MA Launches Stimulus Program to Boost Small Businesses
AAFCPAs would like to make clients aware that Massachusetts Governor, Charlie Baker has announced a new $50.8 million grant program for Massachusetts small businesses experiencing adverse impact from the pandemic. AAFCPAs’ client Massachusetts Growth Capital Corporation (MGCC) will be administering these funds to businesses experiencing economic hardship and a loss of income due to COVID-19. These funds were appropriated through the Commonwealth’s Supplemental Budget for Fiscal Year 2021 as well as the CARES Act of 2020.
There are two separate programs, one for organizations under 5 employees, and one for organizations under 50 employees. Applications (use links below to apply) will be open until 11/12/2020 at 12:00 PM.
| Program | 5 or Fewer Employees |
50 or Fewer Employees |
|---|---|---|
| Amount of Funding | Up to $25,000 | Up to $75,000 but capped at up to 3 months of operating expenses, based on 2019 Tax Return |
| Approved Use of Funds | Working capital such as rent, staffing, utilities, technical assistance, general support, personal protection equipment. | Employee payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations. |
| Non-Approved Uses |
Major purchases or upgrades, real estate, construction, business expansion or lobbying. Also, there must not be a duplication of benefits and the grant funds may not be used to pay expenses if another source of financial aid has paid that same expense. |
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Qualifications |
5 or Fewer Employees |
50 or Fewer Employees |
| Business has 5 or fewer employees one of whom is the owner. | Business has 50 or fewer full-time equivalent employees one of whom is the owner. | |
| Business must provide goods or services to multiple clients or customers | ||
| The owner(s) of the business must qualify under the Low-Moderate Income (LMI) Limited Clientele national objective criteria. They must earn an annual income equal to or less than 80% of the Area Median Income (AMI) based on family size | ||
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Must have a physical establishment in Massachusetts. |
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| Must be a for-profit entity (sole proprietorship, partnership, corporation, cooperative, or LLC). | ||
| Business must be able to document a loss of income equal to or greater than requested assistance due to COVID-19. | ||
| Business must be in operation currently or must have the intent to reopen. | ||
| Business must have been established prior to 6/30/2019. | ||
| Business must be in good standing with the state and city/town. Must be current on taxes through 3/1/2020 and have an active and valid state licensing, if applicable. | ||
Must not be an ineligible business:
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The applications will be open until 11/12/2020 at 12:00 PM, and you may apply here:
- 5 or fewer employees – https://massgcc2.submittable.com/submit/177584/small-business-grants-for-5-or-fewer-employees
- 50 or fewer employees – https://massgcc3.submittable.com/submit/177585/small-business-grants-for-50-or-fewer-employees
The Baker Administration announced that preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants that have not been able to receive aid from other federal programs related to COVID-19.
How May AAFCPAs Help?
AAFCPAs is available to assist clients in understanding eligibility, and in determining how these grants may impact (or be impacted by) your participation in other federal programs.
If you have any questions please contact your AAFCPAs Partner.