Indiana Governor Eric Holcomb has approved $30 million in federal funding for Small Business Restart Grants. The new grant program gives working capital to small businesses in Indiana. The working capital will cover specific business expenses that relate to global COVID-19 pandemic.
The restart Grants program will help accelerate the economy’s recovery by providing working capital to small businesses. Your organization must have less than 100 employees and annual revenue under $5 million to be eligible. In this post, we look at the grant details and the eligibility criteria.
Eligibility Criteria to fulfill before receiving the grant
- Businesses that qualify for the grant will get compensation for expenses acquired between March 1, 2020, and October 31, 2021.
- An eligible company will receive up to $ 10,000 per month during the eligibility period. However, the reimbursement should not exceed more than $ 100,000.
- If you’ve applied for a restart grant but haven’t reached the maximum quota yet, then your business may still be eligible. You can apply during this extended period and request reimbursement for eligible expenses. However, any reimbursed expenses from previous grants will not be considered eligible.
- Businesses that are eligible may apply for grant funding to cover expenses incurred at their operations in Indiana. Expenses such as payroll or rent qualify. The grant can reimburse up to 80% of non-payroll costs or 100 percent if it’s related to employees’ wages.
- Effective September 20, 2021, sole proprietors will be eligible for reimbursement of Net Profit reductions. The reduction refers to a fall in profit in comparison to the previous period. That is 2019 vs. 2020.
- The program may be more inclined to Hoosier small businesses in the hospitality industry, but all eligible companies should apply.
- The deadline for submitting the expenses for reimbursement is November 15, 2021. Eligible small businesses can submit expenses as soon as possible. The business grant issued will be on a first-come, first basis.
The requirement to fulfill to receive the business grant
To qualify for the restart fund, here are the requirements your business should fulfill.
- You must have established your business before October 1, 2019.
- The business should have a registration to operate in Indiana. You must service the expenses on your claim within the state. Sole proprietors are exempt from this rule.
- Before application, make sure you are in good standing with the Indiana Department of Revenue or have an approved payment plan for any outstanding taxes.
- You are eligible if your business had less than 100 by December 31, 2019.
- The business should have made less than $10 million in gross sales and a positive EBITDA in 2019.
- For a business to qualify for expense reimbursement, the business should have a 40% loss index in gross sales during the grant period compared to the Pre- Covid period.
- If the business owner has received any amount from the paycheck protection program or economic Injury disaster loan, their business is eligible for reimbursement.
Expenses eligible for reimbursement
Expenses that the government can reimburse up to 100%
- Payroll expenses
- Sole proprietor net profit reduction
Expenses that will receive reimbursement of 80%
- Insurance premiums for your business
- Mortgage or rent
- Payments for lease on real or personal property
- Utility payments
- Safety investment payments
Documents you will need during the application process
Documents to prove eligibility
- Federal identification number for your business
- Federal tax returns for 2019
- Valid driver’s license or the U.S issued ID
- W9 form
- Signed forms for loans you have received from other programs
- Profit and loss statement for the months of 2019,2020& 2021
Once you are eligible for the reimbursement, you need the following:
- Document proof to show the payment of wages compensated to W2 workers
- 900 chain payroll forms
- Document showing the payment of premiums or the certificate of insurance
- Copy of rent or mortgage payment
- Utility bills
- Receipt to provide purchases that improve the safety of your business
If you’re an Indiana business owner and need a small boost to get back on your feet, the Small Business Restart Grant may be just what you need. If you need more information about eligibility requirements and how to apply for this program, contact ASAP Payroll today. Our team will answer questions about grant eligibility criteria so that you can determine if you qualify.
