Essex Town Planner Matt Coogan’s office this week announced availability of federally-funded grants of up to $10,000 each for local businesses disrupted by COVID-19. The grants are part of the Community Development Block Grant (CDBG) program for micro-enterprise businesses.
Funding is being utilized to address emergency needs in light of the Coronavirus pandemic, and Essex’s share of the federal fund $70,125.00 to support small community businesses. The program is being administered locally by Coogan’s office. The applications are available online at the Town of Essex website.
The application process will be open now through Sept. 25.
“Microenterprise businesses” are defined as a commercial enterprise with five or fewer employees).
There are some exclusions, by business type. These include real estate rentals/sales businesses, businesses owned by those under age 18, chain businesses, liquor stores, weapons/firearms dealers, lobbyists or cannabis-related businesses.
There are 23 participating Massachusetts communities in this funding “coalition.” Beside Essex, they include Manchester, Beverly, Burlington, Canton, Concord, Dedham, Lexington, Marlborough, Melrose, Milton, Natick, North Reading, Norwood, Randolph, Reading, Sharon, Southborough, Stoneham, Watertown, Winchester and Woburn.
Businesses applying for the grants must to produce documentation demonstrating that COVID-19 has caused a loss of income equal to or greater than requested assistance and they must be in business as of January, 2019 and have a physical establishment that serves the community that is distributing the grant. This includes some home based-businesses will be eligible, such as landscapers, contractors, artists, daycares, and consultants.
If a business was in operation but closed because of COVID, it would make sense that the business should be eligible for this funding. “Currently in operation” means that the business has not permanently closed, gone out of business, filed for bankruptcy.
Funds can be used for working capital to cover business costs, such as rent, staffing, and utilities. The purchase of equipment, fixtures, furnishings, property with CDBG funds is generally ineligible. Funding may be used for rent, mortgage assistance, utilities or payroll. Funds may also be used to purchase PPE.
Program funds may not be used for major equipment purchases, purchase of real property, construction activities, business expansion, or lobbying.
