Olmsted County Small Business Relief Grants - Round 2
Rochester Area Economic Development, Inc. (RAEDI) will oversee the Olmsted County Small Business Relief Grants (OCSBRG) Program, Round 2, approved by Olmsted County Board October 6th, 2020. This program is funded by the Coronavirus Aid Relief and Economic Security (CARES) Act.
This program will make available grants ranging up to $15,000 to small businesses owned and operated in Olmsted County that can demonstrate financial hardship as a result of the COVID-19 outbreak, specifically a 15% decrease in net profit or greater. Grants will be a base amount of 50% of net losses from March 1 - June 30, 2020, or $15,000, whichever is less.
A total of $1.17 million is available for grant awards, with a priority given to under-served businesses (women-, military veteran-, and ethnic or racial minority-owned businesses), ultra-small businesses (those with six or fewer employees), businesses directly impacted by Governor Walz's Executive Orders, and businesses that have not received aid from other government sources. Any business started before March 1, 2020 is welcome to apply. Home-based businesses and recipients of the first Olmsted County Small Business Relief Grants Program are not eligible.
Awards will be disbursed and administered by RAEDI, a 501(c)(6) non-profit organization. Grant funds received by individual businesses shall be used to cover business expenses since March 1, 2020, including by not limited to payroll expenses, rent, mortgage payments, utility bills, and other expenses in the regular course of business. These funds cannot be used to pay for expenses that are being funded by other CARES Act programs, or to pay tax liabilities (such as property taxes). These are grants and no repayment will be required; they are not loans.
To complete your application, you will need:
- Accounting software output (or spreadsheets) showing total income and expenses for March 1 - June 30, 2019 if business was operating during that period;
- Schedule C or equivalent form from your 2019 business tax returns;
- Accounting software output (or spreadsheets) for March 1 - June 30, 2020 showing total income and expenses;
- IMPORTANT NOTE: All documentation MUST include company name in the name of the file, e.g. SamsBakery-ScheduleC.pdf.
You will also need proof of Minnesota residency of a majority owner of the company. You can submit ONE of the following:
- Copy of Minnesota income tax return,
- Copy of MN driver’s license or state ID,
- Copy of current residential lease agreement or recent mortgage statement (on or after March 1st, 2020),
- Copy of recent residential utility bill in owner's name (on or after March 1st, 2020), OR
- Copy of DD 214 from DOD.
To qualify, an applicant must:
- Be a private business that has a physical location in Olmsted County.
- Be majority-owned by a permanent resident of Minnesota.
- Be in good standing with the Minnesota Secretary of State as of March 1, 2020.
- Be current on property taxes (if applicable) as of May 15, 2020.
- Employ fewer than fifty (50) full-time equivalent (FTE) employees.
- Be able to demonstrate financial hardship as a result of the COVID-19 outbreak, specifically a 15% decrease in net profit or greater, AND a $1,800 decrease in net profit or greater.
- Businesses that are majority-owned by military veterans, women, and ethnic or racial minorities;
- Businesses that employ 6 people or fewer;
- Businesses that have not received aid from other government sources; and/or
- Businesses directly impacted by Governor Walz's Executive Orders.
- Please submit only one application per business. An eligible business may receive at most one grant under this program, regardless of other related business locations and their locations in Minnesota.
- Please submit only one application per owner. A business owner may receive at most one grant, regardless of the number of businesses owned with an ownership share of 20% or more. If multiple applications are submitted, the last one submitted will be the one considered for eligibility.
- All questions require answers, unless labeled as optional.
Additional Ineligible Businesses:
- A home-based business.
- A non-profit business.
- A business or owner who received a grant from the first Olmsted County Small Business Relief Grant Program.
- A business deriving income from passive investments without operational ties to operating businesses.
- A business primarily focusing on speculative activities based on fluctuations in price rather than the normal course of trade.
- A business earning more than half of its annual net revenue from lending.
- A business engaging in pyramid sales, where a participant's primary incentive is based on the sales of an ever-increasing number of participants.
- A business engaging in activities prohibited by federal law or applicable law in the local jurisdiction of the business.
- A business engaging in gambling enterprises, unless the business earns less than 50% of its annual net revenue from lottery sales.
- A business late in payment to any creditors by 60 days or more as of February 29th, 2020.
- A business owned in-whole or in-part by Olmsted County or RAEDI employees.
- A business permanently closed at the time this application is submitted.
- A business that has been suspended or debarred, and is not eligible for federal funds.
Need help completing your application? The Small Business Development Center is available to provide professional expertise and guidance. Learn more here, or you can sign up directly here: https://mnsbdc.ecenterdirect.com/signup They will provide application assistance free of charge. You may use any other assistance provider you wish, but no assistance provider, whether free or fee-based, can guarantee you will receive a grant.
Applications for the Small Busines Relief Grant Program, Round 2, will be accepted starting noon on Thursday, October 8th, 2020 until 11:59 p.m. on Sunday, October 18th, 2020. Awards will be processed over the following weeks, with awardees to be notified by Friday, November 6th, 2020.