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Indiana’s Restart Grant is great for business

Posted on August 23, 2021

Indiana’s expanded Small Business Restart Grant was begun this past spring to help accelerate economic recovery. The recovery program supports Hoosier entrepreneurs and small businesses, providing working capital to eligible companies through reimbursement of certain expenses related to the global pandemic.

Here’s what Indiana small businesses should know:

  • Eligible businesses may apply for grant funding to cover qualified expenses incurred at their Indiana operations, including 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.
  • Small businesses that meet the eligibility requirements can apply for reimbursement for qualified business expenses incurred March 1, 2020 through May 1, 2021.
  • The deadline for applying is December 31, 2021.
  • Reimbursements for expenses may be awarded up to $10,000 for each month during that period but may not exceed $50,000.
  • Businesses that have already received Small Business Restart Grants – but have not reached the maximum noted above – may re-apply during this expanded program.
  • Expenses that were already reimbursed through this program will not be considered eligible expenses.
  • The program may give preference to Hoosier small businesses in the hospitality industry, but all eligible businesses are encouraged to apply.
  • 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.
  • Non-owner occupied businesses are not eligible.
  • 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 2019 revenue (Gross Receipts or Sales). Profitability is determined by EBITDA.
  • Demonstrate a monthly gross revenue loss of at least 30% compared to pre-COVID 2019 average monthly revenue; revenue loss calculated as 2019 Gross Receipts or Sales/number of months in operation in 2019. (Your CPA can help you determine this.)

Eligible Expenses

  • Payroll, may be reimbursed up to 100%

May be reimbursed up to 80%:

  • Insurance premiums
  • Rent or mortgage payments
  • Lease payments for real or personal property
  • Utilities
  • 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.

Application process

Small businesses will need to gather and upload (30 megabyte file limit) the following documentation to apply:

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 – Click here for an example of a Profit and Loss Statement – This example is fillable and

 

Once eligible, submit expenses

 

Expense

 

 

Documentation Required

Payroll
  • Proof of payroll expenses for wages paid to

W2 employees only

  • 900 series payroll forms
Insurance premiums
  • Proof of insurance premium payment
  • Certificate of Insurance (COI)
Rent, lease or mortgage payments
  • Copy of mortgage, rental or

lease agreement(s)

  • Proof of mortgage, rental or

lease payments

Utilities
  • Copy of utility bills or billing statements
Safety purchases and improvements
  • Receipt of purchases and/or

improvements made to increase safety.

Food delivery software services
  • Proof of restaurant delivery software expenses, including but not limited to: GrubHub, DoorDash, Uber Eats, Shopify, etc.

If you have questions about completing an application or compiling the required documents, contact the nearest Indiana Small Business Development Center (SBDC) office or call Teipen CPA Group for help in applying.