To be eligible to apply for the Tustin Small Business Recovery Grant Program, a business must meet certain criteria that has been established by the City of Tustin and the guidelines set forth by the U.S. Department of Treasury for utilizing ARPA funds. The business must also demonstrate the need for financial support resulting from the temporary loss of revenue due to the impact of COVID-19.

General Terms and Conditions

• The business applicant must meet the following minimum requirements to be considered for grant funding:
• The business must be a for-profit business and physically located in Tustin;
• The business must be located in a commercial or industrial space;
• Residential or real estate projects including short-term rental operators are not eligible;
• The business must have an active Tustin business license since January 1, 2019;
• As of July 1, 2021, the business must have at least one employee – not including the owner- and no more than twenty-five (25) full-time equivalent employees (two part-time employees equal one full-time employee);
• The business must be in good standing with the City (current on bills, no liens or judgements, etc.), unless directly correlated to COVID-19 impacts;
• The business must submit the application and all required supporting documentation; and
• The business applicant must be able to document that it experienced financial hardship causing business interruption due to COVID-19. For example, total revenue from the 2020 calendar year was down in comparison to revenue from the 2019 calendar year.
• The amount requested ($10,000) cannot exceed the amount of lost revenue.

* City employees and elected and appointed officials are not eligible to participate in this program

Eligible activities for the use of funds should be used to cover fixed expenses for the business. The primary fixed expenses include such items as rent or mortgage expense, utilities, inventory, payroll and benefit costs, PPE, or other operational expenses for the business. Applicants will fill out a use of funds section of the application form that will breakdown how the funds will be spent within their business. Each applicant will need to sign and verify that the use of funds will be spent on business expenses, such as those expressed above. Any use of funding other than that to support the business is strictly prohibited.

Eligible expenses are considered necessary expenditures that provide economic support in connection with the COVID-19 public health emergency and they were incurred during the period that begins on March 3, 2021 and ends on December 31, 2021. In the event a business does not expend the funds in the manner consistent with the “Spending Plan” as outlined in the application or does not expend the entire grant amount, the business will be required to submit a report to the City no later than January 31, 2022, identifying how the funds were spent. If there is a remaining balance, the business will be required to return the funds to the City by January 31, 2022.

The following is a nonexclusive list of expenditures that shall not constitute Eligible Expenses payable from the grant amount:

1. Damages covered by insurance.
2. Expenses that have been or will be reimbursed or recovered through other funding programs, such as the reimbursement by the federal government pursuant to the CARES Act or contributions by States to State unemployment funds.
3. Reimbursement to donors for donated items or services.
4. Workforce bonuses other than hazard pay or overtime.
5. Severance pay.
6. Legal expenses or settlements.