Delaware Relief Grants are designed to give Delaware small businesses and nonprofits access to funds to help cover expenses and provide relief related to COVID-19. The program, which will have at least $100 million in funds available, is a joint initiative from the State of Delaware and New Castle County. The grant application will be live in early September. To apply, visit https://business.delaware.gov/relief/
Your business may qualify if it meets the U.S. Small Business Administration’s definition of a small business for your industry. Nonprofits must be registered as a 501(c)(3) or 501(c)(6) organization. At least 51 percent of a qualifying business must be physically located in Delaware.
The following industries are designated as disproportionately impacted and will receive priority funding (must match first two or four digits of 2019 tax return NAICS code):
- 44 (Retail Trade)
- 45 (Retail Trade)
- 6116 (Private Instruction)
- 6244 (Child Care Services)
- 71 (Arts, Entertainment, & Recreation)
- 72 (Food Services & Drinking Places)
- 8121 (Personal Care Services)
- 8129 (Other Personal Services)
Disproportionately impacted industries qualify for the following: If your business started in 2019, meaning you cannot show a full year of revenue history, it is still eligible for a grant. Any fixed cost incurred or planned to occur from April 1, 2020 to December 31, 2020 is an eligible expense for the grant.
Two broad categories of businesses/nonprofits are not eligible for DE Relief Grants: 501(c)3 organizations that are not in a disproportionately impacted industry and businesses or nonprofits that received $1 million or more from the federal Paycheck Protection Program.
The amount a business or nonprofit can receive is based upon 2019 revenue and could be up to $100,000:
- $0-$500,000 in revenue: Up to $30,000 (6 percent of 2019 revenue)
- $500,000-$1 million: Up to $50,000 ($30,000 + 4 percent of 2019 revenue in excess of $500,000)
- $1 million-$2.5 million: Up to $72,500 ($50,000 + 1.5% of 2019 revenue in excess of $1 million)
- $2.5+ million: Up to $100,000 ($72,500 plus 1 percent of 2019 revenue in excess of $2.5 million)
The grant can be used for the following:
- Equipment purchased to make business suitable for COVID-19 safety (PPE, plexiglass, etc).
- Refinancing of debt incurred due to COVID-19 (including state of Delaware HELP loans).
- Technological enhancements undertaken in order to adapt business model for COVID-19
- Advertising efforts undertaken as a result of COVID-19.
- Fixed expenses the applicant accrued during COVID-19.
The Delaware Relief Grant application will be live in September. As of the date of this post you may not apply for a grant yet, but you will be able to apply when the application goes live at https://business.delaware.gov/relief/
As always, if you have any questions or concerns please feel free to contact us directly and we’d be happy to assist with more information relevant to your specific circumstances.