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By Aaron Hinton & Jessica Ramirez

On July 28th, Salt Lake County announced an expansion to eligibility criteria for the Small Business Impact Grants (SBIG). The SBIG program will now allow small businesses of all industries impacted by COVID-19 to apply for grants between $500 and $35,000. To be eligible, your business must have received less than $35,000 of CARES Act funding and meet all of the following criteria:

  • The primary location of your business must be in Salt Lake County,
  • You must have fewer than 100 employees on payroll (W-2 earners),
  • Your business must have been established and licensed before January 1, 2020,
  • You must be able to prove your business was impacted by COVID-19, by providing documented financial loss greater than $500 between March 16 – July 31, 2020.

Many businesses were denied a grant in Round 1 due to their industry. But notably, Round 2 eligibility now includes businesses of ALL industries. If your business was considered ineligible in Round 1, you should consider re-applying through Salt Lake County’s SBIG portal: https://slco.org/covid-19/economy/grants.

What to Expect When Applying:

Applications are reviewed on a first-come, first-served basis up until the $40 million fund is depleted. You must complete the eligibility pre-screening process before filling out the main application. The pre-screening form automatically populates when you begin your application. During the main application process, you are required to provide documentation proving lost sales and COVID-19 related expenses as well as a copy of your business’s W-9 and business license. This includes:

  • Documentation showing revenue during the same period (March 16-July 31) in 2019; documentation showing expected sales that were canceled between March 16 and July 31, 2020; or documentation showing average sales for 10 weeks from January 1 – March 15, 2020
  • Documentation of actual sales between March 16 and July 31, 2020
  • Documentation or receipts for expenses directly related to COVID-19 incurred between March 16 and July 31, 2020

What to Do If Approved for A Small Business Impact Grant:

If your business is approved for a grant, you will receive the one-time payment in 10-14 days of the approval date. Businesses then have until November 30, 2020 to spend the grant money, or the remaining balance must be returned. Grant money is only eligible for use for the following business expenses, and receipts/documentation must be kept for all SBIG expenditures.

  • Payroll
  • Rent or mortgage
  • Utilities
  • Insurance
  • Inventory
  • COVID-related expenses

If grant money is used for expenses outside of those described above, your business will be required to repay that portion of the grant.

RQN Resources

Ray Quinney & Nebeker has formed a COVID response team that can help with legal matters pertaining to the pandemic. If you have questions regarding Small Business Impact Grants, the application process, necessary documentation or qualified COVID expenses, contact our team to discuss your legal situation. For more information on the Salt Lake County SBIG program, visit their website at: https://slco.org/covid-19/economy/grants

aaron c. hinton

Aaron Hinton practices in the Firm’s Litigation and Employment Sections and is monitoring related legal updates for the COVID-19 pandemic. His practice involves a broad range of commercial litigation, including contract disputes, business torts, and intellectual property matters. He also assists employers with all aspects of employment litigation and compliance with state and federal employment laws.

Jessica Ramirez graduated from the S.J. Quinney College of Law at the University of Utah. She was Executive Articles Editor of the Utah Law Review and a William H. Leary Scholar. She was also the recipient of the Outstanding Achievement Award for Civil Procedure and the CALI Award in Arbitration. Prior to law school, Jessica received a Bachelor’s Degree in Finance from the University of Utah, David Eccles School of Business. Ms. Ramirez will be sworn in as a member of the Utah Bar in October, 2020.