Current through the 2023 Legislative Session.
Section 12100.82 - [Effective until 6/30/2024] Definitions
Unless the context requires otherwise, the following definitions in this section shall govern the construction of this article:(a)"Applicant" means any California taxpayer, including, but not limited to, an individual, corporation, nonprofit organization, cooperative, or partnership, who submits an application for the program.(b)"California Small Business COVID-19 Relief Grant Program" or "program" means the grant program established in Section 12100.83.(c)"CalOSBA" or "office" means the California Office of the Small Business Advocate within the Governor's Office of Business and Economic Development.(d)"Director" means the Director of the Office of Small Business Advocate.(e)"Fiscal agent" means a California-based Community Development Financial Institution (CDFI) capable of online and mobile application development, customer support, document validation, impact analysis, grant agreements, and awards disbursement, as well as marketing, engagement, and strategic partnerships with a network of CDFIs and nonprofits for implementation.(f)"Fiscal sponsorship" means an existing nonprofit offering to provide its tax exemption and associated benefits to another group, such as a charitable project.(g)(1)"Qualified small business" means a business or nonprofit that meets all of the following criteria, as confirmed by the office or fiscal agent through review of revenue declines, other relief funds received, credit history, tax returns, and bank account validation:(A)Is one of the following:(i)A sole proprietor, independent contractor, 1099 employee, C-corporation, S-corporation, cooperative, limited liability company, partnership, or limited partnership, with an annual gross revenue of less than five million dollars ($5,000,000), but greater than one thousand dollars ($1,000), in the 2019 taxable year.(ii)A registered 501(c)(3), 501(c)(6), or 501(c)(19) nonprofit entity that had an annual gross revenue of less than five million dollars ($5,000,000), but greater than one thousand dollars ($1,000), in the 2019 taxable year.(iii)A division or department of a larger organization or entity, such as a tribal government, city, county, or city and county.(iv)An organization that is fiscally sponsored by a nonprofit corporation.(B)Began operating in the state prior to June 1, 2019.(C)Is currently active and operating, or has a clear plan to reopen when the state permits reopening of the business.(D)Has been impacted by COVID-19 and the related health and safety restrictions, such as business interruptions or business closures incurred as a result of the COVID-19 pandemic.(E)Provides organizing documents, such as a 2019 tax return or Form 990, an affidavit from the board or authorizing official from the governing authority, detailing the governance structure; or a copy of an official filing with the Secretary of State or with the local municipality, as applicable, including, but not limited to, Articles of Incorporation, Certificate of Organization, Fictitious Name of Registration, or Government-Issued Business License.(F)Provides an acceptable form of government-issued photo identification, where applicable.(2)Notwithstanding paragraph (1), "qualified small business" shall not include any of the following:(A)Businesses without a physical presence in the state and not headquartered in the state.(B)Businesses primarily engaged in political or lobbying activities, regardless of whether the entity is registered as a 501(c)(3), 501(c)(6), or 501(c)(19).(C)Passive businesses, investment companies, and investors who file a Schedule E on their tax returns.(D)Financial institutions or businesses primarily engaged in the business of lending, such as banks, finance companies, and factoring companies.(E)Businesses engaged in any activity that is unlawful under federal, state, or local law.(F)Businesses that restrict patronage for any reason other than capacity.(G)Speculative businesses.(H)Businesses with any owner of greater than 10 percent of the equity interest in it who meets one or more of the following criteria: (i)The owner has, within the prior three years, been convicted of or had a civil judgment rendered against the owner, or has had commenced any form of parole or probation, including probation before judgment, for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a federal, state, or local public transaction or contract under a public transaction, violation of federal or state antitrust or procurement statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property.(ii)The owner is presently indicted for or otherwise criminally or civilly charged by a federal, state, or local government entity, with commission of any of the offenses enumerated in clause (i).(I)Affiliated companies, as defined in Section 121.103 of Title 13 of the Code of Federal Regulations.(J)Other businesses determined by the office, consistent with the limitations and exclusions set in Rounds 1 and 2 of the COVID-19 Relief Grant Program.(h)"Rounds 1 and 2 of the COVID-19 Relief Grant Program" means the first two rounds of grant allocations awarded, prior to the enactment of this article, through the COVID-19 Relief Grant that is administered by CalOSBA and that is funded by Executive Order No. E 20/21-182.Amended by Stats 2022 ch 68 (SB 193),s 18, eff. 6/30/2022.Amended by Stats 2021 ch 256 (AB 176),s 3, eff. 9/23/2021.Added by Stats 2021 ch 7 (SB 87),s 1, eff. 2/23/2021.