The Application window for Drought Group 1, Drought Group 2, and Flood/Winter Storm Group 1 closed on February 15, 2024.
California Small Agricultural Business Drought & Flood Relief Grant Program
Program and Application Guide
To access the program and application guide in your language, click here.
Lendistry administers grant programs on behalf of third-parties and doesn’t determine program scope, eligibility criteria, communication strategy, or timelines. Such details are put in place by the third-party(ies) offering the grant programs. All information on this website and in any reference material provided is subject to change.
PLEASE NOTE: Lendistry is the sole entity designated as the Intermediary of California Small Agricultural Business Drought & Flood Relief Grant Program (the “Program”).
This site (www.cadroughtfloodrelief.com) and the other websites available on or through this site (the “Designated Sites”) are the only approved websites designated for the administration of the Program. Any other website purporting to administer or otherwise act as an Intermediary in connection with the Program may be fraudulent. As such, you should exercise extreme caution and avoid providing any information (personal or otherwise) in connection with the Program on or through any website other than the Designated Sites. Further, neither Lendistry nor any of its partners will charge any fees to apply for a grant under the Program and we recommend that you avoid any third parties purporting to charge fees for you to apply.
Eligibility Requirements:
An applicant must meet this Program’s definition of a “qualified small business” to be eligible to receive a grant award.
For the purpose of this Program, a “qualified small business” means a business 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, payroll records, and bank account validation:
- Is a sole proprietor, independent contractor, C-corporation, S-corporation, cooperative, limited liability company, partnership, nonprofit (other than a 501(c)(4) organization), or limited partnership, domiciled in California, with 100 or fewer full-time employees in the 2022 taxable year and will have 100 or fewer full-time employees in the 2023 taxable year. Seasonal employees are included in the full-time employee count.
- Had 100 or fewer full-time employees in the 2022 taxable year and will have 100 or fewer full-time employees in the 2023 taxable year. Seasonal employees are included in the full-time employee count.
- Be domiciled in the state of California.
- Began operating in the state prior to January 1, 2020.
- Is currently active and operating.
- Has been affected by severe drought according to a D2 or higher drought classification pursuant to a methodology based on the USDA Drought Monitor.
- Provides organizing documents, including a federal tax return or Internal Revenue Service Form 990, and a copy of official filings 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.
Enter your business address in the interactive map below to identify your drought classification.
Grant and Funding Details:
Group 1 will be allocated to “small farms” including “socially disadvantaged farmers“ who are qualified small agricultural businesses (see Eligibility Requirements).
- “Small farm” has the meaning described in the publication Updating the ERS Farm Typology, dated April 2013, issued by Economic Research Service of the United States Department of Agriculture. See page 1 of the ERS Farm Typology by CLICKING HERE to review the classification of a “small farm.”
- “Socially disadvantaged farmer” has the meaning provided in subdivision (b) of Section 512 of the Food and Agricultural Code, as it read on August 1, 2022:
- “Socially disadvantaged farmer or rancher” means a farmer or rancher who is a member of a socially disadvantaged group. “Socially disadvantaged group” means a group whose members have been subjected to racial, ethnic, or gender prejudice because of their identity as members of a group without regard to their individual qualities.
Drought Group 1 Eligibility Requirements:
- Is a qualified small business or nonprofit organization as defined here.
- Has an owner or, in the case of a nonprofit, an authorized person, submitting the application that is at least 18 years of age.
- Experienced a decline in annual gross receipts or gross profits of 10% or more when comparing the 2022 taxable year to the 2019 taxable year.
- Had at least $1,000 but less than $350,000 in gross cash farm income in 2019 (line 9 on Schedule F (Form 1040)).
- Had less than $350,000 in 2022 (line 9 on Schedule F (Form 1040)).
What’s included in gross cash farm income?
Item Gross cash farm income Revenue to the farm from: Crop and livestock sales Yes Government payments Yes Other farm-related income1 Yes Value of production accruing to: Share landlords No Contractors No Landlord receipt of: Government payments No 1Receipts from custom work, machine hire, livestock grazing fees, timber sales, outdoor recreation, production contract fees, etc.
Reference: https://www.ers.usda.gov/webdocs/publications/43742/36483_eib110_summary.pdf?v=2244 (page 2)
These funds will be distributed to eligible applicants in the following amounts:
| $20,000 | Twenty thousand dollars ($20,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 10 percent or more and less than 30 percent. |
| $60,000 | Sixty thousand dollars ($60,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 30 percent or more and less than 40 percent. |
| $80,000 | Eighty thousand dollars ($80,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 40 percent or more and less than 50 percent. |
| $100,000 | One hundred thousand dollars ($100,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 50 percent or more. |
Required Documents
- Applicant Certifications.
- Acceptable Government-Issued Photo Identification uploaded via Persona, which will be embedded in the application.
- Official filing with the California Secretary of State (which must be active) or local municipality, as applicable, for your business or organization, such as one of the following: Articles of Incorporation; Certificate of Organization; Fictitious Business Name filing; Professional license; Government-issued business license or permit.
- Proof of Tax Exemption (required for nonprofit organizations only).
- 2019 and 2022 Federal Tax Returns or IRS Form 990 (completed, unaltered, and filed).
- Proof of Employee Count: 2022 IRS Form W-3 or payroll records
Applicant Certifications Download
Drought Group 2 Eligibility Requirements
Group 2 is allocated to applicants who meet all the following criteria:
- Is a qualified small business or nonprofit organization as defined here.
- Has an owner or, in the case of a nonprofit, an authorized person, submitting the application that is at least 18 years of age.
- Experienced a decline in annual gross receipts or gross profits of 30% or more when comparing the 2022 taxable year to the 2019 taxable year.
- Operates under any of the following 2022 North American Industry Classification System (NAICS) or National Taxonomy of Exempt Entities (NTEE) codes identified as an industry most impacted by severe drought:
-
- NAICS Codes beginning with 111 – Crop Production Subsector
- NAICS Codes beginning with 115 – Support Activities for Agriculture and Forestry
- NAICS Codes beginning with 311 – Food Manufacturing
- NAICS Codes beginning with 1121 – Cattle Ranching and Farming
- NAICS 424910 – Farm Supplies Merchant Wholesalers
- NAICS 444240 – Nursery, Garden Center, and Farm Supply Retailers
- NAICS 312130 – Wineries
- NAICS 424480 – Fresh Fruit and Vegetable Merchant Wholesalers
- NAICS 445230 – Fruit and Vegetable Retailers
- NAICS 115112 – Soil Preparation, Planting, and Cultivating
- NAICS 484220 – Specialized Freight (except Used Goods) Trucking, Local (local agricultural products trucking)
- NTEE D99 – Animal Related N.E.C
- NTEE K02 – Management & Technical Assistance
- NTEE K03 – Professional Societies & Associations
- NTEE K20 – Agricultural Programs
- NTEE K25 – Farmland Preservation
- NTEE K26 – Animal Husbandry
- NTEE K2A – Other Vegetable (except Potato) and Melon Farming
- NTEE K2B – Soil, Preparation, Planting and Cultivating
- NTEE K2C – Wineries
- NTEE K93 – Fruit and Vegetable Markets
- NTEE K99 – Food, Agriculture & Nutrition N.E.C
The funds for this round will be distributed to eligible applicants in the following amounts:
| $60,000 | Sixty thousand dollars ($60,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 30 percent or more and less than 40 percent. |
| $80,000 | Eighty thousand dollars ($80,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 40 percent or more and less than 50 percent. |
| $100,000 | One hundred thousand dollars ($100,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 50 percent or more. |
Required Documents
- Applicant Certifications.
- Acceptable Government-Issued Photo Identification uploaded via Persona, which will be embedded in the application.
- Official filing with the California Secretary of State (which must be active) or local municipality, as applicable, for your business or organization, such as one of the following: Articles of Incorporation; Certificate of Organization; Fictitious Business Name filing; Professional license; Government-issued business license or permit.
- Proof of Tax Exemption (for nonprofit organizations only).
- 2019 and 2022 Federal Tax Returns or IRS Form 990 (completed, unaltered, and filed).
- Proof of Employee Count: 2022 IRS Form W-3 or payroll records
Applicant Certifications Download
Group 3 will be allocated to qualified small agricultural businesses that do not file their 2022 tax returns until 2024.
The funds for this round will be distributed to eligible applicants in the following amounts:
| $20,000 | Twenty thousand dollars ($20,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 10 percent or more and less than 30 percent. |
| $60,000 | Sixty thousand dollars ($60,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 30 percent or more and less than 40 percent. |
| $80,000 | Eighty thousand dollars ($80,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 40 percent or more and less than 50 percent. |
| $100,000 | One hundred thousand dollars ($100,000) for each eligible applicant with a decline in annual gross receipts or gross profits of 50 percent or more. |
The following are ineligible to apply for this Program:
- Businesses without a physical presence in the state.
- Governmental entities, other than Native American tribes, or elected official offices.
- 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) nonprofit entity or other nonprofit entity.
- Passive businesses, investment companies, and investors who file a Schedule E on their tax returns.
- Financial institutions or businesses primarily engaged in the business of lending, such as banks, finance companies, and factoring companies.
- Businesses engaged in any activity that is unlawful under federal, state, or local law.
- Businesses that restrict patronage for any reason other than capacity.
- Speculative businesses.
- Businesses with any owner of greater than 10 percent of the equity interest in it who meets one or more of the following criteria (for the purposes of this requirement, the fiscal agent will look to any officer, director or board member in the case of a nonprofit organization applicant):
- The owner has, within the prior three years, been convicted, 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.
- The owner is presently indicted for, or otherwise criminally or civilly charged by, a federal, state, or local governmental entity, with commission of any of the offenses enumerated above.
- Affiliated companies, as described in Section 121.103 of Title 13 of the Code of Federal Regulations, as it read on August 1, 2022.
- Other businesses to be determined by the office consistently with the requirements and intent of this subdivision, which for the purposes of this Program will include businesses, franchises, locations or nonprofit organizations of which any owner, or in the case of a nonprofit organization, any officer or director, has applied for and received a grant under the Program, on behalf of another business, franchise, location, or nonprofit organization for the same disaster relief purpose.
Grant moneys awarded under the Program shall only be used for costs to maintain the recipient business through the drought, including the following:
- Employee expenses, including payroll costs, health care benefits, paid sick, medical, or family leave, and insurance premiums.
- Working capital and overhead, including rent, utilities, mortgage principal, and interest payments, but excluding mortgage prepayments, and debt obligations, including principal and interest, incurred before the onset of severe drought.
- Any other drought-related expenses not already covered through grants, forgivable loans, or other relief through state, county, or city programs.
Program and Application Guide:
The Program and Application Guide includes an overview of the Program, tips for applying, and step-by-step instructions on how to complete and submit the application.
Need Help?
Contact Lendistry’s Customer Experience Center:
1-888-209-3656
Monday – Friday
7:00A.M. – 7:00P.M. PDT
Closed on all Federal holidays.
