June 10, 2021

Dear Clients, Colleagues and Friends,

New York State has launched a Business Pandemic Recovery Initiative website to highlight some of their business pandemic recovery programs. We encourage you to visit https://esd.ny.gov/business-pandemic-recovery-initiative for more information. We would like to highlight the new NYS Covid-19 Pandemic Small Business Recovery Grant Program.

Starting today, small businesses located in New York State can apply for a grant through New York State’s $800 million COVID-19 Pandemic Small Business Recovery Grant Program. Eligible businesses must have begun operations on or before March 1, 2019, and must continue to be in operation as of the date of their application. The amount of the grant can range between $5,000 and $50,000.

Eligible Applicants will be required to show loss of gross receipts as a result of the COVID-19 pandemic or compliance with COVID-19 health and safety protocols which resulted in business modifications, interruptions, or closures.

Eligible small businesses must demonstrate the following:

1. 2019 or 2020 Annual Gross Receipts of between $25,000 and $500,000.
2. Positive net profit on 2019 Business Return.
3. At least a 25% loss in annual Gross Receipts in a year-to-year revenue comparison as of December 31, 2020 to the same period in 2019.
4. 2020 Business Income Return total expenses are greater than the grant amount.
5. Be in substantial compliance with applicable federal, state and local laws, regulations, codes and requirements.
6. Not owe any federal, state, or local taxes prior to July 15, 2020, or have an approved repayment, deferral plan, or in agreement with appropriate federal, state, and local taxing authorities.
7. Not have qualified for business grant assistance programs under the federal American Rescue Plan Act of 2021 or any other available federal COVID-19 economic recovery or business assistance grant programs, including loans forgiven under the federal Paycheck Protection Program, or are unable to obtain sufficient business assistance from such federal programs. Eligible Applicants may have received or been awarded the following federal assistance:
8. Paycheck Protection Program loans totaling $100,000 or less.
9. COVID-19 EIDL Advance Grant of $10,000 or less.
10. COVID-19 EIDL Supplemental Targeted Advance Grant of $5,000 or less.
11. SBA Shuttered Venue Operator Grant.

Ineligible Businesses

1. All Non-Profits, Churches and other religious institutions
2. Government-owned entities or elected official offices
3. Businesses primarily engaged in political or lobbying activities
4. Businesses that received awards from the SBA Restaurant Revitalization Grant Program
5. Landlords and passive real estate businesses
6. Illegal businesses or enterprises
7. Other industry or business types as specified by Empire State Development

Eligible Use of Grant Funds

The grants must be used for COVID-19 related losses or expenses incurred between March 1, 2020 and April 1, 2021. These include:

1. Payroll costs
2. Commercial rent or mortgage payments for NYS-based property (but not any rent or mortgage prepayments)
3. Payment of local property or school taxes associated with a small business location in NYS
4. Insurance costs
5. Utility costs
6. Costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety
7. Heating, ventilation, and air conditioning (HVAC) costs
8. Other machinery or equipment costs
9. Supplies and materials necessary for compliance with COVID-19 health and safety protocols
10. Other documented COVID-19 costs as approved by Empire State Development

This grant may not be used to re-pay any loans obtained through a Federal or New York State COVID-19 relief or business assistance program.

For more information on this program, and to apply, please visit https://nysmallbusinessrecovery.com/

For all of our COVID-19 updates, please visit our website at www.pntax.com and our COVID-19 updates page at https://www.pntax.com/covid-19/.

If you have any questions or need further information, please contact your Presti & Naegele professional directly, or dial 212-736-0055 for immediate assistance.

Presti & Naegele