August 18, 2020

Grants Now Available for Cobb County Businesses

The Paycheck Protection Program (PPP) has been an essential source of funding and capital for Atlanta businesses working through the COVID-19 pandemic. Although the program’s popularity seemed to dwindle in recent weeks, the Small Business Administration reported that over 174,000 loans totaling $14.6B have been issued to Georgia companies. Astounding numbers that reflect the depth of the crisis and popularity of the program. Unfortunately, as of August 8, 2020, no additional PPP loan applications are being accepted. This means businesses seeking financial assistance have one less option available to assist. However, the good news is Cobb County has received a second round of funding and will again begin accepting applications for the SelectCobb Small Business Relief Grants. Awarded grants can be used towards personnel, rent, utilities, and acquiring personal protective equipment (PPE). Since this is not a first come first serve application process, all eligible applications will be considered. To help clients, prospects, and others, Wilson Lewis has provided a summary of the key details below.

Program Structure & Requirements

To ensure that applicants of various sizes can receive funding, the program uses a tiered approach based on company size (by employee) Businesses with 1-10 employees can receive up to $20,000, 11 to 50 employees up to $30,000, and 51 to 100 employees up to $40,000.  

It is also important to note applicants are required to used grants for specific purposes. Although each applicant is required to identify how they will use the funds, below is a general outline for fund usage.

• No less than 60% can be spent on staff for rehiring or maintaining full-time W-2 employees.
• Only 40% of funds may be used to manage COVID-19 business-related impacts and costs including rent, lease and equipment rental, business utility payments, inventory, marketing, PPE, and other items as necessary to ensure customer safety.

Eligibility Requirements

To be considered eligible for the grant program, the following requirements must be met, including:

• Applications must be submitted before August 21, 2020, at 5 pm.
• Businesses must be an existing for-profit, nonprofit, partnership, or sole proprietorship.
• The applicant’s headquarters or primary business location must be within Cobb County. A business may be home-based or located in a leased commercial space.
• The business must have 100 or less full time (W-2) employees or 1099 contractors that work at least 30 hours per week or 130 hours per month.
• The application must have been in continuous operation for a minimum of 1 year prior to March 13, 2020.
• The business must have a current business license issued by the Cobb County government or by the Cities of Acworth, Austell, Kennesaw, Marietta, Powder Spring, or Smyrna.
• Applicants must be current on all local taxes.
• Certification must be completed by each applicant disclosing whether they have received PPP funding and the amount received.
• Ineligible companies include publicly held organizations, gambling institutions, pyramid investments, real estate investment firms, and adult entertainment businesses.

Application Documentation

There are several pieces of documentation that need to be submitted along with the formal application.

• Copies of the 2019 business tax return or financial statements including the balance sheet and profits and loss statements.
• Copies of the 2018 business tax return
• Q4 2019 and Q1 2020 IRS Form 941
• Copies of the payroll register that included 3/1/2020 and the latest payroll report as of the application date.
• Copies of both the current business license and the Certificate of Organization/Certification of Existence from the Georgia Secretary of State.

Contact Us

This small business grant is an intriguing option for businesses looking for additional resources to manage the pivot from survival to recovery. Since the application acceptance date is quickly approaching it is important to consult with a qualified advisor to help manage the process. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call us at 770-476-1004 or click here to contact us. We look forward to speaking with you soon.