Small to medium sized California employers who employed between 26 and 49 employees between January 1, 2021 and December 31, 2022 and non-profits that paid Supplemental Paid Sick Leave in 2022 may apply for grants up to $50,000 to reimburse them for sums paid for COVID-19 related paid sick leave.
The “California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program” will provide relief on a first-come, first-serve basis. Eligibility will be based on the total amount that the employer paid in COVID paid sick leave in 2022.
From experienced California employment attorney Lisa Sherman, here’s what California employers need to know about these grants.
Which California businesses are eligible for these grants?
Eligible California based businesses must meet the following criteria:
- Operating since before June 1, 2021;
- Currently operating and active;
- Employed between 26 and 49 employees between January 1, 2021 and December 31, 2022; and
- Are registered as a “C” or “S” corporation, an LLC, partnership, limited partnership, or a 501(c)(3), 501(c)(6), or 501(c)(19).
Financial institutions, political lobbying groups, and entities operating outside of California are ineligible for relief under this program.
How to apply for COVID paid sick leave grants
To receive reimbursement, an employer must do the following:
- Document costs paid for employees’ COVID-19 supplemental paid sick leave incurred between January 1, 2022 and December 31, 2022,
- Submit payroll data, and a signed affidavit attesting to employee count, organizing documents, such as tax returns, Form 990s, and official filings with the Secretary of State.
- 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 and identity verification.
Applicants with multiple usiness entities, franchises, locations etc are not eligible for multiple grants and are only allowed to apply once.
The grant program is being administered by the Office of the Small Business Advocate through a lender named “Lendistry.” Lendistry is hosting informational webinars throughout June regarding eligibility requirements, documentation, and to provide guidance on how to successfully complete an application. The application portal opened on June 1st, 2023, so eligible employers should complete applications immediately.
Contact Lisa Sherman today
For additional information or wish to seek employment counsel, please contact Lisa Sherman for a free consultation at (323)488-2087 or at Lisa@sherm-law.com.
