Utah COVID-19 Impacted Businesses Grant Program
Over the past six months life has been crazy. To help individuals and businesses cope, there have been multiple government programs, some well-known and others less so. One program that Utah residents and Utah businesses might not know about is the Shop In Utah grant.
This grant is provided by the Governor’s Office of Economic Development (GOED) totaling $55 million. The first round of applications began in July and awarded $31 million to local businesses, leaving $24 million available for round two. Round two opens on September 14, 2020, at 9 a.m. (MDT).
The grant is to encourage patrons to spend money with Utah businesses and to boost the local economy. Each applicant may qualify for up to $150,000 total of grant funds. This amount includes any funds awarded from the first-round of applications.
To apply you must complete an application that is submitted to the GOED. It is a two-step process. First you must set-up a username and password for the GOED’s application system. This may take up to 24-hours. The second step is to log on using your new username and password and completing the application which includes uploading supporting documentation that is listed below. If you applied for the first round, you can use the same username and password that you previously created.
Eligible businesses must:
- Offer a discount or other financial incentive with an estimated value to customers of at least 50% of the grant amount
- Example: I received $5,000 from the grant. This means I need to give discounts or other financial incentives that total $2,500 to my customers. The other $2,500 can be used as operating expenses in the business.
- Have experienced a revenue decline related to COVID-19
- Have employees physically located in Utah
- Have fewer than 250 full-time equivalent employees
- Establish that the use of funds will benefit the state economy
Businesses must submit the following:
- A completed and signed W-9
- A Profit & Loss statement for March to June 2019 if the business began operating before July 1, 2019; or a February 2020 Profit & Loss statement if the business started operations on or after July 1, 2019
- A Profit & Loss statement for March to June 2020
- This is how the State will verify that you experienced a revenue decline relating to COVID-19. The State will use the two bullet points listed above.
- A plan that includes a budget for the financial incentive offered to customers; the budget must establish how the funds will be spent before December 30, 2020
- This also includes tracking the information as these funds may be audited
The grant awarded may not exceed the business entity’s revenue decline. There are also established caps that are defined and explained below.
- For a business entity that began operating before July 1, 2019, the sum of revenue for March through June 2019 compared to the sum of revenue for March through June 2020
- For a business entity that began operating on or after July 1, 2019, the business entity’s revenue for February 2020 multiplied by four, compared to the sum of revenue from March through June 2020
- Revenue decline of 50% or more: the lesser of 75% of revenue decline or $150,000
- Example: Your revenue declined from $1,000 to $500. You now qualify for 75% of the decline in revenue. $500*75%= $375.
- Revenue decline of at least 25% and below 50%: the lesser of 50% of revenue decline or $100,000
- Example: Your revenue declined from $1,000 to $501. You now qualify for 50% of the decline in revenue. $499*50%= $249.50.
- Revenue decline under 25%: the lesser of 25% of revenue decline or $50,000
- Example: Your revenue declined from $1,000 to $751. You now qualify for 50% of the decline in revenue. $249*25%= $62.25.
Click HERE to apply. And as always, you can contact a Squire Advisor to discuss your specific situation and options.