Open Sign

COVID-19 Grants for Massachusetts Small Businesses

Please be advised, the application period for the Small Business Grant Programs is now closed.

Applicants:

If you would like to check on the status of your application, please log into your Submittable account at www.Submittable.comYou will see your application noted as “Received” until MGCC completes its review of all submitted applications.

Award and declination letters are anticipated to get sent out by the end of December at the latest via an email through Submittable.

Grants Overview

The Commonwealth of Massachusetts has made $50.8 million in grants available to support small businesses, microenterprises, and their employees, families and communities. Massachusetts Growth Capital Corporation (MGCC) will be administering these funds to businesses experiencing economic hardship and a loss of income due to the COVID-19 pandemic.

These funds were appropriated through the Commonwealth’s Supplemental Budget for Fiscal Year 2021 (FY21) as well as the CARES Act of 2020 and are divided into two programs. 

Grant funding is intended to help businesses adversely impacted by the pandemic. Preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants that have not been able to receive aid from other federal programs related to COVID-19.

 

Timeline: 

Application Opens - 10/22/2020 at 12:00 PM 

Application Closes - UPDATE: Due to the increased application volume, the deadline for completed application submission is 11/17/2020 at 11:59 PM.

 

Application Status:

If you would like to check on the status of your application, please log into your Submittable account at www.Submittable.com.

 

Applicant Eligibility:

Each program encompasses its own eligibility criteria, set forth below. Applicants must review the information to determine which program to proceed with applying.

 

Language Translations: 

Program overview information is available in the following languages (Application remains in English).

Small Business Grants for 5 or Fewer Employees:

Small Business Grants for 50 or Fewer Employees:

Program Details

SMALL BUSINESS GRANTS FOR 5 OR FEWER EMPLOYEES

 

AMOUNT OF FUNDING:

Up to $25,000

 

APPROVED USE OF FUNDS:

Funds may be used for working capital to cover business costs, such as rent, staffing, utilities, and technical assistance, general support and stabilization of the business. Funds may also be used for purchasing personal protection equipment (PPE).

 

NON-APPROVED USE OF FUNDS:

Major equipment purchases, purchase of real property, construction activities, business expansion, lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.

 

If a person owns multiple businesses and submits an application for each business, MGCC may reserve the right to limit proceeds to one business per owner.

SMALL BUSINESS GRANTS FOR 50 OR FEWER EMPLOYEES

 

AMOUNT OF FUNDING:

Businesses can receive up to $75,000 but capped at up to 3 months of operating expenses, as evidenced by 2019 Federal Tax Returns. Grant amounts will be considered for actual expenses for 2020 during the pandemic. Expenses can be considered since March 10, 2020, given that it does not exceed 3 months of operating expenses evidenced by 2019 Federal Tax Returns.

 

APPROVED USE OF FUNDS:

Employee payroll and benefit costs, mortgage interest, rent, utilities and interest on other debt obligations.

 

NON-APPROVED USE OF FUNDS:

Major equipment purchases, purchase of real property, construction activities, business expansion, lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.

 

If a person owns multiple businesses and submits an application for each business, MGCC may reserve the right to limit proceeds to one business per owner.

Eligibility

SMALL BUSINESS GRANTS FOR 5 OR FEWER EMPLOYEES

  • Business has 5 or fewer employees (1 or more of whom owns the business)
  • Business must provide goods or services to multiple clients or customers
  • The owner(s) of the business must qualify under the Low-Moderate Income (LMI) Limited Clientele national objective criteria. They must earn an annual income equal to or less than 80% of the Area Median Income (AMI) based on family size

SMALL BUSINESS GRANTS FOR 50 OR FEWER EMPLOYEES

  • Business has 50 or fewer full-time equivalent FTE employees (1 or more of whom owns the business)
  • BOTH PROGRAMS

    • Business must have a physical establishment in Massachusetts
    • Business must be a for-profit entity (sole proprietorship, partnership, corporation, cooperative or LLC)
    • Business must be able to document a loss of income equal to or greater than requested assistance due to COVID-19
    • Business must be currently in operation or if not in operation must have an intent to reopen.
    • Business must have been established prior to 06/30/2019.
    • Business must be in good standing with the state and city/town:
      • Business must be current on all taxes due through 3/1/2020; and
      • Have active and valid state licenses/registrations, if applicable
    • Ineligible businesses:
      • Real estate rentals/sales businesses;
      • Businesses owned by persons under age 18;
      • Businesses that are chains;
      • Liquor stores;
      • Weapons/firearms dealers;
      • Lobbyists; or
      • Cannabis-related businesses.
    • Preference will be given to small businesses whose owners are women, minorities, veterans, members of other underrepresented groups, who are focused on serving the Gateway Cities of Massachusetts, and those most negatively impacted by the COVID-19 pandemic. Preference will also be given to applicants of the greatest need that have not been able to receive aid from other federal programs related to COVID-19.

Required Documentation

SMALL BUSINESS GRANTS FOR 5 OR FEWER EMPLOYEES

  • DUNS Number (You can look up your DUNS Number by following the link. If you do not yet have one, you can put in a free, expedited request for a number (24-hour turnaround) by specifying that you are applying for a government grant. Use the Self-Service Portal link: www.dnb.com/govtduns and choose "Federal Government Contractors or Grantees DUNS Number Support".)
  • A copy of completely filed 2019 Federal Personal Tax Returns for each business owner, including all required schedules.
  • A copy of your Business Lease or Mortgage Bill
  • A copy of the invoice(s) for expenses you wish to use these grant funds to cover. If it is for a future expense, please describe in detail what that expense will be (in 1-2 sentences) and expect to submit proof that the expense was paid within 45 days of receiving your grant award.
  • Optional - 2020 Income Verification Supporting Documentation. Applicants may submit historical documentation to support the projected revenues and expenses with their applications, such as: quarterly tax statements, income statements, sales reports, cash flow statements, and accounts receivable reports as supporting documentation. While not a requirement upon application submission, please note that applicants must provide such documentation if requested by Massachusetts Growth Capital Corporation, the Massachusetts Department of Housing and Community Development, or the U.S. Department of Housing and Urban Development at a later date.

SMALL BUSINESS GRANTS FOR 50 OR FEWER EMPLOYEES

  • A copy of completely filed 2019 Federal Personal Tax Returns for each business owner with 20% or greater ownership, including all required schedules.
  • BOTH PROGRAMS

    • A copy of your completely filed 2019 Federal Business Tax Return, including all required schedules
    • A copy of your License to Operate/Business License/Professional Certification, if applicable
    • Completed and signed IRS W-9 Form
    • If your business is a LLC, Partnership or Corporation: A copy of your Certificate of Good Standing from the Secretary of State, not from the Department of Revenue (A Certificate of Good Standing from the Department of Revenue is not required.) All entities organized in other states that operate in Massachusetts must be registered and in good standing in Massachusetts. If you need to request a Certificate of Good Standing, click here: https://corp.sec.state.ma.us/CorpWeb/Certificates/CertificateOrderForm.aspx.
    • If your business is a Sole Proprietorship: A copy of your Business Certificate (DBA) from your city/town