The state of New York has a program in place to provide financial assistance to small businesses impacted by the Covid-19 pandemic. The “Small Business Recovery Grant program” grants subsidies of up to $50,000 depending on the annual gross revenue of the business. However, the application period for assistance is coming to an end. The state will accept applications only until this Friday, September 30.What is the program?The Small Business Recovery Grant Program of the State of New York was created to provide assistance to small businesses, microenterprises, and independent nonprofit artistic and cultural organizations that have faced economic hardships due to the COVID-19 pandemic.Who is eligible to participate?Small businesses, microenterprises, and independent nonprofit artistic and cultural organizations that began operations on or before March 1, 2019, and continue to operate until the date of the grant application (it is acceptable if they had to suspend operations due to COVID-19-related restrictions).Initially, eligible applicants were required to show a loss of gross revenue as a result of the pandemic. However, the eligibility requirements for the program were updated on September 14, 2022, and applicants are no longer required to demonstrate a loss of at least 25% of gross revenue in 2020 compared to the same period in 2019.What businesses need to show:
- annual gross revenue in 2019 or 2020 between $25,000 and $2,500,000;
- that total business expenses in 2020 were greater than the grant amount. The calculation of total expenses versus the proposed grant amount will be based on the expenses reported on the 2020 federal tax return submitted by the applicant;
- that they did not qualify for assistance programs created by the “American Rescue Plan Act of 2021” or any other federal grant assistance program for businesses or economic recovery due to COVID-19, or did not obtain sufficient assistance funds from such federal programs. This means that applicants who received the following federal aids are also eligible: (1) loans from the Paycheck Protection Program (PPP) totaling $250,000, (2) COVID-19 EIDL Advance Grant of $10,000 or less, (3) COVID-19 EIDL Supplemental Targeted Advance Grant of $5,000 or less, (4) SBA Shuttered Venue Operator Grant.Ineligible businesses
- All nonprofit organizations, churches, and other religious institutions;
- State entities;
- Businesses primarily engaged in political or lobbying activities;
- Businesses that received funds from the SBA Restaurant Revitalization Grant.
- Passive owners and real estate businesses;
- Illegal businesses.
What should the grant be used for?The grants must be used for losses or expenses related to COVID-19 incurred between March 1, 2020, and April 1, 2021. This includes:
- Payroll costs;
- Commercial rent or mortgage payments for property based in NYS;
- Payment of local or school property taxes associated with a small business location in NYS;
- Insurance costs;
- Utility costs;
- Costs of personal protective equipment (PPE) necessary to protect the health and safety of workers and consumers;
- Heating, ventilation, and air conditioning (HVAC) costs;
- Other machinery or equipment costs;
- Supplies and materials necessary to comply with COVID-19 health and safety protocols.
Grant amounts
- Gross revenue in 2019 or 2020 between $25,000.00 – $49,999.99 – $5,000.00 per business;
- Gross revenue in 2019 or 2020 between $50,000.00 – $99,999.00 – $10,000.00 per business;
- Gross revenue in 2019 or 2020 between $100,000.00 – $2,500,000 – 10% of gross revenue up to $50,000.00, per business.
How to apply for the grant?Visit the website: nysmallbusinessrecovery.comIf you believe your small business qualifies for this grant but you need help filling out the application and submitting the necessary documentation, contact Pace University Small Business Development Center as they offer free assistance.Phone: 212-618-6655Email: sbdc@pace.eduwww.PaceSBDC.org