TBC Information Network

Teal, Becker & Chiaramonte offering valuable insights, impressions and commentary on today’s financial and business world.

NYS COVID-19 Small Business Grant

On August 25, 2021, the NYS COVID-19 Small Business Recovery Grant Program expanded its criteria for grant eligibility.  Specifically, the grant program now allows businesses to apply with:

  1. Annual gross receipts of less than $2,500,000, and
  2. Who received PPP funds in amounts of $250,000 or less.

Please see below for more details.  The program is accepting applications at: https://nysmallbusinessrecovery.com/

Updated Grant Amounts

Grant awards will be calculated based on a business’s annual gross receipts for 2019 (subject to change by Empire State Development).

  • Award is $5,000 / business if annual gross receipts: $25,000 – $49,999.99
  • Award is $10,000 / business if annual gross receipts: $50,000 – $99,999.99;
  • Award is 10% of gross receipts if annual gross receipts: $100,000 – $2,500,000;
  • The maximum grant is $50,000

Eligibility

To qualify the small business must:

  1. Have begun operations on or before March 1, 2019.
  2. Have 2019 or 2020 Gross Receipts of between $25,000 and $2,500,000 per annum
  3. Demonstrate positive net profit on 2019 Business Return ($1 or greater)
  4. 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.
  5. Demonstrate that the total business expenses on the 2020 business income return are greater than the grant amounts.
  6. 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. However, the applicant will not be disqualified from this Program if they have received or been awarded any of the following federal assistance:
    1. United States Small Business Administration (“SBA”) Paycheck Protection Program loans totaling $250,000 or less;
    2. COVID-19 Economic Injury Disaster Loan (“EIDL”) Advance Grant of $10,000 or less;
    3. COVID-19 EIDL Supplemental Targeted Advance Grant of $5,000 or less; or
    4. SBA Shuttered Venue Operators Grant.
  7. The applicant must submit a formal certification with NYS. A PDF copy of the Applicant Certification can be found here: https://nysmallbusinessrecovery.com/wp-content/uploads/2021/06/NYS-COVID-19-Pandemic-Small-Business-Recovery-Grant-Program_Application-Certification_Lendistry-v20210610.pdf

Taxability

NYS has passed a law (NYS Senate Bill S7230) providing an exclusion from NYS taxable income for the amounts received pursuant to the COVID-19 pandemic small business recovery grant program, to the extent includable in federal taxable income.

Ineligible Businesses

      1. Landlords and passive real estate businesses
      2. Businesses that received awards from the SBA Restaurant Revitalization Grant Program
      3. All Non-Profits, Churches and other religious institutions
      4. Government-owned entities or elected official offices
      5. Businesses primarily engaged in political or lobbying activities
      6. Illegal businesses or enterprises
      7. 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:

      1. Payroll costs
      2. Commercial rent or mortgage payments for NYS-based property (but not any rent or mortgage prepayments)
      3. Payment of local property or school taxes associated with a small business location in NYS
      4. Insurance costs
      5. Utility costs
      6. Costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety
      7. Heating, ventilation, and air conditioning (HVAC) costs
      8. Other machinery or equipment costs
      9. Supplies and materials necessary for compliance with COVID-19 health and safety protocols
      10. 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.

Please contact your TBC Advisor to discuss whether your business qualifies for this program and other COVID-19 relief options.

Posted in Tax

Subscribe