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YoCo Strong Restart 2021- COVID-19 Funding Grant

As of 10/26/2021

Overview:
To support small businesses and nonprofits in York County, the County of York has allocated American Rescue Plan Act (ARPA) funds to provide recovery grant funding through the YoCo Strong Restart Fund Grant 2021 (Restart), administered by the York County Economic Alliance (YCEA).

The Restart program will provide financial support to businesses and nonprofit organizations recovering from the economic impact of the COVID-19 pandemic to support expenses such as rent, utilities, equipment, from June 30, 2021 to December 31, 2021. Full details can be viewed in the eligibility guidelines herein.

Multiple for-profit entities with common ownership, defined as ownership of 20% or more, are eligible to apply, but the Restart program will prioritize exhausting all funds to individual applicants before multiple awards may be eligible, given that it is anticipated that demand will exceed total available funding.

Applications are eligible from the following applicants:

• For profit business corporations with 50 or fewer full-time equivalent (FTE) employees at the time of application submission. The business must have been established as of July 1, 2021 and with less than $3 million in annual gross revenue.
• Nonprofit corporations with 75 or fewer full-time equivalent (FTE) employees at the time of application submission. The nonprofit must have been established as of July 1, 2021 with less than $3 million in annual gross revenue.

Grant awards for applicants that began operations prior to December 31, 2020 will be based on 2020 revenues from tax returns. For applicants incorporated on or after January 1, 2021, a year-to-date 2021 Profit & Loss statement is acceptable, additionally applicants will be asked to provide eligible documented expenses, and compared with other COVID-19 relief assistance received.

Grant Award Tiers based upon Gross Annual Revenues

• Annual Revenue of up to $100,000 = up to $5,000 Grant (no minimum)
• Annual Revenue of $100,001 - $500,000 =  up to $10,000 Grant  (no minimum)
• Annual Revenue of $500,001 - $1,000,000=  up to $15,000 Grant  (no minimum)
• Annual Revenue of $1,000,001 - $3,000,000= up to $20,000 Grant  (no minimum)
   

Please apply for what you need based upon guidelines to support eligible expenses between June 30, 2021 to December 31, 2021. The Restart program is intended to support the negative economic impact resulting from the COVID-19 pandemic. You will be required to submit documentation in the application, processing and expense phases of the process. If you are awarded a Restart grant and fail to utilize the funds for eligible and contracted expenses, you will be required to return funds upon the program audit process.

Grant award amounts may change at the discretion of the program administrator to accommodate the availability of funding and the program demand.

Eligibility:

Small Businesses- established as of July 1, 2021

• Grant awards ranging from up to $20,000 based on revenue tiers.
• Must be in operation and with revenues as of at the time of application with no intent of closing, with primary operations occurring in York County.
• $3M in annual gross revenue or less, based upon 2020 tax returns provided at time of application. For applicants that incorporated after January 1, 2021, please use your 2021 year to date profit and loss statement.
• Must have 50 Full Time Equivalent (FTE) Employees or fewer at the time of application. A helpful FTE calculator may be found at: https://toggl.com/track/fte-calculator-employee-cost/
   

Nonprofits- established as of July 1, 2021

• Grant awards ranging from up to $20,000 based on revenue tiers.
• Must be in operation and with revenues as of at the time of application with no intent of closing, with primary operations occurring in York County.
• Available for nonprofit organizations with $3M or less in annual revenue based upon 2020 tax returns provided at time of application. For applicants that incorporated after January 1, 2021, please use your 2021 year to date profit and loss statement.
• Must have 75 Full-Time Equivalent (FTE) Employees or less at the time of application. A helpful FTE calculator may be found at: https://toggl.com/track/fte-calculator-employee-cost/
• Eligible applicants based in York County, with a primary service area of York County.
• Will be required to submit a most recent 990. Applicants will self-certify that their primary service area is within York County.
• Eligible nonprofit applicants must be incorporated as 501c3, 501c4, 501c6, and 501c19
   

Nonprofits that received a direct allocation from the County of York allocated August 18, 2021, are not eligible to apply for YoCo Strong Restart funds. If you received an allocation in 2020 under the CARES funding, you may still apply. A list of those nonprofit organizations with a direct allocation is here.

Small Business and Nonprofit applicants established as of July 1, 2021 must describe how COVID-19 has negatively impacted their corporation and will have to provide total gross revenues, eligible documented expenses, and any other COVID-19 relief assistance received.  For Small businesses and nonprofits, when providing gross revenues, this should not include COVID relief funding. Revenues are based on the IRS tax form definition: Gross Sales (less any returns and allowances) as reported on Line 1.c. on both the 1120 (corporate return, 1120S (S-Corp return), on IRS Schedule C for single member LLC and sole proprietorships, Line 3 and on IRS form 1065 line 1c for partnerships. For Non-Profit applications, please revenues are based on the IRS 990 form, Part VIII, Column A, Line 12.

(For instance, Business A’s 2020 revenues were $250,000 on line 1c of their tax return and Business A received PPP for $10,000, Business A’s revenues should remain $250,000 not $260,000.)

Multiple entities with common ownership, defined as ownership of 20% or more, are eligible to apply, but the Restart program will prioritize exhausting all funds to individual applicants before multiple awards may be eligible, given it is anticipated that demand will exceed total available funding.

All applicants must be current and in good standing on all tax payments

and not have any tax liens against the business property. This can include, but is not limited to:

• Municipal Property Tax (i.e Borough, Township, City etc.)
• County Property Tax
• School District Property Tax
• County Hotel Tax
• City Business Improvement District Tax
   

Applicants will be asked to select and describe how their business or nonprofit was impacted by COVID-19 in any of the following areas:

Closure

Reduced operations

Employee layoffs

Customer decline

Revenue decline

Increased expenses

2019 Business Quarters are defined as such:

Q1 2019: January 1 - March 31

Q2 2019: April 1 - June 30

Q3 2019: July 1 - September 30

Q4 2019: October 1 - December 31

2020 Business Quarters are defined as such:

Q1 2020: January 1 - March 31

Q2 2020: April 1 - June 30

Q3 2020: July 1 - September 30

Q4 2020: October 1 - December 31

2021 Business Quarters are defined as such:

Q1 2021: January 1 - March 31

Q2 2021: April 1 - June 30

Q3 2021: July 1 - September 30

Q4 2021: October 1 - December 31

Documents Required: must be in an electronic form for online upload, such as JPEG or PDF. Other Items can be requested.

For-Profit Entities:

Sole-Proprietor/Single Member LLC:

• Full 2019 and 2020 Tax Returns, including Schedule C or Schedule K-1. (This requirement does not apply if the business began operations on or after January 1, 2021. Additional documentation to establish business ownership may be required.)
  • If the applicant was in operation before January 1, 2021 and cannot provide the required tax returns or evidence of an extension granted at the time of the application submission, the business will be ineligible.
• For businesses established on or after January 1, 2021, please provide 2021 Prepared Profit and Loss statement as of September 1, 2021
  A copy of official filing with the Department of State or local municipality must be provided in electronic format for upload, such as PDF
  
  a. Articles of Incorporation
  b. Certificate of Organization
  d. Government issued Business License
• W9
• Business Canceled Check for Direct Deposit
• Any form of acceptable government-issued photo ID for primary business owner or nonprofit authorized representative; must be in an electronic form for online upload, such as PDF.
• Eligible Expense Documentation Form
• Signed Applicant Certificate

LLC, Partnership, and Corporation:

• Full 2019 and 2020 Tax Returns, including Schedule C or Schedule K-1. (This requirement does not apply if the business began operations on or after January 1, 2021. Additional documentation to establish business ownership may be required.)
  • If the applicant was in operation before December 31, 2020 and cannot provide the required tax returns or evidence of an extension granted  at the time of the application submission, the business will be ineligible.
• For businesses established on or after January 1, 2021, please provide 2021 Prepared Profit and Loss statement as of September 1, 2021
• Relevant filings with the Pennsylvania Department of State and/or local municipality

a. Articles of Incorporation

a.  Certificate of Organization, or Certificate of Partnership (to the extent applicable)

d. Government issued Business License

• W9
• Any form of acceptable government-issued photo ID for primary business owner or nonprofit authorized representative
• Eligible Expense Documentation Form
• Signed Applicant Certificate
• Business Canceled Check for Direct Deposit

Nonprofit Entities:

• 2020 IRS Form 990 or 2019 IRS Form 990 with extension. 990 exempt nonprofit organizations such as churches will need to provide exempt documentation.
  • If the applicant was in operation before December 31, 2020 and cannot provide the required tax returns or evidence of an extension granted  at the time of the application submission, the business will be ineligible.
• For nonprofits established on or after January 1, 2021, please also provide 2021 Prepared Profit and Loss statement as of September 1, 2021
• PA Articles of Incorporation
• State Tax Exemption Documentation or Internal Revenue Service (IRS) Determination or Affirmation Letter of 501(c)(3), 501(c)(4), 501(c)(6), or 501(c)(19) status.
• W9
• Any form of acceptable government-issued photo ID for primary business owner or nonprofit authorized representative
• Eligible Expense Documentation Form
• Signed Applicant Certificate
• Organization Canceled Check for Direct Deposit
   

Use of Funds:

Use of funds must be fully detailed in application, with specific amounts and cost verification to support the grant amount request. Such items can include but are not limited to rent/mortgage agreements for the applying business, utility payments, PPE, to the extent such costs are the result of the negative economic impact of the COVID-19 pandemic. Payroll is NOT an eligible expense for the YoCo Strong Restart Grant Program.

• Multiple entities with common ownership, defined as ownership of 20% or more, are eligible to apply, but the Restart program will prioritize exhausting all funds to individual applicants before multiple awards may be eligible, given it is anticipated that demand will exceed total available funding.
   

Funds must be requested to cover eligible express from June 30, 2021 through December 31, 2021 that are not being covered by other sources of COVID relief funding. Documentation for use of funds will be required for auditing purposes by the program administrator. Any unused funds must be returned to the program. Payroll is NOT an eligible expense for the YoCo Strong Restart Grant Program.

• Rent
• Scheduled mortgage payments
• Insurance  
• Utilities
• General Business and Working Capital Expenses
• PPE

Please provide a detailed summary and description of the reason your business or non-profit is requesting funding, and explain why these funds are critical to the economic recovery of your business or non-profit. An itemized schedule or breakdown of all costs relating to the expenditure of funds must also be included.

Grant Award:

Grant awards ranging up to $20,000 based upon the size in sales/revenue of the applicant. Grant funding must be used to cover eligible expenses from June 30, 2021 through December 31, 2021. Documentation for use of funds will be required for auditing purposes by the program administrator.

Multiple entities with common ownership, defined as ownership of 20% or more, are eligible to apply, but the Restart program will prioritize exhausting all funds to individual applicants before multiple awards may be eligible, given it is anticipated that demand will exceed total available funding.

Grant awards may not be used to pay the same eligible operating expenses for which an applicant previously received government COVID relief funding in the form of a grant reimbursement, or loan forgiveness. Government COVID relief funding includes, but not limited to: SBA Payroll Protection Program (PPP), SBA Economic Injury Disaster Loans (EIDL), other SBA Disaster/Emergency Funds, PA COVID-19 Working Capital Access (CWCA) program, PA COVID-19 Hospitality Industry Recovery Program (CHIRP), 2020 YoCo Strong Restart Grant Fund or City of York COVID-19 relief program (2020 and 2021). Applicants must attest that the funds requested will not be utilized for previously government-funded COVID related expenses.

(Example: Applicant A wants to request funding to cover 6 months of rent from June 30, 2021 to December 31, 2021 in the amount of $15,000. Applicant A received other sources of COVID funding in the amount of $7,500 to cover three months rent in the same time period. Applicant A should only request funding for the three months of rent in the amount of $7,500 that are not paid for by the other source of covid funding.)

Receipt of a prior Federal, Commonwealth, York County, or local government grant does not disqualify an applicant.

Grant Priorities: (NOT Exclusions)

Small Businesses
Businesses that have not received any prior public COVID support funding, (such as PPP, EIDL, Restart Round 1).

Small businesses owned and controlled 51% or more by federal definition of minority owned business (any of the following)

• Women
• Veterans
• African American
• Asian
• Hispanic / Latinx
• and Native Americans

Businesses impacted the most financially based on gross revenue losses. Small Business operating under the following industries with the corresponding NAICS code:

• Hospitality / Tourism
• Retail
• Childcare
• Microbreweries and Distilleries
   

Nonprofit Organizations

Nonprofits that have not received any prior public COVID support funding (such as PPP, YoCo Strong Restart Round 1).

Nonprofits impacted the most financially based on gross revenue losses.

Nonprofits serving at least 51% of the clients residing in a Low-Mod Income household

Nonprofit with at least 25% of revenues derived from services in the following categories: food security, housing security, healthcare, childcare, workforce development.

Nonprofits serving a population of more than 51% of persons of color.

Ineligible for Businesses and Nonprofit Applicants:

• Businesses or nonprofits that sell, produce, manufacture, or distribute any marijuana or cannabis products are not eligible for the grant program
• Businesses or nonprofits that do not have a physical location in York County, Pennsylvania
• Businesses or nonprofits established after July 1, 2021
• Businesses or nonprofits that are in active default (not on a payment plan) with taxes or fees owed to the federal, commonwealth, county and local governments.
• Churches and other religious institutions whose primary revenue is derived from religious instruction or faith-based services.
• Businesses or nonprofits engaged in any activity that is illegal under federal, state, or local law
• Businesses owned or controlled by any owner that has ever obtained a direct or guaranteed loan from the Commonwealth of Pennsylvania or any federal agency that is currently delinquent or has defaulted within the last seven years and caused a loss to the government.
• Financial businesses, primarily engaged in the business of lending, such as banks and finance companies.
• Passive real estate companies and investors who file a Schedule E on their personal tax returns are not eligible. Real estate businesses in which the majority (>51%) of their income is rental income are also not eligible
• Life insurance companies
  Private clubs and businesses which limit the number of memberships for reasons other than capacity. This restriction shall not apply to organizations designated as a 501(c)(6) organization by the Internal Revenue Service.
• Government-owned entities or elected official offices
• Government authorities
• Businesses that have ceased operations with no plan to reopen.
• Franchise businesses, regardless of whether the applicant is the franchisee or the franchisor
• Businesses or nonprofits that spend more than 51% of their budgeted expenses engaged in political or lobbying activities
• Businesses in which an owner of 20 percent or more of the equity of the entity is incarcerated, on probation or , on parole; presently subject to an indictment, criminal information, arraignment, or other means by which formal criminal charges are brought in any jurisdiction; or has been convicted of a felony involving fraud, bribery, embezzlement, or a false statement in a loan application or an application for federal financial assistance within the last five years or any other felony within the last year.
• Businesses or nonprofits engaged in any illegal activity, socially undesirable or those that may be considered predatory in nature, such as pawnshops, rent to own, check cashing businesses and adult bookstores.
   

Other Grant Items to Consider

The YCEA will provide application assistance and technical support, subject to the release and indemnity set forth in the applicant certification. The YCEA staff is NOT permitted to submit the application on the applicant’s behalf.

Eligible businesses and nonprofits must agree and complete an applicant certification form at the time of submitting an application.

Applications are not first come, first served. It is anticipated that the cumulative funding request of all applications will exceed the amount of funding available to disburse. In such cases, applications will be compiled, reviewed, and scored. If funding is awarded, the applicant will be notified. A grant contract will be required to be executed prior to fund disbursement. Upon execution of a grant contract, the grant award will be transferred electronically via ACH. Upon completion of the program and all funding disbursements made, the cumulative award list will be made public in accordance with the Pennsylvania Right to Know Law.

The application portal will open on Monday, November 1 at 9:00 a.m. (EST) and will close on Friday, November 19, 2021 at 5:00 p.m. (EST).

Applications will be submitted electronically only, and incomplete applications will not be accepted. This includes uploading all necessary and requested documentation.

Review of application eligibility and scoring will take place over the next several weeks, with a tentative goal of announcing grant recipients by mid December.

Use the breakdown below to find your NAICS code on your business tax forms.

If you file a Schedule C as a Sole Proprietor, enter the code from BOX B on the Profit or Loss From Business Form.

If you file a Form 1065 as a Partnership Entity, enter the business code from BOX C on the U.S Return of Partnership Income Form.

If you file a Form 1120S as a S Corporation Entity, enter the business activity code from BOX B on the U.S Income Tax Return for S-Corporation Form.

If you file a Form 1120 as a C Corporation Entity, enter the business activity code from Page 4, Schedule K, Line 2a on the U.S Corporate Income Tax Return for C-Corporation Form.