Question: I’ve heard about Ohio’s new grant program but am not sure if I am eligible. What are these new grants, and should I apply for one?
A: Ohio Governor Mike DeWine and Lieutenant Governor Jon Husted recently announced four new grant programs to help small and medium sized businesses recover from the pandemic. Altogether, the grant programs are planned to provide $155 million to businesses in the food and beverage industry, entertainment and lodging venues, and new businesses that opened in 2020.
The available grants include the Food and Beverage Establishment Grant, the Entertainment Venue Grant, the Lodging Grant, and the New Small Business Grant. Below, we will break down the details of these grant opportunities.
- Food and Beverage Establishment Grant: Grants available up to $30,000 for restaurants, bars, coffee shops, and other food and drinking businesses affected by the COVID-19 pandemic.
- Entertainment Venue Grant: Grants available up to $30,000 for theaters, music venues, spectator sports venues, museums, and other entertainment establishments affected by the COVID-19 pandemic.
- Lodging Grant: Grants available up to $30,000 for hotels, motels, and bed and breakfast operations affected by the COVID-19 pandemic.
- New Small Business Grant: Grants available up to $10,000 for small businesses that were established between Jan. 1, 2020, and Dec. 31, 2020.
Determining Eligibility. The Food and Beverage, Entertainment Venue, and Lodging Grants are very similar. To be eligible for one of these grants, a business must have experienced at least a 10% reduction in sales/revenue in 2020 at one or more Ohio locations due to COVID-19. The grants will be provided as either $10,000, $20,000, or $30,000 amounts based on the business’ loss of revenue in 2020.
The New Small Business Grant is set up a bit differently. To be eligible for this grant, a business must have been established in 2020, operate as a for-profit entity with at least two and no more than 25 Ohio employees, and have experienced revenue loss or incurred unplanned costs substantially caused by the COVID-19 pandemic. Approved grants in this category will be for $10,000.
If you think you may be eligible for one of these grant programs, visit businesshelp.ohio.gov for more information on eligibility requirements. It is important to note that these grants will be awarded on a first come, first-serve basis, and eligible businesses can only apply for one of the four newly available grant opportunities.
Use of Grant Funds. Funds provided by any of these four grant programs can be used to reimburse eligible businesses for the following (current or previously incurred) expenses:
- Personal protective equipment to protect employees, customers, or clients from COVID-19.
- Measures taken to protect employees, customers, or clients from COVID-19.
- Mortgage or rent payments for business premises (personal residences explicitly excluded).
- Utility payments (excludes utilities for personal residences and cellular phones not used primarily for business purposes).
- Salaries, wages, or compensation paid to contractors or employees, including an employer’s share of health insurance costs.
- Business supplies or equipment.
Prepare for Future Audits. Businesses who receive grant funding should keep a record of all specific expenses for which the funds are used for five years from the final expenditure of received funds. The State of Ohio may request confirmation for how grants were used. Keeping detailed records now will save you from future headaches.
If your business suffered because of the COVID-19 pandemic, and if you are eligible for one of these new Ohio grant programs, you should consider applying. Our local businesses must be stable and have the opportunity to survive after a debilitating season. Visit businesshelp.ohio.gov for more information on these grant programs. Consider reaching out to a trusted business or financial advisor to discuss if one of the new grants is right for you.
Crystal Faulkner is a Cincinnati market leader with MCM CPAs & Advisors, a CPA and advisory firm offering expert guidance and beyond the bottom line thinking for today’s public and private businesses large and small, not-for-profits, governmental entities and individuals. Tom Cooney is with Wealth Dimensions, an investment advisory firm. For additional information, call 513-768-6796 or visit online at mcmcpa.com. You can listen to Tom and Crystal daily on WMKV and WLHS on “BusinessWise,” a morning and afternoon radio show that profiles highly successful people, companies, organizations and issues throughout our region.
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