Up to $2K in grants available to Watsonville small businesses affected by COVID-19

WATSONVILLE, Calif. (KION) The City of Watsonville will provide emergency grants of up to $2,000 to help small businesses affected by the COVID-19 pandemic.

The grants are part of the CARES Act passed by Congress on March 27. Other funding was found by the City of Watsonville through its Community Development Block Grant Program.

One of the small businesses that has already applied in Watsonville is Jiu Jitsu Therapy.

“When the grant came up, I applied right away,” co-owner of Jiu Jitsu Therapy Adriana Mesa said.

Mesa owns the academy along with her husband. The business has been open for only two years and last September they expanded. Between the Jiu Jitsu and Mesa's Physical Therapy business, the couple has to pay rent on four units.

Jiu Jitsu Therapy has now been closed for almost two months and has now lost 40% of its memberships.

“It's really stressful, because our income is solely from these small businesses and that’s how we pay for everything. Our business expenses and our personal expenses,” Mesa said.

Grant funds can be used to help pay rent or utility payments incurred after March 15.

“The loans can be up to $2,000 each, so it really depends on the need of each business," city manager Matt Huffaker said. "I do know the program just went live a couple of days ago, and we’ve already had about 50 applications."

Applications will be accepted through Friday at 3 p.m., and El Pajaro CDC believes it will disburse about 50 grants. After the application period closes, businesses will be chosen randomly to receive grants. Those who are not chosen in the first round will be placed on a waiting list and could get funds if more is available, according to El Pajaro CDC.

To apply for a grant, businesses must meet these requirements:

• Be located in Watsonville City limits.
• Have a current business license with the City of Watsonville.
• Have $2 million or less in annual gross revenue.
• Have not received SBA's Economic Injury Disaster Loan.
• Is not a non-profit.

El Pajaro CDC said priority will be given to businesses owned by women and minorities, The funds will be sent directly to the service provider on the business' behalf.

If selected to receive a grant, the business will be required to submit some documentation electronically by no later than May 14.

They will need to submit:

• A copy of the business' 2018 Sch C, first page of business tax return (11205 or 1065) or PL for Jan.-Dec. 2019.
• Copies of due utility bills.
• Copies of the current lease or rental agreement.
• A copy of the applicant owner's drivers license or California ID.
• Bank statements from March and April 2020.
• Additional demographic data.

For more information about applying or the grant process, contact El Pajaro CDC at 831-722-1224 or info@elpajarocdc.org. Submit online applications here.