City of Colfax Small Business Grant FAQs
About the City of Colfax Small Business Grant Program
Where does this money come from?
In response to the coronavirus (COVID-19) pandemic, small businesses and non-profit organizations in the City of Colfax can apply for a grant funded through the City of Colfax. This fund is available to provide economic relief to businesses and organizations that are currently experiencing a temporary loss of revenue due to the COVID-19. Grant funds can be used to cover a wide array of working capital and normal operating expenses, such as payroll, continuation of health care benefits, rent, utilities, and fixed debt payments.
How much funding is available through the Grant Program?
The grant program makes available $31,500 in the form of grants for small businesses and non-profit organizations. The grant program will be administered by Sierra Business Council.
What are the sizes of the awards?
Businesses may be eligible to receive up to $1000.
Will I need to pay the money back? Is this a grant program or a loan program?
This is a grant program, not a loan, so you will not need to pay the money back. The only exception is if you do not use all the funds, or if you do not use them in the manner stated on your application in accordance with the program guidelines.
What can funds be spent on?
The expenditures for which you are applying for grant assistance must be eligible as defined by U.S. Treasury guidelines and may not have been submitted for any other grant or loan program, including Placer Shares, Colfax CARES, Economic Injury Disaster Loans (EIDL), or Paycheck Protection Program (PPP). If funds from another grant or loan program do not cover all of a qualified expenditure, then you are eligible to receive additional funds for that expenditure.
Are funds allocated on a first-come, first-served basis for qualified applicants?
No. No applications will be considered until the application period has closed on Friday, January 19 at 6:00 PM PT.
Is the grant taxable?
Yes, these funds are considered taxable income.
ELIGIBILITY
How do I know if my business is eligible for funding?
Before applying, please take time to ensure your business or non-profit organization is eligible by reviewing the requirements below. There are separate requirements for businesses and nonprofits.
BUSINESS ELIGIBILITY REQUIREMENTS:
- Current and valid City of Colfax business license
- Physical location within City of Colfax limits and primary business conducted in the City
- In business on or before March 1, 2020
- 50 or fewer full-time equivalent (FTE) employees as ofMarch 1, 2020, excluding independent contractors
- Experienced economic injury or hardship due to California’s COVID-19 regional stay-at-home order or Blueprint for a Safer Economy
- Annual Gross Revenue for 2019 must have been between $15,000 and $2,000,000 (greater than or equal to $15,000 and less than or equal to $2,000,000)
- Annual Gross Revenue is also known as Gross Receipts or Sales. This is your total revenue before expenses. This is notyour income or net profit.
- If you are a sole proprietor, your Annual Gross Revenue for 2019 should be listed on line 1 of the Schedule C you normally file to report your business income for federal tax purposes.
- If your business was established on or after January 1, 2020 and before March 1, 2020, your projected Gross Revenue for 2020 must be within the designated range.
- For-profit business that is operating legally
- Viable and intending to continue operations following the COVID-19 pandemic.
- The expenditures for which you are applying for grant assistance must be eligible as defined by S. Treasury guidelinesand may not have been submitted for any other grant or loan program, including Placer Shares, Colfax CARES, Economic Injury Disaster Loans (EIDL), or Paycheck Protection Program (PPP). If funds from another grant or loan program do not cover all of a qualified expenditure, then you are eligible to receive additional funds for that expenditure.
- Not on the list of ineligible business types [link to Eligibility Requirements].
- Businesses that were awarded a City of Colfax Small Business Grant for the application window that closed January 8, 2021 are NOT eligible for this round of funding.
NON-PROFIT ELIGIBILITY REQUIREMENTS:
- Primary operations conducted within the City of Colfax limits
- Operating on or before March 1, 2020
- Experienced economic injury or hardship due to California’s COVID-19 regional stay-at-home order or Blueprint for a Safer Economy OR serving populations that have experienced economic injury or hardship due to California’s COVID-19 regional stay-at-home order or Blueprint for a Safer Economy
- Not-for-profit organization that is operating legally
- Viable and intending to continue operations following the COVID-19 pandemic.
- The expenditures for which you are applying for grant assistance must be eligible as defined by S. Treasury guidelinesand may not have been submitted for any other grant or loan program, including Placer Shares, Colfax CARES, Economic Injury Disaster Loans (EIDL), or Paycheck Protection Program (PPP). If funds from another grant or loan program do not cover all of a qualified expenditure, then you are eligible to receive additional funds for that expenditure.
What would make my business ineligible to apply for a grant?
Businesses that meet ANY of the following criteria are ineligible:
- Businesses with more than 50 employees.
- Businesses with less than $15,000 in gross revenue for 2019
- Businesses with more than $2 million in gross revenue for 2019.
- Any business or non-profit organization that was NOT operating as of March 1, 2020.
- Businesses that have applied for other grant or loan programs to cover the same expenditure. If another grant or loan program does not cover all of a qualified expenditure, then you may receive additional funds for that expenditure.
- Businesses that do not have a valid City of Colfax business license
- Businesses that are not physically located within City of Colfax limits
- Non-profit organizations that do not primarily operate within the City of Colfax
- Business included on the exclusion list of the US Small Business Administration 7A program and/or one of the following types of ineligible businesses:
- Real estate agents and independent brokers
- Independent vacation home businesses such as Airbnb or VRBO
- Cannabis growers or related businesses
- Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors (pawn shops, although engaged in lending, may qualify in some circumstances)
- Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or improved with the loan proceeds (except Eligible Passive Companies under §120.111)
- Life insurance companies
- Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify)
- Pyramid sale distribution plans and multi-level marketing businesses
- Businesses deriving more than one-third of gross annual revenue from legal gambling activities
- Businesses engaged in any illegal activity
- Private clubs and businesses which limit the number of memberships for reasons other than capacity
- Government-owned entities (except for businesses owned or controlled by a Native American tribe)
- Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether in a religious or secular setting
- Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans
- Businesses with a Principal who is incarcerated, on probation, on parole, or has ever been charged or convicted for a felony criminal offense
- Businesses in which the Lender or CDC, or any of its Associates owns an equity interest
- Businesses presenting live performances of a prurient sexual nature
- Businesses deriving directly or indirectly more than de minimis gross revenue through the sale of products or services, or the presentation of any depictions or displays, of a prurient sexual nature
- Unless waived by SBA for good cause, businesses that have previously defaulted on a Federal loan or Federally assisted financing, resulting in the Federal government or any of its agencies or Departments sustaining a loss in any of its programs, and businesses owned or controlled by an applicant or any of its Associates which previously owned, operated, or controlled a business which defaulted on a Federal loan (or guaranteed a loan which was defaulted) and caused the Federal government or any of its agencies or Departments to sustain a loss in any of its programs. For purposes of this section, a compromise agreement shall also be considered a loss
- Businesses primarily engaged in political or lobbying activities
- Speculative businesses (such as oil wildcatting)
Am I eligible if I received a Placer Shares or Colfax CARES grant?
If you received a Placers Shares or Colfax CARES grant, you are still eligible, but we reserve the right to prioritize applicants that have not yet received funding.
Do I have to be a U.S. citizen to apply?
No, you do not need to be a U.S. citizen to apply.
Do I need a bank account to apply?
No, you do not need a bank account to apply. If you are selected to receive funds, a check will be mailed to you at the address on your application.
I own/operate more than one business. Am I allowed to submit an application for each business I own if they meet the qualifications?
No, you may only apply one time even if you own, co-own, or operate multiple businesses. Only one business will be eligible.
APPLYING FOR THE GRANT
How do I apply?
You can apply online on this website. You can begin the application process at https://colfax-ca.gov/colfax-cares/.
When does the application open?
The application period opens on February 8, 2021 at noon (12pm) PT. This is NOT a “first come, first served” program, so you can complete your application at any time before the deadline. You can save your in-progress application, so it does not need to be completed in one sitting.
Please take your time to complete the application. Incomplete applications will not be accepted.
What’s the deadline to apply?
No applications will be accepted after the deadline of 6:00 PM Pacific Time on Friday, February 19, 2021. There will be no exceptions.
This is NOT a “first come first served” program, so you can complete your application any time before the deadline.
Does the application save once I have started it?
Your application will AUTOMATICALLY save once you start it. You can leave the application or close the browser at any point, and the application will be automatically saved when you return.
You can also click the “SAVE APPLICATION” button at the bottom of the form to see a summary of your in-progress application.
Do I have to fill out the application online? Can I submit my application via mail or in person?
All applications must be filled out online. No physical applications will be accepted. Applications can be filled out on a mobile phone.
I do not have a computer or don’t know how to use one, where can I go for assistance?
Please check the website for your local library to see if they can provide assistance. You can also apply with your mobile phone.
How can I get help with my application?
For assistance, please call (530) 582-5022.
Do applicants receive a confirmation that they submitted their application?
Yes, you will receive a confirmation email upon submission of your application.
ANSWERING APPLICATION QUESTIONS
How do I calculate my business’s gross revenue for 2019?
Your gross revenue should have been reported on your 2019 tax return - Line 1 of Schedule C. Gross revenue (or receipts) is calculated as the number of items sold multiplied by the price per item. Price is the sale price, not the cost to your business. In other words:
Items Sold x Price = Gross Revenue
Click here for more information on gross revenue.
What documentation will I need to submit my application?
For businesses, please upload the following THREE pieces of documentation to support your application and verify that your business is legitimate:
- A current and valid City of Colfax business license.
- REQUIRED tax form for grant award. Completing this form ensures that grant awards will be processed and mailed more quickly. Awards can not be disbursed without the W-9 and any application without a W-9 will be deemed incomplete. Please upload:
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- A completed W-9 form
- ID verification. To verify your identity, please upload:
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- A photo, screenshot, or scanned copy of a driver’s license, Real ID, passport, or other photo ID
For nonprofits, please upload the following THREE pieces of documentation.
- Current operating budget (budget vs. actual)
- REQUIRED tax form for grant award. Completing this form ensures that grant awards will be processed and mailed more quickly. Awards can not be disbursed without the W-9 and any application without a W-9 will be deemed incomplete. Please upload:
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- A completed W-9 form
- IRS determination letter
Why do I need to fill out a W-9?
Any grant you receive may be considered taxable income, and the City is required to report CARES Act funding information to the United States Treasury at the end of the year, which is done using W-9 forms. Filling out a W-9 now will help us send out checks more quickly to successful applicants. No funds will be disbursed without a W-9 and applications will be deemed incomplete without the W-9.
How do I upload the required documents?
When you get to the upload part of the application, you can search your device for the document you need, and then upload it.
Where can I get a copy of my business license?
Please contact the City to request a copy of your business license.
How do I identify which industry sector my business is in?
To help you, the application contains a dropdown list of business industries. Please select the option that best describes your business.
How can I prove my business or organization was in operation as of March 1, 2020?
You will need to attest that your business or nonprofit organization was in operation by clicking the box on the application. You can also submit your bank statement with the relevant dates and activity.
What if I have multiple locations for a single business, which address should I use?
Please select what you might consider the “primary” business or nonprofit location.
What if I accidentally made a mistake or entered incorrect information on my application?
You can save and edit your application until you submit it. You do not need to complete it all in one sitting. Please take your time on your application and do not submit it until you are sure it is complete and correct.
What do I do if I need a W-9?
You can click to fill out a blank W-9 Form in English or in Spanish.
SELECTION PROCESS
Who makes the decision about the status of my application?
Eligible businesses will be entered into a random lottery process that will select grant awardees.
After eligible businesses have been awarded funds, any leftover funds will be awarded to eligible non-profit organizations.
If my business is declined, may I reapply?
No, you may not reapply if your application is declined. Please make sure you complete the application accurately and completely. A decline will likely be for ineligibility or incomplete applications. Please see eligibility information above.
Are funds allocated on a first-come, first-served basis for qualified applicants?
No. All qualified applicants will be considered together once the application period is closed.
RECEIVING GRANT FUNDS
How will I be contacted or know if I will receive a grant?
You will be notified by email by approximately 3 weeks after the application closes. Checks will be mailed soon thereafter. Be sure to check your email regularly, including your spam folders. Emails to applicants will come from [email protected].
Will I be contacted if I do not receive a grant?
Yes, you will be notified by email whether or not you receive a grant.
If I am selected to receive a grant, how much money will I get?
Grants will be for $1000 for business with 1 - 50 full-time equivalent (FTE) employees
How will I receive funds?
A paper check will be sent to the mailing address on your application.
Am I required to set up a new bank account specifically for these funds?
No.
Will there be more grants available in the future?
At this point in time, no additional grant cycles are planned.
Is my small business taxed on this grant?
The City of Colfax and Sierra Business Council cannot provide tax advice to those who receive payments. The administrators recommend that claimants consult with personal tax advisors for any questions regarding tax liability for these payments. Any taxes associated with accepting or using the grant funds are the responsibility of the awardee.
USING GRANT FUNDING
If my business receives a grant, what can I use the money for? What can’t I use the money for?
Funds are intended to be used for expenses related to economic injury or hardship due to California’s COVID-19 regional stay-at-home order or Blueprint for a Safer Economy. The expenditures for which you are applying for grant assistance must be eligible as defined by U.S. Treasury guidelines and may not have been submitted for any other grant or loan program, including Placer Shares, Colfax CARES, Economic Injury Disaster Loans (EIDL), or Paycheck Protection Program (PPP). If funds from another grant or loan program do not cover all of a qualified expenditure, then you are eligible to receive additional funds for that expenditure.
Do I have to pay the money back, like a loan?
No. The funds you receive are a grant, not a loan, and do not need to be paid back.
OTHER QUESTIONS
My business is struggling, I need help. Where can I go?
You should contact the Sierra Small Business Development Center for free business counseling by sending an email to [email protected].