Pandemic Small Business Recovery Grant Program (NYS)
Summary: This new grant program from NYS provides financial relief to small businesses impacted by the pandemic. The portal is set to open on June 10th at 9am EST, and eligible businesses are encouraged to apply asap.
See the grant program website and read the FAQ. If you're thinking of applying, sign up here to receive updates, including notice of when the portal will open for applications. Have questions? Sign up for a free advising call with us here.
This $800m fund provides grants to eligible small business and for-profit independent arts and cultural organizations in New York State impacted by the pandemic and related closures. Grants start at $5k and size is determined based on annual gross receipts. Applicants must demonstrate a 25% or greater loss in 2020 vs. 2019.
- Have 2019 or 2020 annual Gross Receipts of between $25,000 and $500,000 (line 1a, IRS Form 1120 or 1065, Line 1, IRS Form 1040 Schedule C).
- Demonstrate positive net profit on 2019 Business Income Return ($1 or greater) (line 28, IRS form 1120; line 22 IRS
form 1065; Line 31, IRS Form 1040 Schedule C)
- Demonstrate that total expenses on 2020 Business Income Return are greater than the grant amounts.
- Demonstrate at least 25% loss of gross receipts in a year-to-year revenue comparison as of December 31, 2020, to
the same period in 2019.
- 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
- Eligible Applicants may have received or been awarded the following federal assistance:
- Paycheck Protection Program loans totaling $100,000 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 Operators Grant of $150,000 or less.
Who's 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 monies from the SBA Restaurant Revitalization Grant Program;
- Landlords and passive real estate businesses;
- Illegal businesses or enterprises.
Annual gross receipts: $25,000-$49,999: Award is $5,000 / business;
Annual gross receipts: $50,000-$99,999: Award is $10,000 / business; and
Annual gross receipts: $100,000-$500,000: Award is 10% of gross receipts (maximum grant is $50,000).
Use of funds
The grants must be used for COVID-19 related losses or expenses incurred between March 1st, 2020 and April 1st, 2021. These include:
- Payroll costs; or
- Commercial rent or mortgage payments for NYS-based property (but not for any rent or mortgage prepayments); or
- Payment of local property or school taxes associated with a small business location in NYS; or
- Insurance costs; or
- Utility costs; or
- Costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety; or
- Heating, ventilation, and air conditioning (HVAC) costs; or
- Other machinery or equipment costs; or
- Supplies and materials necessary for compliance with COVID-19 health and safety protocols; or
- Other documented COVID-19 costs as approved by ESD.
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.
Documentation to gather
- Proof of Gross Receipts loss or other economic hardship: 2019 and 2020 Business Income Tax returns:
- For corporations and LLCs – include IRS Form 1120
- For partnerships – include IRS Form 1065 and Schedule K-1
- For sole proprietors – include IRS Form 1040 Schedule C
- Completed IRS Form 4506-C
- Proof of business location and current operation: Two of the following documents:
- Current lease; or
- Utility bill; or
- Current business bank statement; or
- Current business mortgage statement; or
- Business credit card statement; or
- Professional insurance bill; or
- Payment processing statement; or
- NYS ST-809 or ST-100 sales tax collection documentation.
- Schedule of ownership: Listing of names, addresses, Social Security Numbers or Individual Taxpayer Identification Numbers, phone numbers, e-mails, percentage ownership, and photo ID for any owners with more than 20% ownership of the business;
- To complete the application for the grant, owner/applicant must be at least a 20% owner and provide listing of name, address, Social Security Number or for non-US owners, Individual Taxpayer Identification Number), phone number, e-mails, percentage ownership, and photo ID.
- To complete the funding of grant, applicant must submit schedule of ownership information for all owners with 20% or more ownership of business: 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.
- Non- U.S. owners are subject to Individual Taxpayer Identification Number verification through IRS Form CP565.
- Proof of number of employees: Most recently submitted NYS-45 document for employer firms.
- For funds distribution: W-9 and bank account information