State to provide $225M in grants for small businesses

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The state will be providing a $225 million statewide grant program to support small businesses negatively impacted by the COVID-19 business closure order.

Funding will be distributed to three programs: the Main Street Business Revitalization Program will receive $100 million; the Historically Disadvantaged Business Revitalization Program will receive $100 million; and the Loan Payment Deferment and Loss Reserve Program will receive $25 million.

Funding is allocated through the state budget, which included $225 million for small businesses through the Coronavirus Aid, Relief, and Economic Security Act federal stimulus funds, and will be distributed by the Department of Community and Economic Development and administered by the Community Development Financial Institutions (CDFIs).

Eligible businesses must have been operating on or before Feb. 15 and paid state and federal taxes. Small businesses must have 25 or fewer employees and experienced losses as a result of the March 19 stay-at-home order, while organizations must be 51 percent owned and managed by socially and economically disadvantaged individuals.

Businesses must apply through one of the CDFI Network partners and are required to submit proposals for review. These proposals must include the duration of closure as a result of COVID-19; relief receipts from federal, state, and local government aid; projected revenues and sales losses.