County awards CARES Act funds

Published 5:22 pm Wednesday, September 23, 2020

Getting your Trinity Audio player ready...

Lunenburg County awarded $218,500 in the first round of its Small Business Grant Program to 27 businesses to provide immediate relief to businesses impacted by the COVID-19 pandemic.

The funds for the grants were made available thought the CARES ACT and do not have to be repaid.

The grant program was meant to reimburse businesses for business interruption costs caused by required closures due to COVID-19. The grant can be used for things such as employee compensation (including wages and benefits), equipment inventory, rent, or other business-critical operating expenses.

According to Lunenburg County Administration officials, grants awarded ranged from $2,000 to $10,000.

“All small businesses who fell below a two-year average gross income of less than $20,000 were calculated to receive 25% of average gross income in grant proceeds,” Lunenburg Deputy County Administrator Nicole Clark said. “The CARES Fund Committee recommended to automatically include a matching award for first-round applicants when the second round opened doubling the grant proceeds for those first-round businesses.”

Last week on Sept. 15, the county opened the second round of grant funding applications, which runs until Oct. 15.

Announcements are expected to be made by Oct 30, with funds distributed after Nov. 1.

Grant funds will be allocated based on the number of employees and require a two-year average gross income of $20,000 or more.

Grant funds for the second round will be allocated based on the number of employees:

Employees, 1 – 10: $ 5,000

Employees, 11 – 25: $ 7,500

Employees, 26 – 49: $10,000

To be eligible, applicants must be established for two years and have one or more location(s) in Lunenburg County, including the business’s principal place. Lunenburg County includes businesses and organizations located in Victoria and Kenbridge. Additionally, awardees must have at least one principal employee and less than 50 total employees across all locations, must have been in operation at least two years, and should be up-to-date on all local government tax payments.

Small Business Eligibility

Businesses must have at least one and less than 50 total employees across all locations. To be eligible for the grants, the business can have no more than $1million in business income per calendar year. All local government taxes must be paid in full through July 5, 2020.

Small Businesses not eligible to apply:

Businesses that are franchises and chains must be locally owned and operated to be eligible.

Independent contractors operating multilevel or network marketing businesses (such as Avon, Mary Kay, LuLaRoe, Pampered Chef, etc.) are not eligible to apply.

Nonprofit organizations are not eligible to apply.

Businesses engaged in speculation or investment in rental real estate are not eligible to apply.

Businesses determined to be ineligible businesses under SBA guidelines are not eligible to apply.