New York State is expected to begin accepting applications for the state’s $800 million COVID-19 Pandemic Small Business Recovery Grant Program on June 10, through Empire State Development, New York State’s primary business-aid agency. This grant will provide funding to small and micro-businesses negatively impacted by the COVID-19 pandemic.
It is estimated that more than 330,000 small businesses incorporated, registered and located in New York State are eligible for the grants, which can be used for various categories of eligible expenses incurred between March 1, 2020, and April 1, 2021.
Full program details are expected to be announced shortly. The Janover COVID-19 response team has compiled an overview of the program below, which is based on the most up-to-date information available. These terms may be subject to change based on final program details released by Empire State Development, and we are monitoring the program closely for updates.
How do I qualify?
Eligible businesses New York businesses must be currently viable and have started operation on or before March 1, 2019, and continue to operate as of the date of application. 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. Among other requirements, an eligible business must:
- Have 2019 or 2020 annual gross receipts between $25,000 and $500,000
- Demonstrate positive net profit on 2019 business return
- Demonstrate at least a 25% loss in annual gross receipts in a year-to-year revenue comparison of December 31, 2020 to the same period in 2019
- Demonstrate total expenses on the 2020 business income tax return are greater than the grant amount
- Not owe any federal, state or local taxes before July 15, 2020 or have an approved repayment, deferral plan or in agreement with federal, state and local taxing authorities
- 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
Socially and economically disadvantaged business owners, including, but not limited to, minority and women-owned business enterprises, service-disabled veteran-owned businesses, veteran-owned businesses, or businesses located in economically distressed communities before March 1, 2020, will receive priority.
What businesses are ineligible?
- All nonprofits, churches and other religious institutions
- Government-owned entities or elected official offices
- Businesses primarily engaged in political or lobbying activities
- Businesses that received awards from the SBA Restaurant Revitalization Fund Grant Program
- Landlords and passive real estate income businesses
- Illegal businesses or enterprises
How much am I eligible for?
Grant awards will be based on a business’ annual gross receipts for 2019:
- $ 25,000 – $49,999: $5,000 in funding per business
- $ 50,000 – $99,999: $10,000 in funding per business
- $ 100,000 – $500,000: 10% of gross receipts, capped at $50,000 in funding
What can grant funds be used for?
The grants must be used for COVID-19 related losses or expenses incurred between March 1, 2020, and April 1, 2021. These are defined as:
- Payroll costs
- Commercial rent or mortgage payments for NYS-based property (but not for any rent or mortgage prepayments)
- Payment of local property or school taxes associated with a small business location in NYS
- Utility costs
- Personal protection equipment (PPE) necessary to protect worker and consumer health and safety
- Heating, ventilation, and air conditioning (HVAC); or other machinery or equipment
- Supplies and materials necessary for compliance with COVID-19 health and safety protocols
Grants may not be used to repay or pay down any portion of a loan obtained through a federal COVID-19 relief package for business assistance or any New York State business assistance programs.
Please click here to sign up to receive updates from New York State related to the COVID-19 Pandemic Small Business Recovery Grant Program. You also are encouraged to contact a member of the Janover COVID-19 response team for assistance related to this program, the PPP, the Employee Retention Credit, or any other pandemic-related relief programs by clicking here.