King George CARES Act Small Business Grant

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About the King George CARES Act Small Business Grant.

King George County Board of Supervisors announced on August 3rd that the County would use $234,000 of its Coronavirus Aid, Relief and Economic Security (CARES) Act Federal funding to create a small business grant fund that would aim to get direct funding to those businesses impacted by COVID-19. 

UPDATE: At the CARES Act Worksession on October 24th, the King George County Board of Supervisors allocated an additional $74,000 into the grant program. 

Round Two of the funding will open up on September 22, 2020

Businesses that received prior assistance through the King George CARES Act Small Business Grant program are not eligible to apply.   

Apply Online

The link will be available September 22nd

King George CARES Act Small Business Grant Documents

Purpose of Grants

Grants through the King George County Economic Development Authority are meant to assist qualifying small businesses and not-for-profit entities in our community for expenses associated with the provision of economic support to cover the immediate costs in connection with the impacts of the COVID-19 public health emergency.

Uses for Grant

Grants to local businesses may be used to reimburse the costs of business interruption and temporary closures cause by COVID-19. 

Uses can include:

Employee Compensation (Including Wages and benefits)

Working Capital

Equipment Inventory

Rents and utility costs during the period a business is closed to follow any stay-at-home order

Costs incurred during a reopening process, including the additional business interruption that happens when a small business must limit their accessibility to the public, and for displaying and/or communicating state-based requirements for public access
Operating costs for the purchase of items meant to protect the public and employees, such as protective masks and hand sanitizer, and other costs incurred by installing required safety measures in order to reopen a business

Other qualifying business-critical operating expenses cause by COVID-19, as determined by the U.S. Department of Treasury

What is Not Covered:

The small business may not be issued grants:

  1. By multiple federal funds for the same cost (double-dipping), and this principle also applies to any recipients of CARES funding: No duplicate payments or supplanting of other costs are allowed
  2. For non-COVID-19 related expenses
  3. For any other expenses that the U.S. Department of Treasury determines are non-qualifying

 

Grant Amounts

Businesses will be awarded in an up-front, lump sum (not as a reimbursement) based on the number of employees the business employed as of March 1, 2020.

1-5 employees – $4,000

6-20 employees – $7,000

21-50 employees - $10,000

Awarding Process

Grant funds are limited to the total amount allocated to the EDA by the King George County Board of Supervisors through the CARES Act allocation to King George County by the federal government.  All grants will be administered and awarded after the application process has closed.  All grant funds will be awarded if possible.  If the total amount requested based on the applications is equal or less than the total grant funds, then all qualifying applicants will receive funding as below.  If the total amount of funding requested exceeds that grant fund total, the applications will be determined by a random draw (lottery). Individual applications will not be assessed or awarded on need or other bases, except eligibility.

Upon award, the successful business must execute a Grant Award and Use Agreement explaining the award, acceptable uses, recordkeeping, oversight, audit, and other compliance requirements.

 

Private Business Eligibility

To be eligible, applicants must, at least:

Be an established, qualifying business entity (as of at least January 1, 2020) and have one or more location(s) in King George County, including the principal place of business

Awardees must have at least one full-time-equivalent (FTE) and less than fifty (50) FTE total employees across all locations

Have a valid Business, Professional and Occupational Licenses (BPOL) and other required licensure and permits


Be in good standing with the County

Otherwise, qualify under federal guidelines

 

Nonprofit Eligibility

To be eligible, applicants must, at least:

Must be established, qualifying not-for-profit entity (as of at least January 1, 2020) and have one or more location(s), including the principal place of business, in King George County

Have at least one full-time equivalent or employee and less than fifty (50) total full-time-equivalent (FTE) or employees across all locations

Have an IRS Form 990 from 2018 or 2019

Provide IRS Form 501(c)(3) Exemption Letter (non-profits)

  1.  Have a valid Business, Professional and Occupational Licenses (BPOL) and other required licensure and permits
  2. Be in good standing with the County
  3. Otherwise, qualify under federal guidelines

 

 

Independent Contractors / Sole Proprietor Eligibility

MUST:

Live in King George County and Operate a business as a Sole Proprietor

Pay self-employment tax

Not currently receiving unemployment benefits

Have a valid Business, Professional and Occupational Licenses (BPOL) and other required licensure and permits

Be in good standing with the County
Otherwise, qualify under federal guidelines

 

What Businesses are not eligible?

Businesses that are franchises and chains that are not headquartered in King George County are not eligible to apply

Independent contractors operating multilevel or network marketing businesses are not eligible to apply

Independent contractors working on gig platforms (such as Airbnb, Fiverr, Uber, Lyft, Instacart, etc.) are not eligible to apply

Businesses engaged in speculation or investment in rental real estate

Businesses determined to be ineligible under SBA guidelines https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility#section-header-19

Faith-based organizations or houses of worship are not eligible to apply

 

Additional Information

Deadline Extended: Applications will be accepted from  September 22nd to October 2nd 

Business and all business owners must be current on all King George County tax obligations and should have registered with the Commissioner of Revenue for 2020 taxes

Total grants funds available for the award is $120,000

Calculating full-time employee; minimum of 35hrs/week or 1,680 per year

Full-time equivalent is often part-time or seasonal

Total of 1,680 hours per year (or previous 12 months) = 1 FTE

Examples:

1FTE = 1 employee working 1,680 hours in 2019

1FTE = 2 employees, working 840 hours each in 2019

1FTE = 10 employees, working 168 hours each in 2019

If the need is greater than current resources, there will be a random draw (lottery) for processing order

 


FAQs

  • If my organization gets a grant will it be taxable?

    • At the present time, it is considered taxable. Your financial advisor or accountant can determine if you will pay taxes on the grant.

  • Can houses of worship and faith-based organizations apply?

    • No, Faith-based organizations and houses of worship are not eligible.  

  • My non-profit organization employs one individual on a part-time basis. Are we eligible to apply?

    • Organizations must have had at least one (1) full-time employee or one (1) full-time-equivalent employee prior to March 1, 2020, in order to be eligible. 

    • Calculating full-time employee; minimum of 35hrs/week or 1,680 per year

      Full-time equivalent is often part-time or seasonal.

      Total of 1,680 hours per year (or previous 12 months) = 1 FTE

      Examples:

      1FTE = 1 employee working 1,680 hours in 2019

      1FTE = 2 employees, working 840 hours each in 2019

      1FTE = 10 employees, working 168 hours each in 2019

  • My nonprofit does not have a physical location in King George County, but the majority of the clients we serve/benefit are King George County residents. Can we apply?

    • Nonprofits and businesses must have a physical location in King George County, including their principal place of business. Principal place of business is the main location where the bulk of business occurs, generally including where the head of the business/non-profit and senior management personnel are located.  

  • Are child care providers, for-profit and non-profit, able to apply for the grant? 

    • Yes, if they meet the program eligibility standards. Child care providers, including child care centers and home-based providers, are included.  

  • I received a U.S. Small Business Administration (SBA) Economic Injury Disaster Loan (EIDL) and to cover similar expenses, can I apply for this grant?

    • Yes, although the grant cannot be used to cover the same expenses that the EIDL loan or other federal program funds have been used for. Applicants will be responsible for complying with the terms and requirements of loan and grant programs from different sources.

  • I received a Paycheck Protection Program (PPP) loan and used it to cover my employees, can I apply for this grant?

    • Yes, although the grant cannot be used to cover the same expenses that the PPP loan or other federal program funds have been used for. Applicants will be responsible for complying with the terms and requirements of loan and grant programs from different sources.