State Small Business Relief Grant Program
State of Colorado Department of Local Affairs and Jefferson County Small Business Relief Program
Governor Jared Polis signed into law Senate Bill 20B-001 on Monday, December 7, 2020. The bill provides $57 million in direct aid, grants, and annual fee waivers to struggling small businesses and also creates grant programs and allocates funds specifically for art and cultural organizations as well as minority-owned businesses.
Multiple state agencies are working with local government associations and governments, regional councils of governments and economic development agencies and nonprofit distributors on eligibility, applications and distribution.
The State of Colorado has allotted $37 million for direct relief payments to small businesses located in an eligible county that is subject to, and in compliance with, severe capacity restrictions pursuant to public health orders. Jefferson County has applied to the State of Colorado, and if awarded the grant, Jefferson County desires to distribute the small business relief grant payments to eligible small businesses. The amount the State of Colorado has allocated to Jefferson County for this program has yet to do be determined.
The State of Colorado has set certain dollar limits for the small business grants under this program. Small businesses are eligible for up to a maximum $7,000 grant as set forth below:
- Receipts less than $500,000 = a grant up to $3,500
- Receipts greater than $500,000 but less than $1 million = a grant up to $5,000
- Receipts greater than $1 million but less than $2.5 million = a grant up to $7,000
In no event will any grants be greater than $7,000, and depending on the number of applicants and funding received from the state, maximum grant amounts may be lower than indicated above. If, and only if, Jefferson County makes payments to all eligible entities that have applied and has funding left over, then Jefferson County may give awards to small businesses that had receipts greater than $2.5 million in 2019, as long as those small businesses still meet the other eligibility requirements.
The application period will open on Monday, Jan. 4 and closes on Monday, Jan. 25, at 6 p.m. (MST). Relief payments will be distributed by Jefferson County no later than Feb. 12, 2021.
Small Business Definition
For the purposes of this program a small business is defined as a Corporation, LLC, partnership, sole proprietor, having at least one full-time employee, headquartered, and doing business in the State of Colorado. Exception to having one full-time employee is a sole proprietor.
Eligible small businesses are those that meet the following criteria:
- Must belong to one of the following business types all as more particularly set forth in C.R.S. 24-32-129:
- Restaurants (establishments holding hotel/restaurant license)
- Bars with established liquor license (establishments include wineries, breweries, taverns, brewpubs, clubs, gaming tavern, arts license, lodging and entertainment, racetrack, hotels/restaurants, vintner’s restaurant, distilleries)
- Movie theaters
- Fitness and recreational, sports centers
- Must be located in Jefferson County and currently operating in the State of Colorado.
- Must have a minimum of one full-time employee OR is a sole proprietorship.
- Must certify intent to remain in operation for at least six months.
- Must have been in operation prior to Jan. 1, 2020, or have started operations on or after Jan. 1, 2020 and on or before Mar. 26, 2020.
- Must demonstrate 20% revenue loss (compared against 2019 gross receipts) OR must be a business that opened between Jan. 1 and Mar. 26, 2020. Revenues will be assessed through 2019 and 2020 sales tax submissions to the State of Colorado.
- Must have a valid business license and be in good standing with issuing agency or have a certificate of good standing with the Colorado Secretary of State.
- Cannot also receive funding from the State of Colorado “Arts Relief Program” or the “Minority Owned Business Relief Program” as established in Senate Bill 20B-001.
- Cannot be incorporated as a nonprofit organization or an independent contractor.
Information and Documentation Required to Apply
- Completed Online Application Form
- W9 Form
- 2019 and 2020 Sales Tax Submission to the State of Colorado
- Certificate of Good Standing with the Colorado Secretary of State
- Business License
- NAICS Code (NAICS codes can be found on the NAICS website)
For further questions, contact: