Small Business Relief Program
UPDATE - THIS PROGRAM HAS BEEN EXTENDED AND APPLICATIONS WILL BE ACCEPTED THROUGH FRIDAY, JULY 10TH AT 5:00 PM
In the face of COVID-19, City leaders know that many local small businesses are struggling. A strong business community fosters strong employees and strong communities. In an effort to help support our local small businesses and our community, the City of Gilroy has established a grant program to support small businesses in these trying times. Businesses operating within the city limits of Gilroy may qualify for a one-time business relief grant using federal Coronavirus Aid, Relief, and Economic Security (CARES) Act funding.
Grants are based on the number of full-time equivalent employees as of March 16, 2020 (when the Santa Clara County Health Officer issued the initial Shelter-In-Place order):
Maximum Grant Award: $5,000 for businesses with 2-10 employees (70%, up to 61 grants) $10,000 for businesses with 11-25 employees (30% up to 13 grants)
Allowed Use of Funds: Used for working capital (rent, payroll, utilities, inventory, etc.)
Application Period: June 25, 2020 at 8:00 a.m. to July 10, 2020 at 5:00 p.m.
GRANT APPLICATIONS will be available on the City’s webpage, beginning on June 18, 2020: http://www.cityofgilroy.org/843/Small-Business-Relief-Program
COMPLETED APPLICATIONS will be accepted via online or drop-off, starting June 25, 2020. The application period will close on July 10, 2020 at 5:00 p.m. No applications will be accepted after 5:00 p.m. on July 10, 2020.
Online: Grant applications must be e-mailed directly to Relief.Program@cityofgilroy.org
Drop-Off: Alternatively, grant applications may be left inside the "Small Business Relief Program Drop Box". The application must be placed in a sealed envelope. The Drop Box will be located at City Hall, 7351 Rosanna Street Gilroy, CA 95020. Look for a black box outside the double doors next to the Recreation Department (closest to the Library).
ALL ELIGIBLE APPLICANTS ARE ENCOURAGED TO APPLY. For business owners with multiple businesses, they may only apply for funding assistance for one business or business location.
Qualified applicants must be able to meet all of the following criteria:
- Operate a permanent physical commercial storefront (open to the public) location within the City of Gilroy;
- Have a valid City of Gilroy business license at the location for at least one year;
- Be a for-profit business in good standing (e.g. no outstanding code violations or compliance orders, etc.);
- Be a business that is not otherwise prohibited or restricted in the City;
- Have at least 6 months remaining on current lease;
- Have between 2 and 25 full-time equivalent (FTE) employees on payroll at the time of the initial Santa Clara County Shelter-In- Place order was issued on March 16, 2020;
- Demonstrate that at least 51% employees are low-moderate income**;
- Generate less than $5 million in annual gross receipts; and
- Demonstrate a financial burden resulting from COVID-19.
**Low-Moderate Income is defined as 80% or below the Area Median Income (AMI), by household size:
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Applications received during the application period will be ranked in accordance with certain evaluation criteria. In a tie-breaker situation, priority will be given based on the length of time a business has operated in the City (as evidenced by a valid City business license).
The following criteria will be used to establish a ranking of eligible applications. Each criterion is worth one (1) point:
- Non-Essential Designation: Business in an industry designated as non-essential based on the County’s extended Shelter-In-Place order. This includes dine-in restaurants).
- Job Creation/Preservation: Business has laid off employee(s) or will lay off imminently.
- Other Funding: Business has applied for other financial assistance, such as Paycheck Protection Program (PPP) or SBA Economic Injury Disaster Loan (EIDL).
- NRSA Location: Business is located within the City’s Neighborhood Revitalization Strategy Area (see map below).
Verification and Grant Award Process
All applicants will be required to verify application eligibility and evaluation criteria to finalize the grant agreement. Should any applicant not be able to provide necessary documentation for verification, they will be removed from the list and will not be considered further.
Required documents for verification may include (as applicable) copies of:
- W-2 or payroll schedule
- Current W-9
- Current City of Gilroy business license
- Photo Identification
- 2019 Profit & Loss/Income Statement
- Current Lease Agreement or Deed of Trust
- Partnership Agreement
- Articles of Incorporation
Required forms that may need to be completed for verification may include (as applicable):
- Household Income Verification
- Presumed Benefit Business Report
Should grant funding be exhausted, remaining applicants will remain on the waitlist. If more funding becomes available, the City may utilize the waitlist for continuation of the Small Business Relief Program.