L.A. City Small Business Rental Assistance Program, round 2 opens on July 11, 2022

L.A. City Small Business Rental Assistance Program, round 2 opens on July 11, 2022

updated 28 June 2022


Round Two for this grant program will open on July 11, 2022


Applicants to the Small Business Rental Assistance Program struggling to make back-due rent payments can receive no-cost financial counseling and targeted support from MMI Financial Consulting Services. Let the experts at MMI help you find solutions and save money through a free, confidential review.



The Small Business Rental Assistance Grant Program will provide grants of $2,500 up to $15,000 to eligible businesses that need financial assistance to aid in their recovery from the COVID-19 pandemic. Businesses must be located within the City of Los Angeles and use the grants to cover some or all of any outstanding location rental fees.

Businesses not selected for Round 1 are ineligible to apply for Round 2.

The Small Business Rental Assistance Grant is funded through the American Rescue Plan Act (ARPA) allocation to the City of Los Angeles. EWDD’s BusinessSource Centers (BSC) have qualified business counselors available to provide guidance and assist with review of eligibility, documents, and the application.

Applicants to the Small Business Rental Assistance Program struggling to make back-due rent payments can receive no-cost financial counseling and targeted support from MMI Financial Consulting Services. Let the experts at MMI help you find solutions and save money through a free, confidential review.





Eligibility and Funding



  • Eligibility Requirements

    To be eligible to apply for the Rental Assistance Grant Program, a business must demonstrate the need for financial support due to the impact of the COVID-19 pandemic and meet the following criteria:

    • Businesses not selected for Round 1 are ineligible to apply for Round 2
    • Must be a for-profit business and located within Los Angeles City boundaries
    • Must be operating from a commercial location(home-based businesses are not eligible)
    • Must have an active Business Tax Registration Certificate (BTRC) with the City of Los Angeles that is current and in good standing
    • Must have actively been in business on or before March 1, 2020
    • Annual revenue cannot exceed $5 million
    • Must identify the negative economic impact resulting from COVID-19 and must be able to demonstrate that the grant funds will be used for recovery from the pandemic
    • Must be in good standing with the Secretary of State, if applicable
    • Sublease rental arrangements do not qualify for this program
  • Eligible Uses of Funds

    The grant may only be used for rent payments that are in arrears that were incurred on or after March 1, 2020.

    The following is a list of business expenses that are not covered by the Grant. This is not an exhaustive list. If the applicant is not sure if the intended use of funds is eligible, the applicant must contact a BusinessSource Center representative for assistance.

    • Taxes (business, personal income, property, etc.)
    • Construction or tenant improvements
    • Operating expenses, other than unpaid rent
    • Late Fees or interest charges assessed by the landlord
    • Personal use of any kind
  • Ineligible Businesses

    This list is not exhaustive. EWDD staff will provide guidance If an applicant is unsure whether their business falls under an eligible or ineligible category.

    • Businesses not selected for Round 1 are ineligible to apply for Round 2
    • Home-based businesses
    • Non-profit organizations
    • Sublease rental arrangements
    • Businesses that were not in operation prior to March 1, 2020
    • Landlords/Schedule E Passive Income
    • Businesses or companies held in trust
    • Businesses that do not have a physical location, using P.O. Boxes as a business address
    • Businesses engaged in illegal activities, such as selling drug paraphernalia or operating a motel that permits illegal prostitution
    • Cannabis businesses or businesses that support cannabis businesses
    • Corporate-owned franchises (a corporation is responsible for operations, profit and loss, business decisions and quality control; corporate hires and oversees all store staff)
    • Publicly traded companies
    • Private social clubs that limit the number of memberships for reasons other than capacity
    • Payday loan stores, pawnshops and other firms involved in lending activities, such as banks, finance companies and any other firm whose stock in trade is money
    • Insurance companies, such as life, auto, home, bail bonds and other similar entities
    • Astrology, palm reading, tarot, etc.
    • Liquor stores and smoke shops
    • Night clubs
    • Adult bookstores
    • Businesses and/or Sole proprietors that provide massage services
    • Businesses that present live performances of a prurient sexual nature and/or derive revenue through the sale of products or services of a prurient sexual nature
    • Gambling businesses (i.e., track waging facilities, casinos, bingo parlors)
    • Trailer-storage yards and junkyards
    • Gun or ammunition stores
    • Multi-sales distribution
    • Firms involved in speculative activities (i.e., day trading, stock market exchange facilitators)
    • Dealers of rare coins and stamps
    • Lobbying firms or businesses that dedicate 50% or more of their time or resources in lobbying activities
    • Churches or other religious organizations
    • Government offices or agencies
    • Other businesses that may be deemed ineligible by EWDD, based on information obtained by the applicant

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Application & Process



EWDD’s BusinessSource Centers are prepared to provide technical assistance to applicants to collect all required documentation. This documentation will be used to verify the businesses meet program eligibility requirements, terms and conditions as provided in these guidelines. The Rental Assistance Grant Program application process includes three main steps:

STEP 1:   Applicants interested in the program will complete the online application that is included below. Read the questions carefully before providing a response!

STEP 2:   After the Online Application period closes on Friday, May 6th, applications will be reviewed by City Of Los Angeles staff to ensure the applying business has a Business Tax Registration Certificate (BTRC) that is in good-standing. Businesses that do not have a BTRC in good-standing are not eligible to move forward in the process.

STEP 3:   Applications that pass the City’s BTRC verification will be forwarded to Community Reinvestment Fund (CRF), the City’s processing partner, for documentation collection and further eligibility validation. CRF will contact Applicant’s via email to start the eligibility process.

During the eligibility verification process, Applicants will be asked to submit the following documents:
  • 2019 and 2020 Business Tax Returns
  • 2019 or 2020 Individual Tax Return (SSN verification)
  • Color Copy of Government Issued ID (i.e. Driver License)
  • Voided Check from Business Account
  • Lease Agreement for Business Property
  • Proof of Previous Rent Payment
  • Statement of Account or Monthly Invoices
Applicants passing the eligibility check will be asked to electronically sign (via DocuSign) the documents listed below prior to receiving their grant award:
  • LA Rental Assistance Grant Agreement for Business
  • IRS Form W-9
  • ACH Authorization Form

Application:
The application period for Round Two opens at 10:00am (PT) on July 11, 2022.


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Frequently Asked Questions



The City of Los Angeles allocated American Rescue Plan Act (ARPA) funds to provide rental assistance grants up to $15,000 to eligible small businesses in need of economic support due to the COVID-19 pandemic. These are the most common questions about the program.




    • Will there be additional documentation required?
      If you are selected to receive a grant, you will be required to provide a voided check to verify your business account information to enable the City to transfer the grant funds to the proper account.
    • Why do you need a voided check?
      If you are selected to receive a grant, you will be required to provide a voided check to verify your business account information to enable the City to transfer the grant funds to the proper account.


    • What are eligible expenses?
      The only eligible use of grant funds under this program is unpaid rent that is past due. Reimbursement of rent payments already made is not allowable.
    • What are ineligible expenses?
      The following is a non-exhaustive list of ineligible expenses:

      • Any personal uses
      • Any costs for business interruptions or business closures covered by any previous small business grant funds provided by the City of Los Angeles, County of Los Angeles, State and/or Federal Programs
      • Costs or uses to carry on propaganda, to attempt to influence legislation, or to participate in, intervene in, or attempt to influence the outcome of political campaigns or elections
      • Damages covered by insurance
      • Reimbursement to donors for donated items or services
      • Workforce bonuses other than hazard pay or overtime
      • Severance pay
      • Legal settlements
      • Property Taxes
      • Any additional use that is deemed by the U.S. Department of Treasury to be ineligible
    • We have been funding eligible expenses as owner capital contributions out of our savings. Can we reimburse some of that?
      Reimbursement of rent payments already made is not allowable.



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Technical Assistance



If your business requires assistance contact your local BusinessSource Center for support with the application process, eligibility, and submission. BusinessSource Centers have qualified business counselors available to provide guidance and assist with review of eligibility documents and the application.

Applicants to the Small Business Rental Assistance Program struggling to make back-due rent payments and trying to get their financial recovery back on track can receive no-cost financial counseling and targeted support from MMI Financial Consulting Services. Let the nonprofit experts at MMI help you find solutions and save money through a free, confidential review.
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