Small Business Recovery

NEWTON COVID-19 SMALL BUSINESS RECOVERY GRANT PROGRAM

The City of Newton has established the Newton COVID-19 Small Business Recovery Grant Program to aid in the stabilization of existing small brick and mortar businesses within the City of Newton that have had significant business disruption due to the impact of COVID-19. The City has received $1,136,128 in Community Development Block Grant Coronavirus (CDBG-CV) from the U.S. Department of Housing and Urban Development (HUD), of which, approximately $300,000 will be made available to fund this Program.

PURPOSE
These grant funds will assist small businesses in Newton to pay for commercial rent or mortgage, cover wages, loss of inventory, and other demonstrated costs. Capital improvements will not be considered.

A grant of $10,000 for microenterprises (5 or fewer employees) and $15,000 for businesses with 6-20 employees may be awarded based on severity of the need, a solid recovery plan, and clear demonstrated costs greater than or equal to the amount requested.

At least 50% of the grant request must be for commercial rent or mortgage, which will be paid directly to the landlord or funding institution. Additional financial needs may be considered on a case-by-case basis. 10% of the grant will be reserved until the final program documentation has been submitted and approved.

ELIGIBLE APPLICANTS
In order to participate in the Newton COVID-19 Small Business Recovery Grant Program, businesses must meet all the following criteria:

1. The business must qualify as a microenterprise, meaning that business currently has no more than 5 employees, including the owner(s)
OR
The business has no more than 20 FTE employees including the owner, and may qualify if it will retain or create at least 1 job

2. Have experienced a loss of revenue of 50% or more due to COVID-19 since March 10, 2020 (Massachusetts State of Emergency)

3. Be a for-profit enterprise

4. Have a physical establishment within the City of Newton

5. Have no outstanding tax liens or legal judgments

INELIGIBLE APPLICANTS
Ineligible applicants include, but are not necessarily limited to:

  • Independent contractors and consultants
  • Home-based businesses,
  • Liquor stores
  • Franchisees of national or regional chain businesses
  • Non-profits (ineligible applicants per CDBG regulations)
  • Marijuana establishments

APPLICATION DEADLINE
The application deadline is May 27, 2020 but applications may be considered thereafter if funding is still available.

HOW TO APPLY
Please read the guidelines and download the application form. If a microenterprise, please also fill out the Self-income Certification for all Microenterprise Owners. Please forward all completed documents to sbr@newtonma.gov no later than May 27, 2020.

The following documents are to be submitted with the application:

1. Completed Newton COVID-19 Small Business Recovery Grant Application Form
2. Income Self-Certification for all MICROENTERPRISE owners (based on current household income)
3. 2018 Business Tax Return
4. Documentation that demonstrates that the COVID-19 outbreak has caused at least a 50% decrease in revenue (profit & loss statements, bank statements, ledgers, spreadsheets, etc.)
5. Payroll records documenting current number of employees (2 weeks- one in Jan/Feb 2020 and one week in April 2020)
6. MA-WR1 form for periods ending 12/31/19 and 3/31/20
7. Documentation that supports the costs outlined in the grant budget in the application. Lease must be submitted.
8. Completed IRS W-9 form

In the event of questions or an incomplete application, the applicant will be notified and the applicant will have no more than five (5) business days to respond or submit any missing required documents not originally included in their application.

FORMS - Please note, you must download, fill out and save the PDF.

1. Program Application (Word or Fillable PDF)

2. Self-income Certification for all Microenterprise Owners (Word or Fillable PDF)

3. Program Guidelines (PDF)

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