By Terry Barrett, CPA, Senior Tax Manager | State and Local Tax Team Leader
UPDATED as of December 30, 2020
The recent allocation of $20 million to the Rebuild VA Small Business Grant fund is already exhausted as of December 30, 2020. As we understand it, Virginia used the $20 million to fund 300 previously approved applications. These businesses have already been notified that their grant application will be funded. Additionally, Virginia has another 17,000 (or more) applications currently in the pipeline that have not been reviewed or funded. While Governor Northam could allocate additional funds and has indicated a willingness to further support the program, we are not aware of any currently planned funding. If you proceed with an application at this time, please understand the number of applications in the pipeline and that the grant applications are processed on a first come first served basis, not a need based analysis.
Additional COVID Relief for Qualifying Virginia Small Businesses and Nonprofits
Virginia awarded 100 million dollars in grants through the Rebuild VA Program to 2,500 small businesses and nonprofits until the funding was depleted in late November/early December 2020. Funding for the grant program had been provided by the federal government through the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Additional information regarding the program was provided in our November 2020 blog, Rebuild VA Small Business Grant Fund Program Update.
In a press release issued by Governor Northam’s office on December 9, 2020, summarizing the success of the grant program, the Governor called on Congress to provide additional federal funding to the states to assist struggling families and businesses.
Such additional funding was provided with the very recent passage of the Consolidated Appropriations Act, 2021, and Governor Northam committed an additional $20 million to the Rebuild VA Program, bringing the total funding to the program to $120 million.
For Businesses and Nonprofits Not Yet Receiving the Grants
We understand many businesses had received approval for grants but did not receive the grant funds because available funding had already been exhausted in the initial 100 million dollar allocation. According to the December 29, 2020, press release, these businesses have already been notified via email that their applications have been re-opened and do not need to resubmitted.
Qualifying businesses and nonprofits that have not yet applied for grants may want to gather and submit the required documentation immediately according to the filing instructions on the Rebuild website in the event the full 20 million dollars just committed to the grant program by the Governor is not fully utilized with prior applications or additional funding is later provided.
The information contained within this article is provided for informational purposes only and is current as of the date published. Online readers are advised not to act upon this information without seeking the service of a professional accountant, as this article is not a substitute for obtaining accounting, tax, or financial advice from a professional accountant.