CARES Business Recovery Program

Materials below are provided so that you may prepare in advance. 

IRS W-9 Form

If your business has received any other assistance related to COVID-19 or CARES Act funding from the United States or the Commonwealth of Virginia, such as the Paycheck Protection Program (PPP) or Economic Injury Disaster Loan (EIDL), you will be asked to upload a copy of your application. 

UPDATE: We have extended the deadline since the recording of this Webinar. The new deadline is October 30, 2020.

Applicant business must:

• Be physically located in the City of Lynchburg
• Be in business and registered with the City of Lynchburg as of March 1, 2020
• Must be able to demonstrate a loss in revenue that can be attributed to COVID-19 by completing a Financial Statement of Impact form
• Have between 0 (owner) and 100 full time employees (or equivalent FTE) as of March 1, 2020 
• Have no more than $5 million in annual gross revenues, as reported on your City of Lynchburg business license
• List and provide a description of qualifying expenses
• Agree to release tax information
• Submit signed W-9
• Submit a scanned copy or photo of the 2020 City business license, if applicable
• Certify that business is currently open or plans to reopen
• Be current on any and all City of Lynchburg taxes prior to grant disbursement
• Submit a copy of the Payroll Protection Program (PPP) or Economic Injury Disaster Loan Emergency Advance (EIDL) applications, if applicable

Retail businesses deemed “essential” by Executive Order 53 are now eligible but will need to prove that they meet all other eligibility requirements.

Franchises are eligible for only one grant regardless of the number of locations in the city. Business must be able to produce supporting documentation for number of employees, financial loss and other eligibility.

Grant funds can be used to address business interruption costs. These include, but are not limited to:

• Employee compensation (including wages and benefits)
• Operating equipment costs or rental
• Business inventory and purchases
• Rent or lease payments
• PPE or physical improvements such as plexiglass barriers that improve the sanitary conditions of the business
• Equipment and supplies for disinfecting, sanitizing, and deep cleaning
• Other business critical operating expenses

Businesses cannot receive funding from any other local, state, or federal assistance program for the same expenses for the same time period that they are requesting support from the City of Lynchburg. For example, businesses that received federal support from the Payroll Protection Program or Economic Injury Disaster Loan Emergency Advance must certify that they will use grant funds for other uses. Grantees will be required to enter into a grant agreement to certify that payment was used for eligible expenses.

Grant amounts will range from $1,000-$20,000 per business, depending on the number of full-time equivalent employees:

• 0-3 full-time equivalent employees: Up to $5,000
• 4-10 full-time equivalent employees: Up to $10,000
• 11-25 full-time equivalent employees: Up to $15,000
• 26-100 full-time equivalent employees: Up to $20,000

A full-time equivalent employee is based upon minimum of 35 hours worked per week.

The Grant Program Review Team will have flexibility on eligibility and grant award amounts based on total number of eligible applications received.

The Office of Economic Development & Tourism has partnered with the Small Business Development Center – Lynchburg Region and Centra Health/PCHP/HealthWorks to provide wrap around services and support to participating businesses, including opportunities for one-on-one business counseling, industry specific training and health and safety consultations. Businesses will be able to opt-in to these services in the program application. 

The FAQs will be updated as additional questions are received. Please contact info@opportunitylynchburg.com with questions. 

What is the CARES Act?

The Coronavirus Aid, Relief, and Economic Security Act is an economic relief package passed by Congress and subsequently signed into law on March 27th, 2020. 

If I received funding, what do I need to document?

We recommend the following:

• Keep a copy of your application that certifies what you’ll spend the money on and the letter that we have mailed to your business.
• Make sure you notate the income as coming from the City of Lynchburg CARES program.
• Your normal business accounting (revenue, expenses) that you keep will reflect those eligible operating expenses.

What if I don’t have a business license or haven’t renewed for 2020? Can I still apply? 

To be eligible, businesses must have been in business by March 1, 2020 and submit a current City of Lynchburg business license with their application.  

How long will it take to receive a grant payment?

Round 1 and 2 applications will be reviewed after September 30, 2020. Round 3 applications will be reviewed after October 30, 2020. It will take 6-8 weeks to receive payment. 

What if I have received other federal or state support through the CARES Act? 

Businesses cannot receive funding from any other local, state, or federal assistance program for the same expenses for the same time period that they are requesting support from the City of Lynchburg. For example, businesses that received federal support from the Payroll Protection Program or Economic Injury Disaster Loan Emergency Advance must provide a copy of their application or forgiveness form and must certify that they will use grant funds for other uses. Grantees will be required to certify that grant funds are used for eligible expenses.

What is the time period that this funding applies to?

Qualified expenses can begin being counted as early as the issue of Executive Order 53, which was issued March 23, 2020, and go through the present. The above stipulations still apply that this money can not be used for the same expenses in the same time period as other local, state or federal funding.

What if I am a sole owner or co-owner and do not have any other full time employees?

The owner and/or co-owner/partners can be counted as full-time employees.

What if I was deemed ‘essential’ by Executive Order 53?

As long as you meet all other eligibility requirements, you may apply for the grant.

What if I already applied for the first Round of CARES funding during September 1-8, 2020 or the second round of funding ending September 30, 2020?

If you already applied, this is the same funding and you do not need to apply again.