Last week, Governor Ivey announced a $100 million small business grant program for AL small businesses known as Revive Alabama. The program will reimburse small businesses up to a combined $100 million for expenses they have incurred due to operational interruptions caused by the pandemic and related business closures. These grants are being funded with a portion of the $1.8 billion allocation from the federal government to Alabama under the CARES Act.
The requirements are listed as the following:
- A qualifying small business will be required to apply through ALDOR’s My Alabama Taxes (MAT) portal and verify on the application that it:
- Is a resident of this state with a permanent place of business located in this state. (A resident includes an individual, partnership, corporation, or other business entity. For business entities, resident means based or headquartered in Alabama.)
- Was in business and fully operational as of March 1, 2020, and continues to be operational as of the date of the application.
- Had no more than 19 full-time equivalent employees as of March 1, 2020.
- Is not a subsidiary of or owned by a business with more than 50 full-time equivalent employees, or part of a larger business enterprise with more than 50 full-time equivalent employees.
- Filed Alabama Income Tax returns for both the 2017 and 2018 tax years as of March 1, 2020. Businesses that existed during 2019 must also verify that they will timely file and pay 2019 income taxes in accordance with the due date for the return, including applicable extensions, and that gross revenues for the 2019 tax year did not exceed $5,000,000. Eligible small businesses formed on or after January 1, 2020, must verify that they will timely file and pay income tax due for the 2020 tax year.
- Was in good standing with ALDOR as of March 1, 2020.
- Has incurred eligible expenses due to the interruption of business, such as mortgage interest, rent, payroll and utilities, up to the grant amount requested.
- Has not received a federal Paycheck Protection Program (PPP) Loan, Economic Injury Disaster Loan, or Pandemic Unemployment Assistance (PUA); OR, if received or expected to be received, incurred eligible business interruption expenses up to the amount requested that were not covered with these funds.
- Had less than an average of $5,000,000 in gross revenues in each of the past two (2) tax years.
- Does not exist for the purpose of advancing partisan political activities, does not directly lobby federal or state officials, and has not employed or otherwise worked with a lobbyist as defined in Section 36-25-1, Code of Alabama 1975, at any point during 2020.
- A qualifying small business will also have to certify that the amounts distributed through this program will not be used for the following purposes:
- As reimbursement for cost or damages covered by insurance.
- For expenses that have been or will be reimbursed under any federal program, including the PPP, Economic Injury Disaster Loan Program, or PUA.
- For reimbursement to donors for donated items or services.
- For workforce bonuses other than hazard pay or overtime.
- For severance pay.
- For legal settlements.
- A qualifying small business will also have to authorize ALDOR to disclose to the Department of Finance and applicable Federal agencies the information provided in its application for CARES Act funds together with any confidential return information necessary for the administration, disbursement, and audit of the CARES Act funds. In addition, a qualifying small business will have to authorize the public disclosure of the applicant’s name and the amount of CARES Act funds received.
- For statistical reporting purposes only, applicants will be asked if their business is minority or veteran owned. Responses to these questions are optional. Neither of these factors will be considered in the award of a Revive Alabama grant.
Applicants can begin filing through MAT at NOON on July 16, 2020, through midnight July 25. Funds are first come first serve.
For those of you wondering about the PPP, EIDL and PUA language above, we believe that PPP recipients can obtain the grant as long as the PPP funds did not cover the interruption expenses that are included in the application. The following is from the FAQs on the ADOR site:
A business may still apply if it received or is expected to receive money from a federal program such as the Paycheck Protection Program (PPP), Economic Injury Disaster Loan Emergency Advance, or Pandemic Unemployment Assistance (PUA) program; however, the amount requested from Revive Alabama must be reduced by the amount received or expected to be received from such federal programs and insurance. This calculation will be made as part of the application process.