D.C. Mayor Muriel Bowser and the Council of the District of Columbia are investing $25 million in the DC Small Business Recovery Microgrant Program. The program will be administered by the Office of the Deputy Mayor for Planning and Economic Development, John Falcicchio.
The microgrants will be available to businesses, non-profits, and independent contractors or self-employed individuals. Grants will provide financial support for expenses such as employee wages and benefits, rent, and other operating costs. The program will provide support up to $25,000.
Let’s look at how businesses and non-profits can get grants through the DC Small Business Recovery Microgrant Program.
The DC Microgrants Program
The microgrants program has been set up for DC businesses, non-profits and individuals/independent contractors that have been hit the hardest by COVID 19. The total fund set aside is $25 million.
This program aims to help local businesses, non-profits, independent contractors and self-employed individuals meet their short-term needs. The grant can be used to pay employee wages and benefits including health benefits. It can also be used to settle fixed costs, immediate accounts payable, inventory costs, rent and utility bills.
Small businesses, non-profits and independent contractors/individuals are eligible to apply through the program.
Small Businesses Eligibility
- The principal office of the business must be physical located in The District of Columbia.
- The business must not be a franchise.
- At least 50% of the business employees must be based in DC.
- The firm must meet the definition of Small Business as identified in SBA.
Examples include restaurants, retail stores, local services, fitness centers etc.
- The organization must provide services locally and must not be a national or global organization.
- The main office must be located in Washington, DC.
- The organization must be registered as a Not-for-profit with DCRA.
Examples include arts organizations, festival organizations and community based organizations etc.
Independent Contractors and Self Employed Individuals Eligibility
- The contractor or self-employed person must be based in Washington DC and must be providing products and/or services in DC.
- The person must be registered to pay self-employed taxes in the State.
- The person must not be eligible to receive unemployment insurance through a full-time employer.
Examples include freelancers, musicians, artists, writers, actors etc.
Application for the Grant
Eligible persons are required to submit an application with the necessary documents.
Businesses, small contractors and self-employed individual must submit the following documents:
- Federal Employer Identification Number (EIN) or Social Security Number (SSN)
- Documentation of the Business Owner for State Residency (Driver’s license or utility bill)
- The following financial documents for the business:
- Federal tax return for 2018.
- Income statement for 2019 that shows monthly sales.
- YTD Income statement for 2020 (January to March).
- Supporting documents that show potential revenue in April 2020.
- Other Supplementary documentation as required.
Not for Profit organizations are required to submit the following documents:
- Federal Employer Identification (EIN) number.
- Payroll or roster of employees with their residence status
- The following financial documents for the organization:
- Exempt from Income Tax Return for 2018 (form 990)
- Statement of activities for 2019 that shows revenues and expenses
- YTD statement of activities for 2020 (January to March).
- Supporting documents for loss of potential revenue in April 2020.
- Other supplementary documents as required.
Once you have all the relevant documents, you can apply online through the relevant section on the DMPED website online. https://coronavirus.dc.gov/recovery-business. If you need assistance with an application or have any questions please contact me at Dhunter@UrbanCre.org