Some good news for small California employers and non-profits that paid Supplemental Paid Sick Leave (SPSL) in 2022. Small businesses may apply for grants up to $50,000 to reimburse them for sums paid for COVID-19 related paid sick leave. The Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program has limited availability that will be awarded on a first-come, first-serve basis. A tiered system based on the total amount that an employer paid in COVID paid sick leave in 2022 will determine eligibility.
Eligible businesses must:
- Have begun operating before June 1, 2021;
- Be currently operating and active;
- Employ between 26 and 49 employees; and
- Be registered as a “C” or “S” corporation, an LLC, partnership, limited partnership, or a 501(c)(3), 501(c)(6), or 501(c)(19).
Financial institutions, political lobbying groups, and entities operating outside of California are not eligible for relief.
To receive reimbursement, an employer must document costs paid for employees’ COVID-19 SPSL incurred between January 1, 2022 and December 31, 2022. In addition to payroll records, employers will need to submit a signed affidavit attesting to employee count, organizing documents, such as tax returns, Form 990s, and official filings with the Secretary of State. The SPSL grant program is being administered by the Office of the Small Business Advocate through a lender named “Lendistry.” Lendistry is hosting informational webinars throughout June regarding eligibility requirements, documentation, and to provide guidance on how to successfully complete an application. The application portal opened on June 1st, 2023, so eligible employers should complete applications in short order.
