Newsletter from
Steve Richardson & Company
Certified Public Accountants
July 11, 2020
Revive Alabama: COVID-19 Cash Grants for Alabama Small Businesses
Dear Clients and Friends:
This newsletter is of particular interest to our small business clients in Alabama. If your small business is in another state, similar opportunities may be available to you.
The CARES Act continues to offer financial assistance to small businesses impacted by the COVID-19 outbreak. In prior newsletters we have discussed extensively the Paycheck Protection Program (PPP) Loan and Economic Impact Disaster Loan (EIDL). In addition to these programs, the CARES Act funded programs administered at the state level, as well.
More Financial Assistance for Small Businesses
For Alabama small businesses, the Alabama Department of Revenue is administering Governor Kay Ivey’s Revive Alabama Small Business Grant Program. A small business, for the purposes of this grant, has less than 20 full-time equivalent (FTE) employees; in this case, the FTE calculation is based on 30 weekly paid hours. $100 million of the state’s CARES Act funding is designated for providing cash grants of up to $15,000 to reimburse Alabama small businesses for business interruption expenses that have not otherwise been reimbursed through the CARES Act or other sources.
Act Quickly: Grants Are Awarded First-Come-First-Served
The application program opens July 16, 2020 at noon and is open through midnight on July 25, 2020. I can guarantee you that funds will run out quickly, well before this short one-and-a-half week application window ends!
For Expenses Not Covered by Other CARES Act Program Funds Received
Eligible expenses include expenses incurred due to the interruption of business during the COVID-19 pandemic. This includes but may not be limited to:
- Mortgage Interest.
- Rent.
- Payroll costs (including earnings from self-employment).
- Utilities.
- Personal Protective Equipment (PPE)
No double-dipping! The amount requested from Revive Alabama for COVID-19 business interruption expenses must be reduced by the amount received or expected to be received from the federal Paycheck Protection (PPP) Loan, Economic Injury Disaster Loan, Pandemic Unemployment Assistance (PUA), or insurance payments. This calculation will be made as part of the application process.
Start Now and Be Prepared
We as tax preparers cannot apply for this grant on your behalf. The burden for filing is on you, the small business owner. We are, however, permitted to assist with information needed to establish your online My Alabama Taxes (MAT) account if you do not already have one.
Read the Revive Alabama Resources
Detailed information is available on the Alabama Department of Revenue’s website:
- Revive Alabama: COVID-19 Cash Grants for Alabama Small Businesses
- Frequently Asked Questions about the Revive Alabama Small Business Grant Program
Register for a MAT account
The grant program is only accepting applications through the MAT portal; no applications will be processed by mail or email. Although the grant application portal does not open until July 16th, you should immediately confirm that you have established a secure MAT Account. Each small business applicant must have a MAT account. May businesses will already have one in place, but others will need to apply as soon as possible.
Review your eligible expenses in advance
As funds will be claimed quickly. Before July 16th, identify your eligible, unreimbursed expenses. Taking time to organize and update your accounting records for this purpose is critical. With an opportunity like this, time is of the essence!
Sincerely,
Steve Richardson, CPA