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1. How is the Coronavirus Relief Fund (CRF) being funded?

The U.S. Department of Treasury, as authorized under the Coronavirus Aid, Relief, and Economic Security (CARES) Act, established a $150 billion relief fund to aid states, local, and tribal governments with populations over 500,000 people in their efforts to respond to the nationwide public health emergency caused by the coronavirus pandemic and COVID-19 outbreak. Funding has been allocated from Treasury to the State of Minnesota, and, in turn, the City of Blaine as pass-through funds. Based on eligibility, small businesses physically located within the City of Blaine are eligible to apply for funding.

2. What types of business are eligible to apply for the City of Blaine’s small business grant program?

In order to apply, businesses must meet the following criteria:

• Must have a brick and mortar physical location within Blaine.
• Must be in good standing with the Minnesota Secretary of State and the Minnesota Department of Revenue as of January 1, 2020.
• If required by either the state, county, or city, must be licensed and in good standing.
• Must be current on property taxes as of March 1, 2020.
• Must have less than a total of 50 part-time and full-time employees, including the owner, as of January 1, 2020. This requirement is waived for nonprofit organizations. 
• Business directly impacted by COVID-19.
• Must disclose all federal, state, or local grant or loan applications for which applicant has applied which has been received or remain pending at the time of application.
• Must certify in good faith that the uncertainty of current conditions makes the grant request necessary to support ongoing operations.
• Business directly impacted by Minnesota Governor‘s Emergency Executive Orders 20-04 and 20-08.
• Applicant may be a sole proprietor.
• Applicant may be a nonprofit organization.

3. What types of business are ineligible to apply for the City of Blaine’s small business grant program?

Ineligible businesses include:

• Multi-state chains are generally ineligible except for locally owned franchisees.
• A self-employed contractor or gig-worker (ex. Uber drivers, Instacart shoppers, Doordash food delivery drivers, etc.) eligible for COVID-19 Pandemic Unemployment Assistance (PUA).
• Businesses that primarily derive income from gambling, adult entertainment, pawned merchandise, guns.
• Sole-proprietors who do not employ any employees except for themselves, the business owner.
• Government entities and/or departments.
• Businesses suspended or debarred from doing work with the federal government.
• Businesses that derive income from passive investment; real estate transactions; property rentals or property management; billboards or lobbying.
• Home-based businesses (ex. Mary Kay, Avon, etc.), with the exception of daycare providers.

4. My small business employs one or more individuals on a part-time or seasonal basis. Are we eligible to apply?

Businesses must have had at least one (1) full-time employee and/or one (1) part-time employee (including the owner) prior to March 1, 2020 in order to be eligible for the City of Blaine small business grant program. For the purpose of this grant program, the business must have less than 50 full time equivalent (FTE) employees.

5. My small business does not have a physical location in the City of Blaine, but the majority of the clients/customers Blaine residents. Can we apply?

Businesses must have a physical location in the City of Blaine. The City of Blaine will use legal documents to verify addresses of businesses that apply for this grant.

6. My small business only operates on a seasonal basis, not year-round. Are we eligible to apply?

Yes. Businesses must have had at least one (1) full-time employee and/or one (1) part-time employee (including the owner) prior to March 1, 2020 in order to be eligible for the City of Blaine small business grant program.

7. How many employees must I employ to be eligible to apply?

Businesses that employ less than 50 full-time equivalent employees, including the owner, are eligible to apply. Nonprofit organizations may employ more than 50 FTEs.

8. Are daycare providers, either for profit or nonprofit, able to apply?

Daycare (“childcare”) and home-based daycare providers are eligible for funding under this grant program.

9. My business is a nonprofit. Are we eligible to apply?

Nonprofit organizations, including all 501(c) entities: ex. 501(c)(3) – 501(c)(29), are eligible for funding under this grant program.

10. How do I determine the number of full-time equivalent employees my business must employ to determine grant eligibility and award amount?

Number of full-time equivalent employees is determined by the total number of permanent full-time employees plus total number of full-time equivalents (FTE) as of March 1, 2020. Employees are defined as any compensated staff (not an independent contractor). To simplify your calculation of FTE for this grant program, please use the guidelines below. The city understands that calculating FTE can be difficult and are asking applicants to make their best approximation of FTE based on the guidelines below.

• A full-time employee is one that is employed by a business for a minimum of 35 hours/week over a minimum of 48 weeks a year, or 1,680 hours per year. These employees often have standard fringe benefits paid by the business for the employee. Count these employees as 1 FTE.
• For any employee who worked between 1,260 and 1,679 hours annually, county them as 0.75 FTE.
• For any employee who worked between 421 and 1,259 hours annually, count them as 0.5 FTE.
• For any employee who worked fewer than approximately 420 hours annually, count them as 0.25 FTE.
• This requirement is waived for nonprofit organizations.

11. I own multiple business locations and my IRS 941 will show more than 50 employees. Can I apply for this grant?

You are eligible to apply for this grant if the location(s) of your businesses located within the City of Blaine employ less than 50 full-time equivalent employees, including the owner.

12. Are there limits on how the grant can be used?

Blaine’s small business grant program provides funding to assist small businesses facing financial hardship and/or business interruption due to the COVID-19 pandemic with financial assistance for necessary expenditures. Eligible expenses include:  

• Commercial lease or mortgage payments (not mortgage prepayments or property taxes) for business properties.
• Accounts payable (AP) if the AP is a COVID-19 related expense incurred since March 1, 2020.
• Payroll, unless the business received Paycheck Protection Program (PPP) funds or pandemic unemployment insurance (UI) to cover the same period payroll expenses.
• Reopening costs or safety improvement costs expended since March 1, 2020 (i.e. outdoor seating, plexiglass, cleaning products, re-staffing costs, etc.).
• Non-government operating utilities or fees for those facilities interrupted or forced to shut down incurred after March 1, 2020.
• Costs associated with screening employees for COVID-19 upon business reopening.
  
  

13. Can I apply for more than the $10,000 award ceiling?

Grants will not exceed $10,000 to cover eligible expenses incurred due to the COVID-19 pandemic after March 1, 2020.

14. What types of expenses are ineligible for this grant program?

Ineligible expenses include the following:

• Lobbying for any purpose.
• Payment of partial mortgage/utility costs based on IRS rules for home-based businesses.
• Certain taxes and fees including those that are considered revenue for federal, state, or local governments.
• Replacement of lost revenue.
• Line of credit to purchase supplies/equipment.
  
  
  

15. Will this grant be considered taxable income?

Yes. Please see IRS guidance. The City of Blaine will be responsible for issuing a 1099 for tax reporting purposes.

16. How will awardees be selected to receive funding?

Applications will be ranked according to how well applicants address the program criteria as noted in the RFP. Awards will be made to applicants that submit a complete application and meet the minimum program criteria. Please note that not all applicants will be funded.

The City of Blaine intends to review and approve awards for several weeks after the application period closes. Award notifications will be made on or around October 14, 2020.