Virginia’s Governor announces $70 Million Recovery Fund for Small Businesses who have NOT received other CARES ACT relief to date

Governor Ralph Northam announced on Monday, July 27, 2020, a $70 million recovery fund for small businesses and nonprofit organizations whose normal operations were disrupted by the COVID-19 pandemic. The program has been entitled “Rebuild Virginia Grant Fund” and offers applicants grants up to $10,000 to cover eligible expenses.

Who is NOT eligible?

The following will NOT be eligible for a grant:

• Applicants that are not individually owned and operated;
• Applicants that have already received CARES Act funding from any federal, state, regional or local agency or authority (including Paycheck Protection Program loans);
• Applicants that are delinquent on Virginia state income taxes and do not have a payment plan in place;
• Applicants that are lobbyists; and/or
• An applicant, owner, or a principal of the business with 20 percent or greater ownership interest is more than sixty (60) days delinquent on child support obligations.

Who IS eligible?  

To be eligible, applicants must meet the following eligibility criteria:

(1.) The business or non-profit must be organized as one of the following:

• Corporation (C-Corp), pass through entity (S-Corp, Partnership, LLC) , or other legal entity that is organized separately from the owner;
• A 501(c)(3) organization or 501(c)(19) veterans organization;
• A sole proprietorship; or
• An independent contractor.

• Restaurant and Beverage Services
  • Restaurants, dining establishments, food courts, breweries, microbreweries, cideries, distilleries, wineries, tasting rooms, and farmers markets (or vendors within the farmers market).
• Non-essential Brick and Mortar Retail
  • NOTE “Non-essential brick and mortar retail” establishments DO NOT INCLUDE THE FOLLOWING:
    • Grocery stores, pharmacies, and other retailers that sell food and beverage products or pharmacy products, including dollar stores, and department stores with grocery or pharmacy operations;
    • Medical, laboratory, and vision supply retailers;
    • Electronic retailers that sell or service cell phones, computers, tablets, and other communications technology;
    • Automotive parts, accessories, and tire retailers as well as automotive repair facilities;
    • Home improvement, hardware, building material, and building supply retailers;
    • Lawn and garden equipment retailers;
    • Beer, wine, and liquor stores;
    • Retail functions of gas stations and convenience stores;
    • Retail located within healthcare facilities;
    • Banks and other financial institutions with retail functions;
    • Pet and feed stores;
    • Printing and office supply stores; and
    • Laundromats and dry cleaners.
• Fitness and Exercise Facilities
  • Fitness centers, gymnasiums, recreation centers, swimming pools, indoor sports facilities, and indoor exercise facilities.
• Personal Care and Personal Grooming Services
  • Beauty salons, barbershops, spas, massage practices, tanning salons, tattoo shops, and any other location where personal care or personal grooming services are performed.
• Entertainment and Public Amusement
  • Theaters, performing arts centers, concert venues, museums, racetracks, historic horse racing facilities, bowling alleys, skating rinks, arcades, amusement parks, trampoline parks, fairs, arts and craft facilities, aquariums, zoos, escape rooms, indoor shooting ranges, public and private social clubs; and/or
  • Private campgrounds and overnight summer camps.

• Principal place of business is in Virginia;
• 25 or fewer employees;
• Gross revenue of less than $1.5 million in the last fiscal year;
• Operating prior to March 12, 2020;
• Currently in good standing with the Virginia State Corporation Commission; and
• The applicant must engage in legal activity.

What may the grant be used for?

• Payroll support, including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits during those periods of leave;
• Employee salaries;
• Mortgage payments, rent, and utilities;
• Principal and interest payments for any business loans from national or state-chartered banking, savings and loan institutions, or credit unions, that were incurred before or during the emergency; and/or
• Eligible personal protective equipment, cleaning and disinfecting materials, or other working capital needed to address COVID-19 response.

How do you apply for a grant?

The applicant must either submit an application via the online portal or print and mail an application to the following mailing address:

• SCC Certificate of Good Standing;
• Incorporation documents for your business-or non-profit, including one of the following:
  • Articles of Incorporation (e.g., C-Corp, S-Corp);
  • Articles of Organization (e.g., LLC);
  • Declaration of Partnership (e.g., Partnership);
  • IRS Letter of Determination (e.g., 501c3);
  • Business License (e.g., Sole Proprietor, Independent Contractor);
  • Certificate of Fictitious Name (e.g., Sole Proprietor, Independent Contractor); or
  • Form 1099 (individual contractors);
• Current Owner Photo ID (e.g., VA Driver’s License, VA Real ID, Permanent Resident Card, Passport);
• Copies of 2019 Federal Income Tax Returns, and 2019 interim financial statement. If your 2019 Federal Income Tax Return has not been filed, a year-end profit-and-loss statement and balance sheet for 2019;
• Commonwealth of VA Substitute W-9 form;
• Documentation demonstrating qualifying salary or payroll, including one of the following:
  • VEC-FC-21/20 quarterly report;
  • Payroll processor records;
  • Payroll tax filings;
  • Form 1099-MISC; or
  • Other documentation to demonstrate the qualifying salary or payroll;
• Mortgage statements or rent/lease agreements;
• Utility bills; and
• Paid invoices, contracts, cancelled checks, or other documentation to substantiate eligible COVID-19 expenses incurred to continue operations or re-open the business or non-profit.