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City Launches CARES Grant Programs

Press Release

Press Release - City Launches Grant Programs to Help Small Businesses and Nonprofits Battered by COVID-19 Pandemic

Posted: 08/14/2020

To care for those who support our community and its economy, the Elk Grove City Council approved the launch of two grant programs on August 12 that will provide funding assistance to Elk Grove businesses and non-profit organizations who have experienced financial hardship due to the COVID-19 pandemic and associated shutdowns.

“This is something that the community has asked for and it’s clearly very needed right now,” said Elk Grove Mayor Steve Ly.

Elk Grove is due to receive $2.1 Million in Federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding from the State of California. As part of the adopted budget approved on July 22, the City Council allocated $750,000 for small business grants and $200,000 for nonprofit grants. An application process and eligibility criteria have been developed for both grant programs.

CARES Nonprofit Grant Program

Nonprofit organizations that primarily serve Elk Grove residents or businesses and that  have experienced increased demand for their services or canceled events due to the pandemic could qualify for grants from $3,000 up to $25,000. Nonprofits with 501c(3) and 501c(6) tax-exempt status and the ability to meet minimum insurance requirements must demonstrate that they suffered negative financial impacts directly related to the COVID-19 pandemic and are offering or plan to offer a program that will impact Elk Grove residents. Recipients of previous funding through the City’s CARES Act Community Development Block Grant (CDBG-CV) allocation are not eligible for these funds.

Details on program guidelines, eligibility, and an online application are now available on the city’s website at www.elkgrovecity.org/caresgrants. Organizations have until August 28 to submit their funding requests. Questions regarding this program can be emailed to caresgrants@elkgrovecity.org

The COVID-19 Small Business Recovery Grant Program

Small businesses with 20 employees (FTEs) or less and annual revenue of less than $3 million who have been negatively impacted by COVID-19, but remain open or plan to reopen, may be eligible for grants of up to $25,000. Funds can be used for general business operations such as payroll expenses, supplier payments, rent, lease of mortgage payments for business real or personal property, or personal protective equipment (PPE) and/or sanitation supplies and equipment.

Twenty-five percent of funds will be granted to businesses with one to two FTEs, 25% to businesses with three to 10 FTEs, and 50% to businesses with 11 to 20 FTEs. Business owners generally count as employees and part-time employees can be converted to FTEs.

A one-week online application period will open on August 24. Details on the program guidelines, eligibility, and the online application are available on the city’s website at www.elkgrovecity.org/covid19biz. Businesses will have until August 30 to submit their applications. Due to the limited amount of funds available, not all eligible businesses will receive a grant. Questions regarding the program can be emailed to econdev@elkgrovecity.org

The Capital Region Small Business Development Center (SBDC) is available to provide assistance to businesses who need help calculating their employee numbers, revenues, and filling out the application. SBDC contact information is available on the website.

As a condition of funding, both grant programs will require recipients to spend the funding awarded to them by December 30, 2020.

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