Community Development Block Grant Program for Micro- and Small-businesses in the US

Deadline: 20-Jun-21

The Santa Barbara Foundation is inviting applications for its Community Development Block Grant (CDBG) Program to implement a COVID-19 Emergency Business Assistance Program (EBAP) that provides grant assistance to micro- and small-businesses adversely impacted by the COVID-19 pandemic. The EBAP funds will provide support to eligible businesses for payroll, rent, personal protective equipment, and other costs required to resume or expand business operations.

The program will primarily meet the benefit to low- and moderate-income persons national objective, however, the County may use the urgent need national objective, if necessary.

The Emergency Business Assistance program will consist of two different components:

• Microenterprise business Assistance and
• Small Business Assistance.

Program Description and Funding Information

• Microenterprise Assistance
  • The Emergency Business Assistance program will provide grants up to $10,000 to Microenterprises that were adversely impacted by the COVID-19 pandemic.
  • Microenterprise grants can be used for operating expenses, including for the following purposes:
    • Rent/utilities
    • Payroll
    • Personal Protective Equipment (PPE) supplies required for business operation (The County will not provide reimbursement for any installation-related costs.)
    • Business services to increase or alter business activities (e.g. Point of Sale system, website development, outdoor business activities etc.)
  • Microenterprise businesses do not need to provide ongoing documentation and reporting of jobs created and/ or retained as a result of the CDBG assistance.
• Small Business Assistance
  • The Emergency Business Assistance program will provide grants up to $25,000 to small businesses that have been adversely impacted by the COVID-19 pandemic.
  • Small Business Assistance grants can be used for the following purposes:
    • Rent/utilities
    • Payroll
    • Personal Protective Equipment (PPE) supplies required for business operation (The County will not provide reimbursement for any installation-related costs.)
    • Business services to increase or alter business activities (e.g. Point of Sale system, website development, outdoor business activities etc.)
  • Businesses receiving a Small Business Assistance grant shall use grant funds to create or retain jobs (those held by low/moderate-income individuals) and shall provide reporting for up to six (6) months following grant award on the creation or retention of jobs. Determination of a job being held by or offered to a low-income person is measured by the salary of the employee compared to the HUD income limits for a one-person family, regardless of the family size. This may be documented by an employment offer letter or payroll records. Businesses that do not create or retain at least one permanent low- or moderate-income job(s) will be required to repay the grant in accordance with the grant agreement.
  • The job creation and retention requirement is described in more detail in the Job Creation/ Retention section.

Eligibility Criteria

• Eligible Microenterprise Businesses (MEB): To qualify as an eligible microenterprise business, the business must meet the following criteria:
  • Five (5) or fewer total employees (including owner). Examples include but are not limited to:
    • Sole proprietors, especially involved in event planning, catering, tourism
    • Small retailer
    • Food/flower retail industry
    • Hospitality
  • Business owner’s family income is less than 80% area median income
  • Business is located within the unincorporated areas of Santa Barbara County, including incorporated cities within Santa Barbara County and operated from a physical location.
  • Owner is 18 years or older
  • Business or owner has a DUNS number, or will have applied for one at the time of application
  • Business has a valid Federal Employer Identification Number (FEIN), also known as Employer Identification Number (EIN) or Social Security Number (SSN) for sole proprietors
  • No person who is subject to the provisions of this program’s Conflict of Interest Code has any ownership interest in the business, or would otherwise receive a financial benefit from the business
  • At time of application, business must be in good-standing with the County and/or incorporated cities of Santa Barbara County, have a valid business license, no pending health or code enforcement matters proceeding and not delinquent in the payment of any business license fees or taxes owed the County or participating cities. Confirmation of Good Standing with the State may be obtained in-lieu of a local jurisdiction’s status, if the local jurisdiction does not provide such.
  • Business was adversely impacted because of the COVID-19 pandemic and can provide supporting documentation illustrating the impact
  • Certification that the business has neither received nor will seek other grants, loans, or other assistance from any private, local, state, or federal funding source for the same use as identified in the program application
  • Business must be viable as determined by the review criteria included herein
  • Business was in operation in Santa Barbara County prior to January 1, 2019
• Eligible Small Businesses: To qualify as an eligible small business, the business must meet the following criteria:
  • Must have between 6- 50 employees
  • Commitment to create or retain at least one full time equivalent (FTE) permanent job as a result of the Emergency Business Assistance program; 51% of all jobs created or retained must be held or made available to low- or moderate-income individuals
  • Operate from a physical location within the limits of Santa Barbara County
  • Owner is 18 years or older
  • Business or owner has a DUNS number, or will have applied for one at the time of application
  • Business has a valid Federal Employer Identification Number (FEIN), also known as Employer Identification Number (EIN)
  • No person who is subject to the provisions of this program’s Conflict of Interest Code, including the staff and board of , has any ownership interest in the business, or would otherwise receive a financial benefit from the business.
  • At time of application, business must be in good-standing with the County or incorporated cities of Santa Barbara County, have a valid business license, no pending health or code enforcement matters proceeding and not delinquent in the payment of any business license fees or taxes owed the County or participating cities. Confirmation of Good Standing with the State may be obtained in-lieu of a local jurisdiction’s status, if the local jurisdiction does not provide such.
  • Business was adversely impacted because of the COVID-19 pandemic and
  • can provide supporting documentation illustrating the impact and economic hardship suffered such as tax returns, financial statements, and other financial data required in the application.
  • Business must provide certification that the business has neither received nor will seek other grants, loans, or other assistance from any private, local, state, or federal funding source for the same use as identified in the program application
  • Business had no more than $5 million in gross total sales between January 1, 2019 and December 31, 2019.
  • Business was in operation in Santa Barbara County prior to January 1, 2019
  • Business must show best effort to reopen and resume business operations

For more information, visit https://www.sbfoundation.org/covid-19-business-community-resources/emergency-business-assistance-program/