Background:
Through the economic development tools provided to counties via 381 agreements, the Denton Commissioners Court approved a program on May 7, 2020, to support Denton County businesses during the Coronavirus pandemic. The first iteration of the program will start with $2.2 million, from the CoServ Capital Credit funds (non-taxpayer funds).The Grant:
The maximum award per grant is $10,000 to be paid out starting on June 8, 2020. The application period will be open starting Wednesday, May 13, 2020, at noon and will close at noon on Wednesday, May 20, 2020. This is not a first come first serve program, applicants will be graded and awarded based on need by the Denton County Auditor’s office. If the eligible business was partially closed due to COVID-19 Stay-at-home orders, they are eligible for 75% of the total grant award. Businesses completely closed are eligible for the full amount. Businesses will not be required to pay this back as it is a grant.The eligible amount of grant, higher of:
- 75x the average monthly payroll costs for the first quarter of 2020 (form 941) - including gross payroll, retirement and health insurance costs; sole proprietor can use the average monthly amount of Schedule C net income divided by twelve (must have a net profit); if partner can use the average monthly amount of net self-employment income. (Schedule K-1)
- 2x fixed costs calculated on 2019 monthly average
Eligibility criteria
- Business must be located or headquartered in Denton County
- 50 Employees of fewer
- Less than $7 million in Gross Annual Revenue
- Business started before March 1, 2019
- Applicant must have not outstanding Denton County tax liens or judgments
- Types of businesses: Corporations, Individual, sole proprietorship, single-member LLC, LLC treated as a partnership, C corp., S corp., Partnership. (Non-Profits are not included)
Eligible Use of Grant Money
- Payroll costs for employees or owners draw (sole proprietors/partners)
- Contract labor
- Supplier payments
- Rent, lease or interest on mortgage payment
- Rent, lease or purchase payment for business property
- New or expanded technology applications and Wi-Fi services
- Utility payments for business properties, excluding personal residence
- Cost of critical business operations (raw materials, marketing expenses, etc. payments)
- PPE and sanitation supplies and equipment
- Interest on other business debt obligations incurred before March 1, 2020, excluding personal residence
Sources: https://dentoncounty.gov/open#
