FAQ
Application
Q: When will the application open?
A: Application periods will vary depending on the partner organization. All of the partners will open their application by late Spring 2024.
Q: How will eligible businesses apply?
A: Each partner organization will host an online portal to submit an application.
Q: I don't have 2021 taxes, am I still eligible?
A: Yes, if you don't have 2021 taxes you may submit your 2022 taxes.
General Rules
Q: Can a business owner with multiple LLC's apply for more than one grant?
A: Only one grant per business or individual. Ownership stake needs to be below 20% to qualify if that owner has received a grant from another business.
Q: How is the revenue limit verified?
A: The $750k threshold is checked in your first year of tax returns submitted. 2021 if you have it otherwise 2022 will be used.
Q: Can I reapply in the next round if I don't get selected in the first application window?
A: Yes, applicants who are not selected for a grant will be eligible in the next round.
Q: Why is gross revenue used for this program instead of net income?
A: Gross revenue is mandated by the State legislation.
Q: Which tax year will be used to decide the amount of the grant?
A: The legislation requires that the "prior year" be used to determine grant amount. We are considering 2022 taxes to be the prior year for the first application window.
Eligibility
Q: What types of businesses are eligible?
A: Almost all business types that meet the program requirements are eligible. Here is the list of ineligible business types:
- a business manufacturing, distributing, selling or conducting related activities of sexually explicit materials;
- a business that derives income from passive investments without operational ties to operating businesses;
- a business whose activities are primarily focused on speculative activities that develop profits from fluctuations in price rather than through the normal course of trade;
- a business that earns more than half of its annual net revenue from lending activities;
- a business engaged in pyramid sales, where a participant's primary incentive is based on the sales made by an ever-increasing number of participants;
- a business engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted; and
- a business engaged in gambling enterprises, unless the business earns less than 50% of its annual net revenue from lottery sales
Q: What if my business is located very close to the geographic boundary but not technically within it?
A: Unfortunately, your business does not qualify. We may adjust neighborhoods in the future application window.
Q: Are new businesses eligible and if so, what tax year is used for eligibility?
A: Yes, new businesses are eligible. They should submit 2022 taxes to be used for eligibility. Revenue must still be under $750k.
Q: How long does a business need to be located in an eligible neighborhood to qualify?
A: A business must be located in the neighborhood currently and throughout the application process. No other specific length is required.
Q: Do nonprofits qualify for this grant?
A: Yes, if they operate like a business. This means a nonprofit organization that earns 30% or more of their revenue on an ongoing basis through a non-tax-deductible sales or dues in a fee-for-service model similar to for-profit businesses.
Q: Are Uber/Lyft drivers eligible? Independent contractors? Food trucks?
A: Independent contractors such as Uber/Lyft drivers would be considered sole proprietors and be eligible for the grant. Location will be based on their physical business location used for tax purposes.
Uses
Q: Can I purchase a property with this grant? Or use it for a down payment?
A: No, this grant is only for working capital and equipment as outlined in the legislation.
Required Documents to Submit
Q: Can we submit older tax returns to help show financial hardship over time?
A: No, you are limited to a two-year window to show financial hardship. We will not accept older tax returns (pre-2021) to show financial hardship.
Q: Are 2023 taxes acceptable?
A: Not during the first application window.
Q: What documents should non-profits submit to show revenue/income?
A. Tax returns or Form 990.
Miscellaneous
Q: Is this grant taxable?
A: Yes, this grant is classified as taxable income (misc. income, form 1099)
Q: I received PPP funds but not state funds, will this play a factor in this program?
A: No, whether or not you received PPP funds will not be considered in this program. Only participation in one of the four state programs listed in the legislation will be considered.
Q: Is my business eligible if I have been convicted of a criminal offense related to a state grant agreement?
A: No, you are not eligible for a grant if you have ever been convicted of a criminal offense relating to a state grant agreement.
