank account linked via Plaid
This will be embedded in the application.
- If an applicant does not have an online banking setup, or their bank account cannot be verified through Plaid, the applicant is required to submit the two (2) most recent months of bank statements with transaction history.
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
Program and Application Guide
The Program and Application Guide includes an overview of the program, tips for applying, and step-by-step instructions on how to complete and submit the application.