The Connecticut Department of Economic and Community Development (DECD) recently created a $50 million grant program to help small businesses and nonprofits in the state recover from the ongoing challenges of COVID-19. Those that meet the qualifications can receive a one-time $5,000 grant and should receive the funds by December 30, 2020.
Are you eligible?
- Business must have no more than 20 total FTEs in 2019 across all of their Connecticut locations, or have total 2019 payroll of less than $1.5 million (annualized). FTE and payroll include affiliated companies.
- Businesses must be able to demonstrate a 20% or more loss in revenue year to date as of September 30th, 2020 compared with the same period in 2019.
- Business must have been established by October 1, 2019 and still be active (as verified by DRS).
- Home-based businesses are eligible.
- Eligible entities: for-profit businesses that use any type of incorporation, as well as 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), and 501(c)(19) nonprofit organizations.
- The business must remain a viable business, be planning to reopen, and be planning to rehire any workers let go due to COVID as business conditions recover, and have a material financial need that cannot be overcome without the grant of emergency relief funds.
- Companies must be in good tax standing with DRS or current on a payment plan or consent to use a portion and/or all of their grant to remedy the delinquency.
- Sole proprietorships are eligible.
- Businesses in which the majority of revenue is earned from the following activities:
- Liquor stores and alcohol distributors; adult businesses such as strip clubs; vape retailers; tobacco shops and smoking lounges; businesses having to do with gambling; gun stores and ranges; cash advance, check cashing, or pawn shops; bail bonds; collection agencies or services; and auction or bankruptcy or fire or “lost-our-lease” or “going-out-of-business” or similar sale.
- Business establishments that are 50% or more owned by another establishment such that the FTE count for the umbrella establishment (when counting the FTEs of all subsidiaries in which the umbrella establishment has 50%+ stakes) is more than 500. For example, this would include non-franchised outlets of major national food and retail chains.
- Businesses and not-for-profit entities may not participate in this program if they received another assistance grant from State of Connecticut CRF funds.
Eligible Activities & Uses
- Purchase of Machinery and/or Equipment
- Cost associated to ensure compliance with CT Reopen Business Sector Rules
How Funds Will Be Allocated
- $25 million to businesses/nonprofits located in the state’s distressed municipalities
- $25 million to businesses/nonprofits located outside of the state’s distressed municipalities
- Applicants will only be allowed a single grant regardless of multiple locations
- All funds will be disbursed to approved applicants by December 30, 2020
Check back to their site closer to the November 9 application date to learn more or apply. We are happy to answer any questions you have or help you as well, so don’t hesitate to reach out for assistance.