Supplemental Paid Sick Leave Grant Program

Disclaimer

The California Small Business and Nonprofit COVID-19 Relief Grant Program (Supplemental Paid Sick Leave Grant Program or “SPSL”) was funded for by the State of California in the Budget Act of 2022 (AB-178) and authorized through Assembly Bill 152 in September 2022.

This program is in development and applications are not open at this time. Please check back to this page and sign up for CalOSBA’s newsletter here for updates on the program as it becomes available.

This information reflects the latest updates as of November 18, 2022.

About the Program

The Supplemental Paid Sick Leave Grant Program will provide financial assistance to qualified small businesses and nonprofits that have incurred costs for COVID-19 supplemental paid sick leave between January 1, 2022 and December 31, 2022.

A “qualified small business or nonprofit” meets all of the following criteria after a review by the fiscal agent:

(A) Is one of the following:

(i) A “C” corporation, “S” corporation, cooperative, limited liability company, partnership, or limited partnership.

(ii) A registered 501(c)(3), 501(c)(6), or 501(c)(19).

(B) Began operating before June 1, 2021.

(C) Is currently active and operating.

(D) (i) Has 26 to 49 employees and provides payroll data and an affidavit, signed under penalty of perjury, attesting to that fact.

(ii) For purposes of calculating the number of employees to determine if the employer meets the 26 to 49 employees requirement for access to the grant program, an employer covered by Industrial Welfare Commission Order No. 16-2001, shall calculate their number of employees as the number of full-time employees that have worked for the employer, without any break in employment, for the past 24 months.

(E) Has provided COVID-19 Supplemental Paid Sick Leave pursuant to the requirements of Sections 248.6 and 248.7 of the Labor Code.

(F) 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.

 

A “qualified small business or nonprofit” shall not include any of the following:

(A) Businesses or nonprofits without a physical presence in the state.

(B) Nonprofit businesses not registered as a 501(c)(3), 501(c)(6), or 501(c)(19).

(C) Government entities, other than Native American tribes, or elected official offices.

(D) 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).

(E) Passive businesses, investment companies, and investors who file a Schedule E on their tax returns.

(F) Financial institutions or businesses primarily engaged in the business of lending, such as banks, finance companies, and factoring companies.

(G) Businesses engaged in any activity that is unlawful under federal, state, or local law.

(H) Businesses that restrict patronage for any reason other than capacity.

(I) Speculative businesses.

(J) 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 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 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).

(K) Affiliated companies, as defined in Section 121.103 of Title 13 of the Code of Federal Regulations.

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