On October 12, the South Carolina Department of Administration announced a new grant program to help businesses adversely affected by the coronavirus pandemic. The SC CARES Minority and Small Business Relief Grant Program (“grant”) provides funds to reimburse businesses for qualifying expenditures or revenues lost due to the COVID-19 virus. The grants range from $2,500 to $25,000. However, the window in which to apply for the grant is narrow and ranges from October 19 through November 1, 2020.
In order to be eligible, a minority or small business must employ 25 or fewer employees and be physically located in SC. It also must have been in operation since September 13, 2019 and have experienced an unfavorable business consequence due to the virus.
The qualifying costs available for reimbursement by the grant include business staffing and operating costs, facility costs, personal protective equipment costs, and lost revenue. In applying for the grant, the business must provide ample supporting documentation as verification for the expenses or damages. Corroborating documents include payroll records, purchase receipts, rent/mortgage statements, utility bills, profit and loss statements, and tax returns. Eligibility for the grant will be based on the financial information and supporting documentation.
Priority for these funds will be given to the following:
Minority businesses who are owned by US citizens from economically and socially disadvantaged groups;
Applicants who did not receive Paycheck Protection Program or other CARES Act funds;
Businesses with 15 or fewer employees, and;
Businesses that demonstrate the greatest financial need.
As mentioned earlier, the application period ends on November 1, 2020 for the grants which will be awarded the second week of December. The amount of money allotted to this program is limited to $40 million. If you believe your business would qualify for this program, please call our office for assistance with your application.
By Cheryl DeVoe, CPA
*DISCLAIMER*
- This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.
