Massachusetts Relief Program for Small Businesses
On October 22, 2020, Massachusetts Governor Charlie Baker announced a new program to help small businesses that have been negatively impacted by the pandemic. Eligible businesses have until November 12, 2020, to apply for funding through the Massachusetts Capital Growth Corporation (MCGC).
The program includes $50.8 million in grants, divided into two programs. According to the MCGC’s website:
Grant funding is intended to help businesses adversely impacted by the pandemic. Preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants that have not been able to receive aid from other federal programs related to COVID-19.
Small businesses with five (5) or fewer employees may be eligible for grants of up to $25,000. Funds may be used for working capital to cover business costs, such as rent, staffing, utilities, and technical assistance, general support and stabilization of the business. Funds may also be used for purchasing personal protection equipment (PPE).
Small businesses with fifty (50) or fewer employees may be eligible for grants of up to $75,000, capped at up to three (3) months of operating expenses, as evidenced by their 2019 federal income tax return. Grant amounts will be considered for actual expenses for 2020 during the pandemic. Expenses incurred since March 10, 2020, can be considered. Funds may be used for employee payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations.
Under both programs, the MCGC’s website indicates that the following uses of funds are not approved: major equipment purchases, purchase of real property, construction activities, business expansion, and lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.
Additional program information, eligibility criteria, required documentation, and other information (including links to apply to the programs) can be found at https://www.empoweringsmallbusiness.org/covid-19-response/covid-19-grants-massachusetts-small-businesses.
Please contact Leanne Scott or your BNN adviser with any questions at 800.244.7444.
Disclaimer of Liability: This publication is intended to provide general information to our clients and friends. It does not constitute accounting, tax, investment, or legal advice; nor is it intended to convey a thorough treatment of the subject matter.