FREQUENTLY ASKED QUESTIONS
FAQ
Who is eligible and can apply for a grant? [Updated 07.21.22]
On September 13, 2022, Governor Kathy Hochul announced that applicants of the New York State COVID-19 Pandemic Small Business Recovery Grant Program will no longer need to demonstrate positive net profit on 2019 Business Return ($1 or greater) or at least a twenty-five percent (25%) loss in annual gross receipts in a year-to-year revenue comparison as of December 31, 2020, to the same period in 2019, in each case, as reflected on Grantee’s 2019 and 2020 filed federal tax returns, including any 2020 Pandemic Unemployment Assistance, Federal Pandemic Unemployment.
As a result, existing applicants will be reexamined for eligibility and contacted by Lendistry via email. Please do not submit a new application. Existing applicants that submit a new application may be detected as potential fraud and disrupt the reexamination process.
All applications in progress must be fully completed with all required documents and banking information uploaded by 11:59 p.m. EDT on September 30, 2022, to be considered for a grant.
Small businesses and 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).
- Have 2019 or 2020 Gross Receipts of between $25,000 and $2,500,000 per annum (line 1a, IRS Form 1120 or 1065; line 1, IRS Form 1040 Schedule C; or the sum of line 1a + line 2, IRS Form 1040 Schedule C).
- Demonstrate that total expenses on 2020 Business Income Return are greater than the grant amounts.
- Be in substantial compliance with applicable federal, state, and local laws, regulations, codes, and requirements.
- Not owe any federal, state, or local taxes prior to July 15, 2020, or have an approved repayment, deferral plan, or in agreement with appropriate federal, state, and local taxing authorities.
- Not have qualified for business grant assistance programs under the federal American Rescue Plan Act of 2021 or any other available federal COVID-19 economic recovery or business assistance grant programs, including loans forgiven under the federal Paycheck Protection Program, or are unable to obtain sufficient business assistance from such federal programs.
- Eligible Applicants may have received or been awarded the following federal assistance:
- Paycheck Protection Program loans totaling $250,000 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 Operator Grant.
I have an inquiry regarding the 1099 form I received from the program. Who do I contact?
For all inquiries regarding the 1099 form, please contact [email protected].
We have a dedicated team to help you with any questions or concerns which may include:
- You need to request a new 1099 form from Lendistry.
- You lost or never received a 1099 form from Lendistry.
- You received a grant, but your 1099 form contains incorrect information.
- You did not receive a grant but received a 1099.
- You need further clarification.
In what ways was the program expanded on August 25, 2021? [UPDATED ON 08.25.21]
2020 Pandemic Unemployment with associated enhancements (Federal Pandemic Unemployment Compensation and/or Lost Wage Assistance Programs) will be added back to 2020 gross receipts and will be used in gross receipts loss calculation from 2019. New York State will work with the Department of Labor to obtain the correct Pandemic Unemployment Assistance and enhancement payments for each applicant.
Applicants who had not finished their applications prior to August 25, 2021, must complete their documents as soon as possible. New applicants can apply based on the expanded eligibility criteria and those applications will start to be processed on September 8, 2021. All applicants are encouraged to get their required documentation uploaded within 14 days of applying.
I was ineligible under the previous guidelines and had already applied for the program, what should I do? [UPDATED ON 08.25.21]
What is the New York State COVID-19 Pandemic Small Business Recovery Grant Program?
Who is Lendistry?
How is “small business” being defined?
How is "micro-business" being defined?
How is "For-profit independent arts and cultural organization" being defined?
How is “COVID-19 health and safety protocols” being defined?
When does a business have to have been established to be eligible to apply for a grant?
My business was profitable in 2019, but unprofitable in 2020. Am I eligible to apply for a grant?
My business has closed permanently but was open on March 1, 2019. Am I eligible for a grant?
How long will this program last?
Is a business that applied for and received a Paycheck Protection Program loan in 2020 or 2021 eligible to apply for a grant?
My business saw a revenue increase in 2020. Am I eligible for a grant?
What entities are NOT eligible?
- 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 funding from the SBA Restaurant Revitalization Fund Grant Program
- Landlords and passive real estate businesses
- Illegal Businesses and Enterprises
Is a business that applied for and received an SBA Restaurant Revitalization Fund Grant eligible to apply for this grant?
Are Non-Profits eligible for grants?
How are grant funds allowed to be used?
- Payroll costs
- Commercial Rent or mortgage payments for NYS-based property (may not be used for pre-payments)
- 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 ESD
How much grant money can I receive?
What documentation will I be expected to provide?
- Proof of revenue loss or other economic hardship: 2019 and 2020 Business Income Tax Returns
- Completed IRS Form 4506-C
- Two (2) proof of business location and current operation
- 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 more than 20% ownership of business
- Proof of number of employees: Most recently submitted NYS-45 document for employer firms
- For funds distribution: W-9 and bank account information
- Proof of Business Organization
For a complete list of the required documentation, please see the “REQUIRED DOCUMENTS” section of the Program website at nysmallbusinessrecovery.com.
How are grant funds NOT allowed to be used?
Am I eligible to receive a grant if I received an SBA Shuttered Venue Operator Grant (SVOG)?
If I own more than one business, can I apply for a grant for each of them?
My business' gross receipts in 2019 were greater than $2,500,000 but, due to COVID-19 Pandemic restrictions, my business' gross receipts in 2020 were less than $2,500,000; can I still apply for this Program?
I have a farming business and file an IRS Schedule F. Am I eligible to apply for this grant, and if so, how do I determine my gross receipts, expenses and net profit?
Can I link my personal bank account?
It is recommended that you go to your current bank provider or one of the members of the Independent Bankers Association
and open a business account.
Independent Bankers Association Website | https://ibanys.net/
The grant program requirements indicate that priority may be given to socially and economically disadvantaged business owners. Does this include businesses owned by persons with a disability?
Are grant proceeds taxed?
Can an applicant be reexamined if they were deemed ineligible for this grant program?
You will be notified via email if you are ineligible for this grant program. If there was an error in your web application form or in the documentation provided as part of your application, please contact our dedicated Call Center within five (5) days of receiving this email. Please note that this will not guarantee a reversal of your ineligibility. Additional documents and information may be requested to further validate your application.
If Lendistry does not hear from you within this timeframe, your ineligibility will be sustained and your file will be closed.
Can an applicant be reexamined if they were declined for a grant award?
You will be notified via email if you are declined for a grant award. If you believe you were declined in error, please contact our dedicated Call Center within five (5) days of receiving this email. Please note that this will not guarantee a reversal of your decline determination. Additional documents and information may be requested to further validate your application.
If Lendistry does not hear from you within this timeframe, your decline determination will remain permanently and your file will be closed.
Can an applicant be reexamined if they were deemed ineligible for this grant program?
You will be notified via email if you are ineligible for this grant program. If there was an error in your web application form or in the documentation provided as part of your application, please contact our dedicated Call Center within five (5) business days of receiving this email. Please note that this will not guarantee a reversal of your ineligibility. Additional documents and information may be requested to further validate your application. If Lendistry does not hear from you within this timeframe, your ineligibility will be sustained, and your file will be closed.
If your application is reinstated, Lendistry may request additional documentation or information to validate the information you have provided in your application. If requested, you will be required to upload all documents within 48 hours or two business days of the request to keep your application open, so please be on the lookout for communication from us to prevent delays in the review process. Please note that this will not guarantee a reversal of your ineligibility.
If your ineligibility is confirmed, your file will be closed.
Can an applicant be reexamined if they were declined for a grant award?
If your application is reinstated, Lendistry may request additional documentation or information to validate the information you have provided in your application. If requested, you will be required to upload all documents within 48 hours or two business days of the request to keep your application open, so please be on the lookout for communication from us to prevent delays in the review process. Please note that this will not guarantee a reversal of your decline determination.
If your decline determination is confirmed, your file will be closed.