Window for Massachusetts Small Business Grants to Close November 12, 2020

The window for small businesses to apply for economic relief under a $50.8 million grant program offered by the Commonwealth of Massachusetts will close November 12 at 12:00 PM.

In response to the COVID-19 pandemic, Massachusetts has made grants available to support small businesses, microenterprises, and their employees, families and communities. The funds are being administered by the Massachusetts Growth Capital Corporation (“MGCC”), which was established on October 1, 2010, as an independent quasi-public agency with the purpose of making business loans to foster economic growth in Massachusetts and serving as a resource for small businesses seeking growth capital.

The grants are intended to help businesses adversely impacted by the pandemic. Preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants that have not been able to receive aid from other federal programs related to COVID-19.

The funding is divided into two programs:

Grants for Small Businesses with 5 or Fewer Employees

• Businesses that provide goods or services to multiple customers or clients can receive funding up to $25,000.
• Funds may be used for working capital to cover business costs, such as rent, staffing, utilities, and technical assistance, general support and stabilization of the business. Funds may also be used for purchasing personal protection equipment.

Grants for Small Businesses with 50 or Fewer Employees

• Businesses can receive funding up to $75,000, capped at up to 3 months of operating expenses, as evidenced by 2019 Federal tax returns. Grant amounts will be considered for actual expenses for 2020 during the pandemic since March 10, 2020.
• Funds may be used for working capital to cover business costs, such as rent, staffing, utilities, and technical assistance, general support and stabilization of the business. Funds may also be used for purchasing personal protection equipment.

Grant funds are prohibited from being used for major equipment purchases, purchase of real property, construction activities, business expansion, and lobbying. In addition, funds may not be used to pay expenses if another source of financial aid has paid that same expense.

Also, it is noted that if a person owns multiple businesses and submits an application for each business, MGCC may reserve the right to limit proceeds to one business per owner.

In addition to the above, businesses must meet the following qualifications in order to be eligible for a grant:

• Have a physical establishment in Massachusetts.
• Be a for-profit entity.
• Be able to document a loss of income equal to or greater than requested assistance.
• Be currently in operation or, if not in operation, must have an intent to reopen.
• Have been established prior to June 30, 2019.
• Be in good standing with the state and city/town.
• Be current on all taxes due through March 1, 2020.
• Have an active and valid state license/registration (if applicable).

In addition, owner(s) of a business with five or fewer employees must qualify under the Low-Moderate Income (LMI) Limited Clientele national objective criteria. They must earn an annual income equal to or less than 80% of the Area Median Income (AMI) based on family size.

Moreover, certain businesses are not eligible for grant funds. Ineligible businesses include:

• Real estate rentals/sales businesses.
• Businesses owned by persons under age 18.
• Businesses that are chains.
• Liquor stores.
• Weapons/firearms dealers.
• Lobbyists.
• Cannabis-related businesses.

Applications for grant funding and required documentation can be submitted online. For questions and assistance, contact your Marcum advisor.