C.R.S.
Section 24-48.5-126
Small business COVID-19 grant program
- legislative declaration
- definitions
- reporting
- repeal
(1)
Legislative declaration.(a)
Finds that:(I)
Before June 21, 2021, this section provided for a small business grant program financed by money provided pursuant to the federal “Coronavirus Aid, Relief, and Economic Security Act”, Pub.L. 116-136, also referred to as the “CARES Act”, which money had to be expended by December 30, 2020; and(II)
Many small businesses adversely affected by COVID-19 were unable to secure any financing or were able to secure only insufficient financing pursuant to this section before the December 30, 2020, deadline;(b)
Determines that to help reduce the spread of COVID-19 and in compliance with executive and public health orders, many businesses have shut down for extended periods and residents throughout the state have remained in their homes and experienced a significant decline in their household incomes, all of which has resulted in economic distress for many small businesses; and(c)
Declares that:(I)
A grant program that provides grants to small businesses that face economic hardship caused by the COVID-19 pandemic continues to be a pressing priority that merits the allocation of general fund revenues; and(II)
In order to ensure a more equitable economic recovery, it is necessary to simplify the documentation and verification required of businesses to demonstrate need, particularly for smaller awards and small businesses.(2)
Definitions.(a)
“Authority” means the Colorado housing and finance authority created in part 7 of article 4 of title 29.(b)
“Commission” means the Colorado economic development commission created in section 24-46-102 (1).(c)
“COVID-19” means the coronavirus disease caused by the severe acute respiratory syndrome coronavirus 2, also known as SARS-CoV-2.(d)
“Economically distressed area” includes a state opportunity zone, an enterprise zone, or a historically underutilized business zone.(e)
“Enterprise zone” means an area designated as an enterprise zone pursuant to section 39-30-103.(f)
“Grantor” means a nonprofit or community-based lender, approved by the authority, that underwrites and distributes a grant to a small business pursuant to the program.(g)
“Historically underutilized business zone” means an area designated by the United States small business administration as a historically underutilized business zone under the United States small business administration’s HUBZone program.(h)
“Office” means the Colorado office of economic development created in section 24-48.5-101.(i)
“Program” means the small business COVID-19 grant program established in subsection (3) of this section.(j)
Intentionally left blank —Ed.(I)
“Rural area” means:(A)
A county with a population of less than fifty thousand people;(B)
A municipality with a population of less than fifty thousand people that is located ten miles or more from a municipality with a population of more than fifty thousand people; or(C)
The unincorporated part of a county located ten miles or more from a municipality with a population of more than fifty thousand people.(II)
For purposes of this subsection (2)(j), population is determined according to the most recently available population statistics of the United States bureau of the census.(k)
“Small business” means a person that:(I)
Is a for-profit sole proprietorship or for-profit domestic entity, as that term is defined in section 7-90-102 (13), or a nonprofit corporation or other organization type specified by the office and the authority;(II)
Has fewer than twenty-five employees, measured as full-time equivalents; except that an employer that meets the criteria specified in 29 U.S.C. sec. 213 (a)(3) may use its off-season employee count for the purposes of this subsection (2)(k)(II); and(III)
Has been affected by economic hardship caused by the COVID-19 pandemic, including by interruption caused by required business closures, voluntary closures to promote social distancing measures, or decreased customer demand as a result of the COVID-19 public health emergency.(l)
“State opportunity zone” means a census tract designated by the office as an opportunity zone.(3)
Grant program.(a)
The office shall establish and administer the financing of a small business COVID-19 grant program to assist small businesses facing economic hardship caused by the COVID-19 pandemic. The commission shall contract with the authority to operate the program. The contract must require compliance with this section and the criteria established pursuant to this section by the authority and each grantor that is authorized to award grants. Under the contract, the office may advance money to the authority in preparation for issuing grants and administering the program. The authority shall leverage its relationships with grantors to distribute the grants to eligible small businesses.(b)
Intentionally left blank —Ed.(I)
To receive a grant pursuant to the program, a small business must apply to a grantor in a manner determined by the authority. The application must specify the proposed use of the grant, which must relate to responding to or recovering from the impacts of the COVID-19 pandemic, and require reporting by the small business regarding the actual use of the grant award.(II)
The fact that a small business received an award from the program before June 21, 2021, does not disqualify the small business from receiving an award from the program on or after June 21, 2021. A small business must demonstrate the small business’s financial losses related to the COVID-19 pandemic by providing either a self-certification or financial documentation that the small business’s financial losses are equal to or greater than the amount requested, up to the maximum grant amount. A small business that self-certifies its loss and does not provide financial documentation may not receive a grant amount on or after June 21, 2021, greater than five thousand dollars.(III)
A small business shall not use a grant for lobbying, as that term is defined in section 24-6-301 (3.5). Each individual grant award must not exceed fifteen thousand dollars and the total amount of money awarded to any individual small business must not exceed fifteen thousand dollars. Receipt of financial assistance other than from the program does not affect applicants’ eligibility for assistance, or the amount of assistance, available from the program.(c)
The office shall establish and publicize criteria that a grantor shall use in awarding grants. The criteria must specify when a grant is necessary to respond to the COVID-19 pandemic.(d)
Intentionally left blank —Ed.(I)
In awarding grants, the grantor shall give a preference to a small business that:(A)
Did not qualify for or receive a loan pursuant to the federal “Paycheck Protection Program and Health Care Enhancement Act”, Pub.L. 116-139, as amended;(B)
Is majority owned by veterans, women, or minorities; or(C)
Is located in a rural area.(II)
A grantor is not required to award a grant to a small business that qualifies for a preference.(e)
In addition to the preferences specified in subsection (3)(d) of this section, the grantor shall give preference to a small business that:(I)
Did not qualify for or receive, or received an insufficient, loan, grant, or other financial assistance pursuant to the federal “Paycheck Protection Program and Health Care Enhancement Act”, Pub.L. 116-139, as amended, or pursuant to other state or federal COVID-19 pandemic-related assistance, including this section as it existed before June 21, 2021;(II)
Is a for-profit sole proprietorship; or(III)
Is located in an economically distressed area.(f)
If money becomes available to the program after June 21, 2021, in addition to the preferences specified in subsections (3)(d)(I) and (3)(e) of this section, the grantor shall give a preference to a small business:(I)
That is obligated to make lease or mortgage loan payments for the business’s premises; or(II)
Where the business owner resides at the same address as the business premises.(4)
Financing.(a)
The small business COVID-19 grant program is financed by fifteen million dollars appropriated from the general fund. The office may expend the money specified in this subsection (4) only for:(I)
Making grants through the authority to small businesses pursuant to the program;(II)
The office’s and the authority’s costs of administering the program, including for communications, technical assistance for grant applicants, and outreach efforts to underserved communities, which expenditures must not exceed one and sixth-tenths of one percent of the money specified in this subsection (4); and(III)
An allowance of up to four percent of each individual grant plus up to twenty-five dollars per grant to be used by the grantor for its costs in distributing the grant.(b)
The office must expend all money specified in this subsection (4) by July 1, 2022.(5)
Reporting.(a)
The number of businesses applying to the program, including a breakdown of the number of applicants that are owned by women, minorities, or veterans;(b)
The percentage of applicants funded and the average rate of funding under the program, including a breakdown of the percentage of applicants funded and the average rate of funding for small businesses that are owned by women, minorities, or veterans;(c)
The geographic distribution of the applicants for and recipients of loans and grants; and(d)
Information on the type and size of small businesses that applied for and received funding under the program.(6)
Repeal.
Source:
Section 24-48.5-126 — Small business COVID-19 grant program - legislative declaration - definitions - reporting - repeal, https://leg.colorado.gov/sites/default/files/images/olls/crs2023-title-24.pdf (accessed Oct. 20, 2023).
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