Tustin

Small Business Emergency Grant Program Phase II

This application is now closed.


The City of Tustin 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. This second phase of funding expands the eligibility criteria to allow for-profit businesses which have previously received alternative sources of funding such as the Economic Injury Disaster Loan (EIDL) or Paycheck Protection Program (PPP) Loan to participate as well as allows businesses not located within a commercial or industrial space (e.g. home-based businesses.) to participate.

The program is based on the availability of funds, program guidelines and submission of all required information and supporting documentation.  Small businesses with twenty-five (25) or less employees (full or full-time equivalent combination) may be eligible to receive a working capital grant of up to ten thousand dollars ($10,000). Home-based businesses may be eligible to receive a grant of up to two thousand, five hundred dollars ($2,500) and will be limited to no more than twenty percent (20%) of the eligible Phase II grant recipients.  The grant may be used for working capital to cover the day-to-day business operating expenses such as rent/lease payments, mortgage payments, utility expenses, inventory, Personal Protection Equipment (PPE) or other similar expenses that occur in the ordinary course of operations.

For more information from the City of Tustin and to review the complete grant guidelines visit: tustinca.org/businessgrant.

Applications must be submitted online and will be accepted from Tuesday, July 28, 2020 at 9:00 a.m. to Tuesday, August 4, 2020 at 5:00 p.m. Applications received online after this due date and time will be considered late and will not be accepted.

ELIGIBILITY

To be eligible to apply for the Phase II Small Business Emergency Grant Program, a business must meet certain criteria that has been established by the City of Tustin 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 must be a for-profit business and physically located in Tustin, businesses not located within a commercial or industrial space (e.g. home-based businesses.) will be limited to no more than twenty percent (20%) of grant recipients and a maximum grant amount of two thousand, five hundred dollars ($2,500);
  • Residential or real estate projects including short-term rental operators are not eligible;
  • The business must have an active Tustin business license for a minimum of six (6) months;
  • As of July 28, 2020, the business must have had any combination of a total of twenty-five (25) or fewer full or full-time equivalent employees (two part-time employees equal one full-time employee), including the owner;
  • 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 certify that it did not receive funding from the previous Tustin Small Business Emergency Grant program;
  • The business must disclose whether or not it has received funding from the Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL).  If the business has received PPP or EIDL funds, it is still eligible to receive City grant funds; however, priority will be given to applicants that have not received funding through these programs;
  • 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:
  1. The business has been deemed non-essential and has been forced to shut down by the state or local government;
  2. Revenues from the business are down more than 25% for the quarter ending June 30, 2020 compared to a prior comparable quarter;
  3. The business has had to lay off at least one of its employees (full- or part-time employee) since March 1, 2020;
  4. 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

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, 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.

The U.S. Department of Treasury has issued guidance on the use of funds and 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)    Payroll or benefits expenses for employees whose work duties are not substantially dedicated to mitigating or responding to the COVID-19 public health emergency.

(3)    Expenses that have been or will be reimbursed under any federal program, such as the reimbursement by the federal government pursuant to the CARES Act of contributions by States to State unemployment funds.

(4)    Reimbursement to donors for donated items or services.

(5)    Workforce bonuses other than hazard pay or overtime.

(6)    Severance pay.

(7)    Legal settlements.