Arkansas Offers Relief for Unemployed Service Industry Workers
- Author: Jessica Williams
- Posted: 2024-09-10
What the Funds Are for
The Arkansas grants are for covering losses from business restrictions imposed at the local, state or federal level. Any business that is in the service industry and has less than 250 employees is eligible to apply for a grant. The applications are due on Wednesday, November 25. The state will distribute the funds by December 25. Some businesses that could apply for these grants include nail and hair salons, health clubs and cafes.
How the Grants Work
Other economic relief related to COVID-19 has been distributed on a first-come, first-served basis. That is not the case with this grant program. This program's funds will be disbursed on a need basis. The state official in charge of the program is Stacy Hurst, who is the Secretary of the Arkansas Department of Parks, Heritage and Tourism. Businesses can submit for coverage for their expenses related to the purchase of personal protective equipment, rent or mortgage interest payments and other safety purchases from March 1 through September 30, 2020.
How Much Money Businesses Can Get
Businesses are eligible to receive up to $250,000 in grant funds. The money must be spent in Arkansas. Each applicant's award will be based on the difference of their sales tax payments between 2019 and 2020 for the months of March through September. Those receipts will show state officials how much income the business has lost this year.
What the Grants Can Pay for
Businesses can submit a big list of expenses for grant eligibility. These expenses include utilities, phone and internet service, transportation, insurance, payroll and any technology required to shift to virtual operations. They can also get reimbursed for their marketing expenses related to advertising changes in hours or operations caused by the pandemic. If a business had to rearrange its work space or seating, it can ask for reimbursement for the professional services used to do that.
What the Funds Can't Be Used for
The grants can' be used on tax payments. They also can't be used to make up for lost profits. The funds are not for relief for damages that could be covered by the business's insurance policy.
Who Can Get the Grants
Women- and minority-owned businesses have a dedicated $7.5 million out of the $50 million grants. All of the money comes from the CARES Act that Congress passed in March. Business owners can go to arkansasready.com to submit their applications, review requirements and read through frequently asked questions.
Other Recent Economic Relief to Small Businesses in Arkansas
There are a lot of relief efforts in place for small business owners in Arkansas. As a part of Global Entrepreneurship Week, three businesses earned $18,500 in cash prizes. That program's intent is to reduce barriers and encourage entrepreneurship. Participants also received business coaching and help with marketing in order to help them deal with the challenges of the ongoing COVID-19 pandemic.
Tax Changes May Also Help
Companies that are part of a franchise were notified last week that there will be a change in how heir franchise taxes will be collected. The Arkansas Department of Finance and Administration will now handle their processing. This was previously taken care of by the Arkansas Secretary of State. Companies paid $28 million in franchise taxes in 2019. About 150,000 companies owe this tax each year. The taxes will be due on May 1, 2021. The Arkansas Secretary of State will still be the main contact for any business that needs a license. A person who wants to start a new business or define the organizational structure of their business will also still do these activities through the Arkansas Secretary of State's office.
