During the 2021 Legislative General Session, the 2021 Impacted Small Business Catalyst Grant was created with the purpose of assisting small businesses, organizations and nonprofits that have experienced a number of hardships due to COVID-19.
These hardships include a high level of revenue decline in a consecutive four-month period in 2020 compared to the same period in 2019, or those that began operations after Jan. 1 of 2020 and are able to showcase the hardship that COVID-19 placed on the business. Providing evidence of continuing solvency is also a requirement.
To qualify, businesses, organizations and nonprofits must have fewer than 250 employees, have not ceased operations, be registered with the Utah Division of Corporations and Commercial Code, if required, claim Utah as its principal place of business, have not initiated bankruptcy proceedings and have incurred a high level of revenue loss or have been operating at net loss due to the public health emergency of the COVID-19 pandemic.
It was noted that government entities do not qualify for the 2021 Impacted Small Business Catalyst Grant.
A signed W-9, current balance sheet, and a profit and loss statement for both the four consecutive month period in 2019 and for the same months in 2020 (for a business that began operating before Jan. 1, 2020) are required documents and information in applying for this grant.
Additionally, for a business that began operating before Jan. 1 of 2020, the sum of the monthly revenue for a consecutive four-month period during 2019 must be compared to the same period in 2020. The company also has to have incurred expenses and established solvency, including actual net loss and awards not exceeding $25,000.
It was stated that applications will be scored on the criteria of the percentage of revenue loss, if the business previously received pandemic-related grant or loan funds, if the business is located in a county whose unemployment has been highly impacted, and how solvent the business is.
The first round of funds will be awarded to applicants that have successfully demonstrated a revenue loss of 90% or more. Then, if funds are still available, the application will open once again to businesses that have demonstrated an 80% or greater loss.
Businesses, nonprofits and organizations that are interested in this grant must act quickly, as the application process opens on April 20 at 9 a.m. and closes on April 27 at 5 p.m. All eligible applications will be reviewed and recipients will be notified between May 24 and May 28, then receive checks within a few days.
For even more information on the 2021 Impacted Small Business Catalyst Grant, including ways to apply, click here.