Frequently Asked Questions

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The Office of the Small Business Advocate (CalOSBA) is administering a one-time grant through the California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program (“Program”). The Program will award funds to a select intermediary to act as a fiscal agent and grantmaking entity, distributing grants to eligible businesses and nonprofits to assist qualified small businesses and nonprofits that have incurred costs for COVID-19 supplemental paid sick leave through Sections 248.6 and 248.7 of the Labor Code.

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.

• 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 as per the requirements of Sections 248.6 and 248.7 of the Labor Code. The amount provided in the records must also match that of the grant request.

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).

• 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 as per the requirements of Sections 248.6 and 248.7 of the Labor Code. The amount provided in the records must also match that of the grant request.

The following documents are required to apply for this Program:

1. Applicant Certifications
   • Applications should complete and upload the Applicant Certifications applicable to their business/organization only.
2. Official filing with the California Secretary of State (which must be active) or local municipality, as applicable, for an applicant’s 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 or 2021 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: 2021 and 2022 Payroll Records
   • Needed to verify employee count and costs incurred for providing COVID-19 Supplemental Paid Sick Leave between January 1, 2022, and December 31, 2022.
6. 2021 and 2022 IRS Form W-3
   • Needed to verify employee count and costs incurred for providing COVID-19 Supplemental Paid Sick Leave between January 1, 2022, 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
   • U.S. passport or foreign passport
8. Valid bank account linked via Plaid, which 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.

This list is not exhaustive. Lendistry may contact applicants by email, phone, and/or text (if authorized) to request additional documentation to verify the information they submitted in their  application.

The California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program will award grants to “qualified small businesses and nonprofits” on a first-come, first-served basis to assist qualified small businesses and nonprofits that have incurred costs for COVID-19 Supplemental Paid Sick Leave through Sections 248.6 and 248.7 of the California Labor Code.

Grant awards shall only 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 as per the requirements of Sections 248.6 and 248.7 of the California Labor Code. The amount provided in the records must also match that of the grant request.

To log into Lendistry’s Portal, applicants will need to use the email address, password, and mobile number they registered at the beginning of the application process. Please review the Program and Application Guide for reference.

Applicants of the California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program who are unable to sign in to Lendistry’s Portal with their registered credentials should review the following steps to troubleshoot their account.

Applicants who do not know the email address or mobile number they registered may contact Lendistry’s Customer Experience Center at 1-888- 208-0015 (M – F: 7:00am – 7:00pm PDT).

Applicants who do not know their password will need to reset it themselves. Our Call Center does not have access to their password. Applicants can click HERE to reset their password.

Lendistry’s Portal can be accessed HERE.

For more information and troubleshooting tips, visit our Troubleshooting page HERE.

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.

No. The award is a grant and is not a loan that is required to be repaid. However, the State of California has the right to seek all available remedies for failing to comply with the terms and conditions of the grant, including, without limitation, if the grantee was ineligible, used funds for unauthorized purposes or made false statements in connection with the grant application.

Yes, applicants will receive tax information related to the grant proceeds, which will need to be reported on their tax returns. Please consult with a tax professional for additional information.

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.

Applicants will receive a confirmation email from [email protected] to confirm their application has been received. If more information or documents are needed, Lendistry may contact applicants by email, phone, and/or text (if authorized) to verify the information they submitted. Lendistry is available to assist applicants in understanding what business information is needed and how to upload documents.

Confirmation emails come from Lendistry at [email protected]. If an applicant does not receive a confirmation email after submitting their application, we advise the applicant to check their spam folder for emails from [email protected] and add the email address to their email account’s safe sender list.

TIP: Place “Lendistry” in the search bar.

Relief Grant Program will award grants to “qualified small businesses and nonprofits” on a first-come, first-served basis to assist qualified small businesses and nonprofits that have incurred costs for COVID-19 Supplemental Paid Sick Leave through Sections 248.6 and 248.7 of the California Labor Code.

Eligible grant awards under this Program will be between $5,000 and $50,000.

Yes. Nonprofits may apply for this Program if they meet all Eligibility Requirements.

Applicants can check the status of their application at any time by signing into Lendistry’s Portal using the username, password, and mobile number that they registered. Once signed in, the status will appear on the dashboard.

Lendistry’s Portal can be accessed HERE.

Visit the Application Status page for more information and required actions: HERE.

Eligible applicants will then go through the final stages of validation to determine if they are approved or declined for funding.

Lendistry will notify all applicants of their determination.

Lendistry may require proof of payment of applicable Secretary of State fees and/or Franchise Tax Board payments evidencing active status in California. Required proof of payment may include a canceled check, an email confirmation of payment, or bank statement reflecting payment.

The security of applicants’ personal information is of the highest priority for Lendistry. Many of the categories of personal information that are collected are requested to assist us in determining and verifying applicants’ eligibility for a grant. Lendistry also requests certain personal information for the purposes of compliance with Office of Foreign Assets Control requirements and other requirements related to the enforcement of economic and trade sanctions. As this is a grant program funded by the State of California and administered by its designated agencies, certain elements of applicants’ personal information and application materials may/will also be shared with the State of California and/or its designated authorized representatives, including without limitation the California Office of the Small Business Advocate and the California Governor’s Office of Business and Economic Development. Any information and records in the possession or control of a California government agency or department are subject to disclosure as per the California Public Records Act.

Lendistry does not sell personal information to advertisers or other third parties for financial gain. Any sharing of personal information with third parties is done in accordance with Lendistry’s privacy policy (available here) and is primarily for the purposes of making available and/or providing Lendistry’s products and services, including this grant.

Once fully validated and approved for grant funding, applicants will receive a grantee agreement via Docusign. Funding will not be released unless and until the grantee agreement is fully executed.

Once Lendistry has received a fully executed grantee agreement, applicants should allow up to 5 business days for funding to be received.

Sole proprietors can be funded through a personal bank account. All other types of businesses must have a business bank account to receive funding. Bank accounts must always match the application name.

An application must be submitted by the majority owner of the business. Applicants will need to certify that the application is being submitted by the majority owner of the applicant as a condition to receiving the grant. Only one business owner can apply.

A nonprofit’s business certification and grantee agreement must be executed by the organization’s executive director or equivalent senior managing officer of the organization. This individual must be the same individual listed on the organization’s Statement of Information filed with the state.

Applicants will be required to verify their identity using Persona by uploading a picture of a valid government-issued photo ID.

Acceptable forms of government-issued photo ID:

• Driver’s license
• State ID
• United States Passport or foreign passport

Applicants will also need to take a selfie using a device with a front-facing camera to complete the Persona verification.

The following forms of ID will NOT be accepted:

1. Expired IDs
2. Bus Passes
3. School IDs
4. Union IDs
5. Job Badges
6. Library Cards

Only one reexamination request is allowed for each application.

Applicants will be notified via email if they are ineligible for this grant program. If there was an error in an applicant’s web application form or in the documentation provided as part of their application, they should contact our dedicated Call Center at 1-888- 208-0015 (M – F: 7:00am – 7:00pm PDT) within five (5) days of receiving this email. Please note that this will not guarantee a reversal of an applicant’s ineligibility. Additional documents and information may be requested to further validate their application.

If Lendistry does not hear from an applicant within this timeframe, their ineligibility will be sustained and their file will be closed.

Only one reexamination request is allowed for each application.

Applicants will be notified via email if they are declined for a grant award. If an applicant believes they were declined in error, they should contact our dedicated Call Center at 1-888- 208-0015 (M – F: 7:00am – 7:00pm PDT) within five (5) days of receiving this email. Please note that this will not guarantee a reversal of an applicant’s decline determination. Additional documents and information may be requested to further validate their application.

If Lendistry does not hear from an applicant within this timeframe, their decline determination will remain permanent and their file will be closed.