New York State COVID-19 Pandemic Small Business Recovery Grant Program
The New York State COVID-19 Pandemic Small Business Recovery Grant Program was created to provide flexible grant assistance to currently viable small businesses, micro-businesses and for-profit independent arts and cultural organizations in the State of New York who have experienced economic hardship due to the COVID-19 pandemic.
Grant awards will be calculated based on a business’s annual gross receipts for 2019 (see below for more information). Grant amounts and calculations are subject to change by Empire State Development.
- Annual gross receipts: $25,000 – $49,999.99: Award is $5,000 / business
- Annual gross receipts: $50,000 – $99,999.99: Award is $10,000 / business
- Annual gross receipts: $100,000 – $500,000: Award is 10% of gross receipts (maximum grant is $50,000)
Eligible Business Qualifications
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 (maybe shuttered due to COVID restrictions). See the FAQ section below for definitions of business categories above.
Eligible Applicants will be required to show loss of gross receipts as a result of the COVID-19 pandemic or compliance with COVID-19 health and safety protocols which resulted in business modifications, interruptions, or closures.
Small businesses and Micro-businesses must:
1. 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
- sum of line 1a + line 2, IRS Form 1040 Schedule C
2. Demonstrate positive net profit on 2019 Business Return ($1 or greater)
- line 28, IRS Form 1120 (line 21, IRS Form 1120S);
- line 22, IRS Form 1065; or
- line 31, IRS Form 1040 Schedule C; or
- line 34, IRS Form 1040 Schedule F
3. Demonstrate at least 25% loss in Annual Gross Receipts in a year-to-year gross receipt comparison as of December 31, 2020 to the same period in 2019.
- Loss to be calculated based on the difference between line 1a on IRS Form 1120 or 1065 (, line 1, on IRS Form 1040 Schedule C), or the sum of line 1a + line 2 on IRS Form 1040 Schedule F reported on 2019 federal tax return and line 1a on IRS Form 1120 or 1065 (, line 1, on IRS Form 1040 Schedule C), or the sum of line 1a + line 2 on IRS Form 1040 Schedule F reported on the 2020 federal tax return (in each case covering the same period). The calculated value must show a reduction of 25% year over year. Businesses with a partial tax year in 2019 will calculate a 25% loss based on the comparable number of months in 2020.
4. Demonstrate that the total business expenses on the 2020 business income return are greater than the grant amounts.
- Total expenses calculation versus [proposed grant amount will be based on business expenses reported on 2020 federal tax return submitted by the applicant.
- All Non-Profits, 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 Grant Program
- Landlords and passive real estate businesses
- Illegal businesses or enterprises
- Other industry or business types as specified by Empire State Development
Eligible Use of Grant Funds
The grants must be used for COVID-19 related losses or expenses incurred between March 1, 2020 and April 1, 2021. These include:
- Payroll costs
- Commercial rent or mortgage payments for NYS-based property (but not any rent or mortgage prepayments)
- Payment of local property or school taxes associated with a small business location in NYS
- Insurance costs
- Utility costs
- Costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety
- Heating, ventilation, and air conditioning (HVAC) costs
- Other machinery or equipment costs
- Supplies and materials necessary for compliance with COVID-19 health and safety protocols
- Other documented COVID-19 costs as approved by Empire State Development
Ineligible Uses of Funds
- Grants awarded under the program may not be used to re-pay 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.
- Eligible Applicants must provide evidence, acceptable to New York State that the Eligible Applicant is operational and that the Eligible Applicant is not restricted by any state, local or other agency mandate.
- Due to a limited amount of funding and the high volume of requests expected, your business type, geography and industry may factor into your ability to receive a grant.
- Priority will be given to socially and economically disadvantaged business owners including, but not limited to, minority and women-owned business enterprises (NYS certification not required), service-disabled veteran-owned businesses, and veteran-owned businesses, or businesses located in communities that were economically distressed prior to March 1, 2020, as determined by the most recent Census data.
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Proof of Gross Receipts loss or other economic hardship
2019 and 2020 Business Income Tax returns. Note: full and complete, unaltered federal tax
returns for each year are required (including all schedules and statements).
- For corporations and LLCs – include IRS Form 1120
- For partnerships – include IRS Form 1065 and Schedule K-1
- For sole proprietors – include IRS Form 1040 Schedule C
- For sole proprietor farming businesses – include IRS Form 1040 Schedule F
- Completed IRS Form 4506-C
Proof of Business Organization
One of the following:
- Current Business License
- Current Business Certificate
- Certificate of Organization
- Certificate of Assumed Name (DBA)
- NYS Certificate of Authority
- Articles of Incorporation
- NYS municipality issued document showing authorization to operate in NYS
Proof of business location and current operation
Two of the following documents:
- Current lease
- Utility bill
- Current business bank statement
- Current business mortgage statement
- Business credit card statement
- Professional insurance bill
- Payment processing statement
- NYS ST-809 or ST-100 sales tax collection documentation.
Schedule of ownership
Listing of names, addresses, Social Security numbers (or, for non-US owners, Individual Taxpayer Identification Numbers), phone numbers, e-mails, percentage ownership, and photo ID for any owners with 20% or more ownership of the business.
Proof of number of employees
Most recently submitted NYS-45 document for employer firms.
For funds distribution
W-9 and bank account information
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