CT CARES creates Small Business Grant Program

HARTFORD — The Department of Economic and Community Development has created a $50 million grant program to help our small businesses in Connecticut recover from the ongoing challenges of COVID-19. Eligible businesses and nonprofits can receive a one-time $5,000 grant and all funds will be disbursed to approved applicants by Dec. 30, according to a statement.

The online application is expected to be available the week of Nov. 9, according to the DECD.

There are specific eligibility requirements to receive the grant, members said in the statement.

A business must have no more than 20 total full time employees in 2019 across all of their Connecticut locations, or have total 2019 payroll of less than $1.5 million (annualized). FTE and payroll include affiliated companies.

Businesses must be able to demonstrate a 20 percent or more loss in revenue year to date as of September 30th, 2020 compared with the same period in 2019.

Business must have been established by Oct. 1, 2019 and still be active (as verified by DRS). Home-based businesses are eligible.

Eligible entities include forprofit businesses that use any type of incorporation, as well as 501(c)(3), 501(c)(4), 501(c)(6), 501(c) (7), and 501(c)(19) nonprofit organizations.

The business must remain viable, plan to reopen, plan to rehire any workers let go due to COVID as business conditions recover, and have a material financial need that cannot be overcome without the grant of emergency relief funds.

Companies must be in good tax standing with DRS or current on a payment plan or consent to use a portion and/or all of their grant to remedy the delinquency. Sole proprietorships are eligible.

Exclusions include businesses in which the majority of revenue is earned from the following activities:

Liquor stores and alcohol distributors; adult businesses such as strip clubs; vape retailers; tobacco shops and smoking lounges; businesses having to do with gambling; gun stores and ranges; cash advance, check cashing, or pawn shops; bail bonds; collection agencies or services; and auction or bankruptcy or fire or “lost-our-lease” or “going-outof-business” or similar sale.

Business establishments that are 50 percent or more owned by another establishment such that the FTE count for the umbrella establishment, when counting the FTEs of all subsidiaries in which the umbrella establishment has 50 percent or more stakes, is more than 500. For example, this would include non-franchised outlets of major national food and retail chains.

Businesses and not-for-profit entities may not participate in this program if they received another assistance grant from State of Connecticut CRF funds.

Grants can be used for payroll, rent, mortage payments, utilities, inventory, purchases of machinery or equipment, and costs associated with compliance with CT Reopen Business Sector Rules.

DECD is hosting a series of webinars to help businesses and nonprofits with the application process. Check back for updates.

For additional assistance, contact a DECD representative by calling 860-500-2333 or emailing decdctrecovery@ct.gov.