N.Y. Urban Development Corporation Act 174/68 § 16-ff: COVID-19 pandemic small business recovery grant program

§ 16-ff. COVID-19 pandemic small business recovery grant program. 1.

Definitions. As used in this section, the following terms shall have the

following meanings:

(a) "Small business" shall mean a business which is resident in this

state, independently owned and operated, not dominant in its field, and

employs one hundred or less persons.

(b) "Micro-business" shall mean a business which is a resident in this

state, independently owned and operated, not dominant in its field, and

employs ten or less persons.

(c) "The program" shall mean the COVID-19 pandemic small business

recovery grant program established pursuant to subdivision two of this

section.

(d) "Applicant" shall mean a small business or for-profit independent

arts and cultural organization submitting an application for a grant

award to the program.

(e) "COVID-19 health and safety protocols" means any restrictions

imposed on the operation of businesses by executive order 202 of 2020

issued by the governor, or any extension or subsequent executive order

issued in response to the novel coronavirus (COVID-19) pandemic, or any

other statute, rule, or regulation imposing restrictions on the

operation of businesses in response to the novel coronavirus (COVID-19)

pandemic.

(f) "For-profit independent arts and cultural organization" shall mean

a small or medium sized private for-profit, independently operated

live-performance venue, promoter, production company, or performance

related business located in New York state negatively impacted by

COVID-19 health and safety protocols, and having one hundred or less

full-time employees, excluding seasonal employees. The qualifying

organizations under this definition may include businesses engaged in a

field including, but not limited to, architecture, dance, design, film,

music, theater, opera, media, literature, museum activities, visual

arts, folk arts and casting.

2. COVID-19 pandemic small business recovery grant program

established. The COVID-19 pandemic small business recovery grant

program is hereby created to provide assistance to small businesses and

for-profit independent arts and cultural organizations who have

experienced economic hardship during the COVID-19 pandemic.

3. Authorization. The corporation is hereby authorized, using

available funds, to issue grants and provide technical assistance and

outreach to small businesses, for-profit independent arts and cultural

organizations, and technical assistance partners for the purpose of

aiding the recovery of the New York state economy, and may promulgate

guidelines or regulations to effectuate the purposes herein.

4. Selection criteria and application process. (a) In order to be

eligible for a grant or additional form of support under the program, an

eligible small business or for-profit independent arts and cultural

organization shall:

(i) Be incorporated in New York state or licensed or registered to do

business in New York state;

(ii) Be a currently viable small business or for-profit independent

arts and cultural organization that has been in operation since before

March 1, 2019;

(iii) Be able to demonstrate lost revenue or other economic hardship

due to the COVID-19 pandemic or compliance with COVID-19 health and

safety protocols which resulted in business modifications,

interruptions, or closures. To demonstrate lost revenue or other

economic hardship, the applicant shall show a loss in year-to-date

revenue as of December 31, 2020, compared with the same period in 2019;

(iv) Be in substantial compliance with applicable federal, state and

local laws, regulations, codes and requirements; and

(v) Not owe any federal, state or local taxes prior to July 15, 2020,

or have an approved repayment, deferral plan, or agreement with

appropriate federal, state and local taxing authorities.

(b) Grants awarded from this program shall be available to eligible

micro-businesses, small businesses, and for-profit independent arts and

cultural organizations that do not qualify for business assistance grant

programs under the federal American Rescue Plan Act of 2021 or any other

available federal COVID-19 economic recovery or business assistance

grant programs, including loans forgiven under the federal Paycheck

Protection Program, or are unable to obtain sufficient business

assistance from such federal programs, with priority given to socially

and economically disadvantaged business owners including, but not

limited to, minority and women-owned business enterprises,

service-disabled veteran-owned businesses, and veteran-owned businesses,

or businesses located in communities that were economically distressed

prior to March 1, 2020, as determined by the most recent census data.

5. Eligible costs. (a) Eligible costs shall be considered for

micro-businesses, small businesses, and for-profit independent arts and

cultural organizations negatively impacted by the COVID-19 pandemic or

by their compliance with COVID-19 health and safety protocols which

resulted in lost revenue, business modifications, interruptions, or

closures. Such eligible costs shall have been incurred between March 1,

2020 and April 1, 2021.

(b) The following costs incurred by a micro-business, small business,

or for-profit independent arts and cultural organization shall be

considered eligible under the program at a minimum: payroll costs; costs

of rent or mortgage as provided for in subparagraph (i) of this

paragraph; costs of repayment of local property or school taxes

associated with such small business's location as provided for in

subparagraph (ii) of this paragraph; insurance costs; utility costs;

costs of personal protection equipment (PPE) necessary to protect worker

and consumer health and safety; heating, ventilation, and air

conditioning (HVAC) costs, or other machinery or equipment costs, or

supplies and materials necessary for compliance with COVID-19 health and

safety protocols, and other documented COVID-19 costs as approved by the

corporation.

(i) Mortgage payments or commercial rent shall be considered eligible

costs.

(ii) Payment of local property taxes and school taxes shall be

considered eligible costs.

(c) Grants awarded under the program shall not be used to re-pay or

pay down any portion of a loan obtained through a federal coronavirus

relief package for business assistance or any New York state business

assistance programs.

6. Application and approval process. (a) An eligible micro-business,

small business, or for-profit independent arts and cultural organization

shall submit a complete application in a form and manner prescribed by

the corporation.

(b) The corporation shall establish the procedures and time period for

micro-businesses, small businesses, or for-profit independent arts and

cultural organizations to submit applications to the program. As part of

the application each micro-business, small business, or for-profit

independent arts and cultural organization shall provide sufficient

documentation in a manner prescribed by the corporation to demonstrate

hardship, and prevent fraud, waste, and abuse.

7. Reporting. The corporation, on a quarterly basis beginning

September 30, 2021, and ending when all program funds are expended,

shall submit a separate and distinct report to the governor, the

temporary president of the senate, and the speaker of the assembly

setting forth the activities undertaken by the program. Such quarterly

report shall include, but need not be limited to: the number of

applicants and their county locations; the number of applicants approved

by the program and their county location; the total amount of grants

awarded, and the average amount of such grants awarded; and such other

information as the corporation determines necessary and appropriate.

Such report shall be included on the corporation's website and any other

publicly accessible state database that list economic development

programs, as determined by the commissioner.

8. Technical assistance and outreach. The corporation may offer or

make available to all applicants, regardless of approval status, direct

or indirect access to financial and business planning, legal

consultation, language assistance services, mentoring services for

post-pandemic planning, reopening planning assistance and other

assistance and support as determined by the corporation. Assistance,

support, outreach and other services may be provided by or through

partner organizations, including but not limited to chambers of

commerce, local business development corporations, trade associations

and other community organizations that have expertise and background in

providing technical assistance, at the discretion of the corporation.