Do you own a business in Tennessee? Did you have COVID-19 related expenses? You may be eligible for a grant from the state for those expenses - in addition to the grant that was offered earlier in the year.
The new program, announced Oct. 7, is called the Supplemental Employer Recovery Grant (SERG) Program. Funds will be distributed on a first come, first served basis. Applications are still being accepted, but applications already received may use most of the funds currently available. We recommend applying now if you qualify. First, see if you qualify.
Here are a few of the major qualifications you must meet:
Operate primarily in TN with a physical location in TN.
Annual revenue under $10 million.
Be registered with the Secretary of State, Department of Revenue, or file a Schedule C.
Must be in business from May 1 to August 31.
Next, see if your expenses qualify. Expenses fall into two categories (you can only receive reimbursement under one of these categories):
Expenses to meet COVID-19 recommendations for the workplace.
Costs to create social distancing measures
Costs to clean or disinfect due to COVID-19
PPE
Screening/testing equipment
Facilitation of teleworking
Drop in net income from 2019 to 2020 for the period May 1 to August 31. Eligible expenses if you qualify under this category are:
Mortgage Interest
Payroll expenses (not owner compensation for a sole proprietor or LLC)
Rent or lease
Utility Payments
Cost of critical business operations
This is just an overview, so if you think you meet the above qualifications, visit https://tncaresact.tn.gov/serg and read the details to explore further and consider applying. There’s also a calculator on the site to see what you might be eligible for.
This grant is a little different than other monies you may have applied for. You must have a specific expense that qualifies AND when you apply for the grant you must send backup of that expense. Also, you cannot claim the same expenses when requesting PPP forgiveness. There will also need to be proof of any drop in net income.
The reimbursement amount will be taxable for federal tax purposes, but you can deduct the expenses that you’re reimbursed for (unlike the PPP).
Remember, the funds are going fast…get your application in soon!
One of the keys to determining whether you qualify will be knowing what your expenses were and what your net income was. Make sure your books are in order before applying as everything is subject to audit. Let us know if we can help!
