Emergency Aid Relief Available for Small Businesses in the State of Maine
- Author: Jessica Williams
- Posted: 2024-10-13
Emergency Aid Relief Available for Small Businesses in the State of Maine
As the weeks progress, the administration is expecting a significant rise in the number of applications. There have been two webinar programs that over 1,600 people have been attending to learn more about the grant programs.
The economic council will not consider applications on a first-come, first-serve basis. This is a deviation from the norm which will serve the local community very well. Instead, application approval and funding will be based on business needs.
As part of the process for approval, business representatives who apply for the Maine Economic Recovery grants must have less than 50 full-time employees or the equivalent thereof, and companies must have succumbed to losses from the coronavirus pandemic.
Businesses will be given grants based on the need that is in direct proportion to their business losses. Nonprofits and standard for-profit entities can use the grant funds to pay for mortgages, rents, utilities, equipment, personal protective gear, business reopening expenses, and payroll. Companies that accept the funds will be subject to audit, and the grant awards are taxable. The maximum award per business is $100,000.
Norman Patry
Norman Patry is a local business owner. His business, Summer Feet Cycling, is down significantly from last year by 85%. He had 15 employees but now has only retained five employees. Patry had to cancel his summer European and Canadian bicycle tours. Presently, his weekday Summer tours only consist of four people.
Patry is content that grant funding has become available for struggling businesses. He cannot wait to apply for funding, and grant approval shouldn't depend upon having a completed application in first, on top of the pile. If that were the case, he would have submitted his application to the board at 3 a.m. the very first day. Patry has hope that his business will survive the downturn.
Nonprofit Businesses
Most nonprofit organizations are included for the relief funds. However, there are a few exclusions. Private schools, some lobbying groups, and trade associations cannot receive grant relief funds.
Nonprofit businesses contribute significantly to the Maine economy. Each nonprofit employs one out of six Maine residents and pumps $12 billion to the local Maine economy.
According to Jennifer Hutchins, the Maine Association of Nonprofits executive director, some nonprofits were unable to have their spring fundraising drives since the pandemic offset regular scheduling. Other nonprofits do not have a strong financial relationship with a local bank. This made applying for the paycheck protection program and obtaining the necessary financial documentation cumbersome.
Many cultural and art group revenues have hit a dry spell. Social service groups have struggled to keep up with the demand in services for community aid while keeping clients and staff safe through the pandemic.
Some nonprofit groups may have some difficulty accessing aid. Groups do not have to report financials unless budget and revenues exceed $50,000 per year. This will leave out many small volunteer organizations, which happen to make up 62% of Maine's nonprofit sector, from accessing aid.
Grant Funds
Congress gave the state of Maine $1.25 billion in funding from the CARES Act. The state has committed $800 million to childcare funding, recovery support groups, and shoring up the state's unemployment trust fund. The board will announce grant recipient awards in late September, with disbursement going out to the community in October.
The new grant was announced last week, and businesses only have about a two-week window to apply for funding. Some groups believe the eligibility requirements are too stringent and should be more inclusive.
The Maine Tourism Association and the HospitalityMaine groups believe that the board should not limit application eligibility to small businesses with only 50 full-time employees. Many companies have financial hardships and severe revenue losses that have a multitude of employees.
One such group, Big Brothers and Big Sisters of Maine are skeptical they will be approved for funding. The nonprofit group serves 300 youths but had to trim expenses so they would end the fiscal year on budget. Big Brothers and Big Sisters of Maine took advantage of the paycheck protection loan, other pandemic grants, and access other corporate donors to meet this year's budget.
The board grantees from the Maine Economic Recovery grant may expect recipients to access liquid reserves before qualifying for additional funds. Nonprofits and small businesses hope there is sufficient financial capital.
