Gap Funding for Business who did not Qualify for Vermont Economic Relief Grants (H.315)

H. 315 Gap Funding for Businesses that did not qualify for economic relief grants.

Latest Update 5.7.21

Applications are expected to be posted by the Agency of Commerce and Community Development in about two weeks. Among eligibility requirements for these business grants, a company will have had to show a tax loss in 2020. That loss will be the ceiling for the grant they may receive. Further guidelines can be found here.

Latest update 4.30.21

Guidelines for bridge grants for “gap” businesses posted:  The legislature appropriated $10 million of American Rescue Plan Act funds to provide grants to businesses that have not received prior state or federal financial support. The Agency of Commerce and Community Development has posted the bridge grant guidelines. Companies that received small amounts of federal support in PPP grants may be eligible if the $10 million allocation is not exhausted.

Latest update 4.16.21

H.315 was approved and is on its way to the Governor for signature. When applications are available there will be a 30-day window for businesses that received no state or federal aid. After this time all other businesses may apply.  Given there is only $10 million this program will be oversubscribed quickly.

H315 will provide funding to businesses that suffered a tax loss in 2020 but didn’t receive state or federal aid. To the extent funds remain available, businesses that have already received prior state or federal aid may receive grants under this program.

In fiscal year 2021, $10 million is appropriated for these grants.

This is the platform that ACCD wants to use for the administration’s proposed $50 million for additional economic recovery grants. A letter was sent to Senate Appropriations by the Lake Champlain Chamber and the Vermont Chamber of Commerce asking the committee to appropriate $50 million for this use. 

Eligibility

  • The business is organized and operated:
    • on a for-profit basis, including a sole proprietor, partnership, limited liability company, business corporation, cooperative, or mutual benefit enterprise; or
    • on a nonprofit or low-profit basis, including a mutual benefit corporation, public benefit corporation, and a low-profit limited liability company.
  • The business:
    • is open at the time of application and attests that it will use grant funds for business-related operations and economic recovery; or
    • is closed at the time of application due to the COVID-19 public health emergency;
      • attests that it will use grant funds for resuming its business operations and economic recovery; and
      • submits a brief written description of its good faith plan to reopen.
    • The business suffered a tax loss due to the COVID-19 public health emergency as evidenced by its federal 2020 income tax return.
    • The business complies with current state health and safety protocols established by Executive Order.

Grant Amount

  • A grant shall not exceed the lesser of:
    • three times the eligible business’s fixed monthly expenses for commercial mortgage or rent, insurance, electricity, heat, water, sewer service, telecommunications service, and Internet service; or
    • $150,000.00.
  • The Agency may reduce the amount of a grant pursuant to guidelines it adopts for that purpose based on the amount of any COVID-19-related direct financial assistance that the business has received from state or federal sources.

Latest update 4.9.21

H.315 was approved and is on its way to the Governor for signature. When applications are available there will be a 30-day window for businesses that received no state or federal aid. After this time all other businesses may apply.  Given there is only $10 million this program will be oversubscribed quickly.

Latest update 4.2.21

The slowdown of the “expedited budget bill,” H.315, is impacting one group in particular. The House approved the administration’s request for $10 million in grants for businesses that missed out on previous federal and state recovery grants due to eligibility rules. Any funds remaining would be available for a second category of businesses that received de minimus amounts of federal aid.

The Senate removed assistance for the second group, which has left many Vermont small business owners without hope of a lifeline. Many are going deeper into debt as they await an announcement of Governor Scott’s reopening plans.

The House and Senate are working out their differences based on a House amendment made behind the scenes that made it impossible for those affected to follow their discussions.

Original Post

Gap funding for some businesses that were ineligible for state business grants is being considered currently.

A bill to allocate $10 million to these outlier businesses is moving and is expected to pass the House during the week of 2-22-21. There may be an opportunity to testify in the Senate regarding tweaks to the eligibility criteria. Contact info@LodgingVT.com if you are available to testify.

View the  current draft of the $10 million Gap Economic Recovery Grant funding bill here.