Small Business Assistance Program
WHAT IS THE SBA PROGRAM?
The Small Business Assistance Program (SBA) is designed to assist microenterprise and small business owners with prevention and preparation in response to the coronavirus pandemic. This program was created for small businesses based and operated in the City of Merced that have accrued financial hardship during 2020 & 2021 due to the purchase of PPE supplies and other materials to be able to adhere to COVID-19 safety guidelines. The funds for the SBA program were granted to the City of Merced via The United States Department of Housing and Urban Development’s (HUD), Community Development Block Grant (CDBG) Program and the Coronavirus Aid, Relief and Economic Security Act (CARES Act), together known as CDBG-CV.
This program will run on a first-come, first-reviewed basis; meaning that you need to have all documents needed for the application before you apply. Funding for this program is set so once the funding runs out, the program will close.
The MAX amount of funds available per applicant is $30,000!
WHAT ARE THESE FUNDS ELIGIBLE FOR?
The funds are for reimbursement of the following:
Purchase of materials or equipment needed to convert business activities to comply with social distancing guidelines
Purchase of safety supplies/materials for employees
Financial assistance for business stabilization due to COVID-19 related revenue shortfalls including business license fees, lease payments, and payroll payments
Assistance avoiding job loss caused by business closures related to social distancing
Assistance to expand microenterprises that provide medical, food delivery, cleaning, and other services to support home health and quarantine
WHAT ARE THESE FUNDS NOT ELIGIBLE FOR?
Examples of ineligible use of funds includes:
General government expenses and political activities
Religious activities
Purchase of construction equipment
Purchase of equipment, fixtures, motor vehicles, furnishings, or other personal properly that is not a permanent structural fixture.
**Additionally, the City of Merced will only fund Direct Costs. Direct Costs are those that have a direct and specific link to the eligible activity which can be readily identified.
**Applicants must be able to prove that SBA grant funds were used for the approved use.
Businesses that We’ve Helped!
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Cat's Beauty Supply
10 W Main St
Merced, CA
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Coffee Bandits
309 W Main St
Merced, CA
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Rodeway Inn
1001 Motel Dr
Merced, CA
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The Partisan
432 W Main St
Merced, CA
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Deli Delicious 34
570 W Olive Ave
Merced, CA
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Joe on the Go
2806 G St
Merced, CA
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Accelerated Performance Personal Training
828 W Main St
Meced, CA
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Linda's Fashion
6 W Main St
Merced, CA
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Kind Neighbor
1635 M St
Merced, CA
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USA Gardening
Description goes here -
Curves Merced
28 W Olive Ave
Merced, CA
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17th Street Public House
315 W Main St
Merced, CA
Are you and your business eligible?
WHAT QUALIFIES AS A MICROENTERPRISE BUSINESS? AND A SMALL BUSINESS?
Microenterprise Business: A for-profit Business with 1-5 employees (including the owner)
Small Business: A for-profit business with 6-20 employees (including the owner)
ARE YOU WITHIN THE LOW TO MODERATE INCOME LIMIT?
HUD’s CDBG regulations state that at least 70% of individuals benefitting from the program must be low and moderate-income persons.
We will be focusing directly on funding the low to moderate-income persons in the City of Merced.
*Please note that any business receiving SBA funding MUST be able to document that individuals or households served fall within the HUD income limits.
WHAT MUST YOU HAVE TO BE AN ELIGIBLE APPLICANT?
The maximum amount allowed to request: $30,000
Your business must have been in operation by March 2020. If your business begun its operation after March 2020 but before October 2021, you may still qualify.
Must be an active business located in the CITY limits of Merced (businesses in Merced County, unfortunately, do NOT qualify).
A valid business license from the City of Merced
All applicable business insurances must be valid and up to date
Valid and current federal/state tax ID numbers (if applicable)
Employees between 1-20 people (including the owner)
Proof of purchases and expenses that have a COVID tieback from March 2020 - October 2021.
Have had a valid Business Bank Account by March 2020
