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New State Grant Could Cover Costs for Mississippi Businesses Affected by COVID-19

June 10, 2020

Businesses that were forced to reduce services or close for a period of time due to COVID-19 can apply for up to $25,000 through the Back to Business Mississippi Grant Program1. The grant does not have to be paid back. It covers eligible expenses as established by the CARES Act, including mortgage interest, rent, payroll, utilities and other COVID-19-related expenses.

To qualify, a business must:

  • Be a for-profit corporation, LLC, partnership or sole proprietor
  • Be domestic as of March 1, 2010
  • Be in good standing with the Mississippi Secretary of State, if applicable
  • Have a controlling interest owned by one or more Mississippi residents, whether individual resident citizens or Mississippi domestic business entities
  • Have filed Mississippi taxes for tax year 2018 or 2019, or, for an eligible business formed on or after January 1, intend to file Mississippi taxes for tax year 20202
  • Have customers or employees coming to its physical premises, conduct business on customer premises, or have an owner who is an active participant in the day-to-day operations of the business
  • Have 50 or fewer full-time equivalent employees as of March 1
  • Not be part of, owned by or a subsidiary of a business with more than 50 full-time equivalent employees
  • Not exist for the purpose of advancing partisan political activities, not directly lobby federal or state officials,and not have employed or otherwise worked with a lobbyistin any way at any point during 2020
  • Not derive income from passive investments without active participation in business operations

All required documentation must be provided in the online application. Depending on whether your business is a corporation, LLC, partnership or sole proprietorship, these may include any of the following:

  • Articles of incorporation
  • Certificate of formation
  • Partnership agreement
  • Certificate of good standing from the Secretary of State’s Office
  • Any documentation showing the breakdown of ownership to verify the controlling interest of the applicant
  • Homestead filing
  • Voter registration card
  • Utility bills
  • Business licenses
  • Business materials showing the location of the applicant
  • Insurance policy coverage pages
  • Tax records for 2018 and/or 2019
  • Certified payroll for the week of March 1, 2020
  • Documentation of business interruption due to COVID-19

Businesses that already received a $2,000 grant from the Mississippi Department of Revenue may still apply for the program. Those that received federal money5 for COVID-19 losses may also still apply, but these applications will not be considered during the first 21 days of the program.

Please contact Bridgforth R. Rutledge, Baxter Geddie or any other member of Phelps’ Business team if you have questions or need compliance advice and guidance. For more information related to COVID-19, please also see Phelps’ COVID-19: Client Resource Portal.

 

[1] SB2772

[2] Unless exempt under Miss. Code Ann. §§ 27-7-29 or 27-13-63, or other applicable law

[3] As provided in Miss. Code Ann. § 5-8-1 through 5-8-23

[4] As defined in Miss. Code Ann. § 5-8-3

[5] From the U.S. Small Business Administration Guaranty Paycheck Protection Program or the U.S. Small Business Administration Economic Injury Disaster Loan Emergency Advance