The California Microbusiness COVID-19 Relief Grant Program is a one-time $50 million grant program that will provide $2,500 grants to eligible microbusinesses in California. The funding must all be expended by November 30, 2022. Contra Costa businesses are allocated $1,454,492.29 under the State's formula. Eligible businesses have $50,000 or less in annual revenue, were in operation in 2019, and have 5 or fewer employees; for example, pop-up retail and food vendors are good candidates although funding is available to any business that matches the size parameters. The State issued a Request for Proposals from eligible entities to manage the county-level allocations with responses due March 10.
The County is not geared up to administer this type of program itself, but has been approached by one eligible fiscal agent, the Chabot-Las Positas Community College District (District), which is putting together a consortium application. Due to the time constraints in getting these funds to eligible business owners, staff recommends sending a letter of support to the State delegating the County's allocation to the District, which will then be responsible for administering the program in Contra Costa County. The contractual relationship would be between the District and the State, and the County would not be a party to the contract. The Department of Conservation and Development will prepare the letter of support (draft attached) for the Director’s signature, pending approval of this item.
In preliminary discussions with District staff, County economic development staff has emphasized the need to partner with local-serving small business organizations to help market the program and solicit applications from eligible businesses. If this is approved, the District may use up to 20% of the award ($290,898.46) for administrative costs and has indicated willingness to use those funds for marketing support in Contra Costa County. With awards of $2,500 per business, this program could fund 465 microenterprises. Infrastructure will be in place to market across all socio-economic groups in Contra Costa County with the intent of total grant dollars being disbursed to the microbusinesses. The District will market the program, vet recipients, disburse grants, and provide reporting to the State and Contra Costa County's Department of Conservation and Development.
The District is also working with Alameda County to act as its agent to administer the Program in that jurisdiction, along with six more counties. Chabot-Las Positas Community College District’s Economic Development and Contract Education Department has been serving as a Fiscal Agent since 2012 and has managed approximately $250 million in fiscal agreements annually focused on education, child welfare, community outreach and diversity.
If this item is not approved, eligible businesses in Contra Costa County would lose out on individual awards of $2,500, and up to $1.454 million total.