Starting and running a small business in California can be challenging. In the most populated state in the country, companies can face fierce competition in their industries, and the COVID-19 pandemic and recent economic challenges have put even more pressure on small business owners. Fortunately, there are a number of small business grants available in California for which business owners can apply.
A grant is an amount of money that is given for a specific purpose that you don't have to repay. Grants can come from private or public sources and can be given to new start-up companies or existing, established businesses. Some of the grants that businesses can apply for that are available in California are county specific, for California businesses only, or are available nationwide.
This article will cover some of the best grants available for small businesses in California, what you will need to do to apply for them, and where you can find more grant opportunities.
- What Do You Need to Apply for a Grant?
- County-Specific Small Business Grants in California
- California-Based Small Business Grants
- Additional Places Where You Can Find Small Business Grants
What Do You Need to Apply for a Grant?
You will have to provide certain documents or information that may differ depending on the grant. In addition, you will probably have to fill out a form that asks you certain questions. Having all of this information and documentation prepared ahead of time can be helpful. The documents and information you may need to apply for a grant include the following:
- Mission Statement
- Type Of Business Structure
- Business Model
- Detailed Business Plan
- Business Pitch
- Target Audience
- Financial Plan
- Detailed Budget
- Financial Statements
- Details Regarding Any Business Partners or Staff
Depending on the grants you apply for, you may or may not be asked to provide a written and well-detailed business plan. A good business plan will contain much of the information you will need to provide when applying for a grant, and, even if it's not required to apply, it can be beneficial to include your business plan when applying for a grant and can increase your chances of being awarded the grant. If you have not written a business plan yet, please view our guide, How to Create a Great Business Plan: A Complete Overview.
County-Specific Small Business Grants in California
Counties in California currently have grant programs with millions of dollars of funds designated to help small businesses in these challenging times. If your business is located in one of these counties and meets all of the requirements, you could be eligible to apply for a grant.
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Los Angeles County
Los Angeles County has created the County Fund for Los Angeles to help provide money for businesses affected by the impacts of COVID-19. The County Fund for Los Angeles is focusing on helping some of the most at-risk small companies and individuals through the following programs:
- Micro-grants for underserved communities to aid in economic recovery and support.
- Worker resiliency grants for those seeking employment.
- Grants for small businesses and non-profits to assist in reopening, including assistance from the Small Business Administration.
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Orange County
Orange County, California is another county offering to help support small companies struggling due to the economic conditions resulting from the Covid-19 pandemic. Orange County has micro-business grants available of roughly $2,500 for qualifying businesses.
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San Diego County
San Diego County is also offers assistance to qualifying businesses through small business grants.
California-Based Small Business Grants
The state of California is also offering grants to help small businesses. If your business is located in the state of California and meets all of the necessary qualifications, you could apply for one of the following grants:
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EmployABILITY Business Grant
The EmployABILITY Business Grant is for small to medium-sized California-based businesses. The grant was created to help business owners grow their businesses, upgrade their hiring processes, and generate more employment opportunities for people who have disabilities. The amount of the grants rewarded ranges from $20,000-$200,000 and depends on the grant funding's availability and the type of impact the business can make in offering employment opportunities to those with disabilities.
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California Paid Family Leave Small Business Grant
The California Paid Family Leave Small Business Grant awards funds to California-based small businesses whose employees have used the state's Paid Family Leave program to attend to family matters. Small businesses that have spent money training employees to cover for staff who used Paid Family Leave are eligible for this grant to help offset these training costs. Companies with no more than 50 employees can receive up to $2,000 for each eligible employee. Companies with no more than 100 employees can receive $1,000 for each eligible employee.
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California Nonprofit Performing Arts Grant Program
The California Nonprofit Performing Arts Grant Program provides grant money to qualifying non-profit performing arts organizations to help promote workforce development. Grant applicants must meet specific criteria, and funds can only be used for the following purposes:
- Employee-related expenses, such as payroll, employee healthcare benefits, paid leave, and insurance premiums
- Costs related to using a centralized payroll service
- Human resource expenses, including recruiting, training, and development
- Equipment for employees or other operating costs
Additional Places Where You Can Find Small Business Grants
Looking for small business grants can be a surprisingly complicated task. While you can find some grants by conducting a basic search online, other grants will require a bit more digging in order to uncover them. Fortunately, there are a number of resources that allow you to search for grants and see if you are eligible to apply more easily, which include the following:
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Grants.gov
Grants.gov allows you to easily search for grants offered by the U.S. federal government. There are multiple resources on the website, including the Grants Learning Center, which provides information on the ins and outs of grants and how to apply for them.
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Small Business Development Centers (SBDC)
The U.S. Small Business Administration administers the Small Business Development Centers Program, and its mission is to help promote the growth of small businesses, entrepreneurship, and the U.S. economy. The program is made up of a network of Small Business Development Centers across the country that offer support in virtually every area of business, including helping business owners find and apply for grants.
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USDA Rural Development
USDA Rural Development is an agency within the USDA that focuses on developing the economies of rural regions of the United States. The program offers training and technical assistance for small businesses in rural areas. Additionally, USDA Rural Development provides grants to help create employment opportunities, develop local economies and vital community services like water, electrical, and communication infrastructure, as well as housing, healthcare, and emergency response services and equipment. If you live in rural California, this is a great agency to get in contact with to help develop your small business or rural community.
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SCORE.org
SCORE is a non-profit organization and resource partner with the U.S. Small Business Administration. It operates as an extensive network of experienced business mentors that help small business owners start and grow their companies. They have a library of online resources to help entrepreneurs reach their business goals, including material on how to search for and apply for grants, as well as information on available grants. SCORE business mentors can also advise you on which grants you may be eligible for and how to apply for them. SCORE's mentors are volunteers, so the non-profit organization is able to provide most of its services for free, making it a valuable resource for small business owners.
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The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs are two programs from the U.S. Small Business Administration that small California-based businesses involved in research and development (R&D) in the tech industry can utilize to their benefit. The SBIR and STTR programs offer government grants and contracts to small technology-based businesses. The programs aim to advance scientific achievement and technological innovation by designating federal research funding into essential areas of concern for various agencies of the United States government while also developing the country's economy. With these programs, the U.S. government wants to expand its R&D and continue to be a leader in technology while drawing upon the private sector to help fulfill this advancement. This helps small businesses and the U.S. economy while the government achieves its R&D and technological goals. The SBIR and STTR programs are great for California-based tech start-ups, as typical investors are hesitant to invest in early research and development of technologies. If your company is involved in conducting research and development in the tech industry, it could be eligible to apply for grants or government contracts through the SBIR and STTR programs.
Different government agencies participate in the two programs and consider R&D proposals from qualifying tech businesses. Among these government agencies are NASA, the Department of Defense, the Department of Homeland Security, the Department of Transportation, the Department of Energy, the Environmental Protection Agency, the United States Department of Agriculture, and the National Science Foundation. Generally speaking, through grants, the SBIR/STTR can supply the funds needed for small businesses to run their own research and development projects for technologies the company is developing that the federal government may be interested in. Alternatively, securing an R&D government contract through SBIR/STTR can supply companies with a more specified end goal that a government agency desires regarding a government technology. This would be detailed in the contract. But these government contracts will still allow small tech-based businesses opportunities to innovate while contracting with the government.
In a state like California, where the tech industry is massive but expensive to get into while also being highly competitive, these government grants and contracts can help get tech start-ups off the ground. If your business is involved in an area relevant to one of these governmental agencies, your business could be eligible for SBIR/STTR grants or contracts.
Are You Planning on Starting a Small Business in California?
Are you planning on starting a small business in California? If so, InCorp can help with our business entity formation services. We can help you choose and form the correct business structure for your specific company, such as an LLC or corporation. If you plan on applying for business grants, creating a legally recognized business entity beforehand can be beneficial. By creating your business entity before applying for grants, you can show that you are a serious applicant dedicated to your idea, thus increasing your chances of being awarded the grant and putting you one step ahead of other applicants. Additionally, some grants may require that you have an existing business entity in order to apply.
InCorp also offers registered agent services within the state of California, and our business entity management system and iOS app can help business owners manage their business entities, staying on top of important due dates and allowing easy access to important documents. Contact us today to get the process started in creating your new business!