California Provides up to $2,000 in Grants to Small Businesses


By Molly Wood, SPHR, MAOL Senior HR Consultant

Effective June 1, 2022, small Employers may be Eligible for up to $2,000 when their employees go out on a leave of absence that qualifies for Paid Family Leave. While Paid Family Leave is a benefit that is funded through California’s State Disability Insurance program (and therefore does not require continued compensation by the employer to the employee) the cost of cross-training and/or hiring a new or temporary employee is an expense employers must bear. These grants may help to off-set those expenditures.

Businesses with 51 – 100 employees may be eligible for up to $1,000 per employee and companies with 1 – 50 employees may get up to $2,000. In order to qualify, organizations must be registered to do business in California, be in active status with the office of the California Secretary of State and have an active California Employer Account Number under which employers are listed for payroll.

Payment of the grant funds are made directly to the employer and will cover costs for training, marketing, and recruiting. A strange caveat is that businesses that use a Professional Employer Organization (PEO) for payroll services are not eligible for the grants. The grant period is from June 1, 2022 to May 31, 2024, or until funds run out.

If you have employees who are going on leave to bond with a newborn/adopted/fostered child, or to care for a qualifying family member, SDEA can administer the Leave of Absence. We will provide your employee with all the required information to apply for benefits, document the leave and return to work dates, and assist you through the process of applying for these grants. Our HR on Loan LOA services are available for a flat fee of $200.

Call us at 858-505-0024. 

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Contact us: 858.505.0024