updated May 25, 2023
Round Three for this grant program has closed.
The Small Business Rental Assistance Grant Program offers 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 any outstanding rent payments incurred on or after March 1, 2020, through April 30, 2023.
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.
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.
Credit counseling providers can help counter the negative financial impacts of the pandemic and aid in financial recovery by providing financial counseling and targeted support to small business owners in the City of Los Angeles. Money Management International (MMI), has agreed to provide such assistance to LA small business owners at no cost.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. The nonprofit counselors have experience with your unique financial challenges and can help balance your budget, improve your credit, and connect to valuable resources.
Find solutions and save money through a free, confidential review.
As the economy recovers from the COVID-19 pandemic, small businesses must be aware of their obligations as commercial tenants. Please note that as stated in the LA County Commercial Tenant Protections businesses with nine or fewer employees must pay any outstanding rent from March 1, 2020 to January 31, 2022 by JANUARY 31, 2023, unless they are able to negotiate a payment plan with the landlord.Starting February 1, 2023, landlords can also enforce personal guaranties for rent incurred by commercial tenants with nine or fewer employees from March 1, 2020, to January 31, 2022.
We recommend commercial tenants sign a settlement agreement when paying outstanding rent to protect their rights. Contact LALegalHelp.org if your business needs help, including negotiating with your landlord.
Eligibility and Funding
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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 that applied in rounds 1 and 2 of the Rental Assistance Grant Program and did not meet program requirements are not eligible to re-apply. Please do not submit a Round 3 application unless your business circumstance has changed (i.e., Business Tax Registration Certificate (BTRC) is now in good standing)
- Must be a for-profit business and located within Los Angeles City boundaries
- Must be operating from a commercial location and have a valid commercial lease (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
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The grant may only be used for delinquent rent payments incurred on or after March 1, 2020, through April 30, 2023.
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
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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 that applied in rounds 1 and 2 of the Rental Assistance Grant Program and did not meet program requirements are not eligible to re-apply. Please do not submit a Round 3 application unless your business circumstance has changed (i.e., Business Tax Registration Certificate (BTRC) is now in good standing).
- 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
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 ends on May 24, 2023, at 11:59pm (PT), 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 for documentation collection and further eligibility validation. The City will contact applicants by email to start the eligibility process. During the eligibility verification process, Applicants will be asked to submit the following documents:
Applicants passing the eligibility check will be asked to electronically sign (via DocuSign) the documents listed below prior to receiving their grant award:
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 ends on May 24, 2023, at 11:59pm (PT), 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 for documentation collection and further eligibility validation. The City will contact applicants by 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's License)
- Voided Check from Business Account
- Lease Agreement for Business Property
- Proof of Previous Rent Payment
- Statement of Account or Monthly Invoices
- LA Rental Assistance Grant Agreement for Business
- IRS Form W-9
- ACH Authorization Form
APPLICATION:
The application period for Round Three has closed.
Frequently Asked Questions
The City of Los Angeles allocated American Rescue Plan Act (ARPA) funds to provide rental assistance grants of 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.
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Will I be eligible for a Round 3 award if I received a Round 1 or Round 2 award?
Applicants are only eligible for one funding award. If your business has already received an award, or is in the processing of completing a submission for Round 1 or 2, you are not eligible to apply for Round 3.
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I applied for a grant in Round 1 or 2, but wasn't selected. Can I apply again in Round 3?
No. Unless your business circumstance has changed (i.e., BTRC is now in good standing), businesses not selected for Round 1 or 2 are ineligible to apply for Round 3. Businesses that submitted an application for Rounds 1 or 2 and have NOT been contacted by the City of L.A. processing team as of January 1, 2023, failed to meet program eligibility.
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If I have multiple businesses, can I apply for each business?
In order to ensure that these grant funds reach as many business owners as possible, we will only be considering one application from owners of multiple businesses at this time.
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My business is operating under a sublease, can I still apply for this program?
Sublease rental arrangements do not qualify for this program.
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Will there be additional documentation required?
If your business is selected as a finalist, you will be notified via email. Being selected as a finalist does not guarantee a grant will be awarded. Additional documentation will be required as a finalist, including a W-9 Form that asks for a Social Security Number OR business Tax ID number, copy of the lease, verification of past due rent, and other documentation that may be needed to establish eligibility for the program.
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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.
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What are eligible expenses?
Grantee must use the grant funds only for past due rent incurred after March 1, 2020.
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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
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How do I reimburse myself for expenses paid all the way back to March 2020 if I do not have a receipt for the 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
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Will I be eligible for a Round 3 award if I received a Round 1 or Round 2 award?
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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.
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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.
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Will there be additional documentation required?
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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.
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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
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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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What are eligible expenses?
Technical Assistance
If you require 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 the review of eligibility documents and the application.
Commercial tenants in LA County with nine or fewer employees must pay any outstanding rent from March 1, 2020, to January 31, 2022, by January 31, 2023, , unless they are able to negotiate a payment plan with the landlord. Starting February 1, 2023, landlords can also enforce personal guaranties for rent incurred by commercial tenants with nine or fewer employees from March 1, 2020, to January 31, 2022. We recommend commercial tenants sign a settlement agreement when paying outstanding rent to protect their rights. If your business needs help, including help negotiating with your landlord, please visit LALegalHelp.org
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.
Commercial tenants in LA County with nine or fewer employees must pay any outstanding rent from March 1, 2020, to January 31, 2022, by January 31, 2023, , unless they are able to negotiate a payment plan with the landlord. Starting February 1, 2023, landlords can also enforce personal guaranties for rent incurred by commercial tenants with nine or fewer employees from March 1, 2020, to January 31, 2022. We recommend commercial tenants sign a settlement agreement when paying outstanding rent to protect their rights. If your business needs help, including help negotiating with your landlord, please visit LALegalHelp.org
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.