July 27, 2021

Tax Talks

New York State Provides COVID-19 Relief to Small Businesses

By: Dario Arezzo


While much of the federal assistance has tapered, many states have begun looking at ways to provide relief to small businesses hit hard by the COVID-19 pandemic. This month, we’ll focus on New York State’s COVID-19 Pandemic Small Business Recovery Grant Program.

The grant awards in this program can range from $5,000 to $50,000, depending on the gross receipts of the business. Similar to the Paycheck Protection Program (PPP), businesses that qualify can use the funds for expenses incurred between March 1, 2020 and April 1, 2021 for items such as payroll, rent, mortgage payments, property taxes, insurance, machinery, equipment and others.

In order to qualify, businesses must meet the following criteria:

  1. Have 2019 or 2020 gross receipts between $25,000 and $500,000 per year. For farmers, the instructions look to line 1a and line 2 of Schedule F only.
  2. Demonstrate positive net profit on 2019 Business Return ($1 or greater).
  3. Demonstrate at least 25% loss in Annual Gross Receipts in a year-to-year gross receipt comparison as of December 31, 2020 to the same period in 2019.
  4. Demonstrate that the total business expenses on the 2020 business income return are greater than the grant amounts.
  5. Have not qualified for business grant assistance programs under the federal American Rescue Plan Act of 2021 or any other available federal COVID-19 economic recovery or business assistance grant programs, including loans forgiven under the federal Paycheck Protection Program, or are unable to obtain sufficient business assistance from such federal programs. Eligible applicants may have received or been awarded the following federal assistance:
  • Paycheck Protection Program loans totaling $100,000 or less
  • COVID-19 EIDL Advance Grant of $10,000 or less
  • COVID-19 EIDL Supplemental Targeted Advance Grant of $5,000 or less
  • Small Business Administration Shuttered Venue Operator Grant

As you can see, the application process involves a fair amount of calculations and documentation that should be reviewed with your advisors prior to applying.

Tags: grants, taxes, tax planning

Meet the Authors

Connect with and discover our Today’s Harvest blog authors and their broad range of financial and northeast agricultural expertise.