Social Entrepreneurs for Economic Development 3 (SEED 3)

The Social Entrepreneurs for Economic Development (SEED) 3 Grant is a funding opportunity administered by the Employment Training Panel (ETP) under the California Labor and Workforce Development Agency. This initiative stems from the California Legislature’s 2020 authorization via Assembly Bill 82, with the aim of fostering economic advancement for immigrants and individuals with limited English proficiency (LEP) who face significant employment barriers. The SEED initiative is funded through the California General Fund and supports small business development that addresses community needs or social problems. The SEED 3 Grant is the third iteration of this effort and reflects continued investment in inclusive economic empowerment through entrepreneurship. The SEED 3 Grant makes available approximately $6,750,000 in total, divided between two distinct program tracks: the SEED Entrepreneurship Program ($5,250,000) and the SEED Worker Cooperative and Employee Ownership Program ($1,500,000). Community-based nonprofit organizations (CBOs) are eligible to apply for grants under one or both programs. The Entrepreneurship Program requires grantees to deliver entrepreneurial training, conduct community outreach, manage micro-grant selection and disbursement processes, and provide technical assistance to grantees. The Worker Cooperative Program focuses on forming or sustaining worker-owned cooperatives in low-wage industries, and similarly requires training, micro-grant distribution, and technical assistance as core components. Grant funding is structured with distinct allocations. For the Entrepreneurship Program, 75% of each award must go directly to micro-grants (with amounts ranging from $2,500 to $5,000), and 25% to support program delivery, including staff, outreach, training, and administration. For the Worker Cooperative Program, 15% of funds must be used for micro-grants, and up to 15% may be used for indirect costs. Grant disbursement is tied to performance benchmarks, including the percentage of micro-grants awarded, submission of training materials, or implementation timetables. Grantees are expected to maintain fiscal integrity, submit quarterly progress reports, and participate in a Community of Learning and Practice organized by ETP. Eligible applicants must be 501(c)(3) nonprofits or fiscally sponsored programs thereof. Joint proposals are allowed, provided a lead CBO assumes contractual and fiscal responsibility, and all roles and budgets are clearly defined. SEED’s target population includes immigrants, refugees, asylees, LEP individuals, and those with Deferred Action for Childhood Arrivals (DACA) or Temporary Protected Status (TPS), regardless of citizenship or lawful presence. Applicants must specify which populations they intend to serve and provide demographic, linguistic, and geographic context along with a culturally and linguistically competent implementation plan. Applications must be submitted via the Cal-E-Grants system and are due by February 26, 2026, at 5:00 PM PST. A pre-application webinar is scheduled for January 28, 2026, and optional live help sessions will be held on February 25 and 26. Required submission documents include the completed proposal, proof of nonprofit status, and standard state forms (STD 204 and STD 205). Awards are anticipated to be announced in April 2026, with the grant term beginning on September 1, 2026, and lasting two years through August 31, 2028. Proposals will be reviewed in two phases: technical review and scoring. Only proposals meeting all submission criteria will be scored on criteria such as organizational background, outreach strategy, training implementation, and proposed budget. The final award decision will consider geographic and demographic distribution and equity impact. Following award notification, grantees must attend a mandatory orientation webinar. Appeals to denied applications must be submitted within five business days of the intent-to-award notice.

Ensure micro-grant funds are separated from program costs and meet allocation rules; submit two applications if applying for both tracks; attend webinar for clarification.