By Mary Jo Coulehan
Pagosa Springs Area Chamber of Commerce
Archuleta County was allowed an extension of the Small Business Relief Grant applicable to the food service, gyms and fitness centers, and movie theater industries. The food service category includes restaurants, food trucks, bars, distilleries and breweries.
The biggest point of clarification is that a business does not have to show a 20 percent reduction of revenue for the year 2020 compared to 2019, but a quarter. To clarify what documentation needs to occur, a business needs to show a reduction in revenue of 20 percent from 2019 income in any quarter since March 26, 2020. Many businesses had to close their doors in April and May and so can easily demonstrate a loss in revenue. If your establishment opened during this time, you do not need to show proof of quarter-to-quarter comparison.
Because it is a grant, the money extended will not need to be paid back. Businesses with total revenues under $500,000 will be eligible for $3,500, businesses between $500,000 and $1 million will be eligible to receive $5,000 and businesses with yearly revenues between $1 million and $2.5 million can be eligible for $7,000.
The form is very easy to fill out. Documentation of the loss during the quarter is required along with proper state documents such as a certificate of good standing, payment of unemployment taxes if applicable, and valid state or liquor license. Don’t miss this extended opportunity to obtain some grant funds to assist your business. Questions can be directed to Mary Helminski at 264-8308 or Mary Jo Coulehan at 264-2360.
Shuttered Venue Grant coming soon
The Small Business Administration is also preparing to issue the Shuttered Venue Grant. This grant will be open to live venue operators and promoters, live performing arts organization operators, motion picture operators and relevant museums. The one caveat of this grant is that you cannot have applied for or received a Paycheck Protection Program (PPP) loan on or after Dec. 27, 2020. This means the second round of PPP funding.
We have several organizations that fit into this theater production category and should look for activation of this grant in the very near future. The grant will equal 45 percent of 2019 gross revenues or $10 million, whichever is less for those organizations in business on Jan. 1, 2019.
If beginning operation after Jan.1, 2019, the grant will be for the average monthly gross revenue for each full month you were in operation during 2019 multiplied by six, or $10 million, whichever is less.
The first round of applicants to be considered will be those venues that had a revenue loss of 90 percent or greater between April 2020 and December 2020. The next round will be those that lost 70 percent or greater, and the third round will constitute those venues that lost 25 percent or greater.
It would be important for our entertainment producers and venues to gather up their documentation now. Determine which category you would fall into and get ready to apply when the grant opens. The use of the funds is very generous and can be applied to items such as rent, mortgage, utilities, administrative costs, licensing, state and local taxes, operating leases in effect as of Feb. 15, 2020, insurance payments, and more.
For more information on this particular grant, visit https://www.sba.gov/funding-programs/loans/coronavirus-relief-options/shuttered-venue-operators-grant.