LOS ANGELES – The LA County Employer Assistance Grant Fund will be launched Wednesday, April 8, providing a total of $500,000 to local businesses. Individual businesses may be awarded up to $10,000 based on demonstrated need. Approximately 25% of awards will be reserved for social enterprises that demonstrate a need and ability to serve vulnerable populations.
Applications will be processed on a first-come first-served basis, and will close once 150 applications are received.
A webinar to guide businesses on the application process will be held Tuesday, April 7, at 1:30 p.m.: webinar link
The application site will open at 8 a.m. Wednesday, April 8: workforce.lacounty.gov
“The coronavirus pandemic has impacted residents and businesses throughout Los Angeles County,” said Supervisor Kathryn Barger. “It is vitally important that we pursue every resource available to support local business and help maintain good job opportunities throughout the region.“
“The Employer Assistance Grant Fund will provide some of our local businesses with desperately needed capital at a critical time, allowing them to retain workers and remain in business. We are proud that the LA County Employer Assistance Grant Fund is the first of its kind to be offered in the State of California,” said Otto Solorzano, Acting Director of WDACS.
In order to qualify to apply for the Employer Assistance Grant Fund, the business must:
- Be a for-profit corporation, partnership, or non-profit with a for-profit activity in Los Angeles County. Social enterprises and non-profit (501(c)3) firms qualify. Application review priority will be given to businesses in the unincorporated areas of LA County.
- Have between two and 50 full-time employees. (Note: Applicants that serve high barrier and/or vulnerable populations may exclude transitional employees from this count).
- Have less than $2,000,000 in gross receipts or annual revenue.
- Demonstrate significant economic hardship as a result of COVID-19. (Businesses that have demonstrated evidence of a loss of revenue of at least 20% will have met the burden of demonstrating significant economic hardship).
- Have been established at least one quarter prior to March 4, 2020 (on or before December 4, 2019).
- Be able to produce tax returns.
Funding is not guaranteed. Factors that will be considered when determining grant awards will include (1) impact of the COVID-19 crisis; (2) best use/highest impact; (3) years in business operation; (4) number of employees impacted; and (5) ability to leverage alternate funds. Compliance with the grant will be monitored for three years.
Grant funding may be used for the following:
- Mortgage payments
- Bridge funding to other lending or financial resources (e.g. SBA Payroll Protection)
- Working capital costs
- Utility expenses
- Other debt obligations incurred before the covered period
Funds cannot be used to satisfy any outstanding tax liens, legal judgements, any lobbying activities, employee payroll, or fringe benefit expenses.
For more information, visit the Los Angeles County Department of Workforce Development online at: https://workforce.lacounty.gov/
[Information via news release from Los Angeles County.]