COVID-19 Recovery Center

Small Businesses

Small businesses are the backbone of New York City’s neighborhoods and it is vital they have the financial support to thrive after the pandemic. The federal and state governments have both established programs to help small businesses get back on their feet.

New York State Programs

The New York State Budget includes a $1 billion small business, arts, entertainment, and restaurant relief package to help businesses and other organizations recover from the pandemic.

The following programs are included as part of the relief package. This page will be periodically updated as more information becomes available.

• COVID-19 Pandemic Small Business Recovery Grant Program: This program provides $800 million in grant funding for small businesses including for-profit arts and cultural institutions impacted by the COVID-19 pandemic.
• New York Restaurant Resiliency Grant Program: This program provides $25 million in grant funding to support restaurants that provide meals to distressed and under-represented communities.
• Restaurant Return-To-Work Tax Credit: This program provides up to $35 million in tax credits to support restaurants hard hit by the pandemic through 2021.
• New York City Musical and Theatrical Production Tax Credit: This program provides up to $100 million in tax credits to jump start the industry and support tourism activity in the City.

Employee Retention Credit & Paid Leave Credit Programs

The American Rescue Plan extends critical tax benefits to help small businesses recover while maintaining payrolls and protecting health outcomes for employees.

Employee Retention Credit

The American Rescue Plan extends the availability of the Employee Retention Credit for small businesses through December 2021 and allows businesses to offset their current payroll tax liabilities by up to $7,000 per employee per quarter. This credit of up to $28,000 per employee for 2021 is available to small businesses that have seen revenues decline or have been temporarily shuttered due to COVID-19.

Businesses can learn more about the Employee Retention Credit here and here.

Paid Leave Credits

The American Rescue Plan extends through September 2021 the availability of Paid Leave Credits for small and midsize businesses that offer paid leave to employees for illness, quarantine, or caregiving.  Businesses can take dollar-for-dollar tax credits equal to wages of up to $5,000 if they offer paid leave to employees who are sick or quarantining.

Businesses can learn more about Paid Leave Credits here and here.

Restaurant Revitalization Fund

The American Rescue Plan Act established the Restaurant Revitalization Fund (RRF) to help restaurants and other eligible businesses keep their doors open.

Note: The Restaurant Revitalization Fund is currently closed and no longer accepting applications. The portal will reopen if funds are replenished by Congress.

Eligibility

Eligible entities that have experienced pandemic-related revenue loss include:

• Restaurants
• Food stands, food trucks, food carts
• Caterers
• Bars, saloons, lounges, taverns
• Snack and nonalcoholic beverage bars
• And the following types of businesses if onsite sales to the public comprise at least 33% of gross receipts:
  • Bakeries
  • Brewpubs, tasting rooms, taprooms, breweries, microbreweries, wineries and distilleries
  • Inns
  • Licensed facilities or premises of a beverage alcohol producer where the public may taste, sample, or purchase products

Priority will be given during the application process to small businesses that are at least 51 percent owned by women, veterans, or socially or economically disadvantaged. Applicants must self-certify on the application that they meet eligibility requirements.

• Socially disadvantaged individuals are those who have been subjected to racial or ethnic prejudice or cultural bias because of their identity as a member of a group without regard to their individual qualities.
• Economically disadvantaged individuals are those socially disadvantaged individuals whose ability to compete in the free enterprise system has been impaired due to diminished capital and credit opportunities as compared to others in the same business area who are not socially disadvantaged.

How to Apply

Restaurants can apply through SBA-recognized Point of Sale Restaurant Partners or directly via the SBA starting Monday, May 3rd.

Businesses will need the following documents when applying:

• Verification for Tax Information: IRS Form 4506-T, completed and signed by applicant. Completion of this form digitally on the SBA platform will satisfy this requirement.
• Gross Receipts Documentation using any of the following to demonstrate gross receipts and, if applicable, eligible expenses:
  • Business tax returns (IRS Form 1120 or IRS 1120-S)
  • IRS Forms 1040 Schedule C; IRS Forms 1040 Schedule F
  • For a partnership: partnership’s IRS Form 1065 (including K-1s)
  • Bank statements
  • Externally or internally prepared financial statements such as Income Statements or Profit and Loss Statements
  • Point of sale report(s), including IRS Form 1099-K

For applicants that are a brewpub, tasting room, taproom, brewery, winery, distillery, or bakery, documents evidencing that onsite sales to the public comprise at least 33% of gross receipts for 2019.

Amount

The Restaurant Revitalization Fund has set aside the following amounts of money:

• $5 Billion: $500,000 or less in 2019 Gross Receipts
• $4 billion: $500,001 to $1,500,000 in 2019 Gross Receipts
• $500 million: less than $50,000 in 2019 Gross Receipts

This program will provide restaurants with funding equal to their pandemic-related revenue loss up to $10 million per business and no more than $5 million per physical location. Recipients are not required to repay the funding as long as funds are used for eligible uses no later than March 11, 2023.

Funds may be used for specific expenses including:

• Business payroll costs (including sick leave)
• Payments on any business mortgage obligation
• Business rent payments (note: this does not include prepayment of rent)
• Business debt service (both principal and interest; note: this does not include any prepayment of principal or interest)
• Business utility payments
• Business maintenance expenses
• Construction of outdoor seating
• Business supplies (including protective equipment and cleaning materials)
• Business food and beverage expenses (including raw materials)
• Covered supplier costs
• Business operating expenses

You can learn more about the Restaurant Revitalization Fund here and here.

Shuttered Venue Operators Grant

The Shuttered Venue Operators Grant (SVOG) program was established to provide over $16 billion in grants to shuttered venues.

Eligibility

Eligible entities include the following categories of businesses that were in operation as of February 29, 2020:

• Live venue operators or promoters
• Theatrical producers
• Live performing arts organization operators
• Relevant museum operators, zoos and aquariums who meet specific criteria
• Motion picture theater operators
• Talent representatives
• Each business entity owned by an eligible entity that also meets the eligibility requirements

Amount

Eligible applicants may qualify for grants equal to 45% of their gross earned revenue, with the maximum amount available for a single grant award of $10 million. $2 billion is reserved for eligible applications with up to 50 full-time employees.

How to Apply

Small businesses can apply for the Shuttered Venue Operators Grant program using this SBA portal.

Those who have suffered the greatest economic loss will be the first applications processed under the following schedule:

• First 14 Days: Suffered 90%+ of revenue loss from April 2020 to December 2020
• Next 14 Days: Suffered 70%+ of revenue loss from April 2020 to December 2020
• After 28 Days: Suffered 25%+ of revenue loss between one quarter of 2019 and the corresponding quarter in 2020

Funds may be used for the following purpose:

• Payroll costs
• Rent payments
• Utility payments
• Scheduled mortgage payments (not including prepayment of principal)
• Scheduled debt payments (not including prepayment of principal on any indebtedness incurred in the ordinary course of business prior to February 15, 2020)
• Worker protection expenditures
• Payments to independent contractors (not to exceed $100,000 in annual compensation per contractor)
• Other ordinary and necessary business expenses, including maintenance costs
• Administrative costs (including fees and licensing)
• State and local taxes and fees
• Operating leases in effect as of February 15, 2020
• Insurance payments
• Advertising, production transportation, and capital expenditures related to producing a theatrical or live performing arts production. (May not be primary use of funds)

You can learn more about the SBA Shuttered Venue Grant here. Small businesses can apply for the Shuttered Venue Operators Grant program using this SBA portal.