Delaware small businesses and nonprofits will be able to apply for the $30 million available from the second round of DE Relief Grants starting at 10 a.m. on Oct. 1.
“Delaware small businesses are the backbone of our economy and they have made considerable sacrifices during the COVID-19 crisis. We owe them our gratitude and support,” said Gov. John Carney. “These relief grants will help Delaware small businesses begin the process of recovering and will help make investments necessary to create safer spaces for their customers and staff.”
To help applicants prepare, the Division of Small Business is hosting a webinar Friday, September 25 at 12:30 p.m. Attendees will learn from the challenges and experiences of Round 1 with the goal of increasing their chances of receiving Round 2 funding.
Click here for the Zoom link.
The first application round was open for 36 hours. During that time the Division of Small Business received 1,645 applications that are eligible for $54.4 million in grants.
“We expected high demand for the grants as this has been a very difficult time for so many businesses,” said Damian DeStefano, director of the Division of Small Business. “We were encouraged to see that so many of the applications were from parts of the business community that have been hit hardest, including very small family-owned firms, hospitality businesses, like restaurants and tourist attractions, and minority- and women-owned businesses.”
About round 1 applications:
- Disproportionately impacted industries (food services, retail, personal care, etc.) accounted for two-thirds of the dollar amount.
- More than half the applicants were minority-or woman-owned businesses.
- Three-quarters of the businesses and nonprofits that applied had annual revenues under $1 million (44 percent under $250,000).
- Three-quarters of applicants have fewer than 10 employees (more than half, fewer than 5).
Businesses that applied during Round 1 will know by Sept. 30 the final status of their applications, including if the application was not accepted. If an application was not accepted, they can and should consider applying for Round 2.
Grants of up to $100,000 are available based on 2019 revenue. Information on determining the amount a business is eligible for, what expenses are eligible for submission, and additional program stipulations is available in the Frequently Asked Questions section of delbiz.com/relief.
Businesses interested in applying should, if they have not already done so, gather the following required documents:
- Complete 2019 tax return
- State of Delaware Business License (applicants must submit unless in an industry with a legal exemption from this requirement)
- Receipts for qualifying expenses (carefully check what qualifies as an eligible expense)
The DE Relief Grants program is a joint initiative of at least $100 million between the State of Delaware and New Castle County, funded by the Coronavirus Aid, Relief, and Economic Security (CARES) Act. The grants aim to help Delaware eligible small businesses and nonprofits pay expenses related to COVID-19.
One sticking point involves tax returns.
“We have seen that the submission of incomplete tax returns has been a pain point for some applicants, and we are planning to make it one of the central points we address in a webinar on Friday (and follow up explainer videos),” said Michael Chesney, spokesman for the Delaware Division of Small Business.
“Complete 2019 tax returns are a key part of a business’s application for a DE Relief Grant. The information within is an essential part of evaluating a grant request and preventing fraud,” Chesney stated.
Chesney noted that hundreds of businesses successfully submitted all of the required documents Round 1.
Applicants whose applications were rejected, due to the lack of a full tax form can apply for the next round of grants. Applications are expected to be taken by early October.
The state and New Castle County have allocated at least $100 million for the program, which aims to provide assistance for businesses and nonprofits without the burden of loan obligations.
Click here for a link to the Zoom seminar. (Zoom software is required).
