Massachusetts’ Sector Specific Relief Grant (SRG)
The Commonwealth of Massachusetts has made an additional $668 million available to support businesses through new and existing programs. Massachusetts Growth Capital Corporation (MGCC) will target a portion of these funds to sectors experiencing the most significant economic hardship and a loss of revenue due to the COVID-19 pandemic.
- If you applied for the first round of this grant through MGCC that was due November 2020, you do not need to apply again.
- If you didn’t apply in the first round of this grant, read below to see if you qualify for this new Sector Specific Relief Grant. Note: If you do qualify, you need to get a Certificate of Good Standing which may take a few days (see end of FAQs).
- Applications are due by 11:59 PM on January 15, 2021.
Frequently Asked Questions
1. Should I apply?
This business relief fund targets the hardest hit small businesses that have an exceptional need of cash relief. Though many businesses have been negatively affected by the pandemic, not all needs are equal. To ensure that these limited funds get to the most severely impacted businesses, you SHOULD NOT APPLY if you:
- are not showing an operating loss due to the coronavirus pandemic
- have access to other sources of relief
- have been able to continue to operate without significant financial distress
- have adequate available reserves
- are a non-profit organization
Additionally, larger companies that are better positioned to endure this economic downturn and COVID-19 related restrictions should not apply.
An excessive number of applications submitted by businesses with lesser need will delay the awarding of grants to businesses facing extraordinary circumstances. An application review for a company without a truly exceptional need delays assistance for a business at risk of permanent closure.
2. What businesses are eligible for funding?
To be eligible for the SRG funding, the business must:
- Have a physical establishment in Massachusetts and be based in Massachusetts,
- Be a for-profit entity (sole proprietorship, partnership, corporation, cooperative or LLC);
- Be able to document a loss of income equal to or greater than requested assistance due to COVID-19 pandemic;
- Be currently in operation or if not in operation must have an intent to reopen;
- Have been established prior to 06/30/2019; and
- Be in good standing with the state and city/town:
- Business must be current on all taxes due through 3/1/2020; and
- Have active and valid state licenses/registrations, if applicable.
The following types of businesses are ineligible for SRG funding:
- Real estate rentals/sales businesses;
- Businesses owned by persons under age 18;
- Businesses that are chains (chains are defined as businesses not headquartered in Massachusetts with multiple locations);
- Liquor stores;
- Cannabis-related businesses; or
- Non-profit organizations
3. How are applicants prioritized for funding?
Preference will be given to for-profit businesses in the following sectors:
- Restaurants, bars, caterers, and food trucks that collect and remit meals tax.
- Indoor recreation or entertainment establishments (e.g. movie theaters, comedy clubs, performing arts venues/organizations, arcades, bowling centers, pool/billiard halls, escape rooms, trampoline parks, roller-skating rinks, indoor spectator sports venues, etc.)
- Gyms or fitness centers (e.g. athletic clubs, health clubs, tennis/racquetball clubs, hockey rinks, swimming facilities, fitness instruction centers (aerobics, dance, yoga, karate, etc.))
- Personal services (e.g. nail salons, barber shops, independent pharmacies)
- Event support companies – primary source (more than 50%) of revenue is event-related
- Photography studies, videography studios, florists, limo services, event planning companies, event rentals, performers, convention and trade show organizations
- Independent retailers – businesses with brick and mortar locations that collect and remit sales tax.
- All other eligible business types
4. If I applied in the 1st round but have not received any notifications or grant funding, should I reapply for this round?
No, everyone who applied but not granted in the first round will be considered automatically for the second round. They should not re-apply for the SRG even if they are in one of the sectors. Those who are NOT in any of the priority sectors in the first round (minority, women, veteran, etc.) but are in the SRG priority sectors will be AUTOMATICALLY pulled from the first-round pool and considered for the SRG.
5. How much funding may I apply for?
Businesses can receive up to $75,000 but capped at up to 3 months of operating expenses, as evidenced by 2019 Federal Tax Returns. Grant amounts will be considered for actual expenses for 2020 during the pandemic. Expenses can be considered since March 10, 2020, given that it does not exceed 3 months of operating expenses evidenced by 2019 Federal Tax Returns.
6. What can the funding be used for?
SRG funding may be used for payroll and benefits, rent, utilities, and interest payments.
7. What is the time period for which SRG funds can be used?
The SRG is reimbursement-based. The funding may not be used for future expenses. The funding may be used toward paid or incurred expenses from March 10, 2020 to the date of your receipt of SRG funding.
8. How do I apply for the SRG?
Hard copies or electronic copies submitted in any other way, such as mailed in or emailed, will not be considered. Additionally, only complete, accurate and legible applications will be considered.
9. What documents are required with the application?
Applications must include all required documentation by the program deadline in order to be considered. Common omissions that would exclude your application from consideration:
- Certificate of Good Standing from the Massachusetts Secretary of State’s office
- Complete 2019 Federal Business Tax Return
- Complete 2019 Federal Personal Tax Returns for each business owner with 20% or greater ownership