Syracuse Industrial Development Agency Announces COVID-19 Emergency Relief Program for Small Business and Nonprofits
July 31, 2020
The Syracuse Industrial Development Agency (SIDA) announced that it will be providing both grants and loans to small businesses and 501(c)(3) nonprofit corporations negatively affected by the coronavirus pandemic. Eligible entities include small businesses and nonprofit corporations which are physically located in and conduct business in the City of Syracuse, were operational and financially viable prior to March 7, 2020, and do not have more than 50 full-time equivalent or full-time contract employees. Eligible entities must also have been negatively impacted by the state disaster emergency declared by the governor on March 7, 2020.
The deadline to apply for both the grant and loan programs is August 14, 2020. Businesses and nonprofits may apply for both programs.
The grants range from $500 to $10,000 of which the proceeds must be used solely for the purpose of acquiring personal protective equipment (PPE) or installing fixtures necessary to prevent the spread of novel coronavirus. PPE includes masks, hand sanitizer, sneeze guards, face guards, plexiglass shields, gloves and eye protection, safety footwear, air purifiers, cleaning materials and disinfectants, specialized packaging for shipping, signage, COVID testing kits or other such equipment designated by the Centers for Disease Control.
Business applicants must submit the following documentation: 2019 Business Federal Tax Return including all schedules; an interim profit and loss statement and balance sheet through at least June 30, 2020; a personal financial statement dated within the last 30 days for any individuals with 20% or more ownership, IRS Form W-3 (2019); and IRS Form 1096 (2019). Nonprofit applications must submit CPA Audited 2019 Financial Statements; Form 990 (2019) or similar tax filing; an interim profit and loss statement and balance sheet through at least June 30, 2020; IRS Form W-3 (2019); and IRS Form 1096 (2019). Both businesses and nonprofits must also submit a resolution of the board of directors, if applicable, or other certification of an authorized officer of the company authorizing the submission of the application and the acceptance of any approved loan proceeds.
The loan amounts range from $3,000 to $25,000 and are at a 0% interest rate with a maturity date calculated to be 14 months following the end of the state disaster emergency declared by Executive Order 202 of 2020. The proceeds of the loan may be used for various expenses, including: payroll of employees; purchase of inventory; payroll for sick time coverage for employees; purchase of machinery or equipment; working capital to continue operations; payment of outstanding expenses and pursuing adaptive business practices to remain open.
The loan requires collateral, with businesses being required to enter into corporate and personal guarantees of individuals owning 20% or more of the business and UCC-1 filings for all currently owned and after acquired equipment; and for nonprofits, the UCC-1 filings for all currently owned and after acquired equipment.
Loan applicants must submit the same additional documentation as the grant program. Loans will be granted based on a variety of factors determined by the SIDA.
The attorneys at Bond, Schoeneck & King can assist your organization in applying for this loan or grant. Please contact Jeffrey B. Scheer, any of the attorneys in the Business and Transactions practice, or the attorney at the firm with whom you are regularly in contact.