Lunenburg CARES – Round #2 Small Business Grant Program Application Process

**Release for September 15, 2020**

LUNENBURG COUNTY CARES ABOUT LOCAL BUSINESS!

CARES ACT RELIEF FUND – SMALL BUSINESS GRANTS

Round #2

GENERAL INFO

The purpose of the Lunenburg CARES Small Business Grant Program is to provide immediate relief to small businesses (less than 50 employees) impacted by the COVID-19 pandemic. Lunenburg County hopes to help small businesses regain some of the revenue losses from the COVID-19 pandemic.  The grant will not have to be repaid, it is not a loan.

It is funded through an allocation of the Coronavirus Relief Funds provided through the federal CARES (Coronavirus Aid, Relief, and Economic Security) Act of 2020.

Grant funds for the second round will be allocated based on number of employees:

  • Employees, 1 – 10:                       $ 5,000
  • Employees, 11 – 25:                    $ 7,500
  • Employees, 26 – 49:                    $10,000

The application process will be open from September 15, 2020 through October 15, 2020.

STEP ONE:  Verify your eligibility, please see requirements below.

STEP TWO:  Fill out application online Round #2 CARES Small Business Grant Applicationand return all requested documentation by October 15, 2020 to Lunenburg County Administration at cares@lunenburgva.net.

STEP THREE:  Review of applications by staff and the Board of Supervisors CARES Act Fund Committee.

STEP FOUR:  Announcements by October 30, 2020 with fund distribution after November 1, 2020.
ELIGIBILITY

To be eligible, applicants must be established for two years and have one or more location(s) in Lunenburg County, including the principal place of business. Lunenburg County includes businesses and organizations located in the Towns of Victoria and Kenbridge. Additionally, awardees must have at least one principal employee and less than 50 total employees across all locations, in operation at least two years, and be up-to-date on all local government tax payments.

 

SMALL BUSINESS ELIGIBILITY

  • Must be in operation for at least two years and have one or more location(s), including the principal place of business, in Lunenburg County
  • Have at least one and less than 50 total employees across all locations.
  • Have no more than $1million in business income per calendar year.
  • Have all local government taxes paid in full through July 5, 2020.

SMALL BUSINESSES NOT ELIGIBLE TO APPLY:

  • Businesses that are franchises and chains must be locally-owned and operated to be eligible.
  • Independent contractors operating multilevel or network marketing businesses (such as Avon, Mary Kay, LuLaRoe, Pampered Chef, etc.) are not eligible to apply.
  • Nonprofit organizations are not eligible to apply.
  • Businesses engaged in speculation or investment in rental real estate are not eligible to apply.
  • Businesses determined to be Ineligible Businesses under SBA guidelines are not eligible to apply.

Funds are meant to reimburse businesses for the costs of business interruption caused by required closures due to COVID-19. The grant can be used for:

  • Employee compensation (including wages and benefits)
  • Equipment Inventory
  • Rent
  • Other business-critical operating expenses
  • Applicants will be required to demonstrate that they are eligible, that they were operational pre-COVID-19, and that they are suffering negative impacts from COVID-19 closures. Applicants will be asked to provide:
  • Copies of 2 years of their most recent filed tax returns
  • IRS W-9 Form
  • Financial Statement of Impact (will be emailed once application is filed online)
  • A 2020 Profit and Loss Statement (list of assets and liabilities)
  • Latest 2 years filed tax returns include:
  • Sole Proprietorship Form 1040 or 1040-SR Schedule C, Profit or Loss from business
  • Farming Form 1040 or 1040-SR Schedule F, Profit or Loss from Farming.
  • Partnership Form 1065, U.S. Return of Partnership Income (Page 1 Only).
  • Corporation Form 1120, U.S. Corporation Income Tax Return (Page 1 Only).
  • S Corporation Form 1120-S, U.S. Income Tax Return for an S Corporation (Page 1 Only).

Specific documentation may vary, depending upon business structure. The confirmation of # of employees, if more than one, documentation requirement is anticipated to include one of the following items:

  • Payroll Register
  • Form 941, quarterly reporting form
  • 1099 form (either as Sole Proprietor/Single Member LLC, or for counting # of consultants in the business)
  • tax return information (including K1 forms if an LLC, 1120S if a partnership)

INDEPENDENT CONTRACTOR/SOLE PROPRIETOR ELIGIBILITY:

  • Live in Lunenburg County and operate a business as a sole proprietor.
  • Pay self-employment tax
  • Not currently receiving unemployment benefits

If you have further questions, please call Lunenburg County Administration at 434-696-2142.

 

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