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State Economic Development Grants

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Florida Maine New Jersey
Illinois Maryland New York
Iowa Michigan Ohio

 

State Programs Subsequently Closed

As a result of funds running out, or the availability of federal programs (under The CARES Act), many states have closed or suspended relief programs for struggling businesses:

Illinois

Illinois the Land of Lincoln, unites the business community with 3 stabilization and loan programs because a House Divided Cannot Stand.

In response to COVID-19, the Illinois DCEO launched 3 emergency assistance program for Illinois small businesses. These initiatives include:

Hospitality Emergency Grant Program

  • Benefits Available: $14 million available for hospitality businesses affected by COVID-19. Grant funds are available to support working capital like payroll and rent, as well as job training.
  • Eligible Businesses:
    • Bars and restaurants that generated less than $500,000 in annual revenue in 2019 will be eligible for up to $10,000.
    • Bars and restaurants that generated between $500,000 and $1M in annual revenue in 2019 will be eligible for up to $25,000.
    • Hotels that generated less than $8 million in annual revenue in 2019 will be eligible for up to $50,000.
  • Other Key Points:
    • Apply online at the following Website
    • Application for awards will be accepted until 5:00PM on April 1st, winners will be chosen via a lottery.

Illinois Small Business Emergency Loan Fund

  • Benefits Available: Low-interest loans up to $50,000 for small businesses
  • Eligible Businesses:
    • Businesses located outside of the City of Chicago with fewer than 50 workers and less than $3 million in revenue in 2019 will be eligible to apply.
  • Other Key Points:
    • Successful applicants will owe nothing for 6 months and will then begin making fixed payments at below market interest rate for the remainder of a five-year loan term.
    • Apply at the following Website

Downstate Small Business Stabilization Program

  • Benefits Available: Grants of up to $25,000 in working capital. (DCEO repurposing $20 million).
  • Eligible Businesses:
    • Local governments can apply on behalf of businesses with 50 employees or less. Only units of local government recognized by the Illinois Constitution and able to support economic development activities on a sufficient scale are eligible to apply for Economic Development grant funding.
  • Other Key Points:
    • How to apply: Businesses in the eligible areas should work with their local governments to submit applications. Application materials will be posted to the DCEO website on March 27, 2020.
    • Apply at the following Website.

Applications are currently being accepted, but funding is limited. Please don’t hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor for additional information or assistance.

Iowa

On March 23, Iowa took swift action by launching relief programs for small businesses, once again proving “Iowa Nice” is alive and well in the face of a pandemic.

The Iowa Small Business Relief Grant Program & Tax Deferral, managed by the Iowa Economic Development Authority, is currently accepting applications for the following relief programs:

Iowa Small Business Relief Grant

  • Benefits Available: Grants ranging from $5,000 – $25,000
  • Who’s Eligible:
    • Businesses employing between 2-25 employees prior to March 17, 2020
    • Businesses with a physical location in Iowa
    • Businesses impacted by the COVID-19 virus
  • Other Key Points:
    • Funds are intended for immediate, short-term cash flow needs
    • Funds cannot be used to pay debts incurred prior to March 17, 2020
    • The program is NOT first-come, first-served. All completed applications will be reviewed.

Iowa Business Tax Deferral

  • Benefits Available: Deferral of sales and use or withholding taxes due, along with a waiver of penalty and interest
  • Who’s Eligible:
    • Businesses with a physical location in Iowa
    • Businesses impacted by the COVID-19 virus
  • Other Key Points:
    • All completed applications will be reviewed. If deferral is granted, someone from the Iowa Dept. of Revenue will contact the applicant

For both programs, the application deadline was Tuesday, March 31 at 12pm. The applications can be completed online at: https://www.iowaeconomicdevelopment.com/reliefgrants. Please do not hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor.

Update April 5, 2020: The Iowa Small Business Relief Grant program stopped accepting applications on March 31, 2020; however, the Iowa Business Tax Deferral program has been extended. Applications can be downloaded at the following website: tax.iowa.gov

Maine

Mainers have moxie in spades, but in light of a global pandemic, liquidity fears are unavoidable.

In response to cash-flow anxieties, the Finance Authority of Maine (“FAME”) implemented 2 programs:

COVID-19 Relief Business Direct Loan Program

FAME allocated $5,000,000 in reserves to fund this program, offering loans of up to $50,000 at the Wall Street Journal Prime minus 1%, fixed at the time of the loan commitment. The loan must be secured by the business assets of the company and unlimited personal guarantees of the principals are required.

The terms are 12 months, but can be extended if necessary.

To meet the eligibility requirements, the applicate must be a Maine-based business experiencing interruption or hardship due to the COVID-19 pandemic and demonstrate other sources of capital have been exhausted.

The application form and instructions for supporting documentation can be downloaded at famemaine.com.

COVID-19 Relief Interim SBA Finance Loan Program

Provides for FAME Direct Loans of up to $100,000 to Maine-based businesses who provide proof of commitment for SBA financing (for COVID-19 hardships). The FAME loan would be made available to eligible businesses until such a time the SBA loan is funded, at which time the FAME loan would be paid-in-full.

Interest accrues at the Wall Street Journal Prime minus 1%, fixed at the time of the loan commitment, with a default rate of the Wall Street Journal Prime plus 2%. The loan must be secured by the business assets of the company, a pledge of receipt of SBA loan funds, and unlimited personal guarantees of the principals are required.

The terms are 90 days, interest only.

The application form and instructions for supporting documentation can be downloaded at famemaine.com.

Applications are currently being accepted, but funding is limited. The application form and instructions for supporting documentation can be downloaded at famemaine.com. Please don’t hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor for additional information or assistance.

Maryland

While many states direct small businesses to seek relief under federal programs enacted by The CARES Act, Maryland, birthplace of Babe Ruth, stepped up to the plate recently announcing 3 new relief programs for Marylanders.

On March 22, 2020, Maryland allocated more than $175 million to assist businesses and nonprofit organizations, creating 3 relief programs summarized as follows:

Maryland Small Business COVID-19 Emergency Relief Grant Fund

  • Benefits Available: Grants up to $10,000 (not to exceed 3 months of cash-basis operating expenses)
  • Eligible Businesses Must Meet All of the Following Requirements:
    • Maryland-based business (foreign businesses with employees in Maryland do not qualify)
    • Fewer than 50 employees
    • Annual revenues less than $5 million
    • Established prior to March 9, 2020, in good standing
    • Businesses must demonstrate financial distress or disrupted operations
  • Other Key Points:
    • There are no collateral requirements
    • Apply online at the following website

Maryland Small Business COVID-19 Emergency Relief Loan Fund

  • Benefits Available: Loans up to $50,000 (not to exceed 3 months of cash-basis operating expenses)
  • Eligible Businesses Must Meet All of the Following Requirements:
    • Maryland-based business (foreign businesses with employees in Maryland do not qualify)
    • Fewer than 50 employees
    • Annual revenues less than $5 million
    • Established prior to March 9, 2020, in good standing
    • Businesses must demonstrate financial distress or disrupted operations
  • Other Key Points:
    • 36 month repayment period: deferred payments for the first 12 months, followed by straight-line amortization for months 13 – 36.
    • Interest rate: 0% for 12 months, 2% for the remainder of the 36-month term
    • There are no collateral requirements
    • Apply online at the following website

Maryland Small Business COVID-19 Emergency Relief Manufacturing Fund

  • Benefits Available: Grants up to $100,000 for manufacturers to increase existing capacity or pivot operations to produce personal protective equipment and other items identified as “critical needs”
  • Eligible Manufacturers Must Meet All of the Following Requirements:
    • Currently located, and plan to manufacture the products in Maryland
    • Be in good standing with the State of Maryland, OSHA and MOSH regulations
    • Demonstrate an ability to quickly implement the project in order to meet the urgent need resulting from the COVID-19 response
  • Other Key Points:
    • Grant awards will vary based on the applicants total investment, technical capability, operational experience and priority of need
    • 50% of the funds will be disbursed upon notice of award, with 50% paid upon completion of the project
    • Apply online at the following website

Applications are currently being accepted, but funding is limited. Please don’t hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor for additional information or assistance.

Michigan

If your business is seeking to produce personal protective equipment in the pleasant peninsula, grants are currently available.

Michigan COVID-19 Emergency Access & Retooling Grants

  • Benefits Available: $10,000 – $150,000 in grants for each qualifying Michigan business or non-profit organization looking to begin producing, retool or ramp-up production of critical supplies
  • Eligible Businesses Must Meet All of the Following Requirements to Qualify:
    • Be in accordance with Small Business Administration (SBA) size standards, or a non-profit entity
    • Be in good standing with the Michigan Department of Licensing & Regulatory Affairs (LARA)
    • Provide an EIN linked to a Michigan address
    • Ability to begin manufacture within 30 days of grant award
    • Be a registered vendor with Michigan’s “SIGMA” system
  • Apply Here

 

New Jersey

While many states direct small businesses to seek relief under federal programs enacted by The CARES Act, New Jersey, the Garden State, looks to stimulate the growth of New Jersey businesses through a plethora of economic initiatives.

On March 26, 2020, New Jersey allocated more than $75 million to assist businesses and nonprofit organizations, creating multiple relief programs summarized as follows:

Small Business Emergency Assistance Grant Program:

  • Benefits: $1,000 to $5,000 in grant per small business
  • Eligible Businesses:
    • Have between 1 and 10 full-time employees (“FTE”)
    • Have a physical commercial location in the State of New Jersey. Home-based businesses are not eligible for this round of grant funding.
    • Must be a small business in the retail, arts, entertainment, recreation, accommodation, food service, and other services– such as repair, maintenance, personal, and laundry services
    • Has been negatively impacted by the COVID-19 declared state of emergency in Executive Order 103 (e.g., has been temporarily shut down, has been required to reduce hours, has had at least a 20% drop in revenue, has been materially impacted by employees who cannot work due to the outbreak, or has a supply chain that has materially been disrupted and therefore slowed firm-level production).
    • Has a material financial need that cannot be overcome without the grant of emergency relief funds at this time (e.g., does not have significant cash reserves that can support the SME during this period of economic disruption
  • Other Key Points:
    • CEO must certify that the business will make a best effort not to furlough or lay off any individuals
    • Grant values are calculated at $1,000 per FTEs reported in New Jersey business’ Form WR 30
    • Minimum Grant Amount (per application): $1,000
    • Maximum Grant Amount (per application): $5,000
    • Are in good standing with the Department of Labor and Workforce Development, with all decisions of good standing at the discretion of the Commissioner of the Department of Labor and Workforce Development.
    • Non-profit organizations are eligible for this program. Eligible non-profits must have status of 501(c)(3), 501(c)(4), 501(c)(7)
    • Must certify that the company is in good tax standing with the State
    • Are registered to do business in the State of New Jersey
    • Apply online at the following Website

Small Business Emergency Assistance Loan Program

The New Jersey Economic Development Authority (NJEDA) is providing working capital loans of up to $100K for certain eligible small businesses that have been negatively impacted by the coronavirus (COVID-19). An initial wave of $10M will be available to support such businesses.

The application window opens Monday, April 13 at 9:00 AM EST, and closes on Monday, April 20, at 9:00 AM EST. Applications will be reviewed on a first-come, first submitted basis. Applications should be completed by an authorized signer of the business, such as the owner, CEO, or similar level officer.

  • To be eligible, a business must have the following:
    • A physical commercial location in New Jersey;
    • Authority to do business in New Jersey;
    • $5M or less in annual revenue;
    • Been in existence for at least one year;
    • Tax clearance from the NJ Division of Taxation, and be in good standing with the NJ Department of Labor;
    • Minimum credit score of 600 for at least one guarantor; and
    • Minimum global debt service ratio of 1.0 based on the year prior to the declaration of emergency.

Additional conditions may apply. Further, the business must be able to show the negative impact of the COVID-19 emergency, such as business closure, 20% drop in revenue, reduction in hours, etc.

The NJEDA has provided a step-by-step guide on how to complete the application, which can be found HERE.

  • Among the information to be submitted is:
    • Entity formation documents;
    • Entity financial information;
    • Entity tax returns;
    • Information for all owners with greater than 10% ownership in the business (including three consecutive years of the most recently available personal tax returns for all such owners);
    • Real property that can be used as collateral; and
    • Identification of how loan funds will be specifically used. For example, payroll, rent, mortgage, taxes, utilities, inventory; and how much funding is requested for each such item. Documentation must be submitted to support each item (i.e. payroll reports, current lease, bills/tax statements, invoices, etc.) The loan amount requested cannot exceed $100,000, or be more than the total funds requested for each of the specified items.

A legal questionnaire, as well as various certification statements, must also be completed as part of the application.

Please visit the NJEDA website for further information, and reach out to your Withum tax professionals with any questions you may have.

Community Development Finance Institution (CDFI) Grant Program

  • $1.25 million program that will provide grants up to $250,000 to CDFIs to scale operations or reduce interest rates for the duration of the outbreak
    • Support the scale-up of the origination, technical support, and underwriting capacity of CDFIs, including hiring staff
    • Allow the CDFIs to buy down interest rates in any COVID-19 related emergency working capital loan, thereby providing impacted businesses with lower-costs and more flexible financing
    • Apply online at the following Website

The CDFI Emergency Loan Loss Reserve Fund

  • Benefits Available: $10 million program to provide loan guarantees to CDFIs for working capital loans
    • Loans cannot exceed $75,000
    • Interest rates on loans must be lower than 3.75%
    • Loans must provide flexible loan structures
    • Loans cannot exceed a term of five years
  • Eligible CDFI Emergency Assistance Grant Program:
    • Company certifies it has been adversely impacted by COVID-19, (e.g. business must certify it closed, reduced hours, 20% reduction in revenue, 25% reduction in staff availability, or material disruptions to its supply chain)
    • Micro or small business owner
  • Other Key Points:
    • Apply online at the following Website

New Jersey Entrepreneur Support Program

  • Benefits Available: Investor loans not to exceed $200,000
  • Eligible Entrepreneurial Businesses:
    • Have a minimum of 50% of employees in New Jersey
    • Have less than 25 total employees at the time of application
      • Have under $5 million in revenues
      • Have corporate headquarters in New Jersey
      • Fall under one of the following sectors: advanced manufacturing, information/technology, life sciences, finance and insurance, clean energy, food and beverage, advanced transportation, food and beverage, film and digital media
      • Be registered to do business in New Jersey and must certify that the company is in good tax standing with the State
      • Be in good standing with the Department of Labor and Workforce Development
    • Other Key Points:
      • Investors must already have equity interest and equity position in the company
      • Qualified investors are not required to be New Jersey residents
      • The investment must have been made after March 9th, 2020
      • Apply online at the following Website

    Small Business Emergency Assistance Guarantee Program

    • Benefits Available: $10 million working capital loans. The program provides a 50% guarantee, not to exceed a total $100,000 to premier lenders that will issue working capital loans or lines of credit to businesses impacted by businesses
    • Eligible Businesses:
      • Been in existence for at least one full year
      • Have $5 million or less in annual revenue
      • Can demonstrate a negative impact on your business due to the COVID-19 outbreak
      • Have a physical commercial location in the State of New Jersey
      • Home-based businesses are not eligible for this round of grant funding
      • Can provide CEO certification that you are making a best-effort to not lay off employees or will re-hire employees as soon as possible
      • Are registered to do business in New Jersey and must certify that the company is in good tax standing with the State
      • Are in good standing with the New Jersey Department of Labor and Workforce Development
    • Other Key Points:
      • To access this program, the business must work through a Premier Lender
      • Apply online at the following Website

    Applications for ALL programs are being accepted beginning on April 3, 2020, but funding is limited. Please don’t hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor for additional information or assistance.

New York

John Steinbeck said it best: “Once you have lived in New York and made it your home, no place else is good enough”.

New York City has been hit hardest by the COVID-19 pandemic and Americans across the country are pulling for the greatest city in the world. In the arena of small business relief, Mayor Bill de Blasio announced 2 programs for New York City businesses impacted by the COVID-19 pandemic

New York City Employee Retention Grant Program

  • Benefits Available: Small businesses with fewer than 5 employees can receive a grant of up to $27,000 to cover 40% of payroll costs for 2 months
  • Eligible Businesses Must Meet All of the Following Requirements:
    • Be located within the 5 boroughs
    • Demonstrate 25% reduction in revenue
    • Be in operation for at least 6 months
    • No outstanding tax liens or legal judgments
  • Apply Here

New York City Small Business Continuity Loan Fund

  • Benefits Available: Businesses with fewer than 100 employees are eligible for a zero-interest loan of up to $75,000
  • Eligible Businesses Must Meet All of the Following Requirements:
    • Be located within the 5 boroughs
    • Demonstrate 25% reduction in revenue
    • Be in operation for at least 2 years
    • Demonstrate ability to repay the loan
    • No outstanding tax liens or legal judgments
  • Apply Here

Please don’t hesitate to contact a member of the State and Local Tax Group or reach out to your Withum advisor for additional information or assistance.

Ohio

The “Buckeye” State was one of the first to take formal measures to adopt social distancing beginning with state-wide school closures, which has now been extended to April 30th. The State of Ohio is determined to fight the COVID-19 pandemic on all fronts and has launched a new homepage dedicated to innovative resources for economic support here. As of March 31, 2020, specific state incentives available to the business and nonprofit communities include those programs listed below. Check-in with a Withum State and Local Team member or visit COVID-19 for more assistance.

Liquor Buyback

The Ohio Department of Commerce will immediately begin offering a liquor buyback option to support bars and restaurants. This is intended to aid those establishments that have stocked up on high proof liquor, but now are facing closure to in-house patrons. Bars and restaurants can return unopened, high proof liquor products (obtained within the past 30 days) to the agency where they purchased the product. This opportunity is also extended to those with temporary (F2) permits for events scheduled between March 12 and April 6, 2020. Questions about this program should be directed to the Liquor Enterprise Service Center at 1-877-812-0013 or OhioLiquorInfo@Com.Ohio.gov.

Ohio’s Bureau of Workers’ Compensation (BWC)

Ohio’s Bureau of Workers’ Compensation (BWC) system is the exclusive provider of workers’ compensation insurance in Ohio and serves 249,000 public and private employers. To help businesses facing difficulties due to the COVID-19 pandemic, the Ohio BWC is announcing the deferment of insurance premium installment payments for March, April and May until June 1, 2020. Learn more here.

Grace Period for Health Insurance Premiums

All health insurers are required to provide the option of deferring premium payments, interest-free, for up to 60 calendar days from each original premium due date. This means that employers can defer their premium payments up to two months, giving them some relief on costs, while keeping their employees insured. Learn more here.

Publicly-Funded Daycares

An executive order issued last week increased the number of children allowed to be supervised by child care staff, depending on the type of program and ages of the children. The order also increased from 10 to 20 the number of paid absent days for providers serving children in the Publicly Funded Child Care program, and it provides child care programs with 21 paid pandemic days if they must close their programs because of the pandemic. Read the Executive Order here.

The Ohio Department of Transportation (ODOT)

The Ohio Department of Transportation (ODOT) is modifying the process for haulers carrying heavy loads of essential goods. Generally, Ohio requires haulers with loads classified as “oversized” to seek advanced permission from ODOT before they are legally allowed to travel in the state. Haulers carrying these essential goods can download and print the permit here. The federal government has also cut red tape around obtaining or renewing Commercial Drivers’ Licenses (CDLs) and other licenses to prevent interruption of essential shipping. The Ohio Departments of Public Safety (ODPS) and the Public Utilities Commission (PUCO) have adjusted their enforcement practices to avoid confusion.

Alternatives to Layoffs

Ohio’s premier layoff aversion program, SharedWork Ohio, helps employers retain trained staff during times of business downturn. Under a shared work plan, the employer reduces the employees’ hours in a uniform manner and JFS supplements eligible employees’ income with a proportionate share of unemployment. Right now, the federal government is fully funding these benefits paid to employees. Learn more here.

Rapid Response resources are available to assist companies proactively with talent needs or to minimize the negative impacts of layoffs. Rapid Response teams will work with your company to quickly maximize public and private resources to minimize the disruptions that are associated with job losses on your business, your workers, and the communities in which you do business and live. Rapid Response can provide customized services on-site at an affected your company, accommodate any work schedules, and assist company leadership and affected workers through the painful transitions associated with job loss. If you are looking to access skilled workers, are expecting a layoff or plant closing, or want to learn more, contact Ohio’s rapid response manager, Breeyn Handberg, at 614-466-9897 or breeyn.handberg@jfs.ohio.gov.

TechCred helps Ohioans learn new skills and helps employers build a stronger workforce with the skills needed in a tech-infused economy. Many of these trainings can be completed online. TechCred can be used to train both current and prospective employees. So, the employer can train employees during a layoff period and be reimbursed, as long as the employee is on the payroll at the point when the employer requests reimbursement. Learn more here.

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