SB 1009

SMALL BUSINESS RECOVERY GRANT FUND This bill creates a fund within the state treasury to be known as the small business recovery grant fund, to be administered by the department of economic and community development and to consist of f un ds appropriated by the general assembly and g ifts, grants, and other donations received by the department for the fund. Moneys in the fund must be used to assist eligible small businesses with eligible costs incurred in responding to, or recovering from, extenuating circumstances. Eligible costs means costs incurred by an eligible small business that are attributable to extenuating circumstances, including payroll costs, costs of commercial rent or mortgage, insurance costs, utility costs, and costs to re pair or replace landscaping, parking spaces, or other real property or improvements to real property owned by the eligible small business . However, extenuating circumstances d o not include an event for which the president or the governor declares a state of emergency or disaster declaration pursuant to federal or state law, or the COVID-19 pandemic. Grants made from the fund must cover eligible costs incurred during any one period of three consecutive months but no more than six consecutive months. GRANT S This bill requires g rants to assist eligible businesses to be made only to nonprofit organizations, local governments or to their economic development organizations, or other political subdivisions of the state. An " e ligible small business"" means an i ndependent, for-profit entity that ( i ) e ngages in business with the public; ( ii ) i s primarily owned and operated by two or more natural persons; ( iii ) m aintains a single physical business location in this state; ( iv ) i s not owned as a corporation or sole p roprietorship or by an independent contractor; ( v ) d emonstrates, as determined by the department, that it has sustained a substantial decline in gross revenue, substantial business modifications, or a substantial disruption to its operations due to extenua ting circumstances; ( vi ) h as total gross receipts of not more than $1 million averaged over a three-year period; and ( vii ) e mploys no more than 15 persons on a full-time basis . This bill authorizes g rants from the fund to be made in all counties where the commissioner of economic and community development determines that the grants will have a direct impact on assisting eligible small businesses that operate as independent arts or cultural organizations or in the hospital i ty industry. APPLICATION PROCEDURE This bill requires an eligible small business to submit a complete application in a form and manner prescribed by the department. The department must establish the procedures and time period for eligible small busines ses to submit applications to the program. REPORT O n or before January 1 of each year, this bill requires the department to submit to the chair of the finance, ways and means committee of the senate and the chair of the committee in the house of represe ntatives having jurisdiction over matters related to public funds a report stating the amount expended from the fund in the past year, the purposes for which the money was expended, and the amount remaining in the fund. RULEMAKING This bill authorizes t he commissioner of economic and community development to promulgate rules to implement this bill."