Is your Business Eligible to Apply?

To be eligible, your business must:

• Have a current City of Ontario Business License and permit.
• Have an established business that has been operating in Ontario prior to January 31, 2020.
• Be independently owned with fewer than 25 employees including the owners.
• Be an existing Private For-Profit business located in the City of Ontario.
• Be able to demonstrate adverse impacts from the COVID-19 pandemic.
• Hire or retain at least one full-time equivalent low-and moderate-income (LMI) position (40 hours per week).

Business Eligibility Checklist

Before applying, each applicant must confirm the following statements are true for their business:

• My business is a commercial property located in the City of Ontario.
• I have an existing lease or mortgage on the property where my business is located and operated, and I can provide a copy of the current lease agreement or mortgage statement. 
• My business has been in operation in the City of Ontario since prior to January 31, 2020. 
• My business has 25 or fewer employees, including myself.
• My business is a restaurant or defined as a “non-essential” business under the Safer at Home restrictions, including but not limited to bars, bowling alleys, beauty salons and barbershops; retail stores; nail salons; gyms and fitness centers, and See list on following pages for ineligible business types.
• My business does not have any existing, non-resolved code violations as identified in a formal notice from the City of Ontario.
• (For businesses with 6 – 25 employees) At least 51% of employees are of low-moderate income (below 80%AMI). Total the income of each employees’ household income using the eligibility chart Business owner may be included to determine total low- moderate income employees.
• (For businesses with 5 or fewer employees) I can show that I have a total household income at or below 80% of the Area Minimum Income using the eligibility chart below.

Maximum Income Limits per Household

• My business has not received any Federal COVID-19 Pandemic Funding (PPP, EIDL, SBA Relief Program, CARES Act unemployment benefit) at the time of applying during the first 30 days.
• I can show that my business creates or retains the equivalent of at least one full time employee (40 hours/week).
• I can provide evidence that my business was impacted by COVID-19 (25% or more loss in revenue) through a hardship statement.
• I can provide a Business License confirming the business address is in the City of Ontario.

LOAN TERMS

Approved businesses will be required to execute a Loan Agreement with the City.  The SBS program offers $10,000 as a 0%, one-year forgivable loan to Ontario businesses with documented coronavirus related financial hardship for working capital, i.e., capital that can be used for day-to day operating expenses to respond to the impacts of COVID-19.

Examples of what SBS funds may be used for include:

• Employee payroll – 51% of your employees (employers may include themselves), must qualify as low-moderate See chart below for income eligibility.

• Business Rent;
• Employee sick time payroll;
• Day to Day expenses (to continue operations);
• Outstanding Business Expenses; or
• Adaptive business practices (needed to remain open during the pandemic).

For the first 30 days that applications are open, only businesses who have yet to receive any Pandemic related Federal (PPP, EIDL, SBA Relief Program, CARES Act unemployment benefit) assistance will be eligible.  After that time applications will be accepted for businesses who have received $50,000 or less in Federal assistance.

REPORTING

Following the execution of a SBS agreement and disbursement of funds, loan recipients shall provide, on no less than a quarterly basis, the following:

• A report demonstrating precisely what the loan funds were used for;
• The number of employees on payroll during that preceding quarter; and
• A summary of business operational status

RECORD KEEPING

• The City of Ontario shall maintain adequate records of services and payments to persons served by this program in sufficient detail to demonstrate compliance with the policies and procedures of the program. These records shall be retained for at least 5 years.
• Financial and client records are confidential regarding their use as public information; however, the information may be provided to another city, state, or federal agency if required to provide information or prevent duplication of payments.

REQUIRED DOCUMENTATION:

The City of Ontario reserves the right to request documents to confirm program eligibility. The following documentation must be provided to staff for your application to be deemed complete:

• Proof of Financial Stability – Applicants must document they have had regular, ongoing income prior to the start of the COVID-19 pandemic and had profitable business operations for the most recent available tax year (2019).
• Payroll Records – Applicant will need to provide payroll records documenting the number of employees working in the business.
• Copy of current City of Ontario Business License
• Lease Agreement or Mortgage Statement for Commercial Space
• Government Issued Identification
  • All business owners with a 20% or greater ownership interest must submit a copy of a government issued Examples include:
    • Driver’s License with a photograph
    • State Identification card with a photograph
    • Immigration and Naturalization Service Documents – must contain a photograph
    • Military Identification with a photograph
    • Alien Registration Card with a photograph
    • Valid passport
    • Citizenship papers with photograph

**Once documents submitted to staff are verified, in order to receive loan funds, applicants must submit the following completed documents.  Failure to submit the Confirmation Documents will result in termination of the Application:

• W-9 Form
• Signed Loan Agreement