Launching tomorrow, the $800 million COVID-19 Pandemic Small Business Recovery Grant Program provides grant funding to small and micro businesses and for-profit independent arts and cultural organizations impacted by the pandemic. The grants will be flexible and can be used for a number of different business operating expenses, including payroll, rent or mortgage payments, taxes, utilities, PPE or other business expenses incurred between March 1, 2020 and April 1, 2021.
Small businesses, Micro-businesses and For-profit independent arts and cultural organizations (collectively, “Eligible Applicants”) must be currently viable and have begun operation on or before March 1, 2019 and continue to be in operation as of the date of application (may be shuttered due to COVID-19 restrictions).
Eligible Applicants will be required to show loss of gross receipts or other economic hardship as a result of the COVID-19 pandemic and compliance with COVID-19 health and safety protocols which resulted in business modifications, interruptions, or closures.
Small businesses and Micro-businesses must:
- Have 2019 or 2020 Gross Receipts of between $25,000 and $500,000 per annum (line 1a, IRS Form 1120 or 1065; line 1 IRS Form 1040 Schedule C).
- Demonstrate positive net profit on 2019 Business Return ($1 or greater) (line 28, IRS Form 1120; line 22, IRS Form 1065; or line 31, IRS Form 1040 Schedule C).
- Demonstrate that total expenses on 2020 Business Income Return are greater than the grant amounts.
- Demonstrate at least 25% loss in annual Gross Receipts in a year-to-year revenue comparison as of December 31, 2020 to the same period in 2019.
- Be in substantial compliance with applicable federal, state and local laws, regulations, codes and requirements.
- Not owe any federal, state, or local taxes prior to July 15, 2020, or have an approved repayment, deferral plan, or in agreement with appropriate federal, state, and local taxing authorities.
- Not have qualified for business grant assistance programs under the federal American Rescue Plan Act of 2021 or any other available federal COVID-19 economic recovery or business assistance grant programs, including loans forgiven under the federal Paycheck Protection Program, or are unable to obtain sufficient business assistance from such federal programs. Eligible Applicants may have received or been awarded the following federal assistance:
- Paycheck Protection Program loans totaling $100,000 or less.
- COVID-19 EIDL Advance Grant of $10,000 or less.
- COVID-19 EIDL Supplemental Targeted Advance Grant of $5,000 or less.
- SBA Shuttered Venue Operators Grant of $150,000 or less.
