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1. Are grants issued on first-come, first-served basis?

No, applications will not be prioritized in any way. All applications          submitted within the two-day filing window of 9 a.m. on Monday, June 22         to noon on Wednesday, June 24 will be entered into the lottery.

2. How does the lottery process work?

As soon as the application window closes at noon on June 22, all applications will be placed into a pool and 64 will be randomly drawn.

3. How will I know if my application was selected in the lottery?

A team of City staff members will promptly call all business owners whose       applications were drawn. It should be noted, however, that being      selected in the lottery does not guarantee that a grant will be issued to           the applicant. City staff will verify the eligibility of each application and    contact the business owners if additional documents are needed.

4. Will the grant be issued all at once or on a reimbursement basis?

Once approved, business owners will be provided grant funds in one lump sum. Proof of payment for eligible expenses will need to be submitted to the City on a quarterly basis or until all grant funds have been spent.

5. What can I spend grant funds on?

Grant funds must be used to cover essential operating expenses (e.g.rent, utilities and payroll) or costs related to reopening safely such the purchase of personal protective equipment (e.g. masks, gloves, aprons or gowns, goggles and face shields) or products or materials to assist with infection prevention and physical distancing (e.g. plexi-glass guards, signage and floor markers)

6. Do I have to repay the grant?

No. The grant does not have to be repaid, however, any funds not spent within one year of receipt must be returned to the City.

7. Why are home-based businesses not eligible to apply?

To maximize the impact of the limited funds available, at this time the Business Recovery Program grant is only open to businesses that were   required to close or reduce operations under the Governor’s and County Public Health Department orders. Home-based business owners perform activities from their own homes and therefore are not heavily dependent on in-person services or transactions nor do they have to pay rent, utility, wages, and other related expenses associated with maintaining a physical storefront and having a workforce.

8. Do I need to pay taxes on the grant?

Because the tax status and circumstances are unique to each business, grant recipients should consult their tax professionals to determine what, if any, tax obligations will result from receiving this grant.

9. Is there a maximum number of employees I can have to qualify for this grant?

Yes, you must employ a minimum of one employee and no more than 25 full-time or full-time equivalent employees. The phrase full-time equivalent refers to a combination of part-time employees whose combined hours are the equivalent of a full-time position. For example, two employees who each work 20 hours per week are equal to one full-time worker.

10. Grant eligibility requires at least one of my employees hold a low-or moderate income job. What does this mean?

A low-to-moderate job is one that pays a salary less or equal than 80 percent of the low-moderate median household income as defined by the federal Community Development Block Grant (CDBG) program. This depends on the number of persons in the employee’s household. For a  single individual, the low to moderate income level is at or below $63,100 annually; 80 percent of this amount is $50,480. For maximum income limits for households of more than one person, refer to the 2020 CDBG income guidelines for Los Angeles County, see Business Recovery Program policy for income details.

11. Who do I contact if I have questions?

For questions about the grant program application or eligibility, email businessgrant@diamondbarca.gov or call (909) 348-8360.