The Indiana Economic Development Corp. has announced what it is calling a “significant expansion” of a program to help small businesses recover from the pandemic. The expansion will add $60 million to the Indiana Small Business Restart Grant program, allowing businesses to seek reimbursement for certain expenses incurred over the past year.
As part of the program, eligible small businesses can apply for funding to reimburse payroll expenses, as well as non-payroll expenses such as insurance premiums, rent or mortgage payments, lease payments, utilities and safety investments. The funding will reimburse expenses incurred from March 2020 through May 1 of this year.
The IEDC says reimbursements may be awarded up to $10,000 for each month, but may not exceed $50,000 over a 12-month period. Additionally, businesses that have previously received funding through the program but have not reached the maximum will be allowed to re-apply and submit new expenses for reimbursement.
The state first launched the program last May with an initial $34.5 million. The additional $60 million comes from the CARES Act and has been approved for allocation by the Indiana General Assembly.
“I’m grateful to the Indiana General Assembly for their supportive collaboration that made it possible to extend this program for Hoosier entrepreneurs,” Governor Eric Holcomb said in a news release. “The Small Business Restart Grant program has already done a tremendous amount to get small businesses back on track, and this extended relief funding will continue accelerating our economy’s recovery.”
To be eligible for the program, businesses must meet certain eligibility requirements:
- Have been established prior to Oct. 1, 2019;
- Be registered to operate in Indiana, except sole proprietors, and must be seeking reimbursement for expenses related to their Indiana operations;
- Be in good standing with the Indiana Department of Revenue (DOR) or have a DOR-approved payment plan;
- Have had fewer than 100 full-time employees as of Dec. 31, 2019;
- Have been profitable in 2019 (determined by EBITDA) and have had less than $10 million (Gross Receipts or Sales) in revenue in 2019; and
- Demonstrate a monthly gross revenue loss of at least 30% compared to pre-COVID-19 revenues (average monthly revenue in 2019).
Eligible small businesses will be allowed to apply until December 31. You can learn more about the program by clicking here.