Section 16-gg - [Multiple versions] Small business seed funding grant program1. Definitions. As used in this section, the following terms shall have the following meanings: (a) "Small business" shall mean a business which is resident in this state, independently owned and operated, not dominant in its field, and employs one hundred or less persons, was started on September 1, 2018 or later and has been operational for a minimum of six months prior to application.(b) "Micro-business" shall mean a business which is a resident in this state, independently owned and operated, not dominant in its field, and employs ten or less persons.(c) "The program" shall mean the small business seed funding grant program established pursuant to subdivision two of this section.(d) "Applicant" shall mean a micro-business, small business, or forprofit independent arts and cultural organization, including independent arts contractors submitting an application for a grant award to the program.(e) "For-profit independent arts and cultural organization" shall mean a small or medium sized private for-profit, independently operated liveperformance venue, promoter, production company, or performance related business, including independent arts contractors, located in New York state negatively impacted by COVID-19 health and safety protocols, and having one hundred or less full-time employees, excluding seasonal employees.2. Small business seed funding grant program established. The small business seed funding grant program is hereby created to provide assistance to early-stage small businesses to succeed in a recovering New York state economy.3. Authorization. The corporation is hereby authorized, using available funds, to issue grants and provide technical assistance and outreach to micro-businesses, small businesses, for-profit arts and cultural organizations including independent arts contractors and technical assistance partners for the purpose of aiding the recovery of the New York state economy, and may promulgate guidelines to effectuate the purposes herein.4. Selection criteria and application process. (a) In order to be eligible for a grant or additional form of support under the program, an eligible small business shall: (i) be incorporated in New York state or licensed or registered to do business in New York state and must be resident in the state of New York;(ii) be a currently viable micro-business, small business, for-profit arts and cultural organization including independent arts contractors that started business on September 1, 2018 or later and has been operational for at least six months before an application is submitted;(iii) have between five thousand and one million dollars in gross receipts or be able to demonstrate five thousand dollars in business expenses;(iv) be in substantial compliance with applicable federal, state and local laws, regulations, codes and requirements; and(v) not owe any federal, state or local taxes, or have an approved repayment, deferral plan, or agreement with appropriate federal, state, and local taxing authorities.(b)(i) Grants awarded from this program shall be available to eligible micro-businesses, small businesses, and for-profit arts and cultural organizations including independent arts contractors that do not qualify for business assistance grant programs under the federal American Rescue Plan Act of 2021 or any other available federal COVID-19 economic recovery or business assistance grant programs, including loans forgiven under the federal Paycheck Protection Program, or are unable to obtain sufficient business assistance from such federal programs, with priority given to socially and economically disadvantaged business owners including, but not limited to, minority and women-owned business enterprises, service-disabled veteran-owned businesses, and veteran-owned businesses, or businesses located in communities that were economically distressed prior to March 1, 2020, as determined by the most recent census data.(ii) Grants awarded from this program shall be available to eligible micro-businesses, small businesses and for-profit arts and cultural organizations including independent arts contractors that did not qualify for business assistance under the COVID-19 pandemic small business recovery grant program as provided for in section sixteen- ff of this act.5. Eligible costs. (a) Eligible costs considered for micro-businesses and small businesses under this program must have been incurred between September 1, 2018 and January 1, 2022.(b)(i) The following costs incurred by a micro-business, small business, and for-profit arts and cultural organization including independent arts contractors shall be considered eligible under the program at a minimum: payroll costs; costs of rent or mortgage as provided for in subparagraph (ii) of this paragraph; costs of repayment of local property or school taxes associated with such small business's location as provided for in subparagraph (iii) of this paragraph; insurance costs; utility costs; costs of personal protection equipment (PPE) necessary to protect worker and consumer health and safety; heating, ventilation, and air conditioning (HVAC) costs, or other machinery or equipment costs, or supplies and materials necessary for compliance with COVID-19 health and safety protocols, and other documented COVID-19 costs as approved by the corporation.(ii) Mortgage payments or commercial rent shall be considered eligible costs.(iii) Payment of local property taxes and school taxes shall be considered eligible costs.(c) Grants awarded under the program shall not be used to re-pay or pay down any portion of a loan obtained through a federal coronavirus relief package for business assistance or any New York state business assistance programs.6. Application and approval process. (a) An eligible micro-business, small business, or for-profit arts and cultural organization including independent arts contractors shall submit a complete application in a form and manner prescribed by the corporation.(b) The corporation shall establish the procedures and time period for micro-businesses, small businesses, or for-profit arts and cultural organizations including independent arts contractors to submit applications to the program. As part of the application each micro-business, small business, or for-profit arts and cultural organization including independent arts contractors shall provide sufficient documentation in a manner prescribed by the corporation to demonstrate hardship, and prevent fraud, waste, and abuse.7. Technical assistance and outreach. The corporation may offer or make available to all applicants, regardless of approval status, direct or indirect access to financial and business planning, legal consultation, language assistance services, mentoring services for post-pandemic planning, reopening planning assistance and other assistance and support as determined by the corporation. Assistance, support, outreach and other services may be provided by or through partner organizations, including but not limited to chambers of commerce, local business development corporations, trade associations and other community organizations that have expertise and background in providing technical assistance, at the discretion of the corporation.8. Reporting. The corporation, on a quarterly basis beginning September 30, 2022, and ending when all program funds are expended, shall submit a separate and distinct report to the governor, the temporary president of the senate, and the speaker of the assembly setting forth the activities undertaken by the program. Such quarterly report shall include, but need not be limited to: the number of applicants and their county locations; the number of applicants approved by the program and their county location; the total amount of grants awarded, and the average amount of such grants awarded; and such other information as the corporation determines necessary and appropriate. Such report shall be included on the corporation's website and any other publicly accessible state database that list economic development programs, as determined by the commissioner. Such reporting may be incorporated as part of any reporting required under section sixteen- ff of this act.N.Y. Urban Development Corporation Act Law § 16-gg
Added by New York Laws 2022, ch. 58,Sec. CC-1, eff. 4/9/2022.