To help Virginia businesses and organizations cope with the economic disruption from the COVID-19 pandemic, the Virginia government established the Rebuild Virginia Grant program. Recently, Virginia expanded eligibility for the program so that it can benefit many more Virginia organizations. This brief overview of the Rebuild Virginia Grant program will help you to determine whether your organization qualifies and, if so, what next steps you should take.

Eligibility

Business entities (including corporations, partnerships, LLC’s, sole proprietorships, and independent contractors), non-profit organizations exempt from income tax under §501(c)(3), §501(c)(7), or §501(c)(19), and Virginia tribes may participate in the program. An eligible applicant’s primary place of business must be in Virginia, and the applicant must have either 250 or fewer employees or less than $10 million in revenue in its most recent fiscal year.

Additional eligibility criteria include:

• The applicant operated in Virginia before March 12, 2020
• The applicant is in good standing with the State Corporation Commission, is engaged in legal activity, and is not delinquent with Virginia state taxes
• An applicant may not be a lobbyist
• Any person who owns 20% or more of the organization may not be more than 60 days delinquent in child support obligations

Grant Amount

An applicant may receive a grant up to three times average monthly eligible expenses, capped at $100,000. Eligible expenses include:

• Payroll support, including full-time employee wages; paid sick, medical, or family leave; and costs for employee health care during leave periods
• Mortgage payments as well as other loan payments to nationally or Virginia chartered financial institutions (including principal and interest)
• Rent
• Utilities, including electricity, gas, water, sewer, telephone, and internet service

Applicants that did not receive funding under a federal CARES Act program (including the Paycheck Protection Program) may also be reimbursed for certain costs related to the COVID-19 pandemic, including costs incurred in order to maintain compliance with government guidance. Those expenditures are included with the expenses described above under the $100,000 cap.

Application Process

Applicants should apply directly with the Virginia Small Business Financing Authority. An online application is available here. Applicants may find a paper application and additional information about the program and the application process here.

The application deadline is December 31, 2020. However, the Rebuild Virginia Grant program will end when the $100 million provided through the federal CARES Act has been exhausted. Among other items, an applicant should provide payroll records (the application refers specifically to Virginia Form VEC FC-21/20), a mortgage or loan statement, utilities statements, and lease agreements.

The expanded Rebuild Virginia Grant program may provide needed funds to help Virginia organizations through the continuing economic disruptions from COVID-19. Contact a Hantzmon Wiebel team member if you have questions about this program or other steps you can take to help your business adapt and thrive.

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Disclaimer of Liability
Our firm provides the information in this article for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal or other competent advisors. Before making any decision or taking any action, you should consult a professional advisor who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this blog are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability and fitness for a particular purpose.

 

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