In April 2021, Indiana announced an expansion of the Indiana Small Business Restart Grant to help accelerate economic recovery activity by supporting Hoosier entrepreneurs and small businesses. The program provides working capital to eligible companies by reimbursing certain expenses incurred during and related to the global pandemic.
Small businesses that meet the eligibility requirements can apply for reimbursement for qualified business expenses incurred between March 1, 2020 and October 31, 2021 (“eligibility period”). Reimbursements for expenses and sole proprietor Net Profit reductions may be awarded up to $10,000 for each month during the eligibility period. However, reimbursements may not exceed $100,000 in aggregate.
Businesses that have already received Small Business Restart Grants, but have not reached the maximum reimbursements noted above may re-apply during this expanded program period. Expenses that were already reimbursed through this program will not again be considered eligible expenses. Eligible businesses may apply for grant funding to cover qualified expenses incurred at their Indiana operations, such as payroll, insurance premiums, rent or mortgage payments, utilities, lease payments and safety investments. These expenses may be reimbursed up to 80% for non-payroll expenses and up to 100% for payroll expenses.
Effective September 20, 2021, sole proprietors are eligible to be reimbursed for reductions in Net Profit, with Net Profit (Form 1040, Schedule C, Line 31) reductions being determined by comparing 2019 Net Profit/number of months in operation in 2019 to 2020 Net Profit/12 months and to 2021 Net Profits per monthly sole proprietor Profit & Loss Statements. Sole proprietors may resubmit Small Business Restart Grant requests for the eligibility period. The program may give preference to Hoosier small businesses in the hospitality industry, but all eligible businesses are encouraged to apply.
The deadline for applying is November 15, 2021. Eligible small businesses are encouraged to apply and submit expenses for reimbursement as soon as possible; grants will be issued in the order in which applications are received until funding is exhausted or until the program expires.
Eligibility Requirements Registered Indiana Businesses Must:
- Have been established prior to October 1, 2019.
- Be registered to operate in Indiana, except sole proprietors, and must be seeking reimbursement for expenses related only to their Indiana operations.
- Be in good standing with the Indiana Department of Revenue or have entered into a payment plan approved by the Indiana Department of Revenue.
- Have had fewer than 100 full time employees as of December 31, 2019.
- Have been profitable and have had less than $10 million in revenue (Gross Receipts or Sales) in 2019; profitability is determined by Earnings Before Interest, Taxes, Depreciation, and Amortization.
- Demonstrate a monthly gross revenue loss during the eligibility period of at least 30% compared to pre-COVID 2019 average monthly gross revenue; with 2019 gross revenue calculated as 2019 Gross Receipts or Sales/number of months in operation in 2019.
- Please Note: Non-owner occupied businesses are not eligible.
Eligible Reimbursable Categories
May be reimbursed up to 100%:
- Sole proprietor net profit reduction
May be reimbursed up to 80%:
- Insurance premiums
- Rent or mortgage payments
- Lease payments for real or personal property
- Safety investments
- Food delivery software service payments
Please Note: Expenses covered by another federal grant program such as PPP, EIDL, Restaurant Revitalization, or from a local government entity (CDBG) may not also be reimbursed by this grant.
Small businesses will need to gather the following documentation to apply. You will upload these documents in the application.
- Registered, small Indiana business in good standing
- Federal Employer Identification Number
- 2019 Federal Tax Returns (or Federal Form 1040 with all Schedules if sole proprietorship or home-based business)
- Copy of current valid driver’s license or other U.S.-issued valid ID
- Current W9
- All signed documents (federal loan/grant agreements) if you have received funding from other federal assistance programs.
- Profit Loss
- Monthly Profit and Loss Statement for the months you’re seeking reimbursement for in 2019, 2020 and/or 2021.
Contact your Somerset advisor at 317.472.2200 or with any questions.