By Paula Graham; Financial Strategist
As more grant funds have become available, Rebuild VA has expanded its eligibility criteria to allow more Virginia small businesses and nonprofits to apply. The original Rebuild VA Grant Fund launched in August, was only available for businesses and nonprofits in certain industries with annual gross revenues of no more than $1.5 million, and no more than 25 employees. And the awarded grant money was up to $10,000 per business.
The program expanded as of October 28th with more businesses qualifying and larger awarded grant amounts. There is an additional $30 million up for grabs and small businesses and nonprofits now have the ability to receive up to $100,000 this time.
Here’s what you need to know...
Who qualifies?
Small businesses and nonprofit organizations with their primary place of business in Virginia, affected by the COVID-19 pandemicwith $10 million or less in gross revenue, fewer than 250 employees, operating in Virginia before March 12, 2020, and in good standing. The full criteria can be found here.
What is the filing deadline?
There is no filing deadline but grant funds are limited, so the sooner a business files, the better.
What must the business demonstrate? That the business’s normal operations were limited by Governor Northam’s Executive Orders Fifty-Three or Fifty-Five, or that they were directly impacted by the closure of such businesses. In September, the program expanded eligibility to supply chain partners of businesses whose normal operations were impacted by the pandemic.
What are Governor Northam’s Executive Orders Fifty-Three and Fifty-Five?
At a high level, Order Fifty-Three places temporary restrictions on restaurants, recreational, entertainment, gatherings, non-essential retail businesses, and closure of k-12 schools due to novel coronavirus (covid-19). Order Fifty-Five requires individuals to comply with a temporary stay at home order due to novel coronavirus (covid-19). Click on the links to access the Orders.
Are applicants eligible if they received Paycheck Protection Program (PPP) funding or an Economic Injury Disaster Loan or advance (EIDL)?
Yes, applicants are eligible for Rebuild VA if they have received money from any CARES Act program. However, applicants who have received money from any CARES Act fund are not eligible to be reimbursed for COVID-related expenses under the Rebuild VA grant.
Are applicants that received COVID-19 grants or loans from any State, Regional or City agency or authority eligible for Rebuild VA Grant Fund?
Yes, applicants are eligible for Rebuild VA if they have received money from any CARES Act program. However, applicants who have received money from any CARES Act fund are not eligible to be reimbursed for COVID-related expenses under the Rebuild VA grant.
How is the awarded grant amount determined?
Approved Rebuild Virginia Grant Fund applicants shall receive grants up to 3.0 times their average monthly eligible expenses, or recovery reimbursements. Eligible recurring Operating Expenses are Payroll and benefits, Mortgage payments, Rent or Lease payments, Utilities, Principal and interest payments for business loans incurred before or during the emergency, and eligible COVID Related Operating Expenses (made on or after March 24, 2020).
What can the grant money be used for?
Grant money received under Rebuild VA shall only be used for eligible recurring expenses and not for COVID-19 expenses for which Applicant received funding from the CARES Act. For more information, click here.
Filing for the Rebuild VA Grant requires time and paperwork, but for many businesses, it will be financially worth it.