COVID-19 Business Interruption Fund Terms and Conditions: Round 5

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The COVID-19 Business Interruption Fund (“The Fund”) is administered by the Economic Development Authority of Loudoun County, Virginia (EDA). Applications will be accepted between September 23, 2020, and September 30, 2020. Winners will be chosen by a random drawing of all eligible and certified applications on or around October 23, 2020.

In the event that an announced winner fails to satisfy any of the Terms & Conditions, the Loudoun County Government and the Loudoun County Economic Development Authority reserve the right to withhold grant funding and/or to later check on how awarded funds were spent.

All materials submitted to The Fund will be treated as public records and subject to the Freedom of Information Act (FOIA) rules and regulations. If you have questions or concerns about this requirement please contact the Department of Economic Development at 1-800-LOUDOUN before submitting your application.

Eligibility Requirements

  1. Have between zero and 100 W-2 employees (no limit on 1099 contractors);
  2. Have less than $5 million in gross annual receipts;
  3. Have been in operation prior to March 1, 2020;
  4. Have at least a 25% loss in revenue that can be attributed to COVID-19;
  5. Be a licensed and operational for-profit business in Loudoun County, Va.;
  6. Applicants that received funding in any previous round of the county’s Business Interruption Fund (in the firstsecondthird or fourth rounds) or through a similar grant process offered by any of Loudoun’s incorporated towns will not be considered eligible for this round of funding.
  7. Applicants must complete an online application that certifies the business’s revenue and projected impact related to COVID-19.

How to Enter

To apply for The Fund, please complete the application found here: LoudounBusinessFund.org

Criteria

Applicant business must demonstrate:

  1. Between zero and 100 W-2 employees (no limit on 1099 contractors);
  2. Less than $5 million in gross annual receipts;
  3. Having been in operation prior to March 1, 2020;
  4. Having at least a 25% loss in revenue that can be attributed to COVID-19;
  5. Being a licensed and operational for-profit business in Loudoun County, Va.;
  6. Having not received funding in any previous round of the county’s Business Interruption Fund (in the firstsecondthird or fourth rounds) or through a similar grant process offered by any of Loudoun’s incorporated towns will be given priority in receiving funding.

Selection Process

  1. Applicants will submit their online applications through The Fund website during the open application period. The application calls for contact information, business information, and a brief narrative of the impact that COVID-19 has had on Applicant’s business.
  2. County staff will screen applications for eligibility and reach out for follow-up information, including business documents to be sent via email. Contact from a Loudoun County Government staff member at this point does not guarantee your selection for a grant.
  3. Applicants that self-select as being in either the town of Purcellville or Hillsboro will be eligible for additional sources of funding, listed below.
  4. Applicants that can verify that they meet the grant criteria will be placed into a pool for final consideration. At least 690 businesses with 0-100 employees will be randomly selected for a $5,000 grant. All businesses will receive contact from Loudoun Economic Development to confirm their selection or non-selection.
  5. The EDA will disperse the funds to the randomly selected businesses starting in November.

Town Process

Purcellville: The Purcellville Town Council allocated $450,000 to this round, providing 90 businesses with $5,000 grants. Applicants located in the incorporated town of Purcellville will be required to meet the above criteria, as well as be operational and in good standing with the town. If more than 90 businesses meet that criteria, then grant recipients will be selected via random drawing, and all eligible Purcellville businesses that do not receive funding will go back into the county’s random drawing process to be completed on October 23.

Hillsboro: The Hillsboro Town Council committed to evenly funding all 18 businesses located within the town limits that do not get CARES Act funding from the county. Because this funding amount is likely to be less than $5,000, Hillsboro will defer to the county’s random drawing on October 23 before evenly dividing its business funding among the remaining unfunded businesses.

Grants

At least 690 $5,000 grants will be randomly selected from the pool of applications that meets the eligibility requirements.

Terms & Conditions

  1. Application for The Fund constitutes an unconditional agreement to and acceptance of the Terms and Conditions. The Applicant is responsible for ensuring his or her familiarity with the Terms and Conditions.
  2. By submitting an application, the Applicant certifies that it is not under any agreement or restriction that prohibits or restricts its ability to disclose or submit the materials included in the application or otherwise to apply for The Fund.
  3. Applicants acknowledge and agree that information submitted by Applicants will be used in the promotion of The Fund and will be displayed on public webpage(s) showcasing selected businesses.
  4. In consideration of the time, expertise and other resources provided by the EDA, the Applicant, to the full extent permit by law, by submitting an application voluntarily releases the EDA and the County of Loudoun from any and all claims, actions, damages, costs or liabilities of any kind relating to or arising from or in connection with the awarding, advertising, receipt, and/or use or misuse of grant or participation in any COVID-19 Business Interruption Fund-related activities

To apply, please visit LoudounBusinessFund.org.

Frequently Asked Questions

When is the deadline for applying?

The open application window will be from noon on September 23 to noon on September 30.

Do I need a business license and tax record in Loudoun County or an incorporated town?

Yes. These funds are only available to operational businesses that have filled out all proper paperwork to be in good standing with Loudoun County or the incorporated towns. In most cases, it is not enough to be registered with the IRS or Virginia SCC, and Loudoun Economic Development cannot grant exceptions for this. Please check with the Loudoun County Commissioner of the Revenue (or town, if applicable) to ensure that you are properly licensed, or for them to confirm that your business does not need a license.

I previously received CARES Act funding from the county or my town. Am I eligible for this?

Not right now. The Board of Supervisors and town councils are committed to providing financial support to as many Loudoun businesses as possible. For this round, only businesses that have not received CARES Act funding from the county or the town will be eligible (this rule does not apply to various federal, non-profit and private sector business grants and loans. Those businesses remain eligible for this fund).

I previously received COVID-19 business funding from a state, federal, or private entity. Am I eligible for this?

Yes. In this round, you are only restricted from receiving grant funding from the county or towns if you have already received COVID-19 business relief from the county or towns. Funding from any other sources will not disqualify your application.

Will I have to pay taxes on this grant?

Yes. The IRS considers business grants as revenue for tax purposes. The money from the grant should be included when calculating the business’s taxable income. If your business receives funding and still operates at a loss this year, then it will not have a taxable income because it operated at a loss.

I am an independent contractor or gig economy worker. Am I eligible for this fund?

It depends. If you file your personal taxes as a 1099 contractor for a business owned by another person, then you are not eligible to apply for funding. If you own a business (LLC, S-Corp, sole proprietorship and partnerships are the most common) that works for clients or other businesses and pays you a salary, then your business may apply for funding. For example, if you collect a 1099 from a company like Airbnb and file this form with your personal taxes, then you are not eligible for funding. If you own a B&B, filed as a business in Loudoun County, that happens to use Airbnb as a way to book your space, then your B&B business is eligible to apply for funding.

Are non-profit organization eligible to apply?

No. Businesses must be for-profit in order to be eligible for this fund. Loudoun County has made additional funding available for non-profits. Program details are still under consideration; please check Loudoun.gov for updates.

I'm having technical trouble applying. What should I do?

This is a web-based form only. It is strongly encouraged that you use the latest browser version for Google Chrome, Safari or Firefox in order to apply.

If you complete the application, including all required fields, press Submit and DO NOT see a confirmation message on the screen, then your application has not been successfully submitted. Please contact loudounbiz@loudoun.gov and we will do our best to help.

If you do not have access to high-speed Internet, please visit the parking lots of the Middleburg, Purcellville or Lovettsville libraries for access to free, high-speed Internet.

Can I save my application and return later?

Yes. The form allows users to save their progress and return later, to finish during the open application period (noon on June 3 to noon on June 6). Applicants who have not yet submitted their applications will get periodic reminders to finish the form before the window closes. Applications submitted after noon on June 6, no matter when they were initiated, will not be considered eligible.

How will my submitted information be used?

Submitted information will be used to determine the eligibility of the business applicant. Additional communication with Loudoun County Government staff will be to verify the information provided.

Information submitted for this grant becomes public record and subject to requests in accordance with the Freedom of Information Act. We cannot exclude anyone’s submitted information from that process.

What defines an employee?

For the purposes of the  COVID-19 Business Interruption Fund, employees are defined as workers who receive a W-2 from a business. Independent contractors who work for the applicant’s business under a 1099 form are not counted as employees of the business.

Why are employee numbers capped?

For this round of the Business Interruption Fund, businesses must have between 0-2 employees. We recognize that each eligibility requirement excludes businesses that need financial support, but the fund is intended as one piece of the county’s overall small business support during this trying time. The Board was presented with multiple options for the fund and chose the parameters being used to administer the grant awards. Other rounds of the Business Interruption Fund were designed for businesses with more employees, but this round is targeted for Loudoun’s businesses with 0-2 employees. We will be gathering all the information provided through the grant and directly from businesses in order to provide the Board a full report.

What are the next steps?

Once the application process closes on September 30, an internal review process will begin. Your application will be assigned to a member of the Loudoun County Government staff (or town government staff), who will call you between September 23-October 13 to confirm your information.

Once all information is submitted and confirmed, the County Treasurer, Director of the Department of Finance and Budget, and the Executive Director of the Department of Economic Development will review all applications to ensure that businesses meet the minimum requirements for eligibility.

All vetted eligible businesses will be placed into a pool for a random drawing of grant recipients, which will be conducted in a transparent way, starting at 2 p.m. on October 23.

All applicants will be contacted after the random drawing is complete to confirm that they received or did not receive the grants. At that point, businesses will be required to provide financial information to transfer the funds, which will begin the week of October 26.

Can I get this information in another language?

Businesses are encouraged to view the page using their browser’s translation tools and follow up with us at 1-800-LOUDOUN for more translation assistance.

In accordance with Title VI of the Civil Rights Act, Loudoun County Government is committed to ensuring that limited English proficient individuals have equal and meaningful access to county benefits and services. We utilize both phone interpretation services and written translation services when appropriate.