Massachusetts Growth Capital Corporation Grant Opportunity

The Seaport team at WS Development are reaching out to inform neighbors of the Massachusetts Growth Capital Corporation (MGCC) Grant. Massachusetts based businesses could potentially benefit up to $75K in grant monies if eligible. This grant application closes on January 15th.

 

MGCC Program Overview

The Commonwealth of Massachusetts has made an additional $668 million available to support businesses through new and existing programs. Massachusetts Growth Capital Corporation (MGCC) will target a portion of these funds to sectors experiencing the most significant economic hardship and a loss of revenue due to the COVID-19 pandemic.

 

Application Link:

Link: https://massgcc4.submittable.com/submit

 

Who Should Apply:

·    Restaurants, bars, caterers, and food trucks that collect and remit meals tax

·    Indoor Recreation or Entertainment Establishments

·    Indoor entertainment establishments (e.g. movie theaters, comedy clubs, performing arts venues/organizations)

·    Indoor recreation (e.g. arcades, bowling centers, pool/billiard halls, escape-the-rooms, trampoline parks, roller-skating rinks)

·    Indoor spectator sports venues

·    Other indoor recreation or entertainment venues

·    Gyms or Fitness Centers

·    Gyms, athletic clubs, exercise centers, health clubs

·    Sports facilities (e.g. tennis clubs, racquetball clubs, hockey rinks, swimming facilities)

·    Fitness instruction centers (e.g. aerobics, dance, yoga, karate, etc.)

·    Other gyms or fitness centers

·    Personal Services

·    Nail salons, barbershops, etc.

·    Independent pharmacies 

·    Event Support Companies - primary source (more than 50%) of revenue is event-related

·    Photography studios, videography studios, florists, limo services, event planning companies, event rentals, performers, convention and trade show organizations

·    Independent Retailers

·    Businesses with brick and mortar locations that collect and remit sales tax

 

 Who Should Not Apply:

To ensure that these limited funds get to the most severely impacted businesses, you SHOULD NOT APPLY if you:

·    are not showing an operating loss due to the coronavirus pandemic

·    have access to other sources of relief

·    have been able to continue to operate without significant financial distress

·    have adequate available reserves

·    larger companies that are better positioned to endure this economic downturn and COVID-19 related restrictions

 

Timeline:

12/31/2020 at 12:00 PM – Application opens.

01/15/2021 at 11:59 PM – Application closes.

  

Amount of Funding:

Businesses can receive up to $75,000 but capped at up to 3 months of operating expenses, as evidenced by 2019 Federal Tax Returns. Grant amounts will be considered for actual expenses for 2020 during the pandemic. Expenses can be considered since March 10, 2020, given that it does not exceed 3 months of operating expenses evidenced by 2019 Federal Tax Returns.

 

Award Process:

After the application period closes, Massachusetts Growth Capital Corporation (MGCC) will review all applications to determine eligibility. MGCC will award and disburse grants based upon eligibility criteria and preference prioritization.

 

Approved Use of Funds:

Employee payroll and benefit costs, mortgage interest, rent, utilities, and interest on other debt obligations.

·    The business will not apply the funds granted in response to this application to any expense that has been or will be covered by any other source of federal or state funding including, but not limited to, Paycheck Protection Program loans, Economic Injury Disaster Loans, Community Development Block Grants, or any other source of federal or state aid.

·    The business will collect and retain sufficient documentation to demonstrate that the expenses delineated in this application were incurred within the eligibility limits and established for the Sector-Specific Relief Grant Program. Documentation includes, but is not limited to, receipts, invoices, purchase orders, contracts, contemporaneous memoranda, or other relevant materials.

 

Non-Approved Use of Funds:

Major equipment purchases, purchase of real property, construction activities, business expansion, lobbying. Also, grantees must prevent the duplication of benefits, which means these grant funds may not be used to pay expenses if another source of financial aid has paid that same expense.

 

*If a person owns multiple businesses and submits an application for each business, MGCC may reserve the right to limit proceeds to a business owner.

**If your business successfully applied for and received a grant from MGCC’s previous grant programs, the same business location may not apply to this program.

 

 

Requirements:

·    Business must have a physical establishment in Massachusetts and be based in Massachusetts.

·    Business must be a for-profit entity (sole proprietorship, partnership, corporation, cooperative or LLC).

·    Business must be able to document a loss of income equal to or greater than requested assistance due to COVID-19 pandemic.

·    Business must be currently in operation or if not in operation must have an intent to reopen.

·    Business must have been established prior to 06/30/2019.

·    Business must be in good standing with the state and city/town:

·    Business must be current on all taxes due through 3/1/2020; and

·    Have active and valid state licenses/registrations, if applicable; and

·    Ineligible businesses:

·    Real estate rentals/sales businesses;

·    Businesses owned by persons under age 18;

·    Businesses that are chains (chains are defined as businesses not headquartered in Massachusetts with multiple locations);

·    Franchisees;

·    Liquor stores;

·    Lobbyists;

·    Cannabis-related businesses; or

·    Non-profit organizations

 

Required Documentation: 

·    A complete copy (all schedules) of your filed 2019 Federal Business Tax Return as submitted to the IRS. If you file Schedule C income, please upload that document in place of a Business Tax Return.

·    A complete copy (all schedules) of your filed 2019 Federal Personal Tax Returns as submitted to the IRS for each business owner with 20% or greater ownership

·    A copy of your License to Operate/Business License/Professional Certification, if applicable

·    Completed and signed IRS W-9 Form for your business

·    If your business is a LLC, Partnership or Corporation:

·    A copy of your Certificate of Good Standing from the Massachusetts Secretary of State’s office.

·    If your business is a Sole Proprietorship:

·    A copy of your Business Certificate (DBA) from the city/town in which your business operates

·    A copy of the business owner's valid photo identification (ID). This ID must match the business owner who is an authorized signer that signs this application. Please submit a photocopy of the front and back of the ID.

·    Examples include (submit one): State-issued driver's license/ID card, U.S. Passport book or card, or other valid, state or federal issued photo ID