In July, we discussed a program available to New York State business owners that met certain criteria. View that blog here. Since then, there have been a few updates to the program that are worth mentioning. As a reminder, grant awards are calculated based on a business’s 2019 annual gross receipts.
As of August 25, 2021, the gross receipts test has been increased to the amounts stated below:
- Annual gross receipts: $25,000 – $49,999.99: Award is $5,000 per business
- Annual gross receipts: $50,000 – $99,999.99: Award is $10,000 per business
- Annual gross receipts: $100,000 – $2,500,000: Award is 10% of gross receipts (maximum grant is $50,000)
The important change above is that the previous $500,000 threshold for the third bullet has been increased to $2.5 million.
Logically, following this change, some other criteria was also modified. For instance, a small business or micro business must now have 2019 or 2020 gross receipts of between $25,000 and $2.5 million.
Other changes worth mentioning include the 25% loss requirement, comparing 2020 to 2019, now includes 2020 Pandemic Unemployment Assistance and Federal Pandemic Unemployment. Also, a business is permitted to have had a Paycheck Protection Program loan of up to $250,000.
New York State, as with any program deploying funds, is particular about the document process and applying according to their instructions. For more information on qualification requirements, visit NYSmallBusinessRecovery.com. If you believe you qualify, you should reach out to your Farm Credit East tax advisor to help you work through the process.