The Connecticut Department of Economic and Community Development (CDECD) has created CT CARES Small Business Grant Program, a $50 million grant program to aid the COVID-19 recovery of small businesses in the state. Starting the week of November 9, 2020, eligible businesses and not-for-profits can apply for a one-time $5,000 grant.
The grant may be used for the purposes of payroll, rent or mortgage expenses, utilities, inventory, machinery or equipment purchases, or the associated costs of compliance with the CT Reopen Business Sector Rules. Business who received federal CARES Act, PPP or EIDL assistance are eligible, but the grant cannot be used for the same expenses incurred or expected to occur between March 1, 2020 through December 30, 2020.
Eligible businesses include for-profit of any incorporation type, home-based, sole proprietorship, and 501(c)(3), 501(c)(4), 501(c)(6), 501(c)(7), and 501(c)(19) nonprofit organizations. They must also meet the following criteria:
Excluded businesses include those more than 50% owned by an umbrella establishment with more than 500 FTEs, and those who earn the majority of their revenue through medical marijuana, alcohol and tobacco sales, gambling, gun ranges and sales, quick cash services (i.e. pawn shops and cash advance), bail bonds, collection agencies, and auction, bankruptcy, fire or similar sales.
Applicants may only receive one grant, regardless of multiple locations. The program has prioritized $25 million of the grants for businesses in the state’s 25 distressed municipalities.
All funds will be distributed to approved applicants by December 30, 2020. Contact a small business tax advisor to help you determine if your business is eligible for the CT Cares Small Business Grant Program. Additional COVID resources can be found here.