Longtime business owners within the city of Los Angeles who are still reeling from the COVID-19 pandemic’s effects can now apply for grants of up to $20,000 aimed at helping them overcome their challenges.
The Legacy Business Recovery Grant Program uses funding from the federal American Rescue Plan Act, a 2021 law that offered direct relief to individuals and small businesses affected by the pandemic.
The grants — $10,000 for eligible businesses with five or fewer employees, and $20,000 for eligible businesses with six or more — can be spent on qualified COVID-19 recovery business expenses.
The program is an ongoing initiative to support legacy businesses, which the city defines as small businesses that have been operational for 20 or more years, according to a news release.
The program began accepting applications Monday, and the deadline to submit an application with the required documentation is Sept. 15.
If the number of qualifying applications received exceeds the amount of grant funding available, recipients will be chosen by the city’s Economic and Workforce Development Department according to the program’s funding priorities (see below).
Grants will be dispersed in October and November.
Who is eligible for the grant?
Eligible businesses must be listed on the city’s Legacy Business Registry and participate in the Legacy Business Program. To apply to be listed, call the Economic and Workforce Development Department at (213) 744-7300.
The business must be a for-profit one in Los Angeles and it must operate from a commercial, industrial or manufacturing location. Home-based businesses can’t receive grants.
To be eligible, a business’ annual revenue can’t exceed $3 million and the business must be in good standing with the California secretary of State.
The business also must disclose whether it has received funding from other federal, state, or local sources, including the Paycheck Protection Program, which provided forgivable loans from the U.S. Treasury Department. Applicants who have received funding are still eligible, provided that the funds are not currently being spent on the same expenses that would be covered by the Legacy Business Recovery Grant.
Ineligible businesses include publicly traded companies, cannabis businesses and corporate-owned franchises. For a complete list of ineligible business categories, check the Legacy Business Program website.
Some applications take priority
When considering a business owner’s application, the city said, the Economic and Workforce Development Department will prioritize applications from businesses in low- and moderate-income communities as well as the businesses of low- and moderate-income owners, as defined by the U.S. Department of Housing and Urban Development.
“Low income” is defined as 50% of the area median income, and “moderate income” is 80% of the area median.
The department will also give priority to businesses facing an imminent threat of displacement.
What you’ll need to apply
The city requires applicants to submit certain forms of proof to verify that their businesses are eligible for aid.
Required documents include:
- 2021 and 2022 tax returns;
- Payroll tax forms to verify the number of employees;
- A copy of a government-issued identification, such as a driver’s license or passport;
- The three most recent monthly bank statements;
- If applicable, documentation showing imminent threat of displacement.
Additional documents may be requested if necessary to verify that the business is eligible.
What can the grants be used for?
Applicants must agree to spend the grants on only certain business expenses, including:
- Employee payroll;
- Rent, utilities and insurance;
- Payment of outstanding business expenses incurred on or after March 3, 2021;
- Legal fees to negotiate long-term lease agreement.
More information about the grant program is available by calling the Economic and Workforce Development Department.