Definitions that pertain to this Program are provided below.

A. “Small business” for the Dream Fund Program means a business with 5 employees or less and $1 million or less in annual receipts.

B. “Small business technical assistance center” includes a federal small business technical assistance center or any established 501c(3) nonprofit community-based organization the mission of which includes economic empowerment of underserved microbusinesses or small businesses and entrepreneurs and that operates entrepreneurial or small business development programs which provide free or low-cost services to California’s underserved businesses and entrepreneurs to enable their launch and sustained growth. For the purposes of this grant opportunity, a small business technical assistance center must be part of the 2021-22 SB TAEP network.

C. “Nonprofit” includes an established business that has registered or intends to register as a 501c(3), 501c(4), 501c(6), or 501c(19) nonprofit that certifies that it is a mission-driven social enterprise.

D. “Dream Fund Grant” means a seed fund grant of up to $10,000 distributed through the selected third-party administrator (i.e., the contractor) to eligible small business founders.

E. “Underserved small business groups” means businesses owned by women, minorities (people of color), veterans, individuals without documentation, individuals with limited English proficiency, and business owners located in low-wealth, disaster-impacted and rural communities. The majority (at least 51%) of the business must be owned and run on a daily basis by individual(s) in said group(s).

F. “Minority/Person of Color-owned small business” means the following racial or ethnic groups: African American/Black, Asian, Native American or Alaska Native, or Native Hawaiian or Pacific Islander; or LatinX/Hispanic.

G. “Veteran” means an individual who served on active duty with the Army, Air Force, Navy, Marine Corps, or Coast Guard for any length of time and didn’t receive dishonorable discharge or served as a Reservist of member of the National Guard and were called to federal activity duty or disabled from a disease or injury that started or got worse in the line of duty or while in training status.

H. “Veteran-owned Small Business” means a small business that is 51% or more owned and controlled by an individual or individuals in one or more of the following groups: Veterans (other than dishonorably discharged); Service-Disable Veterans; Active Duty Military service member participating in the military’s Transition Assistance Program (TAP); Reservists and National Guard members; or Current spouse of any Veteran, Active Duty service member, or any Reservist or National Guard member; or widowed spouse of a service member who died while in service or of a service-connected disability.

I. “Low wealth areas” means a city and/or county within California with a poverty rate of at least 150% of the California statewide poverty rate per the most recently updated data available from the U.S. Census Bureau’s American Community Survey 5-Year Estimates thirty days prior to the first day of the applicable application period.

J. “Rural communities” means all territory, populations, and housing units that are located outside of urban areas (50,000 or more people) and urban clusters (at least 2,500 and less than 50,000 people). Urban areas and clusters are determined by population density and size available per the most recently updated data available from the U.S. Census Bureau’s American Community Survey 5-Year Estimates thirty days prior to the first day of the applicable application period.

K. “Disaster-impacted” means all territories included in a state or federal emergency declaration or proclamation.

L. “New Business Start” means a new business entity established following substantive counseling at a SB TAEP Center. This is established by the following verified conditions:

• • the client completed the Dream Fund participant training program;
  • the client obtains the necessary licenses and permits to operate their business with help from the SB TAEP Center;
  • the client has established a physical location for their business; and
  • at least one of the following qualifying events:

    • • the client has made a first sale 

      • the client hired at least 1 employee 

      • the client created a business banking relationship 

      • the client has spent money on business expenses (this may include legal and accounting fees); and/or 

      • the client obtained third-party or owner capital for the business.

The following businesses are not eligible for a grant award under the California Dream Fund:

1. 1. Businesses that registered prior to July 1, 2019;
   2. Businesses without a physical location in California;
   3. Nonprofit businesses not registered as either a 501(c)(3), 501(c)(6) or 501(c)(19);
   4. Government entities (other than Native American tribes) or elected official offices;
   5. Businesses primarily engaged in political or lobbying activities (regardless of whether such entities qualify as a 501(c)(3), 501(c)(6) or 501(c)(19));
   6. Passive businesses, investment companies and investors who file a Schedule E on their personal tax returns;
   7. Churches and other religious institutions (regardless of whether such entities qualify as a 501(c)(3), 501(c)(6) or 501(c)(19)) , other than a school, child care, or other educational business affiliated where (i) greater than 50% of the gross annual revenue is derived from the school, child care facility or educational business and (ii) the grant will be used only for eligible costs and expenses directly related to the school, child care, or other educational business, and no portion of the grant will be used for any normal profit or overhead of the church or other religious institution;
   8. Financial businesses primarily engaged in the business of lending, such as banks, finance companies and factoring companies;
   9. Businesses engaged in any activity that is illegal under federal, state or local law; and
   10. Businesses of a prurient or sexual nature.