La Palma

City of La Palma Emergency Relief Small Business Grant Program

The City of La Palma has created a Small Business Emergency Grant Program, which will provide funding to small businesses needing financial assistance in overcoming the temporary loss of revenue due to the COVID-19 outbreak. The program is based on the availability of funds, program guidelines and submission of all required information and supporting documentation.  Small businesses with no more than 25 employees (full-time equivalent) may be eligible to receive a grant of seven thousand five hundred dollars ($7,500). The grant may be used for working capital to cover the day-to-day business operating expenses such as payroll, rent/lease payments, mortgage payments, utility expenses, inventory, Personal Protection Equipment (PPE) or other similar expenses that occur in the ordinary course of operations.

The application period will open on Wednesday, July 8, 2020, 8:00 a.m. until Monday, July 13, 2020 at 5:00 p.m.
For more information about the program visit the City of La Palma:


To be eligible to apply for the Small Business Emergency Grant Program, a business must meet certain criteria that has been established by the City of La Palma and both the CARES Act and the U.S. Department of Treasury for activities utilizing 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 can be a for-profit or a non-profit;
  • The business must be a business physically located in La Palma;
  • The business must be located in a commercial/industrial space;
  • The business must have an active La Palma business license for a minimum of six
  • (6) months;
  • The business must not have more than 25 employees (full-time equivalent), including the business owners;
  • The business must be in good standing with the City (current on bills, no liens or judgments, etc.), unless directly correlated to COVID-19 impacts;
  • A business that received access to capital through alternative sources (e.g. Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) Loan) is eligible to apply;
  • The business must submit the application and all required supporting documentation; and
  • The business applicant must provide proof of financial hardship causing business interruption due to COVID-19 in one of the following ways:
    • The business has been deemed non-essential and has been forced to shut down by the state or local government;
    • Sales from the business are down more than 25% compared to the previous three months (Prior to February 15, 2020);
    • The business has had to lay off at least one of its employees (full- or part-time employee); or
    • One or more of the employees in the business have contracted COVID-19, while at work.
  • City employees and elected and appointed officials are not eligible to participate in this program. 

Eligible Activities

The purpose of this grant is to help businesses recover and plan to re-open their doors successfully. 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 payroll (employees not already supported by PPP,) rent or mortgage expense, utilities, inventory, PPE, or insurance 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.

Ineligible Businesses

  • Public entities
  • Home-based businesses are not eligible for grant funding
  • Publicly traded/franchise businesses
  • Businesses with less than 2 employees
  • Businesses with more than 25 employees
  • New/Startup Businesses (with less than six month of operating history as of June 1, 2020)
  • Residential or real estate projects including short-term rental operators
  • Adult-entertainment related businesses
  • Gambling businesses
  • Cannabis/Cannabis-related