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Vermont Emergency Economic Recovery Grant FAQs

The initial Economic Recovery Grant funding was provided by Act 115 and it will be administered by the Agency of Commerce and Community Development (ACCD Program) and the Department of Taxes (Tax Program).

Additional funding for the ACCD Program and the Tax Program as well as for sector specific programs focused on arts and culture organizations, as well as women- and minority-owned businesses has been made available through H.966. These businesses will use ACCD’s Economic Recovery Grant application to apply for those funds.

Additional funding for forestry businesses, outdoor recreation businesses, healthcare providers, childcare providers, summer camps, after school programs, local governments, housing organizations, and landlords is forthcoming. These programs will be administered by the relevant state agencies and more information about how to apply will be available soon.

Frequently Asked Questions

  1. Who is eligible for a grant from ACCD?
  2. How do I apply for a grant with ACCD?
  3. Can I get help applying for the grant?
  4. Are there any resources for women- and minority-owned businesses to get technical assistance in preparing their application?
  5. What if I don’t have all the information that’s needed for the application?
  6. I am having issues with my email address and password. How can I reset it?
  7. Can I partially fill out the application and return to it later?
  8. Is there a maximum grant amount?
  9. How is the grant calculated?
  10. What is an income statement?
  11. How do I create a monthly income statement?
  12. If I opened my business recently and do not have monthly revenue figures from March – June 2019, am I still eligible?
  13. Can I change my basis of accounting?
  14. Are grant funds taxed?
  15. Can my accountant fill out the application out for me?
  16. Is there a paper application?
  17. Which part of my tax return should I use to report revenue?
  18. If I am a nonprofit entity should I include revenue from all sources or only program services revenue?
  19. What can businesses use the grant funds for?
  20. Can I apply for an Economic Recovery Grant if I have lost income from a long-term tenant not paying rent on a leased property that I own?
  21. Can I apply for an Economic Recovery Grant if I have a loss of income from short-term or vacation rental property due to forced closure, reduced demand, or non-payment of rent due to the COVID-19 pandemic?
  22. Is there a time limit on when I can spend the grant?
  23. What is a NAICS code? Where do I find mine?
  24. Do nonprofit Arts and Culture organizations need to provide a NAICS code?
  25. What does the “one non-owner employee” requirement mean?
  26. Are sole proprietors eligible?
  27. What does the “50% or greater drop in total revenue” requirement mean?
  28. What does it mean to be in good standing with the Tax Department?
  29. What does it mean to be in good standing with the Secretary of State?
  30. Are non-Vermont companies eligible for a grant?
  31. What will happen if ACCD needs more information after I submit my application?
  32. Should I still apply for an ACCD grant if I received a PPP or EIDL loan or some other federal reimbursement?
  33. What happens if more eligible businesses apply than there are available funds for grants?
  34. What happens after I submit my application?
  35. How can I check the status of my application?
  36. How soon can I expect to receive the grant?
  37. Will information about my grant be released publicly?
  38. Are there other COVID-19 grants available from other state agencies?
  39. Where can I find additional resources that may be available for my business to help with the economic downturn from COVID-19?

Who is eligible for a grant from ACCD?

An eligible business will be a nonpublic, private organization that:

  1. Is domiciled or has its primary place of business in Vermont
  2. Has one or more non-owner employees in Vermont, with the exception that Women- and Minority-Owned businesses with zero employees are eligible for grants through ACCD
  3. Is an S corp, C corp, or LLC that, between January 1, 2019 and today, had at least one employee receiving income that is reported on a Form W-2. If you are the owner and you receive a W-2 you are eligible to apply.
  4. Was open and active before February 15, 2020
  5. Is open at the time of application, or is required to have closed due to COVID-19 restrictions but can certify to its intention to re-open when the COVID-19 restrictions are lifted
  6. Is not a business, nor a subsidiary of a business, nor owned by a business that reported more than $20,000,000 in total revenue
  7. Has experienced a 50% or greater drop in total revenue in any one-month period from March 1, 2020 to August 31, 2020, when compared with the same month in 2019
  8. Is not currently in Chapter 7 bankruptcy
  9. Is in good standing with the Vermont Department of Taxes
  10. Is in good standing with the Vermont Secretary of State
  11. Has not received a Vermont Emergency Economic Recovery Grant from another State of Vermont Agency or Department.
  12. Does not collect the Rooms and Meals Tax and/or Sales and Use Tax OR reports to the Vermont Department of Taxes on these taxes only on an annual basis (usually because of small collection amounts)

Full list of FAQs


How do I apply for a grant with ACCD?

You can apply by accessing a link to the application on the Economic Recovery Grants page.

Full list of FAQs


Can I get help applying for the grant?

If you need help, you can reach out to us using our "Economic Recovery Grants Live Chat" feature located on each webpage associated with the Economic Recovery Grants, or by calling 802-828-1200. We ask for your patience regarding any delays in responses or call wait times due to expected high volumes of applications and questions.

Full list of FAQs


Are there any resources for women- and minority-owned businesses to get technical assistance in preparing their application?

Yes. If women- and minority-owned businesses need assistance completing an application or gathering the necessary documents, help is available from the Vermont Partnership for Fairness and Diversity and the Center for Women & Enterprise.

Full list of FAQs


What if I don’t have all the information that’s needed for the application?

We strongly recommend you gather the following information before you start an application with ACCD. All documents must be in PDF format:

  1. Information on your W-9
  2. Federal and state tax returns for 2019 (or the most recent year filed). Nonprofit organizations do not need to supply state tax returns but will need to provide their Federal Form 990 or Form 990-EZ.
  3. Income statements month by month for 2019 and 2020 (YTD)
  4. Vermont employer identification number (7-digit number used for Vermont Department of Labor filings). Providing this number is not required, but helps populate some of the application required fields.
  5. Federal Employer Identification Number (FEIN)
  6. Contact information for the individual responsible for the application

If you are applying for a grant with the Department of Taxes, these documentation requirements do not apply.

The ACCD application should take about 10-15 minutes to complete if you have all your materials ready. Grants will be awarded on a first come, first served basis, so having everything you need to apply ready when the you begin the application is very important.

It is important to enter in ALL required information CORRECTLY upon applying. The business name on your application must match the business name on your federal tax filings. Any improperly submitted applications will be categorized as incomplete. If edits are required (email address, incomplete documents, incorrect business ID information) you will receive an email with instructions for you to make those required edits, and you will need to resubmit your application. Please note that the documents that you upload will be used by ACCD to verify the accuracy of the entries on your application. Any discrepancies may impact your eligibility and/ or the amount of your ultimate award.

Full list of FAQs


I am having issues with my email address and password. How can I reset it?

You will be required to create a user ID based on your email address and password when applying. It is very important that you enter your email address correctly. If you need to reset your password, click on “Forgot Password.” An email will be sent to the address you provided with instructions on how to reset your password. If you type in your email incorrectly, you won’t get that email and won’t be able to reset your password.

If you receive an error message when you first apply that your email address has already been registered, and you have not be able to to successfully reset your password using the "Forgot Password" link, we would recommend signing up for a new free email account to use to apply given the first come, first served nature of this application process.

Full list of FAQs


Can I partially fill out the application and return to it later?

Yes. You will be required to create a user ID and password when applying. You will use those credentials to access your application should you need to return to it later. The application will remain in an “unsubmitted” status until it is completed and submitted.

Full list of FAQs


Is there a maximum grant amount?

Yes. The maximum grant amount is $50,000.

Full list of FAQs


How is the grant calculated?

If you qualify for a grant, your grant will be 10% of your total revenue as reported on tax returns for calendar year 2019, less any business interruption insurance. The maximum grant is $50,000. Businesses with more than $20,000,000 in total revenue in calendar year 2019 are not eligible for a grant.

Full list of FAQs


What is an income statement?

An income statement, also called a profit and loss, P & L, or statement of revenue and expense, shows (1) the revenues/sales before expenses/deduction, and (2) the business expenses/deductions for a specific period of time. The revenue minus the expenses equals the net profit or loss for that period of time. An income statement report should use either cash basis or accrual basis. You may use accounting software, spreadsheets, or other document programs to prepare an income statement. The tool used is less important than the format. The format should be, listed from top down: revenue first, expenses next, and net profit or loss lastly.

Full list of FAQs


How do I create a monthly income statement?

Refer to "What is an income statement?" for the accepted format. Multiple periods, such as twelve months, may be shown on one income statement report, as long as there are columns for each same length of period listed horizontally, with a total column on the far right for all periods on the report. So a twelve-month income statement report would have thirteen (13) columns: January, February, March, etc. through to December, as well as a total for all twelve months.

Full list of FAQs


If I opened my business recently and do not have monthly revenue figures from March – June 2019, am I still eligible?

No. Businesses that claim a reduction in revenue for any month from March – June 2020 must have monthly income statements for the same period in 2019 for comparison purposes and to calculate the grant award. Businesses that did not have income or were not open for that period in 2019 are not eligible.

Full list of FAQs


Can I change my basis of accounting?

Monthly financial statements must be consistent views. Cash basis for one year and accrual basis for the other will not be accepted.

Full list of FAQs


Are grant funds taxed?

Yes. Businesses that receive grants will be sent a Form 1099 that is reported to the IRS and Vermont Department of Taxes as income.

Full list of FAQs


Can my accountant fill out the application out for me?

Yes. A third partly like an accountant can fill out the application on behalf of a business client if authorized to do so by the business. Businesses must certify to several attestations in the application. Applicants can also add additional contacts to the application (for example, your CFO or general counsel or attorney); these additional contacts can access and edit the application.

Full list of FAQs


Is there a paper application?

At this time we are not accepting paper applications. Applicants without internet or computer access can get help filling out the application by contacting their local regional development corporation.

Full list of FAQs


Which part of my tax return should I use to report revenue?

  • Partnerships: Form 1065 – Line1c
  • Sole proprietorships: Form 1040, Schedule C – Line 2
  • C-corporations: Form 1020 – Line 1c
  • S-Corporations: Form 1020-S – Line 1c
  • Non profits: Form 990, Line 9 or Form 990 EZ, line 2
  • Estate and Trusts (filing Federal Form 1041): Schedule C, line 2
  • Sole proprietors with rental income: Form 1040, Schedule E

Full list of FAQs


If I am a nonprofit entity should I include revenue from all sources or only program services revenue?

Nonprofit applicants should only include their revenue from Program Services and not include revenue received from grants and/or tax deductible donations. Program service revenue includes the reported value on Line 9 of the 990 (Line 2 of the 990EZ) and also includes memberships, and other revenues that result directly from activities and services provided by the nonprofit. It does not include grants, investment income or tax-deductible donations.

Full list of FAQs


What can businesses use the grant funds for?

The Vermont Economic Recovery Grants are being issued to help provide economic support to your business, which has been impacted by decreased customer demand due to the COVID-19 public health emergency. The funds can be used both to pay necessary expenditures that your company incurs and costs directly associated to your business’ response to COVID-19. These grant funds should not be used for expenses that were covered by funds received from other federal sources. These funds should only be used for expenses that were incurred after that period for which federal funds were used. Please review additional guidance regarding duplication of benefits.

Full list of FAQs


Can I apply for an Economic Recovery Grant if I have lost income from a long-term tenant not paying rent on a leased property that I own?

No, a separate Rental Assistance Program will provide payments to landlords and property owners for missed rent payments for tenants with a long term lease. The Rental Assistance Program will be administered by the Vermont State Housing Authority and is expected to be available starting July 13th. 

Full list of FAQs


Can I apply for an Economic Recovery Grant if I have a loss of income from short-term or vacation rental property due to forced closure, reduced demand, or non-payment of rent due to the COVID-19 pandemic?

Yes.

Full list of FAQs


Is there a time limit on when I can spend the grant?

Yes. Eligible businesses must certify that they will spend grant funds by December 30, 2020.

Full list of FAQs


What is a NAICS code? Where do I find mine?

The North American Industry Classification System (NAICS) is used by the United States, Canada, and Mexico to classify businesses by industry. Each business determines its six-digit NAICS code number based on the majority of activity at the business. When you file your federal income taxes, you provide a “business code” that is based on the NAICS number and the information for your business tax filing includes a table of those codes.

Full list of FAQs


Do nonprofit Arts and Culture organizations need to provide a NAICS code?

Yes, a NAICS code is required on all applications for ACCD to properly identify the sector of each businesses or organization. Nonprofit organizations should choose the NAICS code closest to the majority of their operations.

For Arts and Culture organizations, please use one of the following NAICS codes: 519120 Libraries and Archives // 712110 Museums // 712120 Historical Sites // 712130 Zoos and Botanical Gardens // 711190 Other Performing Arts Companies // 711120 Dance Companies // 711110 Theater Companies and Dinner Theaters // 611610 Fine Arts Schools (non-academic) // 711310 Promoters of Performing Arts, Sports, and Similar Events with Facilities // 711320 Promoters of Performing Arts, Sports, and Similar Events without Facilities.

Full list of FAQs


What does the “one non-owner employee” requirement mean?

Businesses must have at least one employee to be eligible for an Economic Recovery Grant. This means any business that has had at least one part- or full-time employee at any point between January 1, 2019 and March 31, 2020 is eligible. The employee must be a “W-2 employee,” meaning your business issues them a W-2. They do not need to be a full-time employee. If you hire services through a contractor and provide them a 1099, they are not considered an employee.

If your business is an S corp, or C corp, or LLC that, between January 1, 2019 and today, had at least one employee receiving income that is reported on a Form W-2, you are eligible. If you are the owner and you receive a W-2 you are eligible to apply.

Full list of FAQs


Are sole proprietors eligible?

If you are a sole proprietor and you alone work at your business, you will not be eligible for a grant. However, if a sole proprietor business is 51% or more women- or minority-owned, then it will be eligible for funding. Applicants will be asked in the application if their business is 51% or more women- or minority-owned.

Sole proprietors and other businesses without a “W-2” employee and located outside of Burlington may instead qualify for a grant via the Sole Proprietor Stabilization Program. The initial round of funding for the Sole Proprietor Stabilization Program is now closed. Another tranche of funding is expected to be released soon.

Full list of FAQs


What does the “50% or greater drop in total revenue” requirement mean?

Economic Recovery Grants require businesses to demonstrate at least a 50% loss in total revenue for any one-month period from March 1st, 2020 through August 31st, 2020, compared to the same month in 2019. Businesses will be required to document this loss by the upload of monthly income statements demonstrating a loss for one of the months: March, April, May, or June. If your 50% or greater loss in revenue will not happen until July or August, you will need to wait until the loss is suffered before you can apply.

Full list of FAQs


What does it mean to be in good standing with the Tax Department?

Good standing for your business means that all required tax returns are filed and that all taxes are paid, OR if you owe any taxes that are past due, you are in a payment plan for those taxes. If you have any unpaid taxes for your business, you can call (802) 828-2518 to request a payment plan. Any taxpayers who are not in good standing will be deemed ineligible for the grant.

Full list of FAQs


What does it mean to be in good standing with the Secretary of State?

To be considered in good standing means a business can confirm it is compliant with all legal requirements to retain sole rights to its business name, and the authority to conduct business under its business name within the state of Vermont. A Certificate of Good Standing is not required to fill out the application.

Full list of FAQs


Are non-Vermont companies eligible for a grant?

Act 115 requires that eligible businesses have their domicile or primary place of business in Vermont. Generally, if your business is headquartered in Vermont, you will be eligible, and if your business is not headquartered in Vermont, you will not be eligible. If you are headquartered out of Vermont but believe your primary place of business is Vermont, please contact us using our "Economic Recovery Grants Live Chat" feature located on each webpage associated with the Economic Recovery Grants, or by calling 802-828-1200. If the business operates in more than one state, to determine the principal place of business several factors are considered, including where the management of the business functions, where books and records are kept, and where the senior officers conduct central business affairs.

Full list of FAQs


What will happen if ACCD needs more information after I submit my application?

A reviewer will review your application and the documents you uploaded for accuracy and to ensure all necessary information was provided. If your application is complete and accurate, it will be forwarded on for approval. If anything is missing or inaccurate, your application will be given a status of Incomplete. You will receive an email explaining what’s missing or inaccurate. You can resubmit your application with the corrected and/or new information. Your application would not lose its place in the queue, but if questions still remain a reviewer will again mark your application as Incomplete and you will receive another email containing details about what needs to be addressed.

Full list of FAQs


Should I still apply for an ACCD grant if I received a PPP or EIDL loan or some other federal reimbursement?

Yes. ACCD and the Department of Taxes are providing the Vermont Emergency Economic Recovery Grants to provide economic support to those businesses in Vermont that have suffered costs and/or economic losses as a result of the COVID-19 public health emergency. There are several other sources of support available for businesses, including (but not limited to) the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). The State recognizes that these other programs only cover a portion of the costs and/or lost revenues that businesses face as a result of COVID-19, and believes that it has appropriately designed the program to provide support beyond these programs that addresses the portion of costs/lost revenues not covered by other sources of funding.

Full list of FAQs


What happens if more eligible businesses apply than there are available funds for grants?

ACCD will issue grants on a first come, first served basis until the available grant funds are exhausted. We can consider an application complete only if it has all the information needed to verify eligibility. For this reason, it is critical to ensure when you apply that you have all the required information to upload, and the information you type into the application is accurate. If your application ends up delayed because of inaccurate information or incomplete filing, it will not reserve your place in line for funds.

Full list of FAQs


What happens after I submit my application?

Your application will be added to the queue and reviewed by ACCD in the order it was received. An ACCD staff member will reach out to you at the contact information you provided if there are questions about your application. You will be notified of the decision as soon as practicable. 

Full list of FAQs


How can I check the status of my application?

Using the username and password you set up when you created your account, you can log in to the application portal to find the status of your application at: vermont.force.com/economicrecovery/s/login/

Full list of FAQs


How soon can I expect to receive the grant?

All payments will be made in check form. Checks will be issued weekly. The funds will be disbursed as soon as practicable. If you have not received your check within a month of your application approval please contact us using our "Economic Recovery Grants Live Chat" feature located on each webpage associated with the Economic Recovery Grants, or by calling 802-828-1200.

Full list of FAQs


Will information about my grant be released publicly?

Yes. Act 115 requires that ACCD publish a report to the Vermont Legislature on or before August 15th that includes the amounts granted and identities of individual grant recipients. That information will be made publicly available. The tax information that you submit to support the application will not be made available to the Legislature or the public.

Full list of FAQs


Are there other COVID-19 grants available from other state agencies?

Yes.

Businesses may receive only one grant from any of these sources.

Full list of FAQs


Where can I find additional resources that may be available for my business to help with the economic downturn from COVID-19?

For the most up to date information on all available programs statewide, we recommend frequently checking the COVID-19 Recovery Resource Center.

Full list of FAQs

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