Act Fast to Benefit from Rebound Idaho Small Business Grant Program

The State of Idaho (Idaho Rebounds) has announced a new Rebound Idaho Small Business Grant program for small businesses, non-profits, and veterans’ and tribal organizations with an employer identification number (EIN) and headquarters in Idaho.

The program will distribute $300 million of coronavirus relief fund money through individual business grants of up to $10,000 each to qualifying applicants while the money lasts.  The Idaho Coronavirus Advisory Committee posted its final eligibility requirements for the grants and FAQ at https://rebound.idaho.gov/idaho-rebound-cash-grants-for-small-businesses/.

Eligibility Requirements

The eligibility requirements and FAQ provide that eligible entities with an EIN also must meet the following criteria:

• Have an active Idaho State Tax Commission withholding account established prior to January 1, 2020;
• Had between one and 50 employees as of February 15, 2020;
• Have suffered a qualified business interruption;
• Your withholding account is not for the purpose of paying household employees (housekeeper, nanny, or other domestic help) or as a home healthcare recipient (for services received from a home healthcare provider);
• Did not receive an SBA-backed Paycheck Protection Program (PPP) loan or an Economic Injury Disaster Loan Emergency Advance, or received less than $10,000 in such funds;
• Did not receive and have not been awarded reimbursement under any other federal program for the expenses that will be reimbursed by this grant;
• Did not receive compensation from an insurance company for the covered business interruption due to COVID-19 or received less than $10,000 in insurance compensation; and
• Your business is not a subsidiary of a business with more than 50 employees, is not part of a larger business enterprise with more than 50 employees, and is not owned by a business with more than 50 employees.

Self-employed workers or independent contractors are not eligible for these grants.  The grants are limited to those meeting all the eligibility criteria listed above, including the requirement for one to 50 employees.  Workers who are self-employed or independent contractors are directed to the Pandemic Unemployment Assistance program through the Idaho Department of Labor.  .

In cases where the eligible entity receiving a grant has received insurance compensation or a Small Business Administration-backed PPP loan, or other federal assistance less than $10,000, the grant will be the difference between the award amount and the insurance compensation or loan.

How Funds May Be Used

Grant funds may be used to reimburse the applicant for the costs of business interruption caused by COVID-19 required closures, which may include:

• Personal Protective Equipment (PPE)
• Inventory
• Equipment
• Rent
• Utilities

[NOTE: “Payroll” appeared in the list of eligible uses in the original draft eligibility outline but was removed and replaced by PPE in the final list.]

“Business interruption” is described as financial stress or disrupted operations due to COVID-19 required closures, which may include but is not limited to:

• Reduced sales or suspended operations
• Increased costs related to COVID-19 prevention measures
• Disrupted supply network leading to shortage of critical inventory or materials

Funds must be expended in compliance with state and federal law.

How to Apply for Funds

The program will be run by the Idaho State Tax Commission.  All applicants must first establish a secure Taxpayer Access Point (TAP) account to protect their personal and business information on submitted applications.  There is a special registration process for tax professionals without a TAP account that intend to apply on behalf of a client.  Small businesses and tax professionals intending to apply on behalf of clients are encouraged to start this process as soon as possible – well in advance of the application waves opening.

The draft materials indicate that applications will be accepted in two waves: (1) for qualifying applicants with 1-19 employees, noon MT May 11, 2020; and (2) for applicants with 1-50 employees, noon MT May 18, 2020.

Grants will be awarded until the total program amount is expended.  ONLY ELECTRONIC/DIGITAL APPLICATIONS WILL BE ACCEPTED TO EXPEDITE THE QUICK TURNAROUND AND AVAILABILITY OF FUNDS.  Applications may be submitted by following the link on https://rebound.idaho.gov.  The grant application and approval process is intended to be fully automated, allowing grant payments to be issued rapidly.

How Awards Will be Selected

The draft materials provide the following tentative description of how awards will be selected.

The first wave of applicants will open at noon MT on May 11 and close at noon MT on May 15.  If the number of eligible applicants exceeds the available funds, a lottery system will be used to determine awards.  If the available funds exceed the number of wave 1 eligible applicants, all qualified applicants will be awarded funding.  If any funds remain after wave 1, the second wave of applicants will open at noon MT on May 18 and close at noon MT on May 22.

If the number of eligible applicants exceeds the remaining funds, a lottery system will be used to determine awards.  If the remaining funds exceed the number of wave 2 eligible applicants, all qualified applicants will be awarded funding.  There may be additional waves of applications/awards if any funding remains.  REBOUND IDAHO is anticipating that awarded grant funds will be direct deposited into the successful applicant’s account approximately 6 days after application acceptance.