LANCASTER COUNTY COVID-19 HOSPITALITY INDUSTRY RECOVERY PROGRAM (CHIRP) - Recovery Lancaster
←
→
Page content transcription
If your browser does not render page correctly, please read the page content below
LANCASTER COUNTY COVID-19 HOSPITALITY INDUSTRY
RECOVERY PROGRAM (CHIRP)
(As of March 4, 2021. Subject to change.)
GRANT FUND BACKGROUND
1. What is the COVID-19 Hospitality Industry Recovery Program (CHIRP)?
On February 5, 2021 Governor Wolf signed into law legislation (Act 1 of 2021) that set aside $145 million in
funds to aid hospitality industry businesses adversely affected by the COVID-19 pandemic. It requires that
counties establish grant programs for eligible businesses through a Certified Economic Development
Organization (CEDO) or Community Development Financial Institution (CDFI). The County of Lancaster has
approved EDC Finance Corporation, the designated CEDO for Lancaster County, to administer this grant
program.
A significant portion of the eligibility criteria and requirements of this program are dictated by what was
included in the law and the requirements set forth in the Fiscal Code.
2. Is the CHIRP awarding grants or loans?
The CHIRP program is grants that do not have to be paid back. The funding was distributed to communities to
assist impacted hospitality businesses with a revenue loss and paying eligible operating expenses.
3. What is the total CHIRP size?
$145 million in funds was distributed across Pennsylvania based upon population calculations. For Lancaster
County, $6,181,069 is available to Lancaster County hospitality businesses and to cover costs of operating the
program.
4. When will CHIRP funding be available? Who will be eligible?
We anticipate that the Lancaster County CHIRP online application portal will be open from March 8th-March
19th. Lancaster County based private (not publicly traded) for-profit entities meeting the following criteria may
apply:
• Fewer than three hundred (300) total employees by full-time equivalent (FTE) from February 15, 2019
to February 15, 2020.
▪ FTE = total hours compensated for all employees / 2080
• Entities must operate with a NAICS designation within the Accommodation subsector (721) or Food
Services and Drinking Places subsector (722).
• Entities must have less than a $15 million tangible net worth.
• Entities must have filed a federal tax return for 2019, unless the business initially opened between
January 1-February 15, 2020.
• Entities must have sustained a minimum annual revenue decline of 25% or quarterly revenue loss of
25% or greater in any quarter when comparing quarterly revenue between 2019-2020.
▪ If the business started between July 1-December 31, 2019, Quarter 3 or Quarter 4 revenue of
2019 must show at least a 25% decline compared to any quarter in 2020.
▪ If the business started between January 1-February 15, 2020, the entity must demonstrate at
least a 25% revenue decline when comparing the first quarter of 2020 to any other quarter in
2020.
• Entities greater than 20 employees must provide an internal payroll calculation demonstrating the
total number of hours worked by all employees in the period of February 15, 2019-February 15,2020.
• Businesses must not be permanently closed at the time of application and the time of check
disbursement.• Passive businesses (such as commercial and residential landlords) are ineligible.
• Grant awards may not be used to pay the same eligible operating expenses for which an eligible
business received payment, reimbursement, or loan forgiveness from the CARES Act of 2020,
Consolidated Appropriations Act of 2021, or the COVID-19 Emergency Supplement to the General
Appropriations Act of 2019. Receipt of a prior Federal Government or Commonwealth grant does not
disqualify an applicant.
• Business must agree to a certification (Appendix B) and submit required forms.
5. What can grant funds be used for?
Funds can be used for working capital/operating expenses including payroll and nonpayroll expenses, that is
both ordinary and necessary. An ordinary expense is one that is common and accepted in an eligible
applicant’s industry. A necessary expense is one that is helpful and appropriate for an eligible applicant’s trade
or business. The operating expense must have been incurred between March 1, 2020 and the date of
application submission.
Examples include, but are not limited to, rent, mortgage, supplies, inventory and other operating expenses
(which can include costs associated with public health related retrofit) needed to help the entity serve or
produce goods relevant in today’s economy.
For rent, lease or mortgage payments, the obligation must have been in force before February 15, 2020. A
mortgage or lease agreement in force before February 15, 2020 that was refinanced or restructure after
February 15, 2020 is deemed in force and is still eligible. For utility costs, service must have begun before
February 15, 2020.
6. Is there a cap amount on the size of a business grant?
The lesser of the dollar cap based on employee size outlined below or three months of average monthly
operating costs based on 25% of the total business operating expenses reported on the most recently filed
federal tax return, rounded up to the nearest $5,000 increment.
Company Size Max. Award
1-20 Employees (FTE) $30,000
21-99 Employees (FTE) $40,000
100-299 Employees (FTE) $50,000
Grant amounts will range from $5,000 to $50,000 per applicant in $5,000 increments. Award amounts may be
adjusted to accommodate scoring ties and application demand as necessary.
7. Is there enough funding to meet the need?
Available funds are limited, and high demand is anticipated. Should all grant funds not be utilized in the
opening round of grants, the portal will remain open after March 19, 2021 to collect additional applications for
future grant rounds. An eligible business may only apply once for the grant program. Grant awards will
be based upon the scoring matrix (see FAQ #40).
APPLICATION PORTAL AND ESTIMATED TIMELINES
8. When will the grant application process open?
Businesses may apply at www.RecoveryLancaster.com beginning Monday, March 8, 2021 beginning at 8:00
a.m. Prior to that, specific information about how to apply is available on the site. This will give applicants
adequate time to gather necessary documentation.
9. How long will the grant application portal be open?
The portal will be open from 8:00 am on March 8, 2021 through 5 pm on March 19, 2021.If all grant funds are not utilized in the opening round of grants, the portal will remain open after March 19,
2021 to collect additional applications for future grant rounds.
10. What is the process for applying?
All applicants MUST apply online at www.RecoveryLancaster.com to facilitate processing. Use of the portal
reduces the potential for errors and omissions potentially resulting in an ineligible application.
11. May I fill out a paper application?
No, paper applications will not be available for the CHIRP the grant program.
12. Will telephone assistance be available if I have questions about eligibility or required documents for the
application?
Applicants in need of assistance in ensuring an accurate and complete submission should consult a local
accountant or utilize resources such as Lancaster SCORE, ASSETS Lancaster and/or Community First Fund.
13. Will the application be available in multiple languages? Will there be technical assistance available for non-
English speakers, as well?
The application, FAQ and What Is Needed to Apply document will be readily available in Spanish. Technical
assistance for Spanish speaking applicants will be provided by ASSETS. Please call 717-393-6089 for assistance.
14. Can I save my application and come back to it later?
No. Please have all your applications materials ready when you go in to apply. All applicants will receive a
confirmation email when their application has been received. If you do not submit your application, we are
unable to retrieve it.
ELIGIBILITY
15. Who is eligible?
Per Act 1 of 2021, eligible applicants are private (not publicly traded) for-profit entities that operate in
Lancaster County whose full-time equivalent employee count was fewer than 300 FTE for the timeframe from
February 15, 2019 to February 15, 2020 and who has less than a $15 million tangible net worth. The Act also
states that the only eligible applicants are those with a NAICS designation within the Accommodation
subsector (721) or Food Services and Drinking Places subsector (722) and where accommodations, food or
drink is served to or provided for the public, with or without charge.
16. If I have received other funding assistance, can I still receive grant funding through the CHIRP?
Yes. If your business received other federal, state or local loans or grants you are still eligible to apply. This
includes, but is not limited to, EIDL, PPP, Statewide Small Business Assistance, and/or the County Recovery &
Sustainability Fund.
17. My business has multiple locations in Lancaster County. May I apply more than once?
No. You may only submit one application for that business entity. Applications are submitted based on the
Employer Identification Number (EIN) or Social Security Number of the entity.
18. May I submit an application if I have business locations in multiple counties?
Yes, you may apply if you operate in multiple counties, but you may only receive one grant from the program
statewide (i.e., you cannot accept grants from multiple counties). If you are applying within the Lancaster
County program, you must have a physical operating location in Lancaster County, Pennsylvania.
19. Should the information provided in the grant application include just my operations in Lancaster County or
my companywide information?
The information provided should include the entity’s ENTIRE operations and information.For purposes of FTE, here are some examples: Company A has three locations (Lancaster, York and
Berks counties). Total FTE for all three locations is 54. Company A is eligible to apply because the company's
FTE is fewer than 300. A second example: Company B has three locations (Lancaster, Ohio, Florida). Total FTE
for all three locations is 295. Company B is eligible. A third example: Company C has three locations (Lancaster,
York and Berks counties). Total FTE for all three locations is 321. Company C is not eligible to apply because the
company’s FTE is greater than 300.
20. If I own more than one business (including common ownership of several entities among a small number of
people), am I allowed to apply for each business individually or should I apply as a group?
Each entity operating under a separate employer identification number or Social Security number is considered
an eligible applicant.
21. As a franchisee, may I submit an application?
Yes, however, an eligible franchisee applicant must have a physical operating location in Lancaster County,
Pennsylvania, and must have an FTE of fewer than 300 companywide from February 15, 2019-February 15,
2020. All funds awarded must be used for costs incurred in Lancaster County facilities and
operations. Franchisees should count the total number of employees under an individual EIN or SSN as their
total headcount.
22. May I apply these grant funds against costs that were used to claim forgiveness under another grant or loan
program (e.g., PPP loan)?
No. Funds received under this grant program may not be applied against any costs that were also used to
satisfy the requirements of another grant or loan program.
23. Is there a limit on the amount of grant funds that can be used for owner compensation or other payments
to owners or entities related by common ownership (e.g., related party rent)?
Grant funds may NOT be used for owner compensation. Grant funds can be used to pay rent to related parties
for leases in existence prior to February 15, 2020.
24. If I own a passive business am I eligible to apply?
No, passive businesses such as commercial and residential landlords are ineligible.
25. Can I apply if my business had a loss on its 2019 tax return?
Yes. A Lancaster based business that employees fewer than 300 FTEs and had a loss on its 2019 tax return can
apply for a grant.
26. I’m a new business that started in 2020, can I apply?
If your business was started between January 1-February 15, 2020 you are eligible, but the entity must
demonstrate at least a 25% revenue decline when comparing the first quarter of 2020 to any other quarter in
2020. Additionally, you would need to supply a 2020 Federal Tax Return in order to substantiate your
application inputs.
If your business was started after February 15, 2020, it would not be eligible.
27. Does the business have to be a member of the Lancaster Chamber or EDC?
No. Grant funds are available for all businesses in Lancaster County that meet the eligibility criteria regardless
of their membership status with any organization.
APPLICATION INFORMATION
28. What information will I need to gather to submit a grant request?
At this time, the necessary information to complete the application is:
• Entity Demographic Information and EIN/SSN number• Industry by NAICS Code
• April 1-December 31, 2019 Revenue Statement
• April 1-December 31, 2020 Revenue Statement
o If you cannot produce revenue or profit & loss statements for the requested time frame and
you have less than 20 employees, you may alternatively complete and submit a revenue
summary report following the sample in Appendix A.
o You may be required to submit quarterly statements if you did not sustain a 25% revenue loss
for the overall April-December timeframe.
• 2019 Gross Revenue
• 2019 Net Profit (Loss)
• 2019 Total Operating Expenses
• 2019 Depreciation Included in Operating Expenses
• The year the business was established
• Full Time Equivalent Employee Count from February 15, 2019-February 15, 2020 (total hours
compensated for all employees in timeframe / 2080)
o Entities with 21-299 FTEs reported in the application MUST submit an internal payroll
calculation demonstrating the total number of hours worked by all employees between
February 15, 2019-February 15, 2020. This report will establish your FTE for the purposes of
the application. This is the supporting documentation for the grant application.
• Copy of the Business’ 2019 Federal Tax Return to support net profit, operating expenses, depreciation,
and other demographic information.
o If your business was started between January 1-February 15, 2020, you will need to submit a
2020 Federal Tax Return.
• Background Information on How COVID-19 Has Impacted Business Operations and/or Working Capital
• Completed W-9 form. Please make sure to fill it out completely and SIGN it.
29. For purposes of determining my number of employees, do I use headcount or the full-time equivalents?
The grant application is based on full time equivalent (FTE) during calendar year 2019. FTE is calculated by
taking the total hours compensated for all employees throughout the year and dividing it by 2080.
30. For employee headcount, is it just permanent full-time and part-time employees? I utilize sub-contractors
or do seasonal/job-specific hiring. Do I count them?
Employee FTE includes full time and part time employees’ hours for which the entity will issue a form W-2.
Third party subcontractors are not included in headcount.
31. Is the owner included in the hours count?
Yes, if the owner works in the business.
32. What are acceptable documents to submit to support Total Revenue amounts entered in the application for
April 1 to December 31, 2019 and 2020?
Preferred documents are internal income statements showing revenue, expenses and net income for April 1 to
December 31, 2019 and a statement for April 1 to December 31, 2020 from a computerized accounting system
such as QuickBooks or other software.
If you have less than 20 employee and income statements from the businesses accounting software are not
available, please submit a report using the format in Appendix A.
Documents that are NOT ACCEPTABLE to support Total Revenue are copies or pictures of bank statements,
pages of records from tablets, composition books, papers, or other documents that do not provide, at a
minimum, Total Revenue by month for April, May, June, July, August, September, October, November,
December 2019 and 2020 and are totaled for those periods.Only full, complete and accurate applications will be considered. Applications with technical errors or without
the required back-up documentation will be removed from the applicant pool and deemed ineligible.
33. We received COVID specific relief funds, should those be included in our 2020 revenues?
COVID specific relief funds/revenue should NOT be included in your 2020 operating revenues/financial reports.
This would include items such as PPP, EIDL, State/County/Local grant programs or other special funding you
received due specifically to COVID. We are looking for your operating revenues, not special program funding
received.
34. My NAICS code on my tax return doesn’t accurately reflect my impacted business activity, what should I do
to demonstrate I’m in a targeted industry?
Act 1 of 2021 requires that the only eligible applicants be those with a NAICS designation within the
Accommodation subsector (721) or Food Services and Drinking Places subsector (722) and where
accommodations, food or drink is served to or provided for the public, with or without charge.
This is written in the legislation and we do not have the authority to accept other NAICS codes.
35. Will my information be publicly released?
The Lancaster County Board of Commissioners will receive a full list of all businesses that applied for funding,
including those who are not recommended for a funding award. All funding recommendations will be
approved by the Lancaster County Commissioners based upon score-driven recommendations from the
application review team.
Funding recipients, award amounts and application score will become public information upon approval.
Proprietary business and financial information submitted with the application will not be public information.
The County of Lancaster will be required to complete a report at the conclusion of the program to be
submitted to the PA Department of Community & Economic Development containing the following
information: list of each grant awarded under the program; name and address of each grant recipient;
amount of the grant and description of the financial impact of the awarded grantee; and the name of the
CEDO that processed the grant (EDC Finance Corporation, an affiliate entity of the Economic Development
Company of Lancaster County).
36. Will I receive a grant if my application is incomplete, or contains errors?
No. A grant will not be awarded if the application is incomplete, not properly executed, contains erroneous
information or lacks proper documentation. Only full, complete and accurate applications will be
considered. Applications with technical errors or without the required back-up documentation will
be removed from the applicant pool and deemed ineligible. It is the applicant’s responsibility to ensure
the application is complete and accurate.
37. Where can I see what I will need to certify to?
Please check Appendix B of this document for the ‘Certification by Hospitality Industry Recovery Program
Applicant’.
SCORING AND APPROVALS
38. How will applications be scored?
Scoring is automated. Scoring criteria has been developed that weights based on revenue decline, other
funding received, impact of mitigation orders, time in business, employee count, profit/loss as a percent of
total revenue, and diverse busines ownership. These criteria weights (shown in FAQ #40) will be applied
to applications automatically based on information submitted. Application team members will review
information submitted for accuracy and subjective analysis might be applied, as necessary.Priority is to be given to any applicant who has not received a loan or grant issued by the Commonwealth or by
the Federal Government under CARES Act or Consolidations Appropriations Act, were subject to closure by the
proclamation of disaster emergency issued by the Governor on March 6, 2020 and any renewals, and can
demonstrate a gross revenue reduction of 50% or more between April – December 2020 compared to the same
period in 2019. An alternative revenue reduction calculation will be provided for businesses starting in and
remaining in operation between May 1, 2019 – February 15, 2020.
The scoring criteria are built to reflect that prioritization.
39. What is the approval process for applicants?
All applications will be automatically scored based upon the below criteria. The review team will then apply
the priority requirements. The highest ranked applications will be recommended for approval to the Lancaster
County Board of Commissioners at its next available public meeting following the application review period
(anticipated to be early April). The Commissioners will receive the full list of applicants. (See FAQ #35.)
40. What are the scoring criteria?
Criteria Weight 5 4 3 2 1
Year over Year Revenue 35% 100-80% 79-60% 59-40% 39-25%
Decline
(April-December)
or average quarterly
revenue decline for
businesses started
between May 1, 2019-
February 15, 2020
Other special COVID 15% Have NOT Received
funding received since received any special COVID
March 1 including, but special COVID funding from
not limited to: PPP, EIDL, funding other sources
Statewide Small Business already
Assistance, Recovery &
Sustainability Fund
Impact of Governor’s 15% My business My business All others not
December 2020 COVID- was completely was closed meeting the
19 Mitigation Efforts closed during for indoor first two
(December 12, 2020 – the timeframe services, but options
January 4, 2021) was able to
offer take-
out or
outdoor sales
during the
timeframe
Time in Business 10% >10 years 3-10 years < 3 years
Highest Number of 10% 101-299 21-100 11-20 6-102019 Net Profit / (Loss) + 10% > 0% 0% – (5%) >
Depreciation as a % of (5%)
total revenue
Diverse Business 5% Yes No
Ownership
(Tiebreaker: extra scoring for
51% of business ownership
being from a diverse
demographic)
41. How do I determine if my business qualifies for diverse business ownership?
Businesses whose ownership is more than 51% owned by African Americans, Hispanics, Woman, Asian
Americans, Disabled persons, Veterans or other minorities qualifies.
DISBURSEMENT & DOCUMENTATION
42. Who will disburse the funds?
The County of Lancaster will disburse funds following review and approval of the recommended applicants by
the County Commissioners.
43. If I am approved, what type of documentation will be required to receive the funds?
Applicants are required to sign a certification, grant agreement, and submit a W-9 at the time of
application/award. (If you do not have a W-9, one can be created using the IRS form found
here: https://www.irs.gov/pub/irs-pdf/fw9.pdf. The IRS provides further instructions within the document.)
44. If I am approved, how long until I get my award?
The County of Lancaster will process grant awards for disbursement between April 8-April 30.
45. After receiving grant funds, will I need to provide documentation to prove that the funds were used for
their intended purpose?
Awardees may be required to complete a brief close-out report to outline final use of funds and outcomes from
fund utilization.
MISCELLANEOUS
46. Are awarded funds taxable income?
Please consult your accountant or other business advisors for information related to taxation.
HAVE ADDITIONAL QUESTIONS? Please email funding@recoverylancaster.com for assistance.APPENDIX A
APPENDIX B: Certification by Hospitality Industry Recovery Program Applicant The Applicant certifies that: 1. All information and statements contained in this Application, and all documents and exhibits submitted with this Application, are true, accurate, complete and not misleading, in all material respects, as of the date of this Application. Any further information or documentation submitted by Applicant in connection with this Application shall also be subject to this Certification, which shall be deemed to be remade as of the date submitted. 2. Applicant has fully complied with, and will fully comply with, all federal, state and local laws and regulations applicable to this grant and applicable to Applicant’s business, assets and/or operations, and the Applicant is not currently under investigation with respect to any violation of, or other failure to comply with, any such applicable law or regulation. No funds will be used for any purpose or in any manner that violates federal, state or local laws or regulations. All funds will be utilized only for purposes consistent with the COVID-19 Hospitality Industry Recovery Program. 3. COVID-19 has had an adverse economic impact on the eligible applicant which makes the grant request necessary to support the ongoing operations of the eligible applicant. The Application is based on the Applicant’s reasonable estimate of financial need for, and all funds will be utilized by the Applicant solely for, COVID-19 related impacts and eligible expenses under the COVID-19 Hospitality Industry Recovery Program. The applicant in good faith believes it meets all requirements to be eligible to be awarded a grant under this program. 4. Applicant will submit additional information and documentation in support of this application and/or the grant requested or awarded with respect to this Application, in each case, upon request, and will permit the Commonwealth of Pennsylvania, County of Lancaster or its representatives, designees or affiliates to inspect and/or audit the books, records, premises and operations of the Applicant to assure compliance with the requirements of this program. Applicant hereby acknowledges and agrees that all information may be shared by and with the County of Lancaster, Pennsylvania, the Lancaster Chamber of Commerce, the Economic Development Company of Lancaster County, EDC Finance Corporation, their respective partners, designees, affiliates, employees, agents, volunteers and committees to the extent such disclosure is made in connection with the application and this grant program. 5. AVAILABLE FUNDS ARE LIMITED AND SIGNIFICANT INTEREST IS ANTICIPATED. Applicant recognizes that there is no assurance that Applicant will be awarded any grant of any size, regardless of how well the Applicant may meet the criteria used for awarding these grants and regardless of what the Applicant may have been told or read with respect to this grant program. As a condition and in exchange for the consideration of receiving and reviewing this application, the Applicant hereby releases and will hold harmless the County of Lancaster, Pennsylvania, EDC Finance Corporation, their respective partners, designees, and affiliates in facilitating, and administering this grant program and their respective Board of Commissioners, Boards of Directors, officers, employees, representatives, volunteers and committees of and from any and all claims and/or causes of action of any kind or type arising from or out of (a) their receipt and review of this application and any information or documentation of or concerning the Applicant, (b) any decisions or recommendations with respect to this application, (c) the administration of this program and/or the award or denial of funds and/or the sufficiency thereof, and (d) any other matter or thing related to this program. 6. All decisions and recommendations with respect to this application and this grant are final when made and are non-appealable. The Applicant acknowledges that grant award determinations will be made based on both objective and subjective analysis of information available and that award determinations need not follow strictly or consistently the scoring methods utilized. The Applicant also acknowledges that the identity of funding applicants and recipients, award amounts and application scores and recommendations will become public information. 7. The eligible applicant was in operation on February 15, 2020, and, if required, paid income taxes to the Federal and State Government, as reported on individual or business tax returns. The eligible applicant remains in operation and does not intend to permanently cease operations within one year of the date of application. 8. The grant will be used to pay for COVID-19- related economic impacts. During the period beginning on January 1, 2021, and ending on June 30, 2021, the applicant has not and will not receive another grant under this program. 9. The individual signing below is legally authorized by the Applicant to submit this application, to sign this certification and to legally bind the Applicant. An eligible applicant or authorized representative of the eligible applicant must certify that the
information provided in an application to the program and the information provided in all supporting documents and forms is true and accurate in all material respects. An eligible applicant or an authorized representative of the eligible applicant that knowingly makes a false statement to obtain a grant under the program is punishable under penalty of perjury and fines pursuant to 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities). Applicants will be required to check a box in the application and sign their application as acknowledgement of this certification.
You can also read
