Hospitality businesses can start applying for relief
Here’s what Lehigh Valley restaurants, more should know
Here in his south Bethlehem office, beneath exposed ducts, a tall wall separating his space from the next, and a single window bringing light into the room, Chris Hudock is surrounded by papers ... and papers ... and papers. Papers stuffed in file folders stacked upon his desk, and papers tucked away in six file cabinets to his right, lined up in a row against the wall.
Hudock and his team at The Rising Tide Community Loan Fund know even more paperwork is on the way.
Rising Tide, a community development financial institution, will administer the funds that have been allocated to Lehigh and Northampton counties through the state’s $145 million COVID-19 Hospitality Industry Recovery Program, which aims to inject capital into coronavirus-ravaged small businesses, such as bars and restaurants.
Based on population, Lehigh County was allotted $4.1 million, while Northampton County received $3.4 million. Both counties agreed to cap the maximum grant at $10,000, allowing the funds to help more small businesses, and contracted with Rising Tide, which will begin accepting applications for the program Monday.
“Fortunately, Lehigh and Northampton play well together,” said Hudock, Rising Tide’s director. “Both counties, they came together for the small businesses.”
It’s taken a while to get to this point. It was Dec. 23 when Gov. Tom Wolf announced a plan to transfer $145 million from the
state Workers’ Compensation Security Fund into the general fund, money that would be used to dole out grants to small businesses.
The state House and Senate approved the plan Feb. 5, and Wolf signed the bill that day. By the end of February, the Department of Community & Economic Development distributed block grants to all 67 counties, which then contracted with an organization to administer the funds, such as Rising Tide.
Now, the seven-person Rising Tide team that Hudock leads is getting ready. They’re also bringing in some part-time help, such as retired bankers, to help process the expected flood of applications. The nonprofit, a subsidiary of the Community Action Committee of the Lehigh Valley, will get $500 for every grant that is funded — it has decided not to collect that fee for reviewed and processed applications that don’t get funded — and is hoping not to lose money on the program.
Hudock knows the next few months will be busy, as small-business demand is expected to outpace supply of funds. That will be similar to last year, when Rising Tide and other institutions around the state helped administer a $225 million statewide grant program to support small businesses.
For a good stretch last year, Hudock said he was averaging about 65 hours a week, getting into his office about 5:30 a.m. and staying until 7 or 8 at night.
There, on the top shelf of his office’s desk, is a sign that reads, “I need a vacation.”
Hudock finally got around to taking one at the end of 2020, and he knows he’ll need another one once this program ends, too.
Here’s what you need to know about the grant program:
Is my business eligible?
The program is intended to administer grants to eligible hospitality businesses to help alleviate revenue losses and pay for eligible operating expenses.
The state legislation that authorized the program limits business eligibility to those with industry classifications starting with NAICS code 721 (accommodation) or NAICS code 722 (food services and drinking places).
An eligible business also must have fewer than 300 full-time equivalent employees and a net worth of no more than $15 million. Businesses had to be in operation Feb. 15, 2020, and remain in operation without the intent to permanently close within one year of applying to the program.
The business also must have experienced an adverse economic impact from COVID-19, showing a reduction in revenue of at least 25% in gross receipts between comparable quarters in 2019 and 2020.
Priority will go to applicants that have not received a loan or
grant from the state, federal or county government, were closed as a result of Wolf’s disaster declaration related to COVID-19, and can demonstrate a reduction in gross receipts of at least 50% between comparable quarters in 2019 and 2020.
What do I need to apply?
To apply, get your paperwork ready.
A business will need its tax returns for 2019 and 2020 (if the latter is completed) and its quarterly financial statements for
2019 and 2020, including profit and loss.
“Those are the main things they’re going to need,” Hudock said.
Businesses also should have their proof of business organization — certification of organization, articles of incorporation or fictitious name filing — as well as its Form W-9 and a copy of the business owner’s driver’s license.
Hudock said the application portal will open Monday on Rising Tide’s website. The portal will be on the website’s homepage, and Hudock is targeting a 9 a.m. launch.
Rising Tide is expecting the
system to be busy when it opens. Applicants may need to clear or refresh their web browser if they have trouble loading the application form.
Timeline
The application period will remain open until June 15 or until grant funding is exhausted.
Hudock expects it to be the latter.
“I’ll be shocked if we are not hammered in the very beginning,” he said.
As for how long the review process will take, that will depend on several factors, including the quality and quantity of applications received. Grants will be announced on a rolling basis until the funds are gone.
A FAQ on Rising Tide’s website encourages applicants to be patient in submitting their online application forms. The program, the document notes, is not on a first-come, first-served basis.
Priority will go to accurate and complete applications, the FAQ points out. If time allows and funds remain, applicants who submit an incomplete or inaccurate application will be contacted.
Rising Tide will provide technical assistance when it can, but it’s also going to be dealing with high volume and a narrow application window.
“It’s really going to rely on you submitting it right the first time,” Hudock said.
More information
First, get familiar with Rising Tide’s website: therisingtide.org/
Here is Rising Tide’s page on the program: therisingtide.org/ covid-19-business-resource/
Rising Tide’s FAQ on the program: therisingtide.org/ wp-content/uploads/2021⁄03/ Frequently-Asked-QuestionsCHIRP-Public.pdf
If you have additional questions, email rtclf-grants@caclv. org and include the business name and street address in the message.