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January 17, 2021
- What is the current date that a business needs to have been in business in order to be eligible for the grant? A new ruling on January 15,2021 has amended that qualification and will now allow businesses who have been in business prior to 10.1.2019 will now be eligible.
- What are some good and acceptable uses for this grant that I can put in my funding request on section D on the application? These are acceptable uses: Paying past due *unpaid* rent and/or utilities, Up to three (3) months future rent and/or utilities, Software or hardware upgrades for online business adaptation, PPE or other health/safety items, Marketing expenses (website development, social media outreach, content creation), Business consulting, Inventory or supplies that directly respond to the impact of COVID19.
- When filling out my Profit and Loss comparison sheet, why is it important that the numbers are matching or similar to my tax return? Due to DHCD regulations, we have to have documents that support the accuracy and viability of the applicant. This is our obligation as an administrator of the program.
November 9, 2020
- Video tips:
- How to register and a tour of the Neighborly application portal to help you begin completing your application: https://www.youtube.com/watch?v=yAL9wU-Hy7Q
- How to complete Duplication of Benefits, Family Members and Income Sources sections: https://www.youtube.com/watch?v=9xGDf6J_sm0
- How to complete upload documents: 1) Duplication of Benefits and 2) 2019-2020 Profit & Loss Comparison (Impact of COVID) and 3) Applicant Certification Page: https://www.youtube.com/watch?v=5PjH6vuefkM
November 2, 2020
- Am I eligible if my business is currently closed ? No, A business must be operating in some form at the time of application to be eligible.
- Does a business owner need a business registration from the town to qualify? If your city or town requires a registration, this must be provided. If you do not have a business registration, we can not guarantee that you are eligible, but encourage you to submit your application anyway. Please apply and the city or town where your business is located if registration of your business name or dba is required. When you are asked during the application to upload the business registration, please provide an explanation of your business operations prior to January 1, 2019. Valley will work with your town/city to determine your eligibility if there is any question.
- Does the business start date mean the date the business was established (incorporated) or when they started operation? The date of incorporation or the date of registering business or filing DBA with the city/town. If registration is NOT required by your city/town, provide documents that demonstrate business operations prior to January 2019 such as bank statements for the business.
- If I track my income and expenses on an annual basis, can I provide that instead of the month by month comparison that you are asking for? The month by month comparison template is required. We are asking for a month by month in order to compare and calculate your projected loss of income. A video demo of how to complete this form will be posted here.
- If I have a P.O. Box in one of the towns that is on the grants list, but my business is in another town, am I still eligible? No, your business must be located in one of the listed towns
- Does a business need to earn a minimum amount to qualify? No, but in order to receive the minimum grant of $2,500, you must be able to show a loss of $2,500 during the time period of March 2020 and October 2020
Are home businesses eligible for the grants? Yes, if your home business is located in one of the towns specified by the grants, then home businesses are allowed.
- Is this assistance considered taxable income? We will need taxpayer identification numbers for each grant and we will be sending out 1099s at the end of the year to the grantee and IRS. It will be up to the grantee or their tax preparer to figure out if this is income or if they have offsetting business expenses.
- Who makes decides who gets the grants? Each application will be reviewed by an internal committee of Valley Community Development. Decisions will be based on eligibility, use of funds and first come first completed application.
- Why am I expected to disclose my entire household family income, as that does not relate to my business? This is per federal regulations under HUD’s Community Development Block Grant Program.
- Do I need to supply proof of purchases after I spend the grant money? Yes, you will need to supply receipts for any items or services purchased in order to not have to repay the grants.
- If a relative lives in the household of a business owner and files his own tax return, does the relative’s income count towards household income? Yes.
- If owner is working from their car (Uber driver) can they still apply? Yes. They can apply even if there is no physical establishment, but must file federal taxes as a corporation or Schedule c as independent contractor, and satisfy all other conditions.
- What constitutes an “Employee”? Current fulltime and part-time employees must be counted.
- Does business start date mean the date the business was established (incorporated) or when they started operation? Business formation date.
- Can a business on a payment plan with overdue local taxes qualify? Yes.
- On average, how long does it take to finish the application? Filling out the form is relatively straight-forward and may take an hour depending on how many business owners you need to fill out information for. What’s time consuming is PREPARATION: completing the monthly income/expense statement, gathering all the documents required and scanned them to PDF for upload. You can save your application on Neighborly and return to complete at a later time.
- If two business owners live together in the same household, and file taxes separately? Apply as two businesses, use the same household income (combined) data for each.
- Can Non-profits serving the low income communities apply? No, this program is available to For-profit businesses only.
- Can funds be used on inventory? Yes.