COVID-19 Grant Program Information For Small Businesses

COVID-19 Grant Information for Small Businesses

$8 million has been allocated for grants to small businesses.

Eligible Businesses

Applicants must meet all the following criteria:

  1. Applicant must be or have a small businesses that has been negatively affected by the COVID-19 pandemic and related statewide business closure. 
  2. The business must have annual revenues (prior to March 1, 2020) of $500,000 or less and have 15 or fewer full-time employees (FTEs). Revenues are based on the IRS tax form definition: Gross Sales (less any returns and allowances) as reported on Line 1-c of the 1120 (corporate return) or 1120S (S-Corp return); on Line 3 of IRS Schedule C for single member LLC's and sole proprietorships; or on Line 1-c of IRS form 1065 for partnerships.
  3. The business must have a physical operation based in Luzerne County.  
  4. Applicants must file a Pennsylvania tax return. 
  5. Applicants must self-certify that 51% or more of revenues are generated in PA. 
  6. Eligible businesses may be structured as C-corporations, S-corporations, limited liability corporations, partnerships, sole proprietors, independent contractors or self-employed individuals.
  7. The business must have been in operation as of February 15, 2020. 
  8. The businesses must currently be operating or have a clear plan to re-open once the Commonwealth permits partial or full re-opening of the business.  
  9. Applicants must use the funds for COVID-19 related expenses, defined as those costs incurred due to the COVID-19 pandemic, including state-mandated closures and/or operating restrictions. Costs must have been incurred no earlier than March 1, 2020 and no later than December 30, 2020.

Ineligible Businesses

  • Businesses that are not physically based in Luzerne County.
  • Businesses that are in active default (not on a payment plan) with taxes or fees owed to the Federal Government or the Commonwealth of Pennsylvania.
  • Businesses engaged in any activity that is illegal under federal, state, or local law.
  • Businesses engaged in any socially undesirable activities, or those that may be considered predatory in nature, such as pawnshops, rent to own, check cashing businesses and adult bookstores.
  • Businesses owned or controlled by a business owner that has ever obtained a direct or guaranteed loan from the State 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.
  • Private clubs and businesses which limit the number of memberships for reasons other than capacity.
  • Government-owned entities or elected official offices.
  • Businesses primarily engaged in political or lobbying activities.
  • Businesses are ineligible if an owner of 20 percent or more of the equity is an individual that is incarcerated, on probation, 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.

Application ProcessCOVID-19 Grant Documentation Checklist 

Stage 1: Application Requirements

Applicants will complete the grant application and will be required to confirm they meet program eligibility.  All of the Stage 1 documentation must be uploaded with the application during the 2-week application window.  Documentation required in stage 1 includes:

  1. A signed certification form.
  2. Financial Information: only one of the following is required:
    1. Most recent tax return filed (2019 or 2018);
    2. If the applicant was a startup in 2019 and has not yet filed taxes, a management prepared statement of revenue and expenses as of December 31, 2019; or
    3. If the applicant is a startup as of January 1, 2020, a profit and loss statement as of March 31, 2020.
  3. Any form of acceptable government-issued photo ID for the applicant.

All documents must be in an electronic form suitable for online upload, such as PDF or JPEG.

 

Stage 2: Businesses Approved for Grants  

Only applicants selected for funding will be required to provide additional information as part of the final review and documentation for disbursement of grant funds. The following information will be required:

  1. Copy of official filing with the Department of State or local municipality for the business or nonprofit (only one of the following is required):
    1. Articles of Incorporation;
    2. Certificate of Organization;
    3. Fictitious Name registration; or
    4. Government issued Business License.
  2. Verification of bank account via uploaded statements or other approved review process.

All documents must be in an electronic form suitable for online upload, such as PDF or JPEG.