Small Business Grant Pandemic Relief for Small Businesses

Small Business Grant

Pandemic Relief for Small Businesses Small businesses in Wisconsin have been hit especially hard by COVID-19 § Thin profit margins § Very little cash reserve § Lack financial relationships/history needed to qualify for federal programs

We’re All In Small Business Grant Program Goals: § Help Wisconsin small businesses get back on their feet § Encouraging adoption of best practices to keep employees, customers and communities safe

How It Works § Funded by the federal Coronavirus Aid, Relief and Economic Security (CARES) Act, the We’re All In Small Business Grant Program will provide $2, 500 grants to 30, 000 Wisconsin small businesses § Funding aims to assist with the costs associated with: § § § Business interruption Health and safety improvements Wages and salaries Rent Mortgages Inventory

Basic Eligibility Requirements To be eligible for a We’re All In Small Business Grant, a business must: § Be a Wisconsin-based, for-profit business; § Employ 20 or fewer full-time equivalent (FTE) employees, including the owner; § Earn greater than $0 but less than $1 million in annual revenues; and, § have started operating prior to Jan. 1, 2020, and have been in business as of Feb. 2020. (Seasonal businesses should use the highest total FTEs employed during the season. )

Frequently Asked Questions Are there limitations on eligibility? § Yes. The following eligibility limitations apply to the We’re All In Small Business Grant: § The business must not be part of a national chain, unless the business is a third-party franchise; § Industries covered by other Wisconsin CARES Act Coronavirus Relief Fund programs are ineligible for this program: § Crop Production § Animal Production or Aquaculture § Lessors of Residential Buildings and Dwellings (https: //doa. wi. gov/Pages/Local. Govts. Grants/COVID-Grants. aspx)

Frequently Asked Questions How do I apply? § The online grant application will be accessible for one week from 8 a. m. Monday, June 15, through 11: 59 p. m. Tuesday, June 23, at wedc. org/WAISmall-Business-Grant. § WEDC will make clear on this webpage and all communications channels when the application period begins and ends. § Businesses interested in receiving notifications about funding and other pandemic recovery resources from WEDC can subscribe to receive regular alerts at wedc. org/focus-forward

Frequently Asked Questions What supporting documentation will businesses be required to submit along with their application? § Applicants will need the following documents to apply: § 2018 or 2019 federal tax return for business. (If you started your business in 2020, you are not eligible for this grant) • Applicable tax returns are: • IRS form 1065 Partnership Return (no K-1 s required) • IRS form 1120 Corporation Return (no schedules required) • IRS form 1120 S S Corporation Return (no K-1 s required) • IRS form 1040 (sole proprietors), first two pages and the following: • Schedule C, Profit and Loss from Business § Signed W-9 form to be found at www. irs. gov/pub/irs-pdf/fw 9. pdf § A letter or email of acknowledgement from a community organization indicating the business was in operation in February 2020.

Frequently Asked Questions Letters may be provided either in letter form or via email, from any of the following: § § § § Chamber of commerce Main Street or Connect Communities organization Local business improvement district Neighborhood economic development association Local economic development organization County economic development organization Municipality, including tribal government County Local bank, credit union or Community Development Financial Institution Regional UW Small Business Development Center https: //wisconsinsbdc. org/services/covid-19/. U. S. Export Assistance Center - Wisconsin Regional economic development organization Regional Planning Commission Trade association Sample letter or email of acknowledgement can be found at https: //wedc. org/programs-and-resources/wai-smallbusiness-grant/

Frequently Asked Questions What other information should I have ready for the application? § Applicants will also need to provide three-digit North American Industry Classification System (NAICS) code that best matches their business. This information may be included in their tax return and can be found here: https: //www. naics. com/naics-code-description/. § The We’re All In Small Business Grant application will have a drop-down list from which to select the applicant’s industry by three-digit NAICS and description. For example, if the company provides Janitorial Services (561720), the applicant would choose number 561 for Office Administrative Services. § Pay close attention to this step, as application scoring will take industry type into account.

Frequently Asked Questions What are eligible grant uses? § Grant funds can be used for any operating costs, including but not limited to wages and salaries, rent, mortgages and inventory; and/or for health and safety improvements.

Frequently Asked Questions Am I eligible to apply if I am a seasonal business? • Yes. A seasonal enterprise is considered to be in business in February 2020, even if not yet open for the season. (Seasonal businesses should use the FTE at the height of their season) Am I eligible to apply if I am a sole proprietor? • Yes. Sole proprietors are eligible to apply as long as they file and provide a Schedule C along with their Tax Return. Will I be taxed on the grant amount? • Yes. The grant is considered income for tax purposes.

Frequently Asked Questions How will grants be awarded? § After the application period has closed, applications will be reviewed for eligibility and will be scored, ranked and awarded based on industries with the greatest negative impact due to the COVID-19 pandemic, community distress and geographic dispersion. § Scoring will also consider whether the business has received assistance through WEDC’s SB 20/20 program or Ethnic Minority Emergency Grant initiative, or through the U. S. Small Business Administration Economic Injury Disaster Loan Program or Payroll Protection Program.

Frequently Asked Questions How do I determine the number of full-time equivalents at my company? § One full-time equivalent (FTE) is one or more employees working a total of 40 hours per week. For example, if the applicant has two employees each working 20 hours per week, then the company has one FTE.

Frequently Asked Questions What are the company’s obligations if it receives this award? § Upon approval, the company will be provided a contract to e-sign (by email from Docu. Sign) that attests to the truth and accuracy of your application information. § The company must complete a follow-up report indicating how the grant was used. This report must be completed by October 31, 2020. § Additionally, the company may later be selected randomly for a review of its grant expenditures. It is important, therefore, to save receipts or evidence that show the grant was spent. State law requires companies to maintain these records for three years.

Frequently Asked Questions When will the grant funds be awarded? § Initial awards are scheduled to begin in late June, and all award notifications are expected to be made by the end of July. If a company is selected, how will it receive the grant? § Successful applicants will receive an email from WEDC’s third-party financial partner asking how they would like to receive the grant funds—electronic bank transfer or physical/electronic debit card.

Frequently Asked Questions What does it mean to be a We’re All In business? § The goal of WEDC’s We’re All In Small Business Grant is twofold. § The program aims to help Wisconsin’s small businesses get back on their feet while also encouraging adoption of best practices to build confidence in reopening Wisconsin’s economy. § Grant recipients will become We’re All In businesses by pledging to observe health safety best practices in their facilities to protect employees, customers and the communities in which they operate. § Industry-specific safety guidelines can be found at wedc. org/reopen-guidelines § WEDC is encouraging all businesses, large and small, to adopt behaviors that maximize safety and balance health and livelihoods. § We’re all in this together to be healthy and safe.

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