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Small Business Restart Fund

In May, Gov. Holcomb approved funding to support Indiana Small Business Restart Grants, helping accelerate the speed of economic recovery activity by providing working capital to cover certain expenses related to the global pandemic. The program is funded at $31 million by federal funding made available through the CARES Act – $30 million approved by the state and an additional $1 million allocated by the city of Indianapolis for small businesses located in Marion County. Of the state’s $30 million, at least $5 million is reserved for certified minority- and women-owned businesses.

Through the program, eligible Indiana small businesses can seek reimbursement for qualified business expenses, such as rent/mortgage payments, utilities, lease payments for real or personal property, and safety investments, such as personal protective equipment (PPE) and infrastructure improvements.

View FAQs here

Grant Details

Small businesses that meet the eligibility requirements can apply for reimbursement of up to 80% of qualified business expenses incurred between March-November 2020. Reimbursements for expenses may be awarded up to $2,500 or up to $5,000 for each month during that time period in which the business demonstrates a revenue loss of at least 40% or of at least 80%, respectively.

Grants will be issued up to $10,000 per company and will be issued in the order in which applications are received until funding is exhausted.

Eligibility requirements:

  • Business must be registered to operate in Indiana
  • Business must have had less than 50 employees at of 12/31/2019
  • Business must have had less than $5 million in revenue in 2019
  • Business must have been profitable in 2019
  • Businesses must demonstrate a monthly revenue loss of at least 40% compared to pre-COVID-19 revenues
  • Must be in good standing with the Indiana Department of Revenue (DOR) or have a DOR-approved payment plan

Program Deadline:

  • Nov. 1, 2020, for eligible small businesses located in Marion County, or until funding is exhausted
  • Dec. 1, 2020, for eligible small businesses located in Indiana outside of Marion County, or until funding is exhausted

*As of Sept. 21, 2020, small businesses that have received economic relief funding through federal programs, including the Paycheck Protection Program, Economic Industry Disaster Loans, and Community Development Block Grants, are now eligible to apply. Non-payroll expenses covered by another Cares Act supported program such as PPP, EIDL, or from a local government entity (CDBG) may not also be reimbursed by this grant.

Application

Grant Application Form for Small Business Restart Fund

To prepare the necessary information for the application, small businesses are encouraged to ready the following documentation:

  • *Monthly Profit and Loss Statement (2019 and 2020)
  • Expense documentation for relevant expenses if planning to submit for reimbursement:
    • Copy of mortgage statement or lease agreement
    • Copy of utility bills; invoices accepted
    • Lease payment for real or personal property
    • *Receipt for safety improvements/PPE

*Please view the FAQs below for detailed instruction on 1.) how to format and submit profit and loss statements, and 2.) documentation requirements for submitting safety improvements/PPE expenses for reimbursement.

Applicants will be asked to authorize the Indiana Economic Development Corporation to access their 2019 State of Indiana Tax Returns or Form 1040, Schedule C (if sole proprietorship), from the Indiana Department of Revenue. Applicants that have not yet filed 2019 returns are encouraged to do so prior to applying for an Indiana Small Business Restart Grant. Home-based businesses must submit their full IRS 1040 along with all schedules.

Businesses needing assistance compiling this documentation can contact the nearest Indiana Small Business Development Center (SBDC) office.

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When does this start?

6/3/2020: Applications open

11/1/2020: Applications close for Marion County-based businesses

12/1/2020: Applications close for non-Marion County-based businesses

What businesses qualify?

  • Businesses registered to operate in Indiana
  • Must be in good standing with the State of Indiana Department of Revenue
  • Businesses with less than 50 employees and under $5M in revenue as of 12/31/2019
  • Businesses that were profitable in 2019
  • Businesses with a revenue loss, as a result of COVID-19, of at least 40% compared to 2019's best three months average

What is needed to apply?

  • Monthly Profit & Loss Statement (2019 and 2020)
  • Documentation of expenses
    • Mortgage statement or lease agreements, leases for real or personal property, utility bills, PPE or safety improvements. Examples of accepted utilities include natural gas, electricity, garbage, internet, and mobile phone bills.
  • Home-based businesses must submit their full IRS 1040 along with all schedules.

What detail is needed for monthly profit and loss statements, and how should they be formatted?

Applicants should detail profits and losses for each month of 2019 – with data broken down by month rather than annualized – and do the same for each month of 2020. For example, a business applying for reimbursement for revenue losses experienced in 2020 must include monthly P/L data for January-December 2019 and for January-YTD 2020. Click here for a template profit and loss statement.

For additional questions or for help creating profit-loss statements, please contact the nearest Indiana Small Business Development Center for no-cost assistance: https://isbdc.org/locations/.

What are the documentation requirements for investments made in safety improvements or PPE?

Applicants seeking reimbursement for investments made in safety improvements, such as sneeze guards or plexiglass barriers, or for PPE purchases must include documentation detailing proof of purchase. Additionally, the supporting documentation must clearly outline the improvements made or the items purchased. For example, documentation/receipts for purchased face masks should include the item that was purchased, not just the SKU or inventory number. A PDF screenshot of an online purchase that includes pricing and the product purchased is acceptable.

What other funding is available?

For more small business resources and funding options, visit StayInBiz.org.

Frequently Asked Questions

  • Program Overview

    Q: What is the Small Business Restart Fund?
    A: The Small Business Restart Fund, recommended by Indiana’s Economic Relief and Recovery Team, was approved by Gov. Holcomb, making federal funding received through the CARES Act available to small businesses to help accelerate the speed of economic recovery activity by providing working capital to cover certain expenses related to the global COVID-19 pandemic.

    Q: How much funding will eligible small businesses receive?
    A: Eligible small businesses are eligible to receive up to $2,500 for expenses in each month in which the business can demonstrate a revenue loss of at least 40%, or up to $5,000 for each month in which the business can demonstrate a revenue loss of at least 80% for qualified expenses incurred between March-November 2020. The maximum amount a business can receive is $10,000. Please note that the program reimburses expenses and not lost revenue.

    Q: What types of costs are eligible for reimbursement?
    A: Eligible small businesses may seek reimbursement for qualified, documented expenses, including: rent/mortgage payments; utilities; lease payments for real or personal property; safety investments, such as the purchase of personal protective equipment (PPE), and infrastructure improvements related to the health and safety of employees and/or customers. Non-owner occupied business property expenses are not eligible for the Restart Grant. Please note: Non-payroll expenses covered by another Cares Act supported program such as PPP, EIDL, or from local government entity (CDBG) may not also be reimbursed by this grant.

  • Eligibility

    Q: Who is eligible to apply?
    A: Indiana small businesses with fewer than 50 employees and $5 million in annual revenue that have experienced a 40% drop in revenue due to the pandemic will be eligible to apply for small business restart grants. Full eligibility requirements are available at backontrack.in.gov they include:

    • Business must be registered to operate in Indiana
    • Business must have had less than 50 employees at of 12/31/2019
    • Business must have had less than $5 million in revenue in 2019
    • Business must have been profitable in 2019
    • Businesses must demonstrate a monthly revenue loss of at least 40% compared to pre-COVID-19 revenues
    • Home-based businesses must submit their full IRS 1040 along with all schedules.

    Eligible businesses will be asked to provide documentation of paid eligible expenses (utilities, rent, PPE) for reimbursement. The program does not reimburse revenue loss alone.

    Q: Are nonprofit organizations eligible for small business restart grants?
    A: No, nonprofit organizations are not eligible for small business restart grants.

    Q: Are small businesses without an Indiana Secretary of State identification number, such as sole proprietors, eligible for small business restart grants?
    A: Yes, these entities are able to apply for small business restart grants provided they meet the eligibility requirements and can provide certification documentation as requested. Small businesses without an Indiana Secretary of State identification number should apply using an Employer Identification Number (EIN). If you do not have one, you may apply for one online: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online.

    Q: What does it mean to be ‘in good standing’ with the Indiana Department of Revenue?
    A: Businesses in good standing with the Indiana Department of Revenue do not have an existing tax liability with the state. If a business is not in good standing, the grant application will be denied until the business can demonstrate that the issue has been resolved.

  • Application

    Q: How can I apply for a Small Business Restart Grant?
    A: All Indiana small businesses should visit backontrack.in.gov to view eligibility requirements and to apply for restart grants.

    Q: What type of information and documentation is needed to apply?
    A: Eligible small businesses will be asked to provide general information about the business, including an Indiana Secretary of State identification number as well as employment and revenue information.

    Additional documentation will be required to support the verification of eligibility:

    • *2019 State of Indiana Tax Return or Form 1040, Schedule C (if sole proprietorship)
    • Monthly profit and loss statement (2019 and 2020)

    Eligible small businesses seeking reimbursement for certain expenses will also be required to provide related expense documentation, such as:

    • Copy of mortgage statement or lease agreement
    • Copy of utility bill for month of loss being claimed
    • Lease for real or personal property
    • Receipts for safety improvements/PPE

    *Please note that applicants will be asked to authorize the Indiana Economic Development Corporation to access their 2019 State of Indiana Tax Returns or Form 1040, Schedule C (if sole proprietorship), from the Indiana Department of Revenue. Applicants will not need to upload these documents directly.

    Home-based businesses must submit their full IRS 1040 along with all schedules.

    Non-payroll expenses covered by another Cares Act supported program such as PPP, EIDL, or from a local government entity (CDBG) may not also be reimbursed by this grant.

    Q: Where do I find my Indiana Secretary of State identification number?
    A: Please visit INBiz, Indiana’s one-stop resource for registering and managing your business, to locate your identification number: https://bsd.sos.in.gov/publicbusinesssearch.

    Q: I submitted an application. What happens next?
    A: Businesses will receive an email confirming receipt of the application. Please check your spam folder and/or add this email to your contacts to ensure you receive communications.

    All applications for small business restart grants will be reviewed and verified by representatives of the Indiana Economic Development Corporation.

    Q: How long will it take to be approved?
    A: We plan to review applications and notify applicants of their grant award status (approval or denial) within 14 days of receiving the completed application and required documentation. Please understand that timing of a decision on your application may fluctuate based on current demand or based on the quality and accuracy of information provided.

    Q: My business was approved for a grant. What happens next?
    A: After your small business restart grant is approved, it will move to processing, and you will be asked to choose whether you want your grant to be issued via wire or check. Our goal is to send funds within 3-5 days of approval, but please understand that timing may fluctuate based on current capacity.

  • Documentation

    Q: I have not yet filed taxes yet for 2019. Can I utilize a 2018 State of Indiana Tax Return instead?
    A: No. Eligibility criteria for grants is, among other things, based on 2019 revenues and profits, so businesses must be able to demonstrate 2019 figures. Businesses are encouraged to first file corporate (or personal, if sole proprietor) tax returns and payments by the July 15, 2020, deadline prior to applying for a small business restart grant. Home-based businesses must submit their full IRS 1040 along with all schedules.

    Q: My type of business entity does not submit State of Indiana Tax Returns (i.e. Sole Proprietor). Can I utilize a personal tax return instead?
    A: Yes, personal tax returns may be used as verification so long as it captures your business revenue.

    Q: How many months worth of expense documentation (i.e. paid mortgage statements, utility bills, lease payments for real or personal property) do I need to submit?
    A: Small businesses may be reimbursed for eligible expenses incurred between March - November 2020, and documentation of such expenses will need to be submitted for each month in which the business is seeking reimbursement.

    If you are applying for a small business restart grant prior to December 1, 2020, (or prior to November 1, 2020, for Marion County businesses), you may submit documentation for expenses already incurred prior to your application date, but you may not submit forward-looking statements or anticipated costs. If you are approved and receive grant funding, but do not reach the $10,000 maximum award, you may revisit your application at a later date to submit additional documentation for expenses incurred since first applying.

    Q: I don’t have access to some of the required documentation and/or I need help gathering required documentation for the application. Who can help?
    A: Please contact the Indiana Small Business Development Center nearest to you to meet with an advisor at no cost. Visit isbdc.org for a list of regional offices.

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