Gov. Ralph Northam announced last week that Rebuild VA, the $70 million economic recovery fund launched in August, is expanding its eligibility criteria to allow more small businesses to apply.
Businesses that received funding from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act and supply chain partners of businesses whose normal operations were impacted by the COVID-19 pandemic are now eligible to receive grants of up to $10,000.
Businesses that have received federal funds must certify that they will only use the Rebuild VA grant for recurring expenses and that the grant will not be used to cover the same expenses as the other CARES Act funds.
Rebuild VA, which is administered by the Department of Small Business and Supplier Diversity, successfully launched on Aug. 10. SBSD and its program partners, the Department of Housing and Community Development, the Virginia Tourism Corporation, and the Virginia Economic Development Partnership, made the decision to expand eligibility criteria after analysis of eligible and ineligible applications received within the first 30 days of the launch.
“When we initially launched Rebuild VA, we focused on reaching the small businesses and nonprofit organizations most in need,” Northam said. “I am deeply grateful for the work of our state agencies to swiftly adjust the parameters of this program so we can assist more Virginia businesses as they weather this health crisis and build back stronger.”
Eligible businesses and nonprofits must demonstrate that their normal operations were limited by Governor Northam’s Executive Orders 53 or 55, or that they were directly impacted by the closure of such businesses.
In March, Northam took executive action to protect the health and safety of Virginians, which included limiting operations for food and beverage, non-essential brick and mortar retail, exercise and fitness, entertainment and public amusement, personal care and personal grooming, and private campground and overnight summer camps.
Expanded business sectors now eligible to apply for Rebuild VA grants include small hotels and bed and breakfasts lodging facilities along with film companies supporting production in the Commonwealth. Businesses that provide goods or services for those identified in one or more of the eligible business categories previously mentioned are now eligible.
Businesses must also certify that they have not received grant or loan dollars from federal, state or local CARES Act funded programs, or if they have received CARES Act funding, that they will use the Rebuild VA grant only for recurring expenses. These businesses must also certify that the Rebuild VA funds will not be used to cover the same expenses as other CARES Act funds.
Rebuild VA still requires that businesses and nonprofit organizations must be in good standing, have annual gross revenues of no more than $1.5 million, and have no more than 25 employees.
Rebuild VA funding may be utilized for the following eligible expenses:
Payroll support, including paid sick, medical, or family leave, and costs related to the continuation of group health care benefits during those periods of leave;
Mortgage payments, rent and utilities;
Principal and interest payments for any business loans from national or state-chartered banking, savings and loan institutions, or credit unions, that were incurred before or during the emergency;
Eligible personal protective equipment, cleaning and disinfecting materials, or other working capital needed to address COVID-19 response.