Legacy Business Recovery Grant Program

The Legacy Business Recovery Grant Program, funded by the American Rescue Plan Act (ARPA) allocation to the City of Los Angeles, offers grants of up to $20,000 to eligible Legacy Businesses. This initiative is designed to provide crucial financial assistance to aid these businesses in their recovery from the economic impacts of the COVID-19 pandemic. The program's core mission aligns with broader efforts to support local economies and preserve established community businesses, recognizing their historical and cultural value. It underscores a commitment to helping businesses adapt, reopen, and sustain operations in a challenging economic landscape. The primary beneficiaries of this program are Legacy Businesses listed on the Legacy Business Registry, operating within Los Angeles city limits, and functioning from commercial, industrial, or manufacturing locations with a valid commercial lease. Home-based businesses are not eligible, and annual revenue cannot exceed $3 million. The impact goal is to facilitate the recovery and continued operation of these vital businesses, ensuring their survival and contribution to the local economy and community fabric. Businesses must demonstrate how the funds will be used for COVID-19 recovery expenses, with a focus on necessary expenditures. Funding priorities emphasize equitable distribution across finalists, with a particular focus on City of Los Angeles geographic diversity and low-to-moderate income neighborhoods. Grant application submissions from businesses located in or owned by individuals in low- and moderate-income communities (50% and 80% of Area Median Income as defined by HUD) are more heavily weighted, as are businesses facing an imminent threat of displacement. This weighted selection process reflects a strategic priority to support businesses in areas with greater need and vulnerability, aligning with a theory of change that targeted investment can produce more equitable and impactful recovery outcomes. Expected outcomes include the sustained operation of Legacy Businesses, job retention, and economic stabilization within affected communities. Measurable results will be tied to how grant funds are utilized, with eligible uses encompassing employee payroll, rent, utilities, insurance, working capital for reopening or continued operations, adapting to new technologies, payment of outstanding business expenses incurred after March 3, 2021, adaptive business practices, and legal fees for lease negotiations. Grant amounts are tiered based on employee count: $10,000 for businesses with one to five employees and $20,000 for those with six or more. This structure ensures that assistance is tailored to the operational scale of the businesses, contributing to their effective recovery and resilience.