California COVID Paid Leave Relief Grant Program

COVID-19 Supplemental Paid Sick Leave

California Governor Gavin Newson signed Assembly Bill 152 on September 29, 2022, extending the 2022 COVID-19 supplemental paid sick leave (CA SPSL) law to expire on December 31, 2022. The original expiration date for CA SPSL was September 30, 2022.

Click here for a previous Risk Strategies article discussing the CA SPSL law in more depth.

CA SPSL Relief Grant Program

Assembly Bill 152 also created and funded a CA SPSL relief grant program for certain small businesses and nonprofits that provided CA SPSL to employees between January 1, 2022, and December 31, 2022.

These qualifying organizations are now able to apply for a relief grant of up to $50,000 to offset the costs incurred for providing CA SPSL through the California Small Business and Nonprofit COVID-19 Supplemental Paid Sick Leave Relief Grant Program. Click here for the portal to apply now.

Eligible Employers

A qualified small business or nonprofit must meet the following conditions outlined below to be eligible to receive this relief grant:

1. A small business must be a "C" corporation, "S" corporation, cooperative, limited liability company, partnership, or limited partnership.
2. A nonprofit must be a registered 501(c)(3), 501(c)(6), or 501(c)(19).
3. Must be currently active and operating and began operations before June 1, 2021.
4. Had 26 to 49 employees between January 1, 2021, and December 31, 2022 (proof must be submitted with an attestation and payroll data).
5. Provided CA SPSL in accordance with the requirements.
6. Have a physical presence in California.
7. Must have an owner — or in the case of a nonprofit, an officer — identified as the authorized signer on the application that is at least 18 years of age
8. Must be able to provide an acceptable form of identity verification through an acceptable government-issued photo ID.

Required Documents

The following documents are required to be submitted with the CA SPLS relief grant application:

1. Applicant certifications
2. Official filing with the California Secretary of State (which must be active) or local municipality, as applicable, including the following:
   • Articles of Incorporation
   • Certificate of Organization
   • Fictitious Business Name filing
   • Professional license
   • Government-issued business license or permit.
3. Proof of revenue: 2020 or 2021 Filed Federal Business Tax Return (Complete and Unaltered)
   • For-profit businesses: 2020 or 2021 IRS Form 1040, 1065, 1120, or 1120-S
   • Nonprofit organizations: 2020 or 2021 IRS Form 990, 990-N, or 990-Z)
4. Proof of employee count: 2021 and 2022 IRS Form W-3 (to verify employee count between January 1, 2021 and December 31, 2022)
5. Acceptable government-issued photo ID
6. Proof of employee count and CA SPSL costs incurred: 2021 and 2022 payroll records
7. Valid bank account linked via Plaid^[1]
8. Proof of IRS tax-exempt status (required for nonprofit organizations only): copy of IRS 501(c)(3), 501(c)(6), & 501(c)(19) exemption determination letter.

Employer Next Steps

CA SPSL relief grant program funds are limited and will be awarded based on eligibility and availability of funds.

If your organization meets the qualifications outlined above, take action now by applying here. The application window for the program will close on June 28, 2023, at 11:59:59 p.m. PDT.

Risk Strategies is here to help. Contact us directly at benefits@risk-strategies.com.

[1] If an applicant does not have an online banking setup, or their bank account cannot be verified through Plaid, the applicant is required to submit the two (2) most recent months of bank statements with transaction history.