A week after telling reporters that small businesses would get federal aid, Gov. Gina Raimondo has unveiled details for how small businesses can access financial relief packages amid the coronavirus pandemic.
Raimondo announced $100 million in emergency financial support to help businesses with reopening, adaptation and fixed costs through direct grants. The package also includes technical support services.
Applications will be available through Commerce RI's website beginning later this month, per a statement from the organization.
“This grant program will provide needed resources to Rhode Island’s small businesses, which have been hit hard by the Covid crisis,” Rhode Island Secretary of Commerce Stefan Pryor said in the statement. “The program will help small businesses cover reopening expenses and will assist them as they adapt to the new conditions of this new normal. The effort will especially focus upon our most severely impacted industries and communities.”
Here are details about the program, including categories and eligibility criteria, as provided by Commerce RI. Businesses can also contact the Rhode Island Commerce Small Business Hotline at 401-521-HELP.
Program Categories
Restore RI: $50 million to assist businesses with reopening expenses and fixed costs (e.g. personal protective equipment, plexiglass, cleaning supplies, physical alterations, upgrading technology such as touchless payment and online reservation systems, rent, utilities). 20% of these funds will be designated for minority-owned business enterprises. Grants will be available for up to $15,000 for eligible Rhode Island businesses impacted by Covid-19. Grant amounts will be calculated based on the number of employees and the degree of revenue loss.
$3.5 million to support business repositioning. Creation of a Repositioning program that will fund small businesses’ short-term efforts to reposition their businesses by the end of clendar year 2020.
$5.5 million to support technical assistance and other business supports. Funds provided for a broad range of technical assistance and other business supports to assist small businesses with financial planning and adapting their businesses to the new economic landscape.
$1 million to support businesses navigating receivership.
Up to $2.5 million to nonprofits.
$1 million in direct payments to small businesses to access assistance from professionals such as CPAs and financial advisors.
$20 million from the Small Business Development Fund, which the General Assembly authorized during the last legislative session. This funding will enable Commerce RI to offer loans of a size that exceeds the grant amounts.
$5 million application for additional federal grant funding (beyond Rhode Island’s CARES Act funding) to support tourism and hospitality.
Note: Up to $12.5 million is available to supplement the Restore RI fund should additional funds be necessary.
Eligibility Criteria
Award amounts will be calculated based on the information provided by small businesses in their applications. Businesses must demonstrate they have been impacted by Covid-19 in order to qualify for an award. Completed applications will be approved on a first-come, first served basis.
Program eligibility for Restore RI is anticipated to include the following:
- Limited to Covid-19-impacted businesses that demonstrate 30% or greater revenue loss (with the highest award amounts reserved for businesses experiencing greater than 50% revenue loss).
- Small businesses with up to 20 employees or restaurants/caterers of any size. Sole proprietors, government entities, national chains and nonprofits are not eligible for Restore RI at this time.
- Must have a physical presence in Rhode Island.
- Must be open or show a plan to reopen.
- Health care/social assistance businesses and select other industries are not eligible at this time. Additional industry eligibility rules and information will be provided with the application materials.
- Viability test with streamlined viability analysis for PPP recipients.
Required documentation is anticipated to include:
- Verification of Covid-19 impacts and revenue loss
- Documentation regarding the use of funds
- Verification of number of employees
- Viability test, which may include a plan to demonstrate how the business is adapting to the new normal
- Additional required information such as a federal DUNS number and W9
