HomeMy Public PortalAboutFrequently Asked Questions -Microenterprise Grant_2020_0908Frequently Asked Questions
What is the definition of a microenterprise business? 5 or fewer full-time equivalent employees,
including the business owner.
For microenterprises, what is the date of the "count" of number of employees? At the time of
application for assistance.
What is income eligibility, LMI and what are the requirements for this grant? LMI is low -and -moderate
income persons. An individual is considered to be LMI based on their annualized family income. Overall,
to be classified as LMI, a family's household income must be less than or equal to 80% of the median
income for the area where they reside. Click the HUD calculation link HERE. Most businesses within this
grant will fall under the Boston -Cambridge -Quincy MA area.
Boston -Cambridge -Quincy, MA -NH HUD Metro FMR Area — FY
2020 Income Limits*
Number of Persons in Family
80% Low Income Limit - LMI
1
$67,400 max
2
$77,000 max
3
$86,650 max
4
$96,250 max
5
$103,950 max
6
$111,650 max
7
$119,350 max
8
$127,050 max
*Median Family Income for the Boston -Cambridge -Quincy, MA -NH
HUD Metro FMR Area — FY 2020 is $119,000.
If there are multiple owners, do all need to meet LMI requirements in order to be eligible or does just
one need to be eligible? If there are more owners, they must each be eligible to qualify.
How long does a business have to be open to qualify for this grant? Must be in business as of 1/1/19
and have a physical establishment that serves the community that is distributing the grant. Some home -
based businesses will be eligible.
What cities and towns are distributing this grant? The following 23 municipalities are participating in
this grant program. Businesses that have a physical establishment in the following can apply: Ashland,
Beverly, Burlington, Canton, Concord, Dedham, Essex, Lexington, Manchester by the Sea, Marlborough,
Melrose, Milton, Natick, North Reading, Norwood, Randolph, Reading, Sharon, Southborough,
Stoneham, Watertown, Winchester or Woburn.
How much money can one business apply for? Up to $10,000
What documents will I need to submit with the application? Applicants will be required to submit
documentation to support all provided information. The following list identifies the required documents
that will be requested at the time the applications are submitted:
• DUNS number
• W-9 Form Request for Taxpayer Identification Number and Certification
• 2019 or 2020 Certificate of Good Standing
• A copy of complete 2019 Federal Personal Tax Returns for each business owner with a 20% or
greater ownership interest in the business for LMI requirement verification. If on extension, 2018
will be accepted.
• A copy of your complete 2019 Federal Business Tax Return. If on extension, 2018 will be
accepted.
• A copy of your License to Operate/Business License/Professional Certification, if applicable
• A copy of your Lease or Mortgage Bill
• If you received any state, local or federal aid, please provide documentation
• Documentation to demonstrate that COVID-19 has caused a loss of income equal to or greater
than requested assistance
How do I apply? What are the next steps? Massachusetts Growth Capital Corporation ("MGCC") will be
helping to administer and oversee the grant program. Applications are available here
(https://massgcc.submittable.com/submit) and are due by September 25th.
How is "currently in operation" defined? If a business was in operation but closed because of COVID,
it would make sense that the business should be eligible for this funding. "Currently in operation"
means that the business has not permanently closed, gone out of business, filed for bankruptcy.
Can businesses buy equipment with grant funding? The purchase of equipment, fixtures, furnishings,
property with CDBG funds is generally ineligible. Funding may be used for rent, mortgage assistance,
utilities or payroll. Funds may also be used to purchase PPE.
Are home -based businesses eligible? For example: landscapers, contractors, artists, daycares,
consultants, etc. Legitimately licensed commercial businesses may be considered eligible for assistance.
Can the funds be used to assist a business owner with making payments on a loan that they received
prior to the start of the pandemic, even if it's for an equipment purchase? Funds may be used for
working capital to cover business costs, such as rent, staffing, and utilities. Microenterprise Assistance
Program funds may not be used for major equipment purchases, purchase of real property, construction
activities, business expansion, or lobbying.