Have you heard about Louisiana’s Main Street Recovery Grant Program?

What is the Main Street Recovery Grant Program?

The Main Street Recovery Grant Program will provide up to $15,000 in grants to Louisiana small businesses to cover certain costs incurred by the business to meet public health requirements or recommendations issued by federal, state or local authorities.

This is a reimbursement grant program, which means that you have to spend the money on eligible expenses before you can apply for the grant to compensate you for the money that you already spent. The grant will not reimburse expenses that have already been compensated by other sources of COVID-19 funding received from the United Stated SBA programs (PPP, EIDL, EIDL Emergency Advance), other federal program, or insurance proceeds.

What costs can be reimbursed by the Program?

Any costs incurred by the business to meet public health requirements or recommendations enacted, adopted, required, or issued by the Louisiana Department of Health, the Centers for Disease Control, state or federal regulatory authorities, and/or local, state or federal executive authorities due to COVID-19. This includes but is not limited to:

  • Costs to create social distancing measures (signs, floor markings, etc.)

  • Costs to clean and disinfect areas

  • Purchasing equipment to protect employees and/or customers (hand sanitizer, masks, gloves, thermometers)

  • Contactless equipment (credit card readers, etc.)

  • Expenses to facilitate teleworking (laptops, printers, scanners)

  • Necessary re-opening expenses (tents, outdoor tables)

  • Signage pertaining to reopening or restructuring

  • Installation of drive-through windows

Which businesses can participate?

Here are the businesses that are eligible for the Main Street Recovery Program:

  • Must be domiciled in Louisiana as of March 1, 2020

  • Must have suffered an interruption of business such as voluntary or forced closure or restricted operations due to social distancing measures, decreased customer demand, cleaning or disinfecting expenses, providing personal protective equipment or other extraordinary costs associated with COVID-19 and public health measures instituted by state or local government officials

  • At least 50% of the business must be owned by one or more Louisiana residents

  • Must have filed Louisiana taxes in 2018 or 2019 or will file taxes in 2020

  • Had no more than 50 full-time equivalent employees, temps or contractors as of March 1, 2020

  • Have customers or employees visit a physical location

  • Does not exist for the purpose of advancing partisan political activity and does not directly lobby federal or state officials

  • Does not derive income from passive investments without active participation in business operations

When can you apply?

On July 28, 2020, the Main Street Recovery Program online application portal will begin taking applications. However, there are 2 types of business that will receive priority review of their applications:

  1. Businesses who received no prior Federal Assistance (such as PPP or EIDL money) will be given priority for the first 21 days of the program (until August 18, 2020).

  2. Businesses that are at least 50% owned by one or more minority individuals, women, or veterans will be given priority in the first 60 days of the program (until September 26, 2020).

What should you do right now?

  1. Take the eligibility quiz found here to see if you qualify for the Main Street Recovery Grant Program

  2. Gather documents to support payment of eligible expenses (invoices, proof of payment, payroll records, vendor contracts, bank/credit card statements, rental agreements or mortgage statements, utility bills, etc.)

  3. Begin collecting the information that will be required for completing the application:

    1. Federal Taxpayer Identification Number

    2. State Taxpayer Identification Number

    3. Louisiana Department of Revenue account number

    4. Business date of formation/creation

    5. Number of full-time equivalent employees (as of March 1, 2020)

    6. Information for all “Controlling Owners” of the business (defined as individuals or entities who exercise the power to make policy decisions) such as Name, Job Title, SSN or EIN, Residential Address, and Driver’s license Number

    7. Information regarding other sources of COVID-19 funding received from United Stated SBA programs (PPP, EIDL, EIDL Emergency Advance), other federal program, or insurance proceeds

    8. Copies of filed tax returns for 2018 and 2019

    9. Business Address, Phone Number and Email Address

    10. Industry Category and Business Type

  4. Submit your application once the online application portal opens. Remember that if your business doesn't meet the priority preferences (i.e., no prior Federal Assistance received or at least 50% owned by a minority individual, woman or veteran), there may be a lengthy delay before your application is reviewed.

  5. Once your application is approved, a check will be mailed to the business within 10 days.

Questions?

If you have questions or need help, contact Addie Prewitt Law today.

GENERAL PURPOSE INFORMATION ONLY

This document is for general informational purposes only and may not constitute the most up-to-date legal information. This document is not legal advice and does not create an attorney-client relationship between the reader or user and Addie Prewitt Law.

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