April 2020
ACT NOW
– Montgomery County Public Health Emergency Grant
Goes Live
Next Week
On March 31, 2020, the Montgomery County Council approved the Montgomery County Public Health Emergency Grant (PHEG) Program to assist for-profit businesses (including sole proprietorships and independent contractors) and nonprofit organizations that have experienced significant financial loss caused directly or indirectly by this public health emergency. Each business or organization may be eligible to receive a grant of up to $75,000.
On April 8, 2020, Montgomery County launched a new
PHEG website
, where all applications must be submitted. The applications are not yet available, but are expected to go live
on April 13
th
or 14
th
. Currently, the PHEG website provides details on the application process and lists all of the required documents that must be filed along with the application.
Please note that all required documentation and information must be uploaded at the time the application is prepared and filed. Once started, there is no opportunity to save the application and come back to it at a later time.
Therefore, it is strongly recommended that all necessary information and documentation is collected prior to starting the application process.
Below is a summary of the application process and the required documentation:
Eligibility Requirements
: The business or organization:
- Is physically located only in the County; or
- Has locations outside of the County, and the County-based location(s) account for more than 50 percent of the business’s total number of (full-time-equivalent) employees, or more than 50 percent of the business’s gross sales; and
- Employs 100 or fewer full-time-equivalent employees (including sole proprietors and businesses with no employees); and
- Has incurred financial losses caused directly or indirectly by the Covid-19 public health emergency.
- Must be registered in good standing with the State of Maryland. Click here to check the current status of your business.
Required Information
:
- The intended use of the County funds
- Funding applied for or received from other sources (federal and/or state).
Brief explanation of how the public health emergency has affected your business operations, including changes in both revenues and expenses.
- Brief explanation of how the public health emergency has affected
your business operations, including changes in both revenue and expenses.
Required Financial Documentation
:
- Gather at least two of these documents that have been signed or have proof of electronic signature before starting the application:
- 2019 Tax Return (or 990), if applicable,
- 2018 Tax Return (or 990)
- 2017 Tax Return (or 990)
- Interim Financial Statements and any Tax Return the business filed with the IRS (if your business is less than 2 years old)
- 2019 Profit and Loss Statement (if your business is less than 2 years old)
- 2018 Schedule C from your Personal Tax Returns (for Sole Proprietor)
- 2017 Schedule C from your Personal Tax Returns (for Sole Proprietor)
- AND these documents which are required to demonstrate financial loss due to the public health emergency:
o
Business Financial Documents:
o
Interim Monthly or Quarterly Financials for Calendar Year 2020, OR
o
Monthly or Quarterly Sales Tax Filings for Calendar Year 2020, OR
o
2020 Bank Statements for businesses with fewer than 5 employees
o
Evidence of application to Federal and/or State COVID-19 assistance programs, including award or denial letters. You must apply for any applicable State and Federal programs to qualify for County assistance.
o
Articles of Incorporation or Articles of Organization
o
Invoice or Quote for Telework equipment or software for your employees, if requesting funds for this purpose
Grant Agreement
:
Business mus execute a grant agreement that provides:
o
The County will be authorized to audit the grantee’s financial records.
o
A list of reporting requirements.
o
An Acknowledgement that the grantee has an obligation to return unused funds.
o
Certification by grantee that all statements are true and correct.
Additional Requirements
:
- The business must register in the County's Central Vendor Registration System (requiring a copy of a W-9) and submit ACH electronic payment information. The exact time and address for the business must be on all documentation.
- Provide follow -up reporting on the use of the funds. Further details will be provided in the grant award agreement letters.
If you have any questions regarding this Alert, please contact the author, Trevor Allen,
Esq., at
[email protected]
or (301) 634-3174.
Of course, you may also contact the Selzer Gurvitch attorney with whom you usually work.
Disclaimer: The information contained in this material is not intended to be considered legal advice and should not be acted upon as such. Because of the generality of this material, the information provided may not be applicable in all situations and should not be acted upon without legal advice based on the specific factual circumstances.
Selzer Gurvitch Rabin Wertheimer & Polott, P.C.
4416 East West Highway 4th Floor Bethesda, MD 20814
Phone: 301.986.9600 Fax: 301.986.1301 Toll Free: (888) 986-9600
