Madison Small Business Rescue Fund (COVID-19)
A rescue grant fund for the City of Madison’s small businesses to help survive the economic impact of the COVID-19 Global Health Crisis.
This grant provides funding for small businesses which need an influx of working capital as they continue to reopen and resume operations. The City of Madison will utilize its current Madison Revolving Loan Fund Committee and Economic Development department for review of applications and determination of award. Each applicant can request amounts between $5,000–$10,000. We anticipate this will become a competitive grant, and each applicant must be able to demonstrate the direct correlation of their business disruption to COVID-19.
Applicants Must Satisfy At Least ONE (1) of the Following:
- Designated “non-essential” under Governor Holcomb’s Stay-At-Home Executive Order
- Could not fully adapt business model to sustain existing revenue during COVID-19 crisis
- Designated an “essential business” but had to furlough or lay off 50% or more of workforce as a result of COVID-19
- Must be able to demonstrate a direct correlation of their business disruption due to COVID-19
Applicants Must Satisfy ALL of the Following:
- Employed 20 or fewer FTEs prior to COVID-19 crisis
- Provides at least 51% low-to-moderate income (LMI) employees
- Must demonstrate the direct correlation of their business disruption to COVID-19
- Registered and in good standing with the Indiana Secretary of State’s Office
- Primary office or place of business located within Madison corporate boundaries
- NOT a franchisee, a Non-Profit, or a Property Management Group
- All tax liability payments are current with no outstanding judgements
- Applicant shall be at least 18 years of age and a legal resident of the USA
- Assumes that a business is completely re-opening in adherence with CDC/Governor’s orders
- Minimum grant amount of $5,000 up to a maximum of $10,000
- The City’s total allocation will be approximately $300,000 towards this program
All eligible businesses applying for a grant from the Madison Small Business Rescue Fund must submit a completed application available from the Economic Development director, Matt Wirth, at firstname.lastname@example.org.
The grant applicant may be contacted by the Economic Development director to determine whether the application will require further documentation. From information gathered from the application and contact, the Economic Development director will, at a minimum, learn the location of the proposed business, the type of business, the purpose and use of the grant request, expected jobs created or retained, and the eligibility of the applicant.
If approved, the applicant must keep receipts/records for transactions using grant funds. This grant may also be used to compensate previous expenses as long as they follow the approved uses of funds below. In both cases please remember to bring/keep the records for all expenses using grant funds.
No active full-time employee of the City of Madison, mayor, clerk treasurer or member of the Common Council, Board of Public Works and Safety or the MRF Committee or their direct relatives are eligible to receive funds from the City programs. A relative is defined as the spouse, parent, father-in-law, mother-in-law, child, son-in-law, daughter-in-law, grandparent, grandchild, brother, sister, brother-in-law, sister-in-law, uncle, aunt, nephew, or niece and whose relationship is the result of birth, marriage, or adoption. If any of the above listed ineligible individuals is a business associate of the applicant in another business enterprise, then the applicant would also be prohibited from receiving a grant. A business associate is defined as a person or their relative as listed above that has a financial interest with the applicant in another business. The applicant is not disqualified because of a relationship to those prohibited from being qualified to apply for a grant.
Any applicant who has defaulted or missed multiple payments on a loan from the City of Madison will NOT be eligible for this grant.
APPROVED USES OF FUNDS
- Working Capital
- Rent/ City Utilities
- Compensation for approved expenses (receipts required)
- Other activities that facilitate the creation or retention of LMI jobs
PROHIBITED USES OF FUNDS
- To pay past due taxes
- To pay credit card debt (personal or business)
An application and required documents may be obtained from the Economic Development director at email@example.com. The applicant is responsible for the submission of a complete application, which includes:
- Complete grant application (with original signatures)
- All supporting/required documents described in the application and listed above.
Please allow up to 15 days for a decision once a completed application is received.
REVIEW COMMITTEE AND APPROVAL PROCESS
The Committee will meet as needed with a majority present to review applications as provided to the Committee from the Economic Development director. The applicant must be present at this meeting. During the meeting, the Committee shall review the type of business, business location, the grant amount requested, job retention, economic impact caused by COVID-19, and other factors within the application. The members may question the applicant concerning the amount requested and receive/give comments regarding the application to the applicant. Applications will be considered in the sequence of when a completed application was received by the Economic Development director. After the Committee has reviewed all applications, they will vote on each application in the order that was presented. The Committee will then vote to recommend the approval or disapproval.
Applications will be reviewed and funded (if eligible) based on the following criteria:
- Applications that show the greatest need due to the economic impact of COVID-19, especially concerning the retention of LMI jobs, shall receive greatest priority. Criteria to be considered in determining economic impact include number of jobs created or saved, wage scale of employees, and benefits paid to employees
- The Committee will be responsible for determining priorities of application to be funded. Priority will be given to applicants who have not received any funds from the City. Eligibility of applicants will typically be determined within 15 (fifteen) days of receipt of a complete application. An application will be considered complete when all information necessary for the Loan Committee to make a decision has been received
- In accordance with federal law, the Committee will not, nor will the mayor or the Economic Development director discriminate on the basis of race, color, national origin, sex, religion, age, marital status, sexual orientation, or non-job related handicap.
CONFIDENTIALITY OF PERSONAL INFORMATION
In order to provide the applicant a high degree of confidence that their personal data is protected, the following procedures will be the standard for securing this information and data from unauthorized individuals:
- After the program administrator, Economic Development director, has received all required forms and documents from the applicant, they will make the necessary number of copies required to provide to the MRF Committee members for their review. The original application with documents will remain in the custody of the administrator
- The original and duplicate copies will be secured with the City clerk-treasurer until needed by the Committee. The administrator will have access to these documents, but only with the knowledge of the City clerk-treasurer and these shall be returned timely to ensure these materials are kept in a secure location
- Following the completion of the application process, all unnecessary copies will be properly destroyed
- If the grant request has been approved, the original, signed documents will be secured and stored with the City clerk-treasurer
- If the grant request has been denied, the original application with documents will be secured and stored with the City clerk-treasurer and all copies properly destroyed
- The Committee members will be advised that the personal financial and other protected information must be kept confidential and cannot be discussed with anyone other than the Committee members and the applicant or their designee.
The Economic Development director in conjunction with a third-party grant administrator will verify with the business that the jobs created and/or retained pledged meet OCRA’s requirements. If requirements are not met, the applicant will be required to pay back funds.