CDBG Micro Enterprise Application In Stoneham Now Open

Press release from the Town of Stoneham:

September 5, 2020

“The Department of Housing and Community Development Announces Grant Opportunity”The Town of Stoneham applies for the microenterprise grant supporting local establishments.

Stoneham, MA (09/04/2020)- Applications are now being accepted for the Microenterprise grant which is part of the $19.6 million award through the federally-funded Community Development Block Grant (CDBG) program through the CARES Act of 2020. The $4,950,000 grant from the Department of Housing & Community Development was awarded to assist small businesses in 23 cities and towns across the Metropolitan Boston Region, including the town of Stoneham.

The funding is being utilized to address emergency needs in light of the Coronavirus pandemic. Specifically, the grant award for these 23 communities will be utilized to award individual grants of up to $10,000 for microenterprise businesses. A microenterprise is defined as a commercial enterprise that has 5 or fewer employees, 1 or more of whom owns the enterprise and must be a for-profit entity. The town of Stoneham) will be receiving $70,125.00 to support small businesses in the community.

Massachusetts Growth Capital Corporation (“MGCC”) will be helping to administer and oversee the grant program. Applications are available here (https://massgcc.submittable.com/submit) and are due by September 25th.

The communities that are part of this coalition include: Ashland, Beverly, Burlington, Canton, Concord, Dedham, Essex, Lexington, Manchester by the Sea, Marlborough, Melrose, Milton, Natick, North Reading, Norwood, Randolph, Reading, Sharon, Southborough, Stoneham, Watertown, Winchester and Woburn.

Businesses interested in applying must fill out the online application only. For questions, please contact Erin Wortman, Director of Planning & Community Development at EWortman@stoneham-ma.gov

Frequently asked questions:

What is the definition of a microenterprise business? 5 or less full time equivalent employees, including the business owner.

For microenterprises, what is the date of the “count” of number of employees? It would be at the time that the business applies for assistance.

What is LMI and what are the requirements for this grant? LMI is low-and-moderate income persons. An individual is considered to be LMI based on their annualized family income. Overall, to be classified as LMI, a family’s household income must be less than or equal to 80% of the median income for the area where they reside.

How do I find out what the AMI is for where I live? Click the HUD calculation link HERE. Most businesses within this grant will fall under either the Boston-Cambridge-Quincy MA area or Eastern Worcester County, MA area.

If there are multiple owners, do all need to meet LMI requirements in order to be eligible or does just one need to be eligible? If two owners, both must be eligible.

How long does a business have to be open to qualify for this grant? Must be in business as of 1/1/19 and have a physical establishment that serves the community that is distributing the grant. Some home based businesses will be eligible.

What cities and towns are distributing this grant?

• The following 23 municipalities are participating in this grant program. Businesses that have a physical establishment in the following can apply: Ashland, Beverly, Burlington, Canton, Concord, Dedham, Essex, Lexington, Manchester by the Sea, Marlborough, Melrose, Milton, Natick, North Reading, Norwood, Randolph, Reading, Sharon, Southborough, Stoneham, Watertown, Winchester or Woburn.

How much money can one business apply for? Up to $10,000

What documents will I need to submit with the application? Applicants will be required to submit documentation to support all provided information. The following list identifies the required documents that will be requested at the time in which applications are submitted:

• DUNS number

• W-9 Form Request for Taxpayer Identification Number and Certification

• 2019 or 2020 Certificate of Good Standing

• A copy of complete 2019 Federal Personal Tax Returns for each business owner with a 20% or greater ownership interest in the business for LMI requirement verification. If on extension, 2018 will be accepted.
• A copy of your complete 2019 Federal Business Tax Return. If on extension, 2018 will be accepted.
• A copy of your License to Operate/Business License/Professional Certification, if applicable
• A copy of your Lease or Mortgage Bill
• If you received any state, local or federal aid, please provide documentation
• Documentation to demonstrate that COVID-19 has caused a loss of income equal to or greater than requested assistance

How is “currently in operation” defined? If a business was in operation but closed because of COVID, it would make sense that the business should be eligible for this funding. “Currently in operation” means that the business has not permanently closed, gone out of business, filed for bankruptcy.

Can businesses buy equipment with grant funding? The purchase of equipment, fixtures, furnishings, property with CDBG funds is generally ineligible. Funding may be used for rent, mortgage assistance, utilities or payroll. Funds may also be used to purchase PPE.

Are home-based businesses eligible? For example: landscapers, contractors, artists, daycares, consultants, etc. Legitimately licensed commercial businesses may be considered eligible for assistance.

Can the funds be used to assist a business owner with making payments on a loan that they received prior to the start of the pandemic, even if it’s for an equipment purchase? Funds may be used for working capital to cover business costs, such as rent, staffing, and utilities. Microenterprise Assistance Program funds may not be used for major equipment purchases, purchase of real property, construction activities, business expansion, or lobbying.

This press release was produced by the Town of Stoneham. The views expressed here are the author’s own.