CDBG Economic Development Grant Program

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COVID-19 Related - Small Business Relief Funds (Low Income) 

PROGRAM OVERVIEW

The City of Newport Beach has partnered with the Small Business Development Center (SBDC) to develop an Economic Development Grant Program to assist small businesses in Newport Beach that have been negatively affected by the COVID-19 pandemic.  Funding for this grant program is provided under the federal stimulus package approved in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act through the U.S. Department of Housing and Urban Development’s (HUD) Community Development Block Grant (CDBG) Program.

Businesses with 30 or fewer employees, may be eligible to receive a working capital grant of up to $10,000 to assist with job retention.  The grant may be used for business operating expenses such as rent/lease payments, payroll, utility expenses, etc.

Please carefully review the eligibility requirements below, as successful applicants must:

  1. Submit complete applications before the deadline;
  2. Provide documentation that they meet the eligibility requirements and terms and conditions;
  3. Explain how the grant monies would be used toward necessary COVID-19 related business expenses; and
  4. After the funds have been issued, provide documentation demonstrating that the grant funding was used toward those expenses.

ELIGIBILITY

  • The business must be a for profit business physically located in Newport Beach;
  • The business owner(s) and/or officer(s) of the company must reside in Orange County;
  • The business must be located in a commercial or industrial space;
  • The business must have an active Newport Beach business license for a minimum of six (6) months;
  • The business must have paid their business improvement district assessments (or be current and in good standing on a payment plan);
  • The business must have thirty or fewer full-time (or an equivalent combination of full-time and part-time) employees, including the owner;
  • The business has or will obtain a Data Universal Numbering System (DUNS) Number if a grant is awarded (can be obtained at http://fedgov.dnb.com/webform);
  • The business must disclose as of the date of the application whether they have received funding or capital through alternative sources and how the funds were used (e.g. Economic Injury Disaster Loan (EIDL) or Payroll Protection Program (PPP)  Loan, or City of Newport Beach Small Business Emergency Relief Grant Program); 
  • The business must prove their business has been negatively affected by COVID-19;
  • The business must submit the application and all required supporting documents; and
  • The business must be in good standing and not have any outstanding municipal code violations.

HUD ELIGIBILITY

In addition to the above, the business applicant must meet HUD's CDBG eligibility requirements:

  • The business owner’s current household income is at or below 80% of the Orange County median income, adjusted for household size; or
  • The business intends to retain at least one full-time equivalent, permanent low- and moderate-income job, of which 51% of its employees are low- and moderate-income, full-time or equivalent employees.  

MAXIMUM Household – GROSS Income Limits as of July 1, 2020

1 person

2 person

3 person

4 person

5 person

6 person

7 person

8 person

$71,750

$82,000

$92,250

$102,450

$110,650

$118,850

$127,050

$135,250

Gross Income includes: All gross income (before any deductions) for persons 18 years of age and older including but not limited to, wages, bonuses, unemployment, social security, pensions, disability, child support, alimony, asset income from retirement accounts, checking accounts, savings account, CDs, stocks, bonds, etc.

 

GRANT AMOUNTS

Applicants are eligible to receive a grant of up to $10,000 according to the following:

  • Businesses with 5 or fewer employees are eligible for a grant up to $5,000.
  • Businesses with 6-10 employees are eligible for a grant up to $7,500.
  • Businesses with 11-30 employees are eligible for a grant up to $10,000.

ADDITIONAL INFORMATION

                                             

HOW TO APPLY

  

 Click Here!

 

 APPLICATIONS WILL BE ACCEPTED FROM

Friday, August 14, 2020 at 9 a.m.

to

Friday, August 28, 2020 at 5 p.m.

 [the application will go live when the application period begins]

DOCUMENTATION REQUIREMENTS

The application will be reviewed by SBDC to determine application completeness and preliminary eligibility. If the application meets the criteria for preliminary eligibility, applicants will be asked to submit all required documentation. 

The following documents must be submitted for consideration of a grant request: 

  • Complete grant application and all of its attachments
  • Active City of Newport Beach Business License at least 6 months prior to the date of application
  • 2019 business and personal tax returns (all pages), or 2018 if 2019 has not been filed;
  • Monthly profit and loss statements, covering the period from November 2019 through July 31, 2020
  • For seasonal businesses, monthly profit and loss statements, covering the period from March 2019 through August 2020
  • Copy of lease/grant deed demonstrating proof of commercial/industrial business address
    • if lease, documents must show the name of lessee and lease term
    • for grant deed, documentation must show the name of the property owner
  • Employee self-certifications of household income, if qualifying employees as low/moderate income or Business owner self-certification of household income, if qualifying as low/moderate business owner
  • Documentation supporting proposed use of grant funds

Additional documentation may be required to verify eligibility, if required by the City after reviewing the documents listed above. Additional documents may include, but are not limited to:

  • Bank statements for most recent seven months (January 2020 through July 31, 2020)
  • Forms DE9 - EDD Quarterly Contribution Return and Report of Wages for the quarters ending December 31, 2019, March 31, 2020, and June 30, 2020
  • List of employees currently on payroll (full and part time, including owner)
  • Completed IRS 4506-T for business owner and employees to verify submitted federal income tax returns
  • Documentation supporting economic impact that has resulted from COVID-19 (details of economic impact, i.e., revenue loss, reduction in employee hours, layoffs, furloughs, modified business hours, etc.)

Although selection is not guaranteed, businesses should begin to collect the required documentation in order to expedite the approval process in the event they are selected.

All documentation must be submitted by September 30, 2020, at 5 p.m. 

 

 If you have questions about the CDBG Economic Development Grant Program, please contact:

 Community Development Department
949-644-3200
economicdevelopment@newportbeachca.gov

 

 For assistance in completing the grant application and/or to set up a one-on-one consultation (at no cost), please contact: 

 Small Business Development Center 
1-800-616-7232
midaniel@fullerton.edu