Businesses with an annual gross revenue of up to $2.5 million are eligible. Because not every applicant will be awarded a grant, requests are ranked and judged on criteria including whether the business is in an industry sector most affected by the pandemic.
The applications will also be scored to make sure there is wide geographic distribution and that businesses owned by people of color are fairly represented.
“Our commitment in that effort is to underserved communities and underrepresented communities, which means we are going to be very mindful of where those dollars go,” Newsom said Monday during a news conference in Arvin.
Once a business is notified that it has been selected for a grant, it will face additional verification requirements before the money is disbursed, according to Kaitlin Lewis, a state spokeswoman.
“All final awards will be completed within 45 business days of the close of a round and businesses are verified and paid on a rolling basis,” Lewis said.
A portion of the relief package for which a vote is scheduled later this week would allow companies to deduct up to $150,000 in expenses covered by loans from the federal Paycheck Protection Plan. More than 750,000 PPP loans were taken out by California small businesses, officials said.
Two years of fee relief will also be provided for roughly 59,000 restaurants and bars licensed through the state’s Department of Alcoholic Beverage Control, under the bills approved Monday. They normally pay annual fees ranging from $455 to $1,235. More than 550,000 barbering and cosmetology licenses will also have fees waived.
In addition, $50 million will go toward grants for cultural institutions that have suffered financially because of the pandemic. The package also includes grants to community college students, and additional money for childcare, food banks, diapers and housing for quarantined agricultural workers.
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