California Small Business Alert: How to Get Up to $2,000 for Paid Family Leave Expenses
As a small business owner in California, you know that when an employee takes time off to bond with a new child or care for a sick family member, the impact is felt across the entire team. While California’s Paid Family Leave (PFL) program helps your employees with wage replacement, the burden of covering their duties often falls on your shoulders—and your budget.
The good news? The Paid Family Leave Small Business (PFL SB 4) Grant is here to help you bridge that gap.
1. What is the PFL SB 4 Grant?
Administered by the California Employment Training Panel (ETP) and the Labor and Workforce Development Agency (LWDA), this grant program is designed to help small businesses offset the costs associated with an employee being out on PFL.
Whether you need to cross-train existing staff to pick up the slack or hire and train a temporary replacement, this grant provides direct financial relief to keep your operations running smoothly.
2. How Much Can You Receive?
The grant amount depends on the size of your workforce:
- Businesses with 1–50 employees: Eligible for $2,000 per employee utilizing PFL.
- Businesses with 51–100 employees: Eligible for $1,000 per employee utilizing PFL.
3. What Can the Funds Be Used For?
The grant is flexible, allowing you to cover various “out-of-pocket” costs that arise when an employee is on leave, including:
- Cross-training: Paying for the time and resources to train current employees to handle new duties.
- Upskilling: Improving the skills of remaining staff to ensure productivity doesn’t drop.
- Recruitment: Covering marketing and hiring costs if you need to bring in temporary help.
4. Is Your Business Eligible?
To qualify for the PFL SB 4 Grant, your business must meet the following criteria:
- Size: Employ between 1 and 100 employees.
- PFL Usage: Have at least one employee who is currently utilizing (or has recently utilized) the California PFL program.
- Registration: Be registered to do business in California and in “Active” status with the Secretary of State.
- Tax ID: Have an active California Employer Account Number (CEAN).
Note for PEO Users: If you use a Professional Employer Organization (PEO) for payroll, you are only eligible if your company is listed as the employer on the CEAN. If you file under the PEO’s account number, you may not qualify.
5. How to Apply
The application process is designed to be quick—typically taking about 15–20 minutes. You will need:
- Your 8-digit California Employer Account Number (CEAN).
- Your business’s NAICS code.
- The 10-digit EDD Customer Account Number of the employee on leave.
The current window for applications is open, but funds are often distributed on a first-come, first-served basis. If you have employees planning for leave or currently away, now is the time to act.
Apply or learn more at: