The Revive Alabama Small Business Grant Program: Relief for COVID-19 Business Interruptions
BACKGROUND OF THE PROGRAM AND GRANTS:
To reimburse qualifying Alabama small businesses for qualifying business interruption expenses they have incurred due to the COVID-19 pandemic, Governor Ivy has established the Revive Alabama Small Business Grant Program (the “Program”). ALDOR will award grants in amounts of up to $15,000.00. Because the Program will award the funds as grants, recipients will not have to repay the funds, unless the recipients have submitted false, fraudulent, or materially misleading information in their applications.
Alabama is funding the grants with funds it has received from the federal government pursuant to Section 601(a)(1) of the Social Security Act (42 U.S.C. § 301 et seq.), known as the “Coronavirus Relief Fund,” which is part of the Coronavirus, Aid, Relief, and Economic Security Act (the “CARES Act”). The U.S. Department of Treasury allows states to use CARES Act funds for expenditures “related to the provision of grants to small businesses to reimburse the costs of business interruption caused by required closures.” Alabama has received approximately $1.9 Billion in CARES Act funds, and it has dedicated $100 Million of those funds to the Program.
GENERAL PROGRAM AND GRANT INFORMATION:
The Alabama Department of Revenue (“ALDOR”) will administer the Program’s application process for grants. The Program’s application period will begin at noon on July 16, 2020 and end at midnight on July 25, 2020. ALDOR will award the grants on a first-come, first-served basis, until the grants awarded have depleted the Program’s funds. Applicants may only apply for one grant each, and ALDOR will only award one grant to each recipient.
GRANT ELIGIBILITY REQUIREMENTS:
Applicants must meet ten eligibility requirements to obtain grants. The eligibility requirements are as follows:
- Applicants must be residents of Alabama, with permanent places of business located in Alabama.
- Applicants must have been in business and fully operational as of March 1, 2020, and continue to be operational as of their application dates.
- Applicants must have had no more than nineteen “full-time equivalent employees” as of March 1, 2020.
- Applicants cannot be (i) subsidiaries of, or owned by, businesses with more than 50 “full-time equivalent employees” or (ii) part of larger business enterprises with more than 50 “full-time equivalent employees.”
- Applicants must have filed Alabama Income Tax returns for both the 2017 and 2018 tax years as of March 1, 2020.
- Applicants must have been in good standing with ALDOR as of March 1, 2020.
- Applicants must have incurred “eligible expenses” due to interruptions of their businesses up to the amounts requested.
- Applicants must not have received CARES Act Paycheck Protection Program Loans (“PPP Loans”), Economic Injury Disaster Loans (“EID Loans”), Pandemic Unemployment Assistance (“PUA”), or insurance proceeds to cover otherwise “eligible expenses” under the Program; however, if applicants have received or are expected to receive such loans, assistance, or proceeds, they may still apply for grants, but they must reduce the amounts they request by the amounts they have received or expect to receive from the loans, assistance, and proceeds.
- Applicants must have had less than an average of $5 Million in “gross revenues” in each of the past two tax years.
- Applicants must not: (i) exist to advance partisan political activities, (ii) directly lobby federal or state officials, or (iii) have employed or otherwise worked with a “lobbyist” (as defined in Section 36-25-1, Code of Alabama 1975) at any point during 2020.
Download the full alert: "The Revive Alabama Small Business Grant Program: Relief for COVID-19 Business Interruptions" written by Bill Lawrence.