The City of Los Angeles allocated American Rescue Plan Act (ARPA) funds to provide grants to eligible microenterprises and small businesses in need of economic support due to the COVID-19 pandemic. The Comeback Checks Program will provide $5,000 grants to approximately 5,000 businesses in the City of Los Angeles. This page provides help with the most common questions about the program.
APPLICATION PROCESS & 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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If I applied and was selected as a finalist in a previous round, can I apply again?
No, in order to provide grants to as many winners as possible, we do not allow winners to re-submit in another round.
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I applied in a round, how do I find out the status of my application?
Finalists will be notified 10 days after a round closes. Those that are not selected as finalists will not be notified, as they will remain eligible for future rounds.
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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.
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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 for eligible operational expenditures related to the COVID-19 pandemic that were incurred after March 3, 2021. Examples of eligible expenses include:
- Wages and benefits of employees, including that of the applicant (provided those costs were not paid for by either a PPP loan or other federal, state or local COVID-related assistance)
- Rent
- Utilities
- Payments to vendors (including outstanding obligations), and other immediate operational costs related to COVID-19
- Other operational expenditures, provided the expenditures were incurred after March 3, 2021, and related to the COVID-19 pandemic
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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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The grant agreement states that funds can be used for expenses such as wages and also that funds will not be used to pay for expenses that have or will be reimbursed under another federal program such as PPP. The PPP loan I received has been used for wages exclusively. Does this mean I cannot use the Comeback Checks Funds for wages?
You may use this funding for wages, provided:
(i) those same expenses have not already been paid through any Federal, state, or local grant or loan you received and
(ii) the wage expenses occurred after March 3, 2021. -
Can I use the funds for things not yet purchased, meaning a new computer and camera equipment that are necessary for my business? My employees work from home and can’t use the desktop computers in our offices
You may use this funding for wages, provided:
(i) the purchases are made after March 3, 2021, andItems purchased for personal use are not eligible.
(ii) the items are purchased for business use -
Could the money be used for property taxes owed from 2020 and 2021?
Because the funds were made available by the U.S. Department of Treasury to state and local governments, Treasury guidance indicates they should not be used as a source of revenue replacement. For this reason, the Treasury guidance provides that grant funds should not be used for tax payments.
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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?
Please make efforts to locate receipts for all expenses that will be paid for or reimbursed using grant funds. Credit card statements, invoices, and banks statements are examples of documentation that could be used to support your expenses. Though we cannot provide tax advice, you may also wish to contact an accountant or tax professional on how to best document the costs of your business. As a reminder, grant recipients must comply with any requests to provide backup documentation from CRF and/or the City of Los Angeles, as applicable, regarding grant costs.
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Can I use grant funds to pay for marketing and CRM platforms?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021.
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Can I use grant funds to pay for phones and web services?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021.
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Can I use grant funds to pay for accounting costs?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021, such costs would be eligible uses of grant funds.
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We have been funding eligible expenses as owner capital contributions out of our savings. Can we reimburse some of that?
Yes. Provided the underlying expenses are associated with the costs of business interruption caused by closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021, such costs would be eligible uses of grant funds as long as supporting documentation for the costs are available.
DOCUMENTATION
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Will there be additional documentation required?
Yes, if your business is selected as a finalist, you will be notified via email by our processing partner Community Reinvestment Fund (CRF). As a finalist, you will be required to upload additional documentation to a secured online portal. Documentation includes:
- 2019 or 2020 Federal Tax Return – Business
- 2019 or 2020 Federal Tax Return – Individual
- Color Copy of Government Issued ID (ex. Driver License)
- Voided Check (Business account)
In addition, Applicants will be asked to electronically sign (via DocuSign) the following documents:
- W-9 Form
- ACH Authorization Form
- Comeback Checks Grant Agreement
NOTE – Being selected as a finalist does not guarantee a grant will be awarded. Application information and submitted documents will be reviewed to ensure they meet program eligibility requirements. -
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.
FUNDING USAGE
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What are eligible expenses?
Grantee must use the grant funds for eligible operational expenditures related to the COVID-19 pandemic that were incurred after March 3, 2021. Examples of eligible expenses include:
- Wages and benefits of employees, including that of the applicant (provided those costs were not paid for by either a PPP loan or other federal, state or local COVID-related assistance)
- Rent
- Utilities
- Payments to vendors (including outstanding obligations), and other immediate operational costs related to COVID-19
- Other operational expenditures, provided the expenditures were incurred after March 3, 2021, and related to the COVID-19 pandemic
-
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
-
The grant agreement states that funds can be used for expenses such as wages and also that funds will not be used to pay for expenses that have or will be reimbursed under another federal program such as PPP. The PPP loan I received has been used for wages exclusively. Does this mean I cannot use the Comeback Checks Funds for wages?
You may use this funding for wages, provided:
(i) those same expenses have not already been paid through any Federal, state, or local grant or loan you received and
(ii) the wage expenses occurred after March 3, 2021. -
Can I use the funds for things not yet purchased, meaning a new computer and camera equipment that are necessary for my business? My employees work from home and can’t use the desktop computers in our offices
You may use this funding for wages, provided:
(i) the purchases are made after March 3, 2021, andItems purchased for personal use are not eligible.
(ii) the items are purchased for business use -
Could the money be used for property taxes owed from 2020 and 2021?
Because the funds were made available by the U.S. Department of Treasury to state and local governments, Treasury guidance indicates they should not be used as a source of revenue replacement. For this reason, the Treasury guidance provides that grant funds should not be used for tax payments.
-
How do I reimburse myself for expenses paid all the way back to March if I do not have a receipt for the expenses?
Please make efforts to locate receipts for all expenses that will be paid for or reimbursed using grant funds. Credit card statements, invoices, and banks statements are examples of documentation that could be used to support your expenses. Though we cannot provide tax advice, you may also wish to contact an accountant or tax professional on how to best document the costs of your business. As a reminder, grant recipients must comply with any requests to provide backup documentation from CRF and/or the City of Los Angeles, as applicable, regarding grant costs.
-
Can I use grant funds to pay for marketing and CRM platforms?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021.
-
Can I use grant funds to pay for phones and web services?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021.
-
Can I use grant funds to pay for accounting costs?
Yes. Provided the expenses are associated with the costs of business interruption caused by required closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021, such costs would be eligible uses of grant funds.
-
We have been funding eligible expenses as owner capital contributions out of our savings. Can we reimburse some of that?
Yes. Provided the underlying expenses are associated with the costs of business interruption caused by closures due to the COVID-19 pandemic and the purchases are made after March 3, 2021, such costs would be eligible uses of grant funds as long as supporting documentation for the costs are available.
ADDITIONAL QUESTIONS AND GRANT APPLICATION ASSISTANCE
Any of the City’s nine BusinessSource Centers are available to provide assistance with grant applications. You may also email This email address is being protected from spambots. You need JavaScript enabled to view it. or call 213-744-7130 with any additional questions.
