Legacy Business Recovery Grant Program
The Legacy Business Recovery Grant Program offers grants of up to $20,000 to eligible Legacy Businesses that need financial assistance to aid in their recovery from the COVID-19 pandemic.
- Grant amounts of $10,000 will be provided for Legacy Businesses with one to five employees
- Grant amounts of $20,000 will be provided for Legacy Businesses with six or more employees
The Legacy Business Recovery Grant Program is funded through the American Rescue Plan Act (ARPA) allocation to the City of Los Angeles. Applicants must submit complete applications before the deadline and provide documentation confirming that they meet the eligibility requirements, terms, and conditions. Applicants must explain how the grant funds will be used toward necessary COVID-19 recovery business expenses and make available documentation demonstrating that the grant funds were used toward those expenses.
EWDD will utilize a weighted selection process for grants to ensure equitable distribution across the selection of finalists and to prioritize City of Los Angeles geographic diversity and low-to-moderate income neighborhoods. Grant application submissions made from the following demographics will be more heavily weighted:
- Businesses located in low-and moderate-income communities (50% and 80% of Area Median Income or AMI), as defined by HUD
- Businesses owned by low- and moderate-income owners (50% and 80% of AMI), as defined by HUD
- Businesses facing an imminent threat of displacement
To be eligible to apply for the Legacy Business Recovery Grant Program, a business must demonstrate the need for financial support due to the impact of the COVID-19 pandemic.
Eligibility and Requirements
- Eligible Businesses
- Ineligible Businesses
- Eligible Uses of Funds
- Documentation Requirements
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Eligible Businesses
- Must be listed on the Legacy Business Registry
- The business must be a for-profit business located within Los Angeles city limits
- Must be operating from a commercial, industrial, or manufacturing location (home-based businesses are not eligible)
- Annual revenue cannot exceed $3 million
- If applicable, the business must be in good standing with the Secretary of State
- The business must have an active Business Tax Registration Certificate (BTRC) with the City of Los Angeles that is current and in good standing
- The business must demonstrate that the grant funds will be used for recovery from the COVID-19 pandemic
- The business must disclose whether they have received funding from other federal, state, or local sources (including PPP and EIDL)
Applicants who have received funding are still eligible, provided the funds are not currently being spent on the same expenses covered by the Legacy Business Recovery Grant
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Ineligible Businesses
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.
- 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
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Eligible Uses of Funds
Eligible uses of funds to address the negative economic impacts caused by the COVID-19 crisis include:
- Employee payroll
- Rent, utilities, and insurance
- Working capital to reopen or continue operations
- Adapting to technologies
- Payment of outstanding business expenses incurred on or after March 3, 2021
- Adaptive business practices needed to operate the business
- Legal fees to negotiate long-term lease agreements with their landlords
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Documentation Requirements
Application
Applicants must submit all required documentation with the application. The documentation will be used to verify the businesses meet program eligibility requirements, terms and conditions as provided in these guidelines.
Complete applications must include:
- 2021 and 2022 tax returns
- Payroll tax form to verify number of W2 employees
- Copy of government-issued identification such as Driver's License or passport
- 3-months of latest bank statements
- If applicable, documentation showing imminent threat of displacement
Additional documents may be requested if necessary to verify the business meets program eligibility requirements, terms and conditions, such as but not limited to pandemic financial impact documents, 4506 form, legal structure documents, etc.
Funding
Upon grant approval and prior to funds disbursem*nt, successful applicants will be required to submit funding documents, including:
- Executed Grant Agreement
- Completed and signed W-9 form
- Voided Check from a Business Account
Compliance
Grant recipients will be required to submit the following documents to verify compliance with program requirements:
- Compliance certification
Grant recipients will also be required to maintain grant funds expenditure records for three (3) years, which must be made available to the City or other public authorities.
Application & Program Administration
Step 1: Apply
Applicants must self-certify that all funds will be used for expenses permitted under this program and that there is no duplication of benefits. Additional documentation will be required for the selected qualified applicants. Applications will be open from August 5 through September 15. A second round of applications will be launched in Fall 2024.
Step 2: Application Review
EWDD will review and prioritize the applications. If the number of qualifying applications received exceeds the amount of grant monies available, staff will use a randomized-selection system to select and rank the applications using funding priorities listed above.
Step 3: Contact Selected Applicants
Selected applicants will be emailed to collect the required funding documentation. The applicant will be given two weeks to provide the requested documentation. If documents are not received by the end of the two-week period, the applicant will be disqualified and their application will be withdrawn.
Step 4: Grant Agreement
Successful applicants must sign a grant agreement acknowledging the terms and conditions of their participation before funds are disbursed.
Step 5: Funding
Prior to fund disbursem*nts, successful applicants must also provide a completed and signed W-9 and bank account information where funds will be deposited.
Step 6: Compliance Follow-Up
Grant recipients will be required to provide information to the City on how the grant money was spent and its impact on their businesses.
Technical Assistance
If your business requires 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. You may also email
with any additional questions.
This WIOA Title I financially assisted program or activity is an equal opportunity employer/program. Auxiliary aids and services are available upon request to individuals with disabilities.
For assistance with WIOA funded program complaints or auxiliary aid accommodation requests, Contact Us.
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