• Clear, consistent classification of direct and indirect costs is critical for maximizing grant utilization and making sure you’re compliant.
• Choosing the right indirect cost recovery strategy (NICRA or de minimis) directly impacts a grant recipient’s ability to recover operational expenses.
• Misclassification or inconsistent treatment of costs can jeopardize your financial reporting accuracy and the long-term health of grant-funded programs.

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Bottom Line Up Front

Grant recipients navigate multiple complexities when managing federal financial assistance, including defining costs as indirect or direct and selecting the most appropriate indirect cost recovery strategy to maximize utilization of grant funds and cost recovery. Further, a lack of clarity and understanding of the associated cost accounting practices and consistency of treatment of certain costs as direct or indirect can cause serious compliance challenges for grant recipients. 

In an environment where acceptable indirect cost rates is a topic of discussion and scrutiny from several federal grant-making agencies, it is critical for grant recipients to understand their current indirect cost methodologies and be prepared to revisit or adjust their strategies going forward to protect or enhance financial health.

What Are Direct and Indirect Costs?

Direct costs are costs grant recipients can attribute specifically to program operations, which are reimbursed at the full level of the cost allocated to the grant. Indirect costs refer to costs a grant recipient cannot easily assign directly to a particular cost objective that help manage the administrative functions of their operations (e.g., overhead costs). Indirect costs are charged to an award as a percentage of the direct costs, allowing grant recipients to recover the costs of these operational activities that cannot be directly attributed.

Since grant recipients incur both direct and indirect expenses, they must consider their cost methodologies in a way to fairly represent their operational expenses so they can accurately charge program expenses against grant funds. Reporting an ineffective or inaccurate indirect cost allocation methodology or making poor strategic decisions for direct and indirect cost treatment can risk the underutilization of grant funds that may jeopardize the financial health of the grant-funded program.

Some grant recipients find it challenging to appropriately identify expenses as direct or indirect as certain types of costs may fall into either category or overlap depending on the organization’s structure and/or cost accounting practices. Therefore, its critical for grant recipients to establish clear and consistent methodologies for how such costs are treated.

Examples of Direct and Indirect Costs

Note: If a grant recipient is choosing to identify cost types detailed above as a direct cost to a specific program or activity, it must also similarly attribute such expenses as direct costs to all other specific programs or activities it operates, regardless of funding source, and can only consider remaining items that truly support all operations in their indirect pool.

Applying Costs Against Awarded Grant Funds

Effective allocation of costs is critical to ensure expenses are appropriately charged to each program or activity and that the grant recipient can accurately track and report the charges to a grant program on its financial reporting. This includes the detail of costs included on a grant recipient’s invoices or reimbursement requests and its Federal Financial Reports (SF-425), a reconciliation the grant recipient is required to submit periodically that illustrates the financial health of the grant-funded program or activity.

There are different methodologies to calculate the amount of indirect costs charged to the grant. Grant recipients may elect to establish a Negotiated Indirect Cost Rate Agreement (NICRA), which is calculated based on the specific indirect costs incurred by each organization and reviewed and negotiated with the organization’s cognizant or oversight agency (the agency that represents the largest proportion of funds received by the organization). Establishing a NICRA allows a grant recipient to reflect the full cost to run its business and elect the most effective or appropriate distribution basis against which its indirect rate will be applied. Once in place, a NICRA must be accepted by any federal funding agency.

Recipients who choose not to (or may not be eligible to) pursue a NICRA can use the de minimis rate established in 2 CFR 200.414(f). This allows organizations without a current NICRA to use an indirect cost rate up to 15% (increased from 10% as of Oct. 1, 2024) of Modified Total Direct Costs (MTDC) charged to the grant. MTDC are direct costs, excluding equipment, capital expenditures, charges for patient care, rental costs, tuition remission, scholarships and fellowships, participant support costs, and the portion of each subaward in excess of $50,000 (increased from $25,000 as of Oct. 1, 2024).

Examples of Direct and Indirect Costs

How MGO Can Help

Navigating federal grant compliance requirements can be complex, but you don’t have to do it alone. MGO’s State and Local Government team works closely with grant recipients to review cost allocation methodologies, assist with indirect cost rate development, and identify opportunities for better financial management and recovery. Whether you’re unsure how to classify certain costs or you need guidance on improving your reporting accuracy, our team can help you develop practical, defensible strategies that stand up to audit scrutiny and safeguard your funding. Contact us to learn more.

Written by David Clark and Dan Grossman. Copyright © 2025 BDO USA, P.C. All rights reserved. www.bdo.com

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• Poor documentation, unallowable costs, and misallocated spending are frequent issues that can lead to audit finding and jeopardize program funding.
• Regular financial reviews, data analysis, and technology-driven tools are essential to improve compliance monitoring and prevent misuse of grant funds.
• Targeted training, simplified guidance, and consistent communication help you better understand your responsibilities as grantees and reduce any costly errors.

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Grant program offices are responsible for managing and allocating funds to support various initiatives. Managing the complexity of financial regulations and grant governing rules makes confirming grantee compliance a significant challenge. Those who do not adhere to financial regulations and rules risk non-compliance, resulting in fund misuse, audit findings, and jeopardizing the overall effectiveness of grant programs. An area often found most contentious in grantee audits is how operational expenses are incurred, categorized, and recorded. Operational expenses – costs associated with a grantee’s operations – include utility bills, repair and maintenance expenses, office supplies, leases, and other operating expenses.

Three common scenarios related to operational expenses can result in non-compliance:

1. Missing and/or Lack of Sufficient Documentation to Support Transactions: Inadequate documentation to validate expenses under review can be a major problem for grant program compliance. This includes missing original invoices, statements, or receipts for the expenses incurred. Financial oversight challenges can also arise when there is no proof of payment to confirm that an expense was paid to the appropriate vendor, such as bank statements, credit card receipts, or cancelled checks.
2. Unallowable Costs: Another common compliance issue is unallowable costs, which are unauthorized expenses charged to the grant according to the Code of Federal Regulations (CFRs) and relevant Program Guides.
3. Incorrect Allocation and/or Inappropriate Spending: When a grantee misallocates transactions or uses grant funds inappropriately, they may be cited for non-compliance. For example, buying gift cards and providing them to clients or employees is a risky purchase since they are difficult to track and can be used to purchase.

Strengthening Financial Oversight

There are several strategies grant program offices can use to strengthen their financial oversight and monitoring processes. Tasks may include performing a thorough review of the Federal Financial Reports (FFR) SF-425s and Single Audit Reports, monitoring and analyzing unusual and high dollar general ledger entries, testing payroll and operational expenses, and performing programmatic reviews. Additionally, leveraging technology to assist in creating tools and resources can also enhance understanding and retention of compliance requirements and monitoring.

Educate Grantees to Minimize Non-Compliance

Grant program offices can implement a multifaceted educational strategy to simplify the complexities of compliance and minimize instances of non-compliance. Strategies can include:

Offer Technical Assistance and Training Sessions

Training sessions like in-person workshops or virtual webinars for new grantees can help explain compliance requirements, reporting obligations, and allowable costs associated with their grants, and help reduce confusion and challenges for those who are new to funding. For grantees who have unique needs and challenges, grant program offices can provide targeted training and resources specific to their type of grant. Additionally, existing or legacy grantees may have questions as well. Offering refresher courses and training sessions may help minimize common mistakes even experienced grantees could make.

Provide User-Friendly Guides and Resources

Creating easily accessible, simplified, user-friendly guides that outline compliance requirements, documentation standards, and processes can provide quick, go-to resources for grantees. Providing access to online resources such as FAQs, compliance checklists, and best practice examples from successful grantees , can also help create and encourage a community where grantees can share their experiences and solutions.

Establish Regular Communication and Updates

Establishing regular communications (e.g., newsletters, emails) can help keep grantees informed and up to date on changes in compliance regulations, deadlines, or reporting requirements. Setting up one-on-one consultations or dedicated office hours for grantees to ask questions and seek clarification on compliance issues in a personalized setting is a quick way to address challenges and help foster a relationship between grant offices and grantees.

Implement Monitoring and Feedback Mechanisms

Regular monitoring of grant compliance and constructive feedback can help identify common compliance pitfalls and allow the Grant Program Office to proactively address these areas with grantees.

By adopting these strategies, grant program offices can empower grantees with the knowledge and resources needed to stay in compliance and improve the overall effectiveness of grant programs.

Written by Hira Hasan. Copyright © 2025 BDO USA, P.C. All rights reserved. www.bdo.com

How MGO Can Help

At MGO, we understand the pressures and complexities faced by grant program offices. Our experienced State and Local Government professionals work alongside public agencies to design and implement robust compliance frameworks, tailored to their funding sources and various operational needs. From reviewing financial reports to developing grantee training materials, we can help you reduce the risk of non-compliance and improve your overall grant program performance. Whether you’re addressing audit findings or proactively enhancing your oversight process, we offer the guidance, tools, and support you may need to drive impactful outcomes, using every dollar as intended. Contact us to learn how.

The post How to Improve Grantee Compliance Through Strategic Financial Oversight appeared first on MGO CPA | Tax, Audit, and Consulting Services.

Key Takeaways:

• Maryland’s Winery and Vineyard Economic Development Grant Program reimburses 25% of capital expenses — helping businesses invest in equipment, production tools, and agricultural materials.

• Eligible expenses include fermenters, bottling equipment, irrigation systems, and vineyard supplies — but labor, repairs, and utilities do not qualify.

• Wineries and vineyards must send applications with detailed expense reports and documentation by September 15 to be considered for funding.

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For owners, managing cash flow while investing in growth is a balancing act. The Winery and Vineyard Economic Development Grant (WVEDG) Program offers a valuable opportunity to offset costs by receiving reimbursement for qualified capital expenses. If you’re planning to upgrade equipment, expand operations, or improve production efficiency, this grant can be a key financial tool.

What Is the Maryland WVEDG Program?

The Maryland Department of Commerce administers this grant to help wineries and vineyards invest in essential infrastructure, equipment, and agricultural materials.

How Much Can a Winery or Vineyard Receive?

The program reimburses 25% of your eligible capital expenses — reducing financial strain and enabling your business to reinvest in its operations.

With funding subject to annual state budget limits, early applications are critical to securing support.

Who Can Apply?

Your business may qualify for the grant if you meet one of the following requirements:

• You are a Maryland winery holding a Class 3 or Class 4 license issued by the Comptroller of Maryland.

• You operate a Maryland vineyard with at least one contiguous acre dedicated to growing grapes for wine production.

Reviewing eligibility criteria before making capital investments can help your business plan effectively and maximize reimbursement.

What Expenses Qualify?

The grant covers costs related to the purchase and installation of equipment and agricultural materials that directly support winery or vineyard operations.

Eligible Expenses Include:

• Winery equipment: Bottling machines, fermenters, presses, crushers, corkers, and refrigeration systems.

• Vineyard investments: Irrigation equipment, trellising, soil amendments, fertilizer, and fruit plants.

• Production tools: Barrels, pumps, labeling machines, tractors, and pruning equipment.

What’s NOT Covered?

The grant does not reimburse costs for:

• Labor
• Repairs
• Construction
• Utilities
• General supplies

If your winery or vineyards is planning capital investments, working with an advisor can help you determine which purchases qualify and how to structure expenses for the best financial outcome.

How to Apply

Your business must send an application along with detailed expense documentation to be considered for funding.

Application Process

1. Obtain business certification: Your business must be certified as a qualified entity through the Maryland Department of Commerce.

2. Submit a report of expenses: You need to provide a detailed breakdown of purchases, including receipts and invoices.

3. Meet the deadline: You must submit your application by September 15 of the calendar year in which the expenses were incurred. Grant amounts are confirmed by December 15.

Given the documentation requirements, your winery or vineyard may benefit from working with tax professionals to prepare exact reports and avoid missing eligible reimbursements.

Beyond the Grant: Tax and Financial Considerations

While securing grant funding is a key step, integrating it into a broader financial strategy can create even greater savings. Aligning capital purchases with state and federal tax incentives, depreciation benefits, and other financial tools can improve cash flow and profitability.

Working with an advisor can help your winery or vineyard:

• Improve tax benefits by aligning grant-covered purchases with deductions and credits.

• Maintain compliance by keeping audit-ready documentation for grants and tax filings.

• Plan for long-term financial success by balancing investment timing and funding sources.

Looking for guidance on tax-efficient planning, grant applications, or long-term financial strategies? Advisors familiar with the winery and vineyard industry can help you navigate these complexities.

Protecting Your Investment: Key Insurance and Risk Considerations

Applying for the Maryland WVEDG is a great opportunity to offset costs, but it’s essential to address key risk management and insurance factors to protect your business investments. Considerations include:

• Business personal property (BPP) coverage: Equipment purchased with grant funds — such as fermenters, bottling lines, and tractors — should be properly insured. When setting coverage limits, businesses should consider the full value of the equipment (not a discounted amount due to grant support). Additionally, the valuation method — replacement cost versus agreed value — should be carefully reviewed to ensure adequate coverage in the event of a loss.

• Contractual obligations and funding compliance: Grant recipients should review any contractual obligations tied to funding — including potential requirements to maintain specific insurance coverages or retain financial records for audits. Non-compliance could result in funding clawbacks.

• Loss payee provisions: If financing equipment or agricultural materials, lenders may require being listed as a loss payee on the insurance policy. This ensures they receive compensation in the event of a covered loss.

• Liability and business interruption: Expanding vineyard operations or upgrading production can introduce new risks. Reviewing liability coverage and business interruption insurance can help protect against potential disruptions and revenue loss.

Working with an experienced insurance advisor can help your winery or vineyard secure appropriate coverage, remain compliant with grant terms, and safeguard your long-term investment.

Act Now to Secure Funding

With the September 15 deadline, wineries and vineyards should start gathering documentation now to maximize funding potential. Since approvals depend on state budget availability, early submissions are recommended.

Navigating the grant application process while aligning it with broader tax and financial strategies can be complex. MGO works with winery and vineyard owners to find eligible expenses, structure capital investments to enhance tax benefits, and support compliance with reporting requirements to avoid delays or disqualifications. By taking the right steps now, your business can secure grant funding while strengthening your overall financial position.

The post Maximize Savings with Maryland’s Winery and Vineyard Grant appeared first on MGO CPA | Tax, Audit, and Consulting Services.

Now is a good time to evaluate and improve your financial reporting process for grants. While grants are subject to many reporting requirements, we will focus on revenue recognition under generally accepted accounting principles (GAAP) in the United States of America and the schedule of expenditures of federal awards, as required by Uniform Guidance.

Financial Reporting in Accordance with GAAP

In June 2020, the Governmental Accounting Standards Board (GASB) issued Technical Bulletin No. 2020-1, Accounting and Financial Reporting Issues Related to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and Coronavirus Diseases (TB 2020-1). TB 2020-1 helps governments navigate the complexities of accounting for CARES Act funding. It addresses issues such as the type of financial assistance, characterization of loss of revenue, and effect of amendments. While ARPA funds have their own complexities, the principles established in TB 2020-1 for the CARES Act translate well to ARPA, and GASB has not published further guidance for ARPA.

In TB 2020-1, GASB provides guidance that the Coronavirus Relief Fund (CRF) resources are voluntary nonexchange transactions subject to eligibility requirements. The Local Fiscal Recovery Funds in ARPA are like the CRF resources in the CARES Act and should be treated consistently. This means the award should be recognized in the period when all applicable eligibility requirements are met.

When evaluating revenue recognition for voluntary nonexchange revenues, remember that the recipient cannot incur allowable costs until there is an executed grant agreement. For the ARPA funds, this means the recipient has signed all the required documents accepting grant terms and conditions, and that the recipient has received confirmation of the award before the end of its reporting period.

The presumed applicable period is the immediate provider’s fiscal year and begins on the first day of that year, based on the provider’s appropriation to disburse the resources. For the CARES Act, few cities met the threshold for directly awarded metropolitan cities, which subjected them to the state’s provisions rather than as a direct recipient of the federal government. For example, California cities and counties that received pass-through awards from the State of California were unable to recognize grant revenue in fiscal year ended June 30, 2020, because the State of California did not make the appropriations available to governments until July 1, 2020, through passage of its budget act.

The ARPA funds, which were directly distributed to a considerably greater number of recipients, were appropriated immediately by the federal government upon signing ARPA into law. That means the direct recipients of ARPA funds and the non-entitlement units of governments that received their allocations from states that executed the awards before the end of the reporting period, may recognize revenue immediately upon execution of the award, if they met the eligibility criteria.

For those governments that received cash before the end of the reporting period, a liability should be reported for the portion of financial assistance that was not recognized as revenue. For those governments that did not receive cash before the end of the reporting period, a receivable should be reported for the portion of financial assistance that was recognized as revenue.

The Possibility of a Single Audit

While many governments require an annual single audit due to the amount of federal awards received each year, many others are below the threshold for requiring a single audit. Funding related to COVID-19 resources may push more governments over that $750,000 threshold.

For governments unfamiliar with single audits, it is important to prepare. Taking inventory and reading the guidance provided by the Office of Management and Budget (OMB) and awarding federal agencies will help you understand and equip yourself to submit (and pass) a single audit.

What Is the SEFA?

The schedule of expenditures of federal awards (SEFA) acts as a supplemental schedule to the financial statements that an organization produces when it is subject to a single audit requirement. This requirement is triggered when the federal expenditures reported on the SEFA exceed $750,000 or more over the organization’s fiscal year

Preparing the SEFA is no small task. It must be completed in accordance with the Uniform Guidance and include all federal expenditures. In addition to determining the amount of federal expenditures, the Uniform Guidance specifies how the amounts are to be reported. Individual federal programs should be listed by federal agencies, and pass-through entities should be noted as well.

The Single Audit and ARPA

On March 19, 2021, the OMB released a memo that detailed single audit updates to be aware of in ARPA. The updates give awarding agencies the discretion and the authority to grant some exceptions to recipients who are affected by the pandemic if they are permissible by law. These entities do not necessarily have to be recipients of COVID-19 related financial assistance to receive these exceptions.

The most notable update is the extension of the single audit submission due date. For those recipients who did not file their single audits with the Federal Audit Clearinghouse by March 19, 2021, and had fiscal year-ends through June 30, 2021, the submission of their reporting packages was extended to six months past the normal due date, and no action by the awarding agencies or recipients is necessary. However, the documentation showing the reason for the delay in filing must be retained.

Additional updates include:

• Awarding agencies may allow some necessary incurred pre-award costs.
• Awarding agencies may allow extensions of awards, which gives recipients more time to resume projects and expend the funds.
• Prior approval requirements may be waived.
• Awarding agencies can grant recipients up to a three-month extension beyond the normal due date to submit financial, performance, and other required reports.
• The award application deadlines can be flexible.

While it is clear the OMB is attempting to be reasonably flexible, maintaining clear documentation of your grants and expenditures will be helpful as new and changing guidance becomes available.

Understand the Current Requirements and Look for Changes

The pandemic threw many organizations into survival mode. However, with federal, state, and local support many have weathered the financial difficulties over the past 18 months as well as can be expected. As organizations move forward, they will have to account for how they survived, where the monetary support came from, and where the money went. The near future will require unprecedented diligence, flexibility, and perhaps most of all, patience.

MGO Is Here to Help

Guidance over grant funding, especially as it relates to CARES Act and ARPA programs, are continuing to develop and evolve. It’s important to stay on top of the latest changes and updates, as utilization of these resources are critical to the financial recovery of your organization and the proper reporting of those resources to stakeholders and the federal agencies charged with oversight. If you need personalized guidance, don’t hesitate to reach out to your MGO contacts.

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Who Is Your Grant Administrator?

This seems like a simple question, but if an organization only has a few grants, grant administration may be one of many roles. Or, responsibility may be shared among several roles. That situation works until the size of the organization and the complexity of the grants make responsible grant management impossible.

When the responsibility and complexity of grant management becomes too demanding to include as one of many responsibilities, it’s time to identify one person to take the lead. Eventually, that person may build the team responsible for overseeing and coordinating grant administration.

It is easy to see the benefits of having one person develop the full knowledge of grant requirements and take responsibility for establishing policies and procedures for the organization. This person provides guidance for the organization and monitors compliance requirements. They also serve as the point person for grant related audits.

Do You Have Policies and Procedures for Grant Administration?

A grant administrator’s first priority is to develop policies and procedures that outline each step in the lifecycle of the grant. Typically, this document will answer the following questions:

• Who approves grant applications?
• Who executes grant agreements?
• What systems will be used to track grant activities, such as qualifying expenses, reporting dates, performance metrics (both financial and programmatic)?
• What documentation is required for compliance?
• Who reviews and approves grant activities to ensure compliance?
• Who develops and manages a schedule and process for annual financial reporting (financial statements and grant reporting, e.g., single audit)?
• Who is responsible for training staff in grant requirements?
• Are subrecipient contracts standardized, and do they comply with your responsibilities as a grantor?
• Who is responsible for resolving audit findings?

Are You Prepared for Grant Reporting?

One of the key responsibilities of a grant administrator is to manage deadlines (monthly, quarterly, biannually, annually, and grant close out). In addition to the initial application deadline, grants require consistent attention. You need to file updates and reports throughout the life of the grant, and they will often require specific documentation. The information in these reports must be complete, accurate, and filed promptly. If they are not, you can count on the grantor requiring you to follow-up and resolve the issues.

Do You Have the Resources to Monitor Activities?

It’s true, monitoring grants is a full-time job. Or it should be.

Being awarded a grant is the first chapter of a long story. The rest of the tale involves using the grant for its intended purposes and documenting that fact. Responsible monitoring and documentation require time, energy, systems, and personnel.

Someone should be assigned responsibility for the continuous monitoring and evaluation of grant administrative policies and procedures. This involves looking for changes in grant requirements communicated by the grantor.

For subrecipients, the grant administrator must convey the expectations about their activities and then monitor the progress toward the stated goals. On-site visits will sometimes be necessary and require time. Verifying the status of periodic reporting responsibilities can also take up resources that may already be scarce.

The final chapter of monitoring activities is to develop a clearly defined plan for responding to audit findings. Depending on the complexity of the findings, resolving these issues can require rewriting procedures, documenting changes, and verifying the implementation.

Are You Ready for an Audit?

While this may seem obvious, knowing your requirements should be the first step in preparing for the possibility of an audit.

In addition to reviewing grant requirements, look back at your prior year findings to confirm that they were fully resolved. If they were not, they need to be addressed immediately.

The next step in being prepared for an audit is to ensure all necessary documentation is complete and accurate. Your documentation should demonstrate compliance with the grant requirements. Usually, your materials will need to include evidence of internal controls that supports the process of reviews and approvals. Internal policies and procedures should be easily accessible. (Thankfully, once this document is complete, it only needs to be updated going forward.) When these items are assembled, make sure all reconciliations connected to the grant are complete.

Once the preparations are made, the hardest part of an audit is done. You will still need to meet with auditors and discuss expectations, timelines, and requests for information, but these are more scheduling and time management issues. If your paperwork and systems are in good order, your work will consist mainly of providing evidentiary support, and possibly providing explanations on details that may not appear obvious to an outsider.

Continuously Improving Your Grant Compliance Processes

With a lot of subjectivity in the process of managing grants, along with requirements changing on a regular basis, it is important to continuously evaluate the adequacy of your grant administration policies and procedures. So, no matter what your situation is, your processes can always improve, and any deficiencies can be remediated. But it takes commitment as an organization to devote the resources to do the ongoing work of grant compliance.

Many state and local governments have compliance questions about the federal grants that were distributed during the pandemic. The reporting rules of these programs are complex, and requirements continue to evolve.

MGO’s state and local government professionals can help answer questions about these federal grants and help organizations document their systems of internal controls, improve their audit preparation, and address audit findings. Contact our team today for more information on how to improve your grant compliance processes.

The post Evaluating Your Government’s Grant Compliance Framework  appeared first on MGO CPA | Tax, Audit, and Consulting Services.

Start a grant application here: https://careliefgrant.com/partners/county/

Basics of the COVID-19 Relief Grant Program

The program, which allocates $500 million in financial relief to small businesses and nonprofits that have been impacted by the COVID-19 pandemic, was first announced by Gov. Newsom and the California state legislature on November 30th, 2020.

All California-based small businesses (including sole proprietors, home-based businesses, and independent contractors) and not-for-profits with a yearly gross revenue of $2.5 million or less, and have been in operation since at least June 1, 2019, may be eligible for the grant. It is worth noting that applicants with multiple business entities/franchises/locations, etc. are not eligible for multiple grants and are only allowed to apply once using their eligible small business with the highest revenue.

Grant Awards by Entity Revenue

The grant award ranges from $5,000 to $25,000 based on your operation’s annual gross revenue as reported in the most recent federal tax return.

Gross Annual Revenue – Grant Award
$1,000 to $100,000 – $5,000
Greater than $100,000 up to $1,000,000 – $15,000
Greater than $1,000,000 up to $2,500,000 – $25,000

The award is a true grant, not a loan that has to be forgiven. The funds are intended to be used as working capital for your business’s operating expenses – payroll, rent, loan payments, COVID-protective measures, etc.

Award Selection Process

The grants are not issued on a “first-come, first-served” basis; rather all applications will be assessed following the close of each application round. The program prioritizes distribution based on key factors, including:

• Geographic distribution based on COVID-19 health and safety restrictions;
• County status and regional stay-at-home orders;
• Industry sectors most impacted by the pandemic;
• Underserved small business groups:
  • e.g., majority-owned and run by women, persons of color, or veterans, or located in low-to-moderate income and rural communities.

The Small Business COVID-19 Relief Grant Program will be offered in two “Rounds” – with the first Round running from December 30, 2020 to January 13, 2021 at 11:59pm. Everyone who applies during a Round will be given equal consideration. Awards will be announced after each Round closes. The timing of the second and final Round is to be determined.

If you apply in the Round 1 and are not successful, your application will be carried over for consideration in Round 2 without the need to reapply. Businesses can only receive one grant even though there will be two Rounds.

For more information, visit careliefgrant.com

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