On October 22, the Baker-Polito Administration announced a $774 million economic recovery plan
that includes $115 million in new grant funding to support workplace training and small businesses in Massachusetts affected by the COVID-19 pandemic.
Small businesses may now apply for $50.8 million in grants made available through the Massachusetts Growth Capital Corporation (MGCC).
The application period will remain open for three weeks and closes on November 12, 2020. Small businesses that meet the eligibility criteria are encouraged to apply for funding as soon as possible.
According to MGCC:
- Grant funding is intended to help businesses adversely impacted by the pandemic.
- 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.
Each program encompasses its own eligibility criteria. Applicants must review the information to determine which program to proceed in applying for. Please note that applicants can only apply for one program.
- Small Business Grants for 5 or Fewer Employees
- Amount of Funding: Up to $25,000.
- Approved Use of Funds: May be used for working capital to cover business costs, such as rent, staffing, utilities, and technical assistance, general support and stabilization of the business. Funds may also be used for purchasing personal protection equipment (PPE).
- Non-Approved Use of Funds: Major equipment purchases, purchase of real property, construction activities, business expansion, lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.
- Small Business Grants for 50 or Fewer Employees
- Amount of Funding: Businesses can receive up to $75,000 but capped at up to 3 months of operating expenses, as evidenced by 2019 Federal Tax Returns. Grant amounts will be considered for actual expenses for 2020 during the pandemic. Expenses can be considered since March 10, 2020, given that it does not exceed 3 months of operating expenses evidenced by 2019 Federal Tax Returns.
- Approved use of Funds: Employee payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations.
- Non-Approved use of Funds: Major equipment purchases, purchase of real property, construction activities, business expansion, lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.
For more information on eligibility, the requirements of both programs, required documentation, and to apply, please visit Massachusetts Growth Capital Corporation’s website.