Olmsted County Small Business Relief Grants
Rochester Area Economic Development, Inc. (RAEDI) will oversee the Olmsted County Small Business Relief Grants Program approved by Olmsted County Board August 4, 2020. This program is funded by the CARES (Coronavirus Aid Relief and Economic Security) Act.
This program will make available grants ranging up to $25,000 to small businesses owned and operated in Olmsted County that can demonstrate financial hardship as a result of the COVID-19 outbreak, specifically a 30% decrease in net profit or greater. Grant recipients will receive up to 50% of net losses from March 1 - June 30, 2020, or $25,000, whichever is less.
A total of $4 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, as are home-based businesses.
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;
- Amounts of other CARES Act Program awards to your business (PPP, EIDL, etc.).
- IMPORTANT NOTE: All documentation MUST include company name in the name of the file, e.g. SamsBakery-ScheduleC.pdf.
To qualify, an applicant must:
- Be a private business that has a physical presence in Olmsted County, including home-based businesses.
- 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 30% 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.
- All questions require answers, unless labeled as optional.
Additional Ineligible Businesses:
- 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.
Applications for the Small Busines Relief Grant Program will be accepted until 11:59 p.m. on Sunday, August 30, 2020. Awards will be processed over the following two weeks.
Non-profits will be eligible for grants from Olmsted County through a program to be administered by the Rochester Area Foundation.