Aid Available To Ohio Small Businesses Starting June 29
Last month, we informed you of legislation signed into law that provides additional relief for Ohio small businesses impacted by the COVID-19 pandemic. The Ohio Development Services Agency has released more information with regard to the eligibility for these new grant programs. They will begin accepting applications on June 29, 2021, at https://businesshelp.ohio.gov. Relevant information for programs many have been waiting on can be found below.
Which Grant Program Is Right For You?
This article will provide you with additional insight into the new grant programs established by the State of Ohio for small businesses throughout the state. Read below to find out if you qualify for grants in the following areas:
- Food and Beverage Establishment Grant
- Entertainment Venue Grant
- Lodging Grant
- New Small Business Grant
Food and Beverage Establishment Grant
- For-profit and not-for-profit businesses must have been in operation since at least Dec 1, 2019, and have at least one physical location in Ohio.
- Eligible businesses for this grant include food service contractors, caterers, mobile food services, bars, taverns, nightclubs, full-service restaurants, limited-service restaurants, cafeterias, coffee shops, and businesses that do not otherwise qualify for the Entertainment Venue Grant because they earn more than 50 percent of their revenue from the sale of food and/or beverages.
- Eligible businesses must have experienced at least a 10 percent reduction in revenue in 2020 at one or more Ohio locations.
- An eligible business must be in good standing with the Ohio Secretary of State, the Ohio Department of Taxation, and any other governmental entity charged with regulating the business.
- Grants, which are awarded on a first-come, first-served basis, will be awarded based on the lesser of:
- The actual amount of revenue reduction compared to 2019 and 2020 total revenue.
- The amount identified below based on the calculated revenue reduction percentage:
- 10-30 percent loss: $10,000
- 30-50 percent loss: $20,000
- 51 percent or more loss: $30,000
- NOTE: Applicant businesses that have multiple Ohio locations under the same FEIN will be eligible to receive a grant for each Ohio location that individually meets the eligibility criteria, and revenue reduction requirement described above.
- Applicants will be required to verify their 2019 and 2020 gross receipts by providing either business annual tax returns, audited/reviewed/compiled annual financial statements, or internal accounting records of the business showing total annual gross receipts as well as provide evidence the business is still operating.
Entertainment Venue Grant
- For-profit and not-for-profit businesses must have been in operation since at least Dec 1, 2019, and have at least one physical location in Ohio.
- Eligible businesses for this grant include theaters, dinner theaters, movie theaters, indoor or outdoor music venues, comedy clubs, concert halls, spectator sports venues, museums, art centers or galleries, historical sites, zoos and botanical gardens, amusement parks, family fun centers, trampoline and adventure parks, golf courses, arcades, sports centers, skiing facilities, recreational sports centers, and bowling centers.
- The business cannot have earned 50 percent or more of its annual revenue from the sale of food or beverages, but those businesses may be eligible for the Food and Beverage Establishment Grant program.
- Eligible businesses must have experienced at least a 10 percent reduction in revenue in 2020 at one or more Ohio locations.
- An eligible business must be in good standing with the Ohio Secretary of State, the Ohio Department of Taxation, and any other governmental entity charged with regulating the business.
- Grants, which are awarded on a first-come, first-served basis, will be awarded based on the lesser of:
- The actual amount of revenue reduction compared to 2019 and 2020 total revenue.
- The amount identified below based on the calculated revenue reduction percentage:
- 10-30 percent loss: $10,000
- 30-50 percent loss: $20,000
- 51 percent or more loss: $30,000
- NOTE: Applicant businesses that have multiple Ohio locations under the same FEIN will be eligible to receive a grant for each Ohio location that individually meets the eligibility criteria and revenue reduction requirement described above.
- Applicants will be required to verify their 2019 and 2020 gross receipts by providing either business annual tax returns, audited/reviewed/compiled annual financial statements, or internal accounting records of the business showing total annual gross receipts as well as provide evidence the business is still operating.
Lodging Grant
- For-profit businesses and not-for-profit businesses must have been in operation since at least Dec 1, 2019, and have at least one physical location in Ohio.
- Eligible businesses for this grant must have a hotel/motel license from the Ohio Department of Commerce. Businesses can be a hotel, motel, or bed and breakfast.
- Eligible businesses must have experienced at least a 10 percent reduction in occupancy in 2020 at one or more Ohio locations.
- An eligible business must be in good standing with the Ohio Secretary of State, the Ohio Department of Taxation, and any other governmental entity charged with regulating the business.
- Grants, which are awarded on a first-come, first-served basis, will be awarded based on the lesser of:
- The actual amount of revenue reduction compared to 2019 and 2020 total revenue.
- The amount identified below based on the calculated average daily occupancy rate reduction:
- 10-30 percent average daily occupancy rate reduction: $10,000 grant.
- 30-50 percent average daily occupancy rate reduction: $20,000 grant.
- 51 percent or more average daily occupancy rate reduction: $30,000 grant.
- An applicant’s reduction in occupancy will be determined by comparing the average daily occupancy rate for the calendar year 2019 with the average daily occupancy rate for the calendar year 2020. The resulting occupancy reduction percentage will be rounded to the nearest whole number.
- NOTE: Applicant businesses that have multiple Ohio locations under the same FEIN will be eligible to receive a grant for each Ohio location that individually meets the eligibility criteria and revenue or occupancy rate reduction requirement described above.
- Applicants will be required to verify their 2019 and 2020 gross receipts by providing either business annual tax returns, audited/reviewed/compiled annual financial statements, or internal accounting records of the business showing total annual gross receipts as well as provide evidence the business is still operating.
New Small Business Grant
- For-profit and not-for-profit businesses that started operations between January 1, 2020, and December 31, 2020.
- Eligible businesses must have at least 2 and no more than 25 Ohio employees paid via W2 wages as of January 1, 2021.
- An eligible business must have a physical location in Ohio and experienced revenue loss or unplanned costs as a result of the COVID-19 pandemic.
- An eligible business must be in good standing with the Ohio Secretary of State, the Ohio Department of Taxation, and any other governmental entity charged with regulating the business.
- Grants, which are awarded on a first-come, first-served basis, will be awarded in the amount of $10,000.
- NOTE: Applicant businesses that have multiple Ohio locations under the same FEIN will be eligible to receive a grant for each Ohio location that individually meets the eligibility criteria and revenue reduction requirement described above.
- Applicants will be required to provide proof the business was established during the 2020 calendar year. This includes an Ohio Secretary of State registration, Sales Tax Vendors License, BWC certificate, or CAT registrations with a date on or after January 1, 2020.
- Applicants will also be required to attach documentation showing the business had between 2 and 25 Ohio employees as of January 1, 2021, as well as provide evidence the business is still operating.
Like the initial round of Ohio COVID-19 relief funding, each program will require applicants to have an OH|ID account. Any business that may not have an OH|ID account can register at https://ohid.ohio.gov/wps/portal/gov/ohid. In the meantime, eligible businesses should begin preparing required information in order to move quickly once the application period opens in order to increase the chances of receiving funding.
By Lamarcus Crowders (Dublin CPA Firm)
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