Loudoun Commits $5.7M of CARES Act Funding To Replenish COVID-19 Business Interruption Fund

business interruption fund

The Loudoun County Board of Supervisors unanimously approved $5.7 million in additional grant funding for the COVID-19 Business Interruption Fund, to support small businesses adversely impacted by the coronavirus pandemic. This funding was allocated from the $36.1 million in federal funding made available to the county through the Commonwealth of Virginia from the Coronavirus Aid, Relief, and Economic Security Act.

This funding follows an initial round of applications for the Business Interruption Fund that distributed $1.4 million in grants to more than 200 randomly selected applicant businesses that met the requirements for three different tranches based on employee count.

The second round of funding will devote $3.7 million to fully fund the first round, distributing grants of $7,500 to the remaining 487 eligible businesses that were not randomly selected in a drawing on May 8. Those new grant recipients will be notified immediately on their selection and next steps.

Additionally, the Board of Supervisors allocated $2 million for a third round of funding, which will be opened to provide 400 randomly selected applicant businesses with a $5,000 grant. Applicants must demonstrate the following criteria:

  • Have between zero and two W-2 employees (no limit on 1099 contractors);
  • Have less than $2.5 million in gross annual receipts;
  • Have at least a 25% loss in revenue that can be attributed to COVID-19;
  • Be a licensed and operational for-profit business in Loudoun County, Va.

The fund will open for applications at noon on June 3, 2020, and remain open for 72 hours, closing at noon on June 6, 2020. All submissions will be accepted based on the time stamp that the application was received, verified by county employees, and placed into a pool, where businesses will be randomly selected until the funding has expired. More information can be found at LoudounBusinessFund.org.

“The Board of Supervisors wanted to be responsive to the feedback we received from solo entrepreneurs and small enterprises that were left out of the first round of funding. We’re excited to offer this financial lifeline to thousands of additional businesses in the next round,” said Loudoun County Board of Supervisors Chair at Large Phyllis Randall. “As we look ahead to recovery, we’re taking the steps to get through this crisis and rebuild our economy.”

The Board of Supervisors also allocated $1.15 million from the CARES Act funding to replenish the county’s Commercial Business Incentive Fund and Rural Business Incentive Fund and directed the Department of Economic Development to consider future rounds of recovery funding.

In total, the $6.85 million earmarked by the Board of Supervisors and the $250,000 contributed by the Loudoun Economic Development Authority to the Business Interruption Fund will support more than 1,000 of Loudoun’s most vulnerable businesses without increasing the county’s debt load.

“We know that many in our community are hurting as a result of COVID-19, but I’m pleased that the County is now able to help hundreds of more businesses as a result of this additional allocation by the Board of Supervisors to our Business Interruption Fund,” said Supervisor Matt Letourneau (Dulles), Chairman of the Board’s Finance, Economic Development and Government Operations Committee.  “I’m proud of the work that our Economic Development team has done to assist our business community as much as possible during this unprecedented time, including all their efforts to directly distribute grants to those that need them.”

Following approval from the Board of Supervisors, the Loudoun Economic Development Authority will administer the grant process and disperse the funds to selected businesses, starting the final week in June. The Department of Economic Development, Treasurer’s Office, Commissioner of the Revenue, Finance Division and other county staff will assist in administering and vetting the applicants, as well as continuing to provide a wide array of business resources.

“The COVID-19 outbreak has had a significant and widespread impact on our economy, and we have tried to be as equally impactful in our response. The Business Interruption Fund is helping businesses to bridge the gap between closure and survival, and we’re excited to extend that opportunity to almost 900 more businesses,” Loudoun Economic Development Executive Buddy Rizer said. “We remain dedicated to a fair and transparent application process that saves as many #LoudounPossible businesses as we can.”

Any first-round applicants that were disqualified for not having enough employees will be notified that they do not need to apply again. Visit the website now and sign up for a reminder email when the fund opens. The application, terms and conditions, frequently asked questions and additional information can be found at LoudounBusinessFund.org.

 

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