Second Application Round Ends for California’s Small Business COVID-19 Relief Grant Program

Feb 9, 2021 | Press Release

Selection notifications start February 11

Funding will support small businesses that have struggled due to the COVID-19 pandemic

Sacramento, CA– California’s Office of the Small Business Advocate (CalOSBA), part of the Governor’s Office of Business and Economic Development (GO-Biz), today announced that Round 2 for the California Small Business COVID-19 Relief Grant Program has closed. Application selection notifications will be sent out starting Thursday, February 11 through Thursday, February 18.

California’s small businesses represent the best of our stateΓÇöthe spirit of innovation and entrepreneurship is what makes California so unique, said Governor Gavin Newsom. These businesses, the drivers of our economy, have been hit hard by this pandemic. Through tax relief, access to capital and grant programs, we are driving support to California entrepreneurs which is key to our economic recovery.

The Governor has proposed immediate legislative action on a $575 million request to more than double this grant relief funding to small businesses and small nonprofit cultural institutions disproportionately impacted by the pandemic.

Split into two tranches, the $500 million California Small Business COVID-19 Relief Grant Program is intended for small businesses and nonprofits impacted by COVID-19. Grants range in size from $5,000 to $25,000. The program has already awarded approximately $237.5 million in the first round, which ran from December 30, 2020 through January 13, to just over 21,000 small businesses and nonprofits and will award approximately $237.5 million as part of this second round. Eligible applicants who submitted all necessary documents in Round 1, but did not receive a grant, were automatically rolled over for consideration in this second round.

This grant program provides urgently needed support for our communities and our economy during this very trying time, said Dee Dee Myers, Director of GO-Biz. Businesses from all of California’s 58 counties were selected to receive grants in the first round of funding, representing the breadth of California’s diverse small business owners. Throughout this crisis, they have used their entrepreneurial mindsets to innovate in this changing marketplace, reshape today’s Main Streets, create jobs and uplift local communities.

California is home to nearly 4 million small businesses, representing 99.8 percent of all businesses in the state. The state’s support for businesses impacted by the pandemic also includes:

  • The California Rebuilding Fund, a public-private partnership which helps small businesses in underserved communities access low-interest loans and free advisory services;
  • The new Main Street Hiring Tax Credit, which authorized $100 million in hiring tax credit for qualified small businesses; and
  • The elimination of the $800 minimum franchise tax for the first year of operation.

The Governor’s 2021-22 State Budget proposal provides $4.5 billion for the Governor’s Equitable Recovery for California’s Businesses and Jobs plan, including $1.1 billion in immediate relief for small businesses, $353 million for workforce development and $777.5 million for a California Jobs Initiative to provide incentives targeted at accelerating investment and job creation.

For more information on grant requirements and eligibility, visit

About GO-Biz
TheGovernor’s Office of Business and Economic Development(GO-Biz) serves as the State of California’s leader for job growth and economic development efforts. GO-Biz offers a range of services to business owners including: attraction, retention and expansion services, site selection, permit streamlining, clearing of regulatory hurdles, small business assistance, international trade development, assistance with state government, and much more. For more information visit theGO-Biz website.

About CalOSBA
The Office of the Small Business Advocate (CalOSBA) helps support economic growth and innovation by working to ensure that California’s small businesses and entrepreneurs have the information, tools and resources they need to plan, launch, manage and grow their businesses successfully and be resilient. The CalOSBA serves to elevate their voices in state government and to advocate on their behalf to help ensure all aspiring and current small business owners and entrepreneurs are provided with the opportunity to access capital, access markets, and connect to the networks and resources they need to succeed. For more informationvisit the website.

Kaitlin Lewis
Assistant Deputy Director of Communications
Email Kaitlin,HERE
Phone: (916) 204-2107

California Office of the Small Business Advocate
1325 J Street, Suite 1800

Sacramento, CA 95814
Email CalOSBA
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