State officials today opened an online application portal to distribute $40 million to independent food and beverage businesses affected by the economic slowdown during the coronavirus pandemic. Owners must act quickly because grants will be awarded on a first-come basis.
The Team Kentucky Food and Beverage Relief Fund portal opened at noon (EST) and within four or five hours, the state had received 2,000 applications requesting $19 million, Gov. Andy Beshear’s office said in a press release.
Meanwhile, the city of Hopkinsville has extended its deadline for some business owners to apply for grants. Approximately $100,000 remains in the $350,000 grant fund Hopkinsville City Council approved for the Small Business Stimulus program, Chief Financial Officer Robert Martin told Hoptown Chronicle.
The city grants range from up to $750 for sole proprietors to $2,000 for businesses that submit payroll withholdings but don’t have net profits greater than $100,000.
Martin said 150 businesses shared awards in the first round of disbursements totaling approximately $235,000. The checks went out last week.
“I have a feeling there are businesses out there that didn’t know about this,” Martin said. That’s why the city extended the deadline, he said.
Businesses may apply online or by picking up a paper application from the Hopkinsville Municipal Center, the Hopkinsville-Christian County Public Library or at the Christian County Chamber of Commerce. The deadline to apply is 4:30 p.m. Dec. 31.
To be eligible, businesses must:
- Have experienced a loss due to COVID-19
- Have their Corporate Headquarters located within Christian County, Kentucky
- Have a current Hopkinsville Business License
- Have paid the Minimum Net Profit License Fee of $250 for tax filing year 2019
- Not have paid a Net Profit License Fee greater than $1,500
- Not be delinquent on any taxes owed to the City of Hopkinsville – including but not limited to Licenses/Payroll/Property taxes as of September 1, 2020
- Have 25 full-time equivalent employees or fewer
These businesses are not eligible for the city’s program:
- Zero return filers
- Rental Businesses (Filing Schedule E)
- Businesses with Net Profits greater than $100,000
The application process for the Team Kentucky Food and Beverage Relief Fund will close when all of the funds are distributed, or on Dec. 18, depending on which comes first.
Grants will be awarded for up to $10,000 in eligible expenses for a restaurant or bar. A business owning more than one location is eligible for no more than $20,000. Businesses owned by a publicly traded company are not eligible.
“Our team of application processors is working diligently on each claim. They have been training and preparing for weeks to make sure we can help as many people as possible, as quickly as possible,” Beshear said.
Expenses eligible for reimbursement include personal protective equipment for employees and customers, mortgage or rent payments, utilities, salaries, supplies and inventory.
Eligibility criteria for the state stimulus package include:
- Business with less than 50% of their sales via drive-thrus will be eligible.
- Business may not be owned by a publicly traded company.
- Business will be required to remain in compliance with all public health orders.
- Any award will be a grant, not a loan. However, the grant may be considered taxable income (consult your tax professional for additional guidance), and awardees will receive a 1099 statement regarding any award received.
- Entity must supply and maintain documentation demonstrating that the award reimbursed permissible expenses for a period of five (5) years.
- Entities that do not comply with the terms of the program may be required to return the award.
- Entities must complete the required certification in the application portal.
- There is no need to print or upload this document, as the system will complete the certification for you as part of the application process.
Jennifer P. Brown is co-founder, publisher and editor of Hoptown Chronicle. You can reach her at editor@hoptownchronicle.org. She spent 30 years as a reporter and editor at the Kentucky New Era. She is a co-chair of the national advisory board to the Institute for Rural Journalism and Community Issues, governing board president for the Kentucky Historical Society, and co-founder of the Kentucky Open Government Coalition.
