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uh good morning to those of you logging in now we're just gonna give folks a few minutes to get in from the waiting room so we'll get started in just a minute for those of you who didn't hear my announcement before we'll get started in just a minute once we get everyone let everyone get logged in all right everybody um good morning happy tuesday uh thank you for joining us today for another uh informational webinar about the maine economic recovery grant program just a few housekeeping items while people are getting logged in still we will be doing a presentation and then there will be an opportunity to ask questions so if you do have a question please type them into the question and answer box we'll get to as many questions as we can last webinar we have 350 questions um and we of course will send out any follow-up information so i am going to get started we still have a few people logging in but for those of you who didn't hear we'll do a q a at the end so please put your questions in the question answer feature of the webinar with that i'm going to kick it over to commissioner heather johnson great thank you kate and good morning everyone thank you very much for joining us we appreciate it um we're excited to spend some time this morning talking about the main economic recovery grant program the funding for the maine economic recovery grant program comes from the corona virus relief fund many many people refer to it as crf um and awards will be in the form of grants to directly alleviate disruption of operations uh suffered by name small businesses and non-profits as a result of kova 19. we recognize that the funding for these grants won't replace or repair the damage the economic damage of the pandemic but certainly this program is intended to try to help create a path forward for small businesses and for non-profits we've intentionally designed the economic recovery grant program to be equitable um we've ensured that there was kind of outreach as part of our approach this session is one of the pieces of that outreach there's a lot more you'll see a lot more happening as we go forward and we believe um that there is a lot of good technical assistance being done in local communities as well so we continue to encourage and support that activity the eligibility criteria is as broad as possible while still maintaining good fiscal stewardship and our goal goal is to provide grants to as many applications that are eligible to ensure the funding allocated this program will have as wide effect as possible so today is really about having a discussion on the details of the program eligibility criteria the steps to apply and to try to answer as many questions as we can get to so with that i am going to turn it over to jonathan poole part of the office of business development here at decd jonathan hi thank you commissioner uh welcome everybody to this introduction to the maine economic recovery grant program i want to start off first i'm going to share the department of economic and community development web page and show you how to get to the grant program website so this is the decd website the homepage and if you scroll down about a third of the way down here's the box for the main economic recovery grant program when you click learn more you're going to be brought to a sub page that's maine's path to recovery is a brief description and here is the information for the webinar where you already registered and it will be recorded and posted so you can re-watch or share with with any friends or colleagues that they may also want to watch on the right hand side of the screen we have the program description here which goes into a detail of the eligibility criteria what is required to apply and the distribution formula and the an example of one business uh of how their grant program may play out for them we have frequently asked questions and then here is the link to the online application and we also have some contact information here a phone number and an email where you can ask questions in addition to reaching out to your local economic development agencies or non-profit assistance organizations to help you make your way through the application which again we've we've designed to be relatively straightforward and simple and we hope that it's clear as you make your way through the next item i'm going to share is a brief presentation that'll walk through some of the specifics of the program so the first is the eligibility criteria to qualify for a main economic recovery grant your business organization must demonstrate a need for financial relief based on loss revenue minus expenses incurred since march 1st 2020 due to covet 19 impacts or related public health response and that's that's language that we derive from from the federal criteria of the cares act uh to be eligible is this demonstrated financial need based off of losses from coven 19 impacts for the public health response since march 1st we ask that you're a for-profit business or non-profit organization except professional services and we've received a lot of questions about professional services um so the definition of a professional service is any organization with an naic code starting with 5'4 within the the 5'4 sub will allow applications from five four one four five four one eight and five four one nine we ask 501 c 4s and 501 c sixes not apply they are not eligible due to their ability and definition of organization organizations who lobby or have the potential to lobby k-12 schools including charter public and private are ineligible municipalities municipal subdivisions and other government agencies assisted living in retirement communities nursing facilities foundations and charitable trusts trade associations credit unions insurance trusts scholarship funds and programs gambling adult entertainment country clubs golf clubs and other private clubs cemetery trusts and associations fraternal orders hospitals nursing facilities institutions of higher education and child care organizations we ask that all businesses have significant operations in maine and that's defined as uh your business or organization is headquartered in maine or has a minimum of 50 percent of your employees or contract employees are based out of maine we ask that you're current and in good standing with all main state payroll taxes sales taxes and income taxes as applicable through july 31st 2020. we ask that you've been in operation for at least one year before august 1st 2020 and the reason for this is since this is federal money and we're trying to be good stewards of taxpayer money we want to to base your your loss your need this year off of previous years tax filings and so having the the requisite information provided from previous years is important to ensure that that we are thorough and accurate in our disbursement of these grants we ask that you be in good standing with the maine department of labor we ask that you not be in bankruptcy not have permanently c-stall operations and with these questions so you'll see these questions as yes or no questions in the application and the wording may be tricky we we drove we intend the wording or the answers to the questions to be yes so if you answer yes it means that you are in good standing with the maine department of labor and maine revenue service that if you answer yes the question is phrase that the correct answer is yes to mean that you are not in bankruptcy yes means that you have not permanently see style operations and you'll see that once you get to the application we ask that you be in consistent compliance and not under any current or past enforcement action with coven 19 prevention checklist and we ask that you employ a combined total of 50 or fewer employees or contract employees and that should be measured from january 1st to june 30th 2020 if at any point your fte equivalent exceeded 50 employees you would be ineligible to apply um and we calculate fte as count one for employees working on average more than 30 hours a week and count .5 for employees working on average less than less than 30 hours a week we ask that a group of affiliated entities should only submit one application please coordinate with your other affiliated entities prior to submitting an application for the purpose of the main economic recovery grant your business organization is considered affiliated if you have the same federal taxpayer identification number including social security number has the same corporate parent or grandparent is majority owned more than 50 percent by the same owner or group of owners and for non-profits as a subsidiary of a parent organization getting into what you will need to complete your application you will need the following information about your business and organization before you begin your main economic recovery grant application you're going to need your federal employer identification number or social security number you're going to need your type of business organize or organization this is that naic code that we talked about earlier when defining professional services you're going to need a data universal number system to set up or verify don's number you can follow this link that is available in the program description the application or the frequently asked questions it is important to note here that you select the reason you are applying is because you are your us government contractor or grantee you should receive your duns number back in 24 to 48 hours we ask that you get uh started on this process before you start your application to ensure you have enough time to complete the application we ask for your principal office address your doing business as name applicant address and other contact information for businesses we ask the ownership percentage of each individual owner with greater than or equal to 25 equity for sole proprietors we ask for the total amount of unemployment compensation benefits received since march 1st through june 30th 2020. and we ask of documentation of any other monies awarded through federal grants or loans by the cares act and i want to pause here for a moment to address the paycheck protection program and idle loans that many businesses received receiving those loans or for given loans does not preclude you from being eligible for the main economic recovery grant however we ask that you account for that money in in your normal way as as income and expenses as you pay for uh as you pay payroll and other um expenditures the only number that will play against you in any grant um award process is the unexpensed amount that that is remaining as of june 30th so if you um still have still had paycheck protection program or idle funds um available that that will discount or be held against your loss as as available income to cover losses 2017 2018-2019 federal income tax returns 2017 2018 and 2019 revenue expenses and depreciation as applicable and we say as applicable because your business obviously doesn't need to be didn't have to be open in 2017 just the the years that you were open and have available your 2020 anticipated revenue and expenses taking into account the impact of covid on revenue and expenses an estimate and justification of the percent of 2020 loss and income directly connected to a disruption in operations due to the coven 19 pandemic or related public health response and this is this is the owner or proprietor's best estimate um of how much of your loss as a percent is directly connected to cova 19 or related public health response and we also ask that you prepare an electronic w9 and upload it at the end of the application in the event that your business or organization is selected for a grant and is this is to ease and assist or streamline the disbursement process on the back end these are the tax line items for gross receipts and revenue and expenses that we will be asking on the application for you to provide and i'll pause here for a second before moving on this is the depreciation field that we'll ask for at this moment i want to go back to our the main economic recovery grant webpage and i want to pull up the program description because i briefly want to highlight the disbursement criteria and talk about the disbursement criteria as we designed the program we went through multiple different disbursement scenarios and we decided to go with a scenario and equation that would remove all subjectivity from the equation so we want this to be purely data driven and based off of the losses and the other and the losses of the community as a whole so the main economic recovery grants will be distributed based on a businesses organizations demonstrated january through june 2020 losses due to code as a prorated percentage of the total losses due to covet 19 reported by all qualified applicants for the same period and so this is the equation it's complicated but i just want to highlight here that you will not be required to do this no applicants will be required to do this we've received some questions from applicants who say i'm on step five i can't figure out how to get to step six um and i it's just important to note that you don't have to do this this will be done on the back end with the data you provided and this is where i want to highlight down here so um qualified loss so we're going to calculate your qualified loss as an anticipated gross loss less any unaccounted for paycheck protection program or all other federal funds received and for sole proprietors any um unemployment that may be received and unaccounted for in your in your previous accounting when we go back i just want to highlight the frequently asked questions as a great resource to use try to be as clear as possible and we are continuously updating this and i see now that we need to update it again today and we will um as we get more questions in we'll ensure that this is updated and it has contact information down here for who to contact within decd who to contact at the main revenue service if you have specific questions connected to the main revenue service portion and then questions if you for the internal revenue service if you have questions about your federal taxes at this moment i'm going to stop here and and pass back to kate uh for the next step thanks jonathan um so we're going to um we've got quite a few questions to get to today um so i'm going to go ahead and get started with that first question i have is what should we do if we have two companies that have mutual owners do we combine their incomes etc if if the companies are affiliated as defined by uh in the frequently asked questions or in the program description then we ask that you just submit one application and that the um incomes and everything be combined okay great thank you um and there's a question about whether we can people can get a copy of these slides um so maybe um we'll get those sent out today when we do the follow-up email we'll include the slides this webinar is also being recorded so will be posted on the website so people can review but we can get these slides emailed out to folks as well can you elaborate more on the percentage of covid loss and what may be an acceptable way and justifying the amount yeah so we actually i'll i'll take that one jonathan okay and you can jump in if you if there's something to add you know what we're doing is asking businesses and non-profits to to make their estimate um there are certainly some logical pieces there you have business trends um i saw one of the questions somebody said their business has been down for the last three years so i think you would take that logical trend that that you've been seeing and then look at the additional loss and try to determine what of that is covariated um so we ask you to make that determination wondering about nonprofits who have filed an extension for 2019 tax filing so we do not have our 2019 990 available at this time how would we apply there's an option um as long as you have an extension and you're still in considered in good standing and not delinquent there's an option to to type n a for 2019 as lo so long as you provide 2017 and 2018. now if you uh if 2019 is your first tax year and you have not yet filed your 2019 return then we have nothing to compare your perfo mance this year to um so by by fault of of kind of process of elimination you'd most likely not receive any any grant because uh we just have nothing to compare your pr this performance to last year okay uh we have no employees we are a totally volunteer run nonprofit do we still qualify for the grant program yes so long as uh you meet the other eligibility criteria there's and you're based out of maine so in that case if you're based out of maine in the application it's going to ask you for what percentage of your employees are based out of maine simply put a hundred percent um so as to to not um cross a red line there okay thank you jonathan there are some standards around tax filings in 90s do you want to touch on that a little bit as well yeah due to uh the reporting requirements we asked that that your nonprofit organization have filed 990 or 990 ez previously and this is this is to ensure that um that we have that data to call back on i know that there are smaller nonprofits that file a postcard um and we know it's difficult to have excluded them but due to the inability to compare financial data from this year to previous years we had to exclude those those small non-profits from from applying uh are the pp loan ppp loan related expenses through june 30th or as of the application date the uh ppp loans i would be through june 30th because it'd be what was accounted for in your expenses and and revenue lines as previously so uh we're trying to keep it in the period of january 1st to june 30th for for 2020. okay great um we are a non-profit does all income count i ask in that we have received an endowment does growth of that count and and do restricted donations count we are in the early stages of a capital campaign we provide those specific lines off of your form 990 or 990 easy to call from so if they would play into those lines then then yes they would count in your financials okay um can you just go over the application dates when the portal opened and how long it's open for just for review one more time just so people are aware of when they can apply yeah so the portal is currently open it opened last friday and it will stay open until midnight september 9th this is not a first come first serve program and that was an intentional decision to make sure that all businesses and non-profits had time to prepare their documents and submit the information in a in kind of in one time what we saw with with some of the first come first serve um programs is is accuracy and and we wanted to make sure that all businesses had the opportunity to get their materials together um are there adjustments that need to be made for a seasonal business no adjustments are necessary for a seasonal business so for previous years we're we're taking an average a six month average of your previous year performance so taking a whole year and dividing by two for 2020 we ask you to report your uh january through june 30th financials and it'll play out in the equation uh to ensure that your loss is reflected and and the prorated percentage is awarded to seasonal businesses as other businesses great um i got an email question i know this was uh one that came up quite a bit in the last webinar around um full-time and full-time equivalent employees so um can you just go go into that a little bit about what counts and how that works and how at any point during the year how that's all factored in of course sorry i'm pulling up i'm going to share my screen again so in the bottom of the of page 4 of the program description it says employ a combined total of 50 or fewer contract employees our employees and contract employees throughout 2020 and it says if at any given time within 2020 your business organization exceeded 50 employees and contract employees then you are not eligible count one employee or contract employee if they're employed on average at least 30 hours of service per week or 130 hours of service per month or count 0.5 for each part-time employee who is employed on average less than this great um if combining company incomes do we need to send financials taxes revenue losses etc for both companies we're not asking for you to upload or share the financial documents we ask that in the affiliated business section if you are affiliated that you report all the affiliated businesses and then when you get to the financial section of reporting it would be a combination um and so we'll note that that you are an affiliated business and that your financials are a combination okay i have a couple agriculture questions some that have come in through the chat and some emailed um the first ones are farms organized as an llc eligible yes farms that are organized as an llc would be eligible assuming they meet the other eligibility criteria around number of employees etc uh a question about um from the agriculture industry as well is who will be reviewing the information and will they have familiarity with agricultural businesses and areas that may be unique to this particular sector or industry so there are a number of people from the department of agriculture conservation and forestry that are part of this working team um but i will say this program was established very clearly to not have subjective metrics right there are this is all a very data-driven process so that we take the subjectivity out of it within so that we have this intentional look at um just very fact-based decisions so people from um acf will be and and are involved in the working team um but the numbers will will lead the decisions okay great um and lastly if the pandemic caused a significant loss of income and the market and a market drop reduced cash flow and led to late penalty or accrued interest could the interest and or penalty amount be included in expenses for january to june 2020 calculations i'm not sure what penalty we're talking about if it's a sales tax penalty um it looks like an interest or a late payment penalty due to um an inability to pay a loan um because of reduced cash flow significant loss of income so i'm assuming you know for sort of a large capital loan it could be you know we'll defer to that business and their accountants right the the application has very specific line items to pull from your tax filings um where to get that information from um and for 2020 well you wouldn't have your tax filings done they would they would come from the same data set that that would will prompt those for for the 2020 tax filings as well so we'll defer to we'll defer to local accountants for that um but certainly interest is uh you know interest on capital debts would be would be ineligible and i'd like to share my screen just for a moment um if i may the uh our department of administrative financial services highlighted that there are restrictions on what this money can be used for um examples of unallowed allowable expenses are depreciation expenses entertainment lobbying goods and services for personal use fines penalties damages and other settlements so that's that's what the grant money cannot be used for to help clarify [Music] that question okay i have another email in question um can you um cover a retail situation where revenue is selling where you get revenue and selling products so you have expenses payroll and the cost of stock to support the sales i assume sales tax is ignored some of these stock costs haven't been paid for yet still in accounts payable how would that work again uh considering um how you would normally account for these financials in your end of your tax returns we ask you to kind of do a status check at june 30th 2020 and do the same same accounting um again i am not a professional accountant so i would defer you to seek professional cpa help if you need it great so i think it makes sense if people have some real specific situations around accounting that they reach out to whoever typically does that kind of work for them if they need to in in reference to some of these real specific examples yeah yes okay great um if an organization receives federal funds for projects unrelated to covid19 would that federal funding need to be subtracted from the proposal if if the federal funds are are not directly connected to covet 19 or the related public health response we don't ask that you report it in the section of federal covered response monies but we ask that that you account for it in your normal lines of accounting as revenue and or expenses if that makes sense okay um back to some nonprofit questions uh here's one about half of our income is donations and grants if the um do the loss of those donations and grants qualify as lost income for a non-profit yes if you've lost lost grants lost donations lost other sources of revenue it should be reflected in the the line we chose uh that the main revenue service helped choose uh for the application to ensure that um if it'll show a decrease in revenue and if your expenses remain the same or increased you you would show that loss okay great this is a um i think this is a great question and something i know i would want to know but what if a mistake is inadvertently made on our application can it be rectified or are we automatically disqualified that is a great question and something that that we've seen we have over 350 applications so far um and we've seen a few i'm not going to say a lot of people who've made um errors or if they simply email the biz awards at the biz let me confirm the email address before i give you the wrong one biz awards that's b i z a w a r s dot d-e-c-d at maine.gov and just notify us of the mistake but we ask that you submit a new application because we are unable to go into the system and make corrections so we ask you submit a new application only your most recent application will be submitted and we're also doing quality assurance spot checks as the applications are coming in to try and catch potential mistakes uh we're not saying that we're gonna catch everything but we may notify you you may get an email that there's a potential mistake but there's no guarantee okay um so nursing home um nursing homes and hospitals are not eligible what about 501c3s that provide waiver services at home it's like maybe i think it's asking about home health care services yeah there are a number of 501c3 services that would be eligible still in the healthcare field okay great um and so i have a question about um the application one is there an ability to save the application once it started and is there an ability to see all of the questions before we get started they get started in the on the application i'll take this one um there in the portal there is no way for you to to save we ask that once you start in the portal you can go through as as many times as you want and as long as you don't hit submit but it's not going to save your information so if it's your final run to submit we ask you do it in one one sitting um i've run through a few times um slowly and it takes i would say 30 30 minutes um to 30 to 45 minutes to go through diligently to make sure you answer all the questions correctly and correct me if i believe we can we can share a pdf version of the application as well to ensure that you can see all the questions before going into the portal i would add though jonathan if i could that we can't accept pdf submission so you can't you know add information into the pdf or handwrite it out and send it in all of the submissions have to go in via the portal um if you could just jonathan touch again one more time there's quite a few questions about um professional services um just one more time about what those are um and where we can find that information if people can i'm on mute uh that's the quote of 2020 i'm on mute um so professional services are defined uh as your naic code starts with the numbers five 5-4 and the ones we're allowing from the 5-4 sub-category are the follow-on professional services that start 5-4-1-4 5-4-1-8 and 5-4-1-9 if your naic code does not start with with five four uh then you would not be defined as a professional service okay um question i think this may come up a few times i just got emailed in um is there taking into consideration the use of the ppp funds um for businesses that were not allowed to open until july so some of those funds maybe couldn't have been used because their business wasn't a sector that was able to be open so those would be unexpected ppp funds and they would just show up in that line item um any expended ppp funds would show up on your expense line okay and does that put someone i guess the question is is it will put them at a disadvantage for for grant funding you know ppp was a great program and any funding people got from that we want to encourage um fully and we certainly also recognize that there's no one program in this mode right now that is enough to really support businesses that's why we haven't made anyone ineligible if they received other funding um we are trying to account for it so that we recognize the impact the financial impact it would have had the positive financial impact it would have had um so yes it will be it is a part of the equation um but it is it would not make someone ineligible okay uh what happens if we are behind in our quarterly taxes so if if you have a payment plan with main revenue service and you're aligned to that revenue plan then you are you are eligible and in good standing if you are behind in your payment plan then at this point you would be nodding and standing although i would say that's certainly potentially something we can we can we and mrs could work collectively on okay um question we have cut back drastically on planned expenses anticipated staff going full time this summer have remained part time which has been difficult for the organization can expenses be forward looking in making those positions full-time now um they can't um one of the challenges we have is our ability to audit this program and to make sure that we are fiscally responsible with the funds that we have and so it needs to all of the numbers are are is information that um that is auditable by main revenue service or most of the information is audible by main revenue service and so um there was a lot of concern about having people project out either revenue or expenses given given um the accuracy ability to be accurate on some of that right now okay i'm getting a lot of questions about how people can print the screen so they can share this information with others in the firm um or in their organization or outside their organization we'll be sending out an email at the end of this with the powerpoint and all those sheets so you'll be able to share it widely that way a question about what is considered a disruption of operations is it a revenue loss or something more sure and this is actually one of the the questions we answer in our frequently asked questions so i'm going to pull this up a business interruption is qualified as reduced sales or suspended operations increased costs related to coven 19 prevention measures or disrupted supply network leading to shortage or critical inventory of or materials is main travel and tourism recreation business considered an eligible business for this grant again we didn't we intentionally didn't select sectors um the eligibility criteria would be determined on um number of employees those types of pieces so the eligibility criteria is available and published um so certainly yes main tours and businesses are in general are absolutely eligible to the to the extent that they meet the the other eligibility criteria okay um question around i've gotten quite a few questions around the definition of affiliates um is there guidance as to which company should file as primary and also just to confirm we just did the tax return for the affiliate companies to submit for the group with greater than 50 percent common ownership i think there's just there's quite a few questions around what what the definition of affiliate is and and how to navigate that process certainly um so going back to to the slides here and this is in in multiple spots including on the application and the program description um the definition uh that we are using of affiliated business and um applying these four criteria if your businesses match t is then so if you have the same federal taxpayer identification number has the same corporate grandparent parent or grandparent organization is majority owned more than 50 percent by the same owner or group of owners um the reason the situation we're trying to avoid is that um multiple businesses applying for for funding um all going to the same group of owners um and so uh we ask that if there's file if there's one federal taxpayer identification number clearly that's that's the business you apply under um and or the same corporate parent or grandparent that's that's the business you apply for um so hopefully that that clears up a little okay um can you um let's see how are single owner llc's looked at on the application single owner llc's are looked at as the same as as all other businesses this is again we remove subjective criteria from this um it's based off of your performance and losses so the structure of your business does not play into your potential to to receive a grant so so long as you report their your financials and are demonstrating a loss you'll receive some pro-rated percentage of that loss back if you are meet all other eligibility criteria um jonathan i have a few questions around the duns number um someone had a question about um that they applied for one but was we're told it would be um potentially a month before they got their duns number um and other questions around how do i proceed with the grant application if i don't have the documents required for a duns number i have a state of maine resale certificate from mrs which identifies my business and physical location of business for tax purposes is that sufficient yes and the duns number is run through a completely separate organization so again if you are one of the businesses that did reach out to the organization that that provides duns numbers and you received a message that it would be 30 days please go back to the dun and brad street and say that that this is for a government contractor grant and they they can expedite it into a separate file and that should be the 24 to 48 hour turnaround so it's really important that it's identified as this is for a government grant and not just for normal business purposes um and i believe that the proof of documentation is is relatively non-invasive and minimal so you should i think that documentation you explained uh should meet their criteria okay so they should still go on and get is there um an explanation of how to get a duns number somewhere for people who aren't familiar with that and don't have one yes so if you click the link that's available in the program description or in the application um or in the slides that we're going to send out it'll have a step-by-step guide on from that link it'll tell you how to apply for for a duns number there okay i just i had a question someone was looking for some clarification again i know this the pp won't ppp loans and idle loans um make it feel a little confusing but they just wanted to clarify um said did jonathan say if we received ppp funds that we are ineligible for this grant or only if we still have unused funds through the program uh you are still eligible given that you meet all the other eligibility criteria it does not make you ineligible um even if you have unexpensed amounts your unexpensed amounts unexpended amounts as of june 30th 2020 will be subtracted against your loss so you uh your loss will be your qualified loss will be less if you have received paycheck protection or idle if that makes sense because we're trying to through the equation somewhat level the playing field to ensure that that we get to address businesses and organizations that have not yet received any federal funding okay i've got a question i think that could impact others so um our business changed our address this year on july 1st if i use my new address i'm worried that we won't match up with the state system is there a way to check that should they use their old address um so you know i think probably other folks have had that that same change that that's a great question um i would encourage you to to reach out to the main revenue service um using the the numbers provided to to reach out to the main revenue service regarding that change i don't want to give you the wrong advice on that question okay uh what if a non-profit and to see does not file a a 990 ez form do you need to do that in order to be eligible in order to be eligible yes we ask that nonprofits either file a 990 or a 990 ez and this is just for us as as we work with with federal funds and dispersing of money to businesses making sure that that we have an ability to to reference your financial reported financial data to from this year to previous years okay um jonathan there's a lot of questions from seasonal businesses so i think it makes sense to address it again especially for anyone that may be logged in late around whether the grant program accounts for seasonal businesses that have had primary negative impacts over the summer versus the january through june time period again since we're looking at your whole year average to previous years and your six months january to june so the six month average from previous years most likely your income from that those previous years will be significantly higher than it is for january to june 2020 therefore you'll be demonstrating a loss and and will be reflected in the equation and again you'll receive some prorated percentage back of that loss given that you meet all other eligibility criteria and make it through the the eligibility determination by uh the economic development districts and the main revenue service great thank you i think it's important quite a few questions about that um is the unemployment amount for just the sole proprietor or what their staff received as well that would be just for the sole proprietor um recognizing that um that would go into your expenses so the state um was paying for the for that unemployment insurance and making sure that it's accounted for somewhere in the equation that's all okay all right um some questions about the time frame that i i got emailed about when um sort of once the grant program application process closes is there a time frame for review notification when funds will be dispersed certainly and i had to grab my calendar here um so the application closes at midnight on september 9th and the next few days the main revenue service will be doing their due diligence along with the other economic development districts will be doing their due diligence to determine eligibility of grantees um and then the disbursement criteria will be will be run against all the total qualified losses the total the total qualified applicants and we hope to by by late september to provide a notice of potential grant award to to selected grantees and this is to help if you have um loans deferments that are coming due in october first to have a letter to to go to your bank or or loan provider and say that that funds may be coming from me uh and then we'll start uh disbursement in early october and this is to not only um this is mostly to to ensure that the federal reporting requirements are met um because if once we shift into october it's a new quarter and it limits the administrative burden on on yourself as a grantee and on the economic development district who will be doing uh some of the reporting back to the federal government and i should highlight here since we're talking about reporting your duns number that you applied for that's for federal reporting requirements we in order to get a federal grant of a certain size you're required to have a duns number great um does the program accommodate for newer startup businesses that don't have financial records from 2017 and or 18 but have been in business for that one year qualifier certainly so if they have if they have the one year then they'll have their their 2019 data um and we'll compare 2020 to 2019 um and again that that six month average should help them if it was was not a full 2019. um but yes the idea is that as so long as you provided some data reported your data last year we'll be able to do some comparison to at least hopefully provide some grants amount to those businesses great um i just got emailed a question um that says if we receive a grant do we need to send a report after um as to how we use the funds the way that we design this program is to cover business losses as a result of our cover income losses as a result of the covid19 pandemic or related public health response we in the program description and the application we have a list of suggested uses but uh to ease the administrative burden on yourself and the economic development districts since the phrasing is to cover income losses is as soon as you receive your funds it's considered expensed because it's covering your losses and and therefore there's no reporting required back to the economic development district on what you spent the money on i do want to just add maybe this is a good place to do it that that is a taxable event and you will get a 1099 from the edd um jonathan if somebody bought an established business in 2019 so the business has records that go back but they're not associated with the new owners um do we know yet if they will qualify um for a grant uh potentially so i say potentially um so long as they bought the business um more than a year ago and as much as it would be nice to to look at the multi-year average i confirmed with the main revenue service they're unable to cross-validate across owners due to a breach of privacy even if the new owner has the old financial data um so we just ask that you report um since you took over the business uh if you took it over in 2019 if that makes sense yeah and along those same lines i have a question we purchased our business in 2018 when getting our duns info the former owners info came up should they change that info or set up a whole new account again i'm i am on certain in the exact done procedures i would ask the folks over at dunn and bradstreet who run the program they're they're very quick to respond to ensure that that you have the right information okay great um if um someone has uh is on a payment program for tax taxes with mrs does that disqualify them from this program so a payment program being on a payment program will not quali disqualify a business or or um sole proprietor as long as you are meeting the obligations of that payment plan okay um a question about um the application itself do you are are the is the number that you're looking for for gross receipts the same as the num as gross profits that sort of in the standard accounting online accounting system is that the same number so profits and receipts are different profit would be your your revenue less expenses and depreciation your um so we're looking for your revenue so if you are mostly sales based business it would be that that gross uh receipts figure if you have other money it's it's it's sales and other sources of revenue we're trying to look at your total total inco or total revenue for the period of january first to june 30th and then separately looking at your expenses okay um it's a really specific question um about unemployment benefits but the question is we have two sole proprietor businesses in our household they are unrelated to each other my wife received unemployment benefits for her business i did not for mine do i have to include those funds uh in my application since it's a separate business no uh if so if you're a sole proprietor and you did not receive unemployment benefits then you would not report any other unemployment benefits reported if you um for your husband i believe i understood the question received unemployment benefits has his own sole proprietorship he would report the unemployment on his application since they're totally those are considered unaffiliated businesses since they have two separate um social security numbers um and two separate owners since it's a sole proprietorship okay great um so this has happened to me again as it did with the last webinar i just glanced at the at the clock and um it is time to wrap up we got to as many questions as we could today um again we will be sending out a follow-up email with the slides the recording um of this webinar so you can review it you can also watch last week's webinar in case we covered something on there that we didn't cover today um and the contact information for any questions that didn't get answered today is will is on the website and we'll be in that in that email as well so with that i'll turn it back over to commissioner johnson to wrap things up great thank you kate and jonathan we appreciate it um and thank you all again for joining us i would say um the faqs that are posted online they're posted right on our site i think the the link to those will come out as part of the follow-up email from this session um those will continue to be updated as we get consistent questions so please go back to those if you have questions there's a lot of good information there um we look forward to seeing the applications come in and we hope this program is is helpful to all of you so thank you for your time and um if you have questions i think the in the email all of those links will be there thanks again you