The Delaware Division of Small Business reported that its first round of DE Relief grants resulted in nearly $26 million going to nearly 750 small businesses and nonprofits.
The division released figures that indicated the grants went to smaller employers. The federal Payroll Protection Program that allowed some recipients to convert loans to grants remains under fire for not aiding businesses in the greatest need of help.
The division is currently accepting applications for the second round of grants. A total of $100 million has been allocated for the program which is funded by CARES Act funds from the state and New Castle County.
The grants were designed to aid businesses and nonprofits without adding to debt burdens that would come from loans.
- The median grant award will be $20,000. The typical recipient in the first round had a median annual 2019 gross revenue of just under $325,000.
- 40 percent of funding went to businesses with fewer than 10 fulltime employees ($10.4 million)
- More than half of that went to businesses with fewer than 5 fulltime employees($5.6 million)
- 79 percent of funding went to businesses in disproportionately impacted industries, including restaurants, retail, personal care, childcare, etc. ($20.3 million)
- Nearly a quarter of funding went to women-owned businesses ($6.5 million)
- 14 percent of funding went to minority-owned businesses ($3.5 million)
Grant recipients come from each of Delaware’s three counties:
|County||% of approved grant applicants||% of small businesses in state|
“This program represents an unprecedented effort to assist small businesses and nonprofits that are vital to Delaware’s economy and to our quality of life,” Secretary of State JeffBullocksaid. “The applicants for these grants employ thousands of people in Delaware. Getting them the resources they need is critical to their ability to successfully navigate this difficult period.”
The Division of Small Business has started accepting applications for the second round of DE Relief Grants at delbiz.com/relief.
Three rounds of grants totaling at least $100 million are planned with the third round scheduled for early November.
Funding not awarded in the first round is being rolled into future rounds.
“We hope businesses and nonprofits that did not receive funding in Round 1, or did notapply, will apply in Round 2,”Division of Small Business Director Damian DeStefanosaid. “We are pleased so many of the Round 1 applications came from businesses we know have been hit hardest by the pandemic, such as those in hospitality and retail, minority- and women-owned businesses, and very small family-owned firms. This grant will make a substantial difference during these challenging economic times.”
Business applying for a DE Relief Grant in Round 2 are asked to:
- Provide your entire federal 2019 tax return (including all schedules and attachments). Many applications were rejected due to the lack of that information.
- Submit your current State of Delaware business license (make sure it is not an expired license nora municipal license)
- Confirm your expenses areeligible
- Triple check your application for accuracy before submitting
The Division of Small Business has been holding webinars on the steps needed to secure the grants.
Further information on the program is available at http://ow.ly/A9YZ50BJY0G