California has about 4.2 million small business owners who can apply for small business grants. Submitting an application and competing for small business grants in California can help you grow your small or medium-sized enterprise in the Golden State.
California’s economy has a gross domestic product of $4 trillion as of the 3rd quarter of 2023. That’s the largest GDP in the United States out of the 50 states and the District of Columbia. Small businesses contribute to the nation’s economy.
Small and medium-size firms exported about $69.1 billion worth of goods from California per year, second in the nation to Texas ($147.8 billion), according to the most recent U.S. Census Bureau export data.
Below we highlight some of the top small business grants in California that you can explore.
Key Points
• Small business grants in California are available from federal, state, and local government agencies, as well as private organizations and nonprofits. They generally do not need to be repaid.
• Eligibility varies by grant but often includes factors like business size, industry, location, and the purpose of the funding. Be sure to review specific requirements for each grant.
• Typical application requirements include a detailed business plan, financial statements, tax returns, proof of ownership, and a project proposal outlining how the grant funds will be used.
• In addition to grants, small business owners in California can get funding through small business loans, crowdfunding, peer-to-peer lending, and more.
California Small Business Grants
If you’re looking for small business grants in California, here are some potential options to consider:
Replacing, Removing, or Upgrading Underground Storage Tanks (RUST) Grants
• Program description: California RUST grants provide eligible small business underground storage tank owners and operators with financing of up to 100% of the costs necessary to upgrade, remove, or replace project tanks to comply with the Golden State’s health and safety regulations.
• Incentive: Receive between $3,000 and $70,000 to replace, remove, or upgrade your small business underground storage tank infrastructure. This financing can cover up to 100% of the costs necessary to undertake a RUST project.
• General requirements: Here are some of the general requirements for this grant:
◦ Be the owner or operator of an underground storage tank
◦ Employ fewer than 20 full-time and part-time employees as an independent small business owner
◦ Have principal offices and company officers domiciled in California
◦ The facility where your project tank is located legally sold gasoline after January 1999 as a fuel retailer
◦ You’ve sold less than 1.5 million gallons of gasoline annually for each of the two years preceding the submission of your grant application
◦ Be in compliance with state health and safety codes
• How to apply: You can submit an application through the California State Water Resources Control Board’s Financial Assistance Application Submittal Tool (FAAST) system.
California Civil Money Penalty (CMP) Nursing Home Grants
• Program description: California’s skilled nursing home facilities can apply for CMP communicative technology grants to purchase tablets and tablet-related accessories. Eligible nursing homes can also apply for CMP reinvestment project grants to cover expenses related to improving the quality of care or quality of life for long-term care facility residents.
• Incentive: Receive funding for nursing home reinvestment projects. (There is no stated limit to the amount of funds you can request for reinvestment projects that improve the quality of life for residents in skilled nursing facilities.) You can generally request up to $3,000 to buy tablets for telehealth and virtual family visits.
• General requirements: You may qualify for these grants if you operate a certified skilled nursing facility (SNF) in California.
• How to apply: Access the application forms online and submit a completed application to the California Department of Public Health.
California Small Agricultural Business Drought and Flood Relief Grants
• Program description: California Small Agricultural Business Drought and Flood Relief can provide grants to eligible small agricultural businesses in California that have been financially impacted by severe drought or flooding.
• Incentive: Receive up to $100K if you’re a qualified small agricultural business owner impacted financially by flooding or drought.
• General requirements: Here are some of the general requirements for these grants:
◦ Operate a small agricultural business domiciled in California
◦ Have 100 or fewer full-time employees
◦ Have conducted business in California prior to January 2020
◦ Your business is currently active and operating
◦ Storm flooding or severe drought has affected your business financially
• How to apply: You can apply through California’s drought and flood relief grant portal. Take note that annual application deadlines are typically early in the year.
California Department of Food and Agriculture (CDFA) Grants
• Program description: The California Department of Food and Agriculture offers a variety of small business grant programs through its Office of Farm to Fork.
• Incentive: Eligible small businesses can request funding for key initiatives, such as funding to buy energy-efficient refrigeration and freezer equipment under the annual Healthy Refrigeration Grant Program.
• General requirements: Requirements can vary by grant, but you’ll generally need to operate a qualified small business in California in an urban area or low-food access area to be eligible for one of these grants.
• How to apply: Apply online for any open CDFA Office of Farm to Fork grant opportunities.
EmployABILITY Business Grant
• Program description: Small business owners in California can use this grant to hire, train, and accommodate individuals with neurodevelopmental conditions or physical disabilities.
• Incentive: Receive $20K to $200K to support the hiring and training of neurodiverse employees or individuals with physical disabilities.
• General requirements: Be a California small or medium-sized business owner and commit to hiring and employing individuals with disabilities to qualify for this grant.
• How to apply: Visit EmployABILITY California if you’re interested in applying.
National Grant Options for California Businesses
California businesses have access to a wide array of national grant options that can provide essential funding to support growth, innovation, and sustainability. These grants, offered by federal agencies, non-profit organizations, and private entities, cater to diverse business needs and sectors.
1. FedEx Small Business Grant Contest:
• Description: The FedEx Small Business Grant Contest awards grants to small businesses across the United States. Winners receive significant funding, along with access to FedEx services and resources.
• Benefits: Grants up to $50,000, plus FedEx print and business services credits.
• Eligibility: Open to U.S.-based small businesses with fewer than 99 employees.
2. Comcast RISE Investment Fund:
• Description: Comcast RISE offers grants, marketing consultations, media placements, and creative production services to small businesses owned by people of color.
• Benefits: Grants of up to $10,000, along with marketing and technology resources.
• Eligibility: Open to businesses owned by people of color in the U.S.
3. National Institute of Standards and Technology (NIST) Grants:
• Description: NIST provides grants to support small businesses in developing and commercializing innovative technologies.
• Benefits: Funding for research and development, technology transfer, and commercialization efforts.
• Eligibility: Open to U.S. small businesses engaged in technology innovation.
How the Grants Application Process Works
Applying for a grant can be a valuable way for businesses to secure funding without the need for repayment. While the process may vary depending on the grant provider, there are general steps and required documents that most applications will follow.
1. Researching Grants: The first step is identifying suitable grant opportunities. This involves researching various grants available from government agencies, non-profit organizations, and private entities. Pay attention to eligibility criteria, application deadlines, and the specific goals of each grant to ensure they align with your business needs and objectives.
2. Preparing Documentation: Gathering necessary documents is crucial. Commonly required documents include:
• Business Plan: A comprehensive plan outlining your business goals, strategies, market analysis, and financial projections.
• Financial Statements: Recent balance sheets, income statements, and cash flow statements to demonstrate the financial health of your business.
• Tax Returns: Personal and business tax returns from the past few years.
• Proof of Ownership: Documentation proving ownership of the business.
• Letters of Recommendation: Endorsements from business partners, clients, or community leaders.
• Project Proposal: A detailed description of the project or purpose for which the grant is being sought, including timelines and expected outcomes.
3. Writing the Grant Proposal: A well-written grant proposal is key to a successful application. It should clearly articulate the need for funding, how the funds will be used, and the anticipated impact on the business. Tailor each proposal to address the specific requirements and objectives of the grant program.
4. Submitting the Application: Follow the grant provider’s submission guidelines meticulously. This may involve filling out online forms, mailing physical documents, or submitting via email. Ensure all required fields are completed and documents are included.
5. Follow-Up: After submission, follow up with the grant provider to confirm receipt of your application. Be prepared to provide additional information or clarification if requested.
By understanding and carefully navigating the grant application process, businesses can increase their chances of securing valuable funding to support their growth and innovation.
Do You Have to Pay Back a Small Business Grant?
A small business grant typically comes with terms and conditions, and you may be responsible for paying back the grant if you violate those terms. In general, small and midsized business owners are not required to pay back a small business grant absent any violations.
You typically have to sign a funding agreement to accept a small business grant. As mentioned above, the grant may come with certain conditions. Using the grant for an illegitimate purpose may violate the agreement and require business owners to pay back the grant.
Small business grants may require you to spend the money by a certain date. You may also have to provide proof of payment and a written statement detailing how you’ve spent the grant.
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Who Is Eligible for Small Business Grants in California?
Local business owners or operators of an enterprise with fewer than 500 employees may be eligible for small business grants in California.
The U.S. Small Business Administration’s Office of Advocacy generally defines a small business as an independent business having fewer than 500 employees. A small business, including individuals with freelancing business ideas, may be eligible for small business grants.
Who Provides Small Business Grants in California?
State government agencies, including the California Department of Rehabilitation, offer a variety of small business grants in California.
You can compare small business grants in California with similar programs in other states, such as:
• Florida small business grants
• Indiana small business grants
• New York small business grants
California Resources for Small Business Owners Looking for Funding
Here are some resources for small and medium-sized businesses looking for funding in the Golden State:
California Small Business Development Center (SBDC)
The California SBDC is a statewide program that can provide California’s small business owners with the following services:
• Confidential advising
• Connecting tech entrepreneurs with venture capital
• Interactive training sessions
SBA District Offices in California
The U.S. Small Business Administration (SBA) is a federal agency that provides resources and support to small business owners. The SBA has six district offices in California:
• SBA Fresno District Office. This SBA district serves California’s San Joaquin Valley and Central Coast. It’s centrally located in Fresno.
• SBA Los Angeles District Office. This SBA district serves three counties in southeastern California (Los Angeles, Santa Barbara, and Ventura). It’s located in Los Angeles.
• SBA Orange County / Inland Empire District Office. This SBA district serves three southern California counties (Orange, San Bernardino, and Riverside). Depending on where you’re based, you can contact the main office in Santa Ana or the branch office in Palm Desert.
• SBA Sacramento District Office. This SBA district serves 21 counties in northeastern California. It’s centrally located in Citrus Heights.
• SBA San Diego District Office. This SBA district serves the southernmost counties in California (San Diego and Imperial). It’s based in San Diego.
• SBA San Francisco District Office. This SBA district serves 14 counties in northern California, including south of the Bay Area in Santa Cruz and along the Oregon border in Del Norte. It’s based in San Francisco.
Alternative Funding Sources for Small Businesses in California
Here are some alternative funding sources for small businesses in California:
California State Small Business Credit Initiative (SSBCI)
California’s SSBCI is a federally funded program for small business owners in the Golden State. Federal law — the American Rescue Plan Act of 2021 — allocates nearly $1.2 billion to California’s State Small Business Credit Initiative program.
Here’s how California plans to use the SSBCI funding:
• California Collateral Support Program — $472.8 million. This program provides cash collateral to help small businesses qualify for small business loans.
• California Small Business Loan Guarantee Program — $391 million. This program helps California small business owners access funding, including financing for startup costs, construction, inventory, working capital, and business expansion.
• California Capital Access Program (CalCAP) — $118.2 million. This program, also known as CalCAP for Small Business, uses SSBCI matching funds to support portfolio insurance on small business loans.
• Inclusive California Initiative — $100 million. This program helps provide venture capital funding to California small businesses owned by socially and economically disadvantaged individuals.
• Emerging California Initiative — $50 million. This program provides venture capital funding to underrepresented managers and fund managers who intend to invest in small businesses owned by socially and economically disadvantaged individuals.
• California Co-investment Initiative — $50 million. This program will help provide venture capital funding to eligible businesses, including those owned by underrepresented individuals or based in underserved regions of California.
California Microloan Lenders
Community-based nonprofits may offer microloans of up to $50,000 to small business owners in California, including microloans for women-owned small businesses. In general, microloans can range from $500 to $50,000 and may be available to startups.
California Small Business Loans from Private Lenders
Banks, credit unions, and private lenders may offer different types of small business loans to California business owners.
Here are some of the funding products you may consider depending on your needs:
• Commercial real estate loans
• Equipment financing
• Small business loans for startups
• Working capital lines of credit
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Find Small Business Financing With SoFi
Small businesses are eligible for a number of grants in California, ranging from state or local governments to private sources.
The Takeaway
Small businesses are eligible for a number of grants in California, ranging from state or local governments to private sources.
If you’re seeking financing for your business, SoFi can help. On SoFi’s marketplace, you can shop top providers today to access the capital you need. Find a personalized business financing option today in minutes.
FAQ
How do you get a small business grant in California?
How do you get a small business grant in California?
You can apply for California small business grants, but there’s no guarantee you’ll get approved for one. You may have to submit a grant application as a qualified small business owner to be considered for a small business grant in California.
How hard is it to get a business loan in California?
You may have difficulty getting a small business loan in California if you have bad credit or insufficient business experience. You generally have to pay back business loans with interest.
What is the easiest SBA loan to get approved for?
There’s no guarantee you’ll get approved for any SBA loan, but SBA microloans may be one of the easier ones to get if you’re a new business owner. Startups may be eligible for SBA microloans of up to $50K. If you’re looking for a streamlined application process, SBA Express working capital loans are an option you may consider.
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