Gov. Andrew Cuomo on June 8 proposed legislation to waive taxes on grants from the state’s $800 million COVID-19 Pandemic Small Business Recovery Grant program. Not long after Cuomo’s announcement, the New York State Senate and Assembly approved the legislation, per the website of Long Island State Senator Anna Kaplan (D–North Hills). Both Kaplan and State Assemblyman […]
Gov. Andrew Cuomo on June 8 proposed legislation to waive taxes on grants from the state’s $800 million COVID-19 Pandemic Small Business Recovery Grant program.
Not long after Cuomo’s announcement, the New York State Senate and Assembly approved the legislation, per the website of Long Island State Senator Anna Kaplan (D–North Hills). Both Kaplan and State Assemblyman Erik Dilan (D–Brooklyn) introduced the legislation in their respective chambers.
Small and micro businesses, along with small for-profit independent arts and cultural organizations could start applying for the grant funding June 10. The funding is meant to help them recover from the economic impact of the pandemic, Cuomo’s office said.
“Small businesses have long been the backbone of New York State’s economy but were devastated by the COVID-19 pandemic, and it was critically important that the state stepped up to help this critical sector,” Cuomo said. “We want to make sure all $800 million of the COVID-19 Pandemic Small Business Recovery Grant program is available to help grantees, and this legislation will eliminate state taxes on that funding so we can get every single dollar into the pockets of businesses and help rebuild New York’s economy for the future.”
Flexible grants up to $50,000 will be made available to eligible small businesses. Recipients can use the funding for operating expenses, including payroll, rent or mortgage payments, taxes, utilities, personal protective equipment, or other business expenses incurred during the pandemic.
More than 330,000 small and micro businesses are potentially eligible for this program, including 57 percent of New York’s certified minority and woman-owned business enterprises (MWBEs).
The program
The small-business recovery grant program will provide funding to small and micro businesses and small for-profit, independent arts and cultural organizations to help them recover from the economic impact of the pandemic.
The state will give priority to socially and economically disadvantaged business owners, including MWBEs; service-disabled veteran-owned businesses and veteran-owned businesses; and businesses located in “economically distressed” communities, Cuomo’s office said.
Grant amounts will range from a minimum award of $5,000 and a maximum award of $50,000 and will be calculated based on a New York State business’ annual gross receipts for 2019.
Reimbursable COVID-19 related expenses must have been incurred between March 1, 2020 and April 1, 2021. They can include payroll costs, commercial rent or mortgage payments for state-based property, payment of local property or school taxes, insurance costs, and utility costs.
The expenses can also include costs of personal protection equipment necessary to protect worker and consumer health and safety; heating, ventilation, and air conditioning costs; other machinery or equipment costs; and supplies and materials necessary for compliance with COVID-19 health and safety protocols, per Cuomo’s office.