New Hampshire’s Main Street Relief Fund – Grant Application Period is Open
New Hampshire’s Main Street Relief Fund program was first announced by Governor Chris Sununu on Friday, May 15. The program authorizes the allocation and expenditure of $400 million to provide financial assistance to qualifying businesses located in New Hampshire that have been impacted by the COVID-19 pandemic. Qualifying small businesses are those that have their principal place of business in New Hampshire, and had 2019 gross revenue of less than $20 million. This program was described in a previous BNN article published May 18, and we noted then that a sequence of two applications would be required. The first (a “prequalification application”) was due on May 29. On June 5, the second application form (a “Final Grant Submission”) was made available, and an overview of that form and related process are described below.
First, note that while the balance of this article addresses for-profit entities, $60 million is also available to qualifying nonprofits as part of the New Hampshire Nonprofit Emergency Relief Fund established by Governor Sununu. The funding is available to New Hampshire-based 501(c)(3) organizations that can demonstrate a need for funding due to expected or realized losses as a result of the COVID-19 public health emergency. More information specific to the application process will be provided on the State’s website on Thursday, June 11, 2020. However, organizations can begin completing an organization profile as of June 5, 2020 which is expected to be part of the application process. Organizations who received relief from other funding relief measures, such as the Healthcare System Relief Fund and New Hampshire Childcare Relief, are not eligible to receive funding through the Nonprofit Emergency Relief Fund. Additionally, organizations receiving a PPP loan may have limited funding options available to them.
All for-profit businesses that submitted the required Prequalification Applications by Friday, May 29 should have received an email directing them to the Final Grant Submission application. This final submission must be made by 11:59 p.m. on Friday, June 12. Only businesses that submitted a Prequalification Application by May 29 may submit a Final Grant application. Also, only businesses that meet all of the Main Street Relief Fund grant criteria are eligible to receive an award. Submission of the Final Grant application does not guarantee that the business will receive any funds.
The grant award amounts will be calculated based on the grant formula determined by using the information provided by small businesses in their Prequalification Applications. The State of New Hampshire is not directing businesses on how to spend the money. However, it is expected that the funds will be used by grant recipients to assist in covering their operational costs and legal obligations.
The potential grant amount is calculated in the following manner:
- Calculate the business’s “anticipated gross loss.” This is the actual 2019 Gross Receipts minus estimated 2020 gross receipts.
- Subtract 50% of any Payroll Protection Program loan received, and 100% of all other federal COVID-19 relief (grants and loans) received or expected to be received, from the anticipated gross loss to arrive at the “qualified loss.”
- If there are affiliated entities included in the application, sum the qualified losses of all affiliated businesses. This is the total “qualified loss.”
- Divide the total funds available under the program of $400M by the total qualified loss to determine the “pro rata percentage.”
- Multiply the pro rata percentage by the business’s qualified loss calculated in Step 3.
- If the result of Step 5 is above $350K, the business will only receive $350K. Otherwise, the business will receive the amount calculated in Step 5.
Grant amounts will be sent to approved applicants after the application process has closed on June 12. No specific timeframe has been set for the disbursement of the funds.
Although the amounts to be distributed under the program are grants, not loans, it is important that estimates of 2020 gross receipts are as accurate as possible. Grant recipients will be required to report their actual 2020 gross receipts to the Department of Revenue Administration (DRA) at the end of the year. If the actual business loss is not at least as much as the amount reported on the Final Grant Submission, some or all of the grant funds may be required to be repaid. Further guidance will be provided by the DRA at a later date.
Businesses that require assistance from the DRA may contact the Call Center, which is available at (603) 230-5000, Option 0, from 8:00 AM to 4:30 PM, Monday through Friday. More information about the program can be found on the Governor’s Office for Emergency Relief and Recovery website and on the Final Grant Submission Frequently Asked Questions webpage.
For more information or a discussion on how this may impact you, please contact your BNN advisor 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.