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!

  • Accelerated Performance Personal Training

  • Cat's Beauty Supply

    10 W Main St

  • Coffee Bandits

    309 W Main St

  • Curves Merced

    28 W Olive Ave

  • Deli Delicious 34

    570 W Olive Ave

  • Joe on the Go

    2806 G St

  • Kind Neighbor

    1635 M St

    Merced, CA

  • Linda's Fashion

    6 W Main St

  • The Partisan

    432 W Main St

  • Rodeway Inn

    1001 Motel Dr

  • USA Gardening

    (209)761-0840

  • 17th Street Public House

    315 W Main St

Are you and your business eligible?

  • 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)

  • 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.

    • 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.

    • 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

    • Have had a valid Business Bank Account by March 2020

  • The maximum amount allowed to request: $30,000

  • Must be an active business located in the CITY limits of Merced (businesses in Merced County, unfortunately, do NOT qualify).

Follow the button to begin the application