Tracy Small Business Relief Grant Program
The City of Tracy understands that a shortage of resources on a local, regional, state, and federal level, combined with COVID-related restrictions, has created dire circumstances for many local businesses. The Tracy City Council has implemented a Small Business Relief Grant Program to provide for an immediate financial relief to small businesses, maximize the flexibility of the program, and make an investment in our small businesses who employ local workers and generate revenue to the City. Given the state of emergency, this program envisions a flexible small business economic relief with the goal of preserving local jobs and enabling vulnerable businesses to survive during the Stay Home Order.
Applications are available for download below and will be accepted beginning at 8:00am on Tuesday, December 22, 2020. Applications submitted prior to 8:00am will NOT be considered.
Eligibility Criteria
- What is the grant amount?
- The grant is a one-time $5,000 payment per business.
- What is the qualification criteria?
- Any small business physically located within the City of Tracy with a valid business license as of December 1st, 2020 that has encountered at least a 20% decline in net revenue or financial position from COVID-19 and has not received Tracy Small Business Forgivable Loan Program assistance.
| Grant Criteria | Tracy Small Business Relief Grant Program Requirement |
|---|---|
| Business license | Active as of December 1st, 2020 |
| Grant amount | $5,000 per business, first-come, first-served |
| COVID-19 impact | Net revenue or financial position decline of 20% or more |
| Business size | 20 or fewer full-time equivalent employees |
| Eligibility | Brick and mortar businesses located within the City of Tracy city limits who have not received Small Business Forgivable Loan Program Assistance from the City; this excludes non-profits, religious organizations, and home-occupancy businesses. |
- What is considered a “small business” and why?
- Small business is defined as any business with 20 or fewer full-time equivalent employees (including sole proprietors). This definition is consistent with the City of Tracy Small Business Forgivable Loan Program. This definition excludes non-profits, religious organization, and home-occupancy businesses.
- Does the business have to be open at the time of application?
- We understand that the current Regional Stay Home Order effective December 6th has restricted or prohibited many businesses from remaining open. As such, we require that a business has a valid City of Tracy business license as of December 1st, 2020 and was in operation prior to December 6th.
- Does the prior receipt of any regional, State, or Federal financial assistance disqualify a business from being eligible for the Tracy Small Business Relief Grant Program?
- No, receipt of prior financial assistance, other than the City’s Small Business Forgivable Loan Program, does not disqualify a business from eligibility for the grant.
Grant Process
- How will grant funds be administered?
- Grants will be awarded on a first-come, first served basis until funds are exhausted. Completed applications will go through initial review based on the order received via email to small.business.relief@cityoftracy.org and determined for final eligibility based on supplemental financial documentation subsequently submitted to the City via a secure Dropbox link.
- Will a contract with the City be required?
- Yes, a contract between the City of Tracy and the grant recipient be required as a condition of the grant award. A copy of the contract is available at https://www.thinkinsidethetriangle.com/covid-19-resources/small-business-relief-grant-program.
Financial Documentation
- What financial documentation will be required as proof of at least a 20% net revenue or financial position decline?
- Provide ONE of the following: profit and loss statements, balance sheet, tax records, cash flow statements, bank statements, or other financial document that demonstrates a month-over-month or quarter-over-quarter decline of net revenue or financial position. The documents must match the information provided on the application and clearly identify financial information for each time period.
- How is net revenue defined?
- Net revenue, also known as net sales, is the total amount of income earned from selling goods or services minus any adjustments, such as accounting for returns, refunds, and discounts.
- How is financial position defined?
- The account status of a business’ assets, liabilities, and equity positions as reflected on its financial statement.It is calculated by the formula: Assets=Liabilities + Equity. Also known as Balance Sheet and Net Assets.
- What is the eligible time period to demonstrate the 20% net revenue or financial position decline?
- Any month-over-month or quarter-over-quarter comparison within a 12-month period with the latter period after March 2020 (e.g. June 2019 comparing to June 2020; September 2020 comparing to November 2020; Q3 2019 comparing to Q2 2020) for businesses who commenced operations after March 31, 2020,
- Will all financial documents submitted to the City be part of the public record?
- Documentation submitted to the City will become part of the public record. However, any confidential information, such as bank account numbers and tax identification numbers will be redacted and not be released to the public.
Application and Payment Instructions
- When and where can I apply?
- Applications are available for download below and will be accepted beginning at 8:00am on Tuesday, December 22, 2020. Applications submitted prior to 8:00am will NOT be considered. Completed applications must be submitted electronically and emailed to: small.business.relief@cityoftracy.org
Small Business Relief Grant Application PDF
- Do I need to email any information along with my application?
- No. Applications emailed to the City will start the initial review process. City staff will respond with instructions for subsequent electronic submittal of supplemental documentation required to confirm eligibility.
- What happens after the application is submitted?
- The grant application process has two steps. After the application submission, City staff will reach out to initially qualified applicants with instructions on how to submit the required supplemental documentation, such as the supporting financial information, W-9, and signed copy of the Grant Agreement via a secure Dropbox link. Upon receipt of all requested documentation and confirmation of eligibility, the City will issue a payment via a paper check mailed to the address provided on the W-9.
Tracy Small Business Relief Grant Contract
- What is the deadline to submit the supplemental financial documents to the City of Tracy after the submitting the original application?
- We encourage applicants to submit all required supplemental documentation (financial documentation, W-9, and signed contract) within seven (7) calendar days of receiving instructions on how to electronically provide these documents to the City of Tracy. While a delay of more than seven (7) calendar days one week will not disqualify applicants, the grant is on a first-come first-served basis. As a result, a delay in the submittal of all required documents may result in a risk that grants may run out.
- If awarded, can I receive the grant through an electronic payment?
- Yes, you would need to fill out a vendor electronic funds transfer (EFT) payment request form below and submit it to the accounts payable division of the Finance Department.
Vendor Electronic Credit Form (optional)
- Will the grant payment reflect the tax withholding?
- No, the City will not withhold taxes. Future tax liability is the responsibility of the grantee and will be tracked via the W-9 form.
- Who do I reach out to for additional questions?
- Please reach out to the City’s Economic Development staff at (209) 831-6400.
