Frequently Asked Questions (FAQs)

How much is the award?

The award is $5,000 less any duplication of benefit.

What can the award be used for?

The award can be used as general working capital for businesses that can be applied to payroll,
lease/mortgage payments, health and safety improvements, utilities, and inventory.
What are the eligibility requirements?
Eligibility
In order to qualify for the Lake Charles Small Business Stabilization Fund Program, businesses
must meet the following criteria:
o It must be a for-profit business located within the city limits of Lake Charles.
o It must employ twenty (20) or fewer full-time equivalent employees.
o It must have been operational for at least twelve (12) months prior to March 1, 2020.
o Its’ annual revenue for 2019 must not have exceeded $500,000.
o It must provide proof of economic hardship.
o It must be a physical storefront or place of business in a commercial-designated facility.
o It must not have any outstanding property standards, building code or other lien encumbrances
from the City of Lake Charles within a 12- month period leading up to the application
submittal.
o If owner(s) own their property their property taxes must be current.
o The owner(s) must be at least eighteen (18) years of age.
o In order to comply with CDBG requirements, business must commit to retaining at least one
employee from a low-moderate income household, defined as 80% or below Area Median
Income (AMI). At least one employee must be from a household that meets the criteria below:

Household Size 80% of Area Median Income

1 $34,550
2 $39,500
3 $44,450
4 $49,350
5 $53,300
6 $57,250
7 $61,200
8 $65,150
Duplication of Benefit
Businesses that have received other financial assistance such as Paycheck Protection Program
(PPP) or SBA Economic Injury Disaster Loan (EIDL) will have amount of assistance deducted
from their SBSF award.
Can I qualify if I will rehire an employee from a low-to-moderate income household that I
laid off after March 1, 2020?
You can qualify, but you will need to have hired the employee back and have them on payroll
before your qualification can be confirmed. This does not need to happen by the application
deadline, but will need to occur shortly after. If you intend to qualify in this way please send an
email to discuss your specific circumstances.
Is this application first come, first served? Do I need to apply early to have a chance of
award?
No! All applications will be evaluated together at the end of the application window using the
criteria below. As long as you complete your application and turn in all required documentation
your application will be considered.

Can I apply if I have also applied for other sources of funding such as Paycheck Protection
Program (PPP) and Economic Injury Disaster Loans (EIDLs)?
Yes. However, as previously mentioned under Duplication of Benefit, any amount of assistance
received from such programs will be deducted from your SBSF award.

How will applications be evaluated?

Applications will be reviewed and scored up to 85 total points based solely on the criteria listed
below. Award recipients will be awarded a maximum $5,000 based on demonstrated need.
Assistance will be provided in descending order – eligible businesses with the highest score first,
the next business second and so on until the funds are committed.
Once all funds are committed, remaining applications will be retained for six (6) months and will
be considered for any future rounds of funding (via any funding source that becomes available).
Information for determination of points will be taken from individual applications.
Each applicant shall be rated.

RATING SYSTEM
1. Business Status:
 Currently open at full or limited public hours (20 points)
 Currently closed but will reopen with grant assistance (10 points)
 2. Length of time business has been in continuous operation in the City:
 10+ Years (10 points)
 5-9 Years (8 points)
 Less than 5 years (4 points)

3. Number of Employees on March 1, 2020:
 10+ Employees (10 points)
 5-9 Employees (8 points)
 Less than 5 Employees (4 points)

4. Demonstrated financial need resulting from COVID-19 pandemic and consistency
with CDBG requirement of hiring or maintaining at least one low-moderate income
job.
 Scoring per application questions (10 points per question, maximum of 30 points)

5. Businesses whose sales tax are paid current (5 points).

What information do I need to provide during the application process?

All applicants must provide the following to complete their application:

Owner Documentation (from all owners)
1. Driver’s license
2. Social Security Card
3. Latest Personal Tax Return (if applicable)
Business Documentation
1. Occupational License
2. Certificate of Occupancy
3. Current Sales Tax Receipts
4. 2019 Business Tax Returns
5. 2019 Profit & Loss Statement
6. 2019 Balance Sheet
7. Business Bank Statements (since Jan 1, 2020)
8. Lease Agreement/Mortgage Statement

How do I apply?
The City of Lake Charles will have sign-up cards available from Monday, July 27, 2020 to Friday,
August 7, 2020 on the first floor of City Hall located at 326 Pujo Street. Operating hours are 9:00
am to 4:00 pm. City Staff will then contact potential applicants to schedule appointments.

For questions regarding the application process, send an email to kimberly.dellafosse@cityoflc.us.