Hospitality Economic Resiliency Grant PLUS

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Hospitality ERG PLUS (PHERG)

ROUND 1 and 2 are now CLOSED

 

Past applicants can still log in to view past applications - click here!

 

The Hospitality ERG PLUS (PHERG) focused on businesses in the lodging sector. Many of these businesses continue to suffer from the continued impact of the 2019-nCov/COVID-19 (COVID-19) pandemic. While these businesses face dramatic declines in revenue, they continue to be pillars in both rural and urban communities across North Dakota. Eligible entities will help lodging businesses survive in the midst of the COVID-19 pandemic. 

The grant is not intended for private vacation rentals who rent rooms, apartments, condos or homes to the traveling public through online marketplaces like Airbnb, HomeAway, Bed and Breakfasts, or VRBO. Extended stay hotels who offer rooms for rent on an ongoing nightly basis are eligible, but those who only serve long-term stays defined as 30 days or more are not eligible. 

The grant will be offered using the following logic:

You may only fill out ONE application and will be eligible for up to $40,000 for one eligible location, up to $80,000 for two or more eligible locations. If you receive a grant for more than one location, you cannot spend more than $40,000 per location. An eligible location must meet business eligibility requirements as listed at https://belegendary.link/PHERG and is defined by a customer facing marketplace. List all locations in which your ownership is 50% or greater, regardless of whether business has a separate EIN. Applicant must list each business under this guideline and will be awarded according to the $40,000 and $80,000 maximum rule.
 
If an eligible entity received funding in HERG PLUS (PHERG) Round 1, they are capped at $40,000; for example, entities that received $40,000 are entitled to $0; an entity that received $15,000 would be eligible for up to $25,000 and an entity that received $5,000 would be eligible for up to $35,000. The same concept applies to multiple entities as the cap remains $80,000 with $40,000 per facility using the same logic. There can be no single entity that receives in excess of a total of $40,000 or group of businesses with combined ownership structure involving multiple eligible entities that receive in excess of $80,000.

If you own multiple businesses at the same physical address, similar to a mall food court, this is considered a campus - defined as businesses under the same ownership structure within 1/4 mile of one another's physical location, therefore only eligible for $40k and $80k max amounts.

Hospitality ERG PLUS (PHERG) ROUND 2 funds will be used to reimburse eligible entities for costs in operations, such as payroll, rent, utilities and other expenses that comply with federal guidelines.  Payroll taxes and other taxes are not eligible for reimbursement.  

Please note, there is NO APPEALS process for the Hospitality ERG PLUS (PHERG) ROUND 2 grant program. Providing all documentation requested and appropriate justification for each expense item will ensure your best chance for success with the grant program.  

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BUSINESS ELIGIBILITY

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To be eligible for Hospitality ERG PLUS (PHERG) ROUND 2, a business must meet ALL of the following criteria:

  • Customer facing marketplace
  • Have a permanent physical location in North Dakota (P.O. Boxes or mailing addresses are not considered a physical location)
  • Have been financially viable prior to March 1, 2020
  • Have experienced negative financial impact due to COVID-19
  • Be in good standing with the ND Secretary of State or applicable tribal government at the time of application
  • A lodging entity – Derives a minimum of 51% of their sales from “heads in beds”; as well as a current lodging license
  • Business meets ND Smart/Re-Start standards
  • Eligible expenses must have been incurred on or after March 27, 2020, and no later than December 29, 2020.
  • Must have spent the money PRIOR to requesting reimbursement.

Ineligible Hospitality ERG PLUS Businesses Include:

  • Private vacation rentals, Bed and Breakfasts, VRBOs, Air BNBs, Campgrounds
  • Extended stay hotels who offer rooms for rent on an ongoing nightly basis are eligible, but those ONLY serving long-term stays, defined as 30 days or more, are not eligible.

Applicants must self-certify that they meet the requirements and will comply with current North Dakota Smart Restart protocols.  Noncompliance with these protocols will result in the repayment of all grants funds.

Disbursement:

The approved grant funds will be distributed as soon as proper receipts for operating expenses are submitted with the grant application.

Per previous ERG- guidelines acceptable applicants include:

  • Any entity whose business is physically located in North Dakota
  • Be able to demonstrate they were financially viable prior to the COVID-19 pandemic (including operational and workforce needs)
  • Must demonstrate they had a negative financial impact by the COVID-19 pandemic
  • The business must be in good standing with the North Dakota Secretary of State or appropriate Tribal business license authority
  • Must submit receipts for operations costs incurred on or after March 27, 2020 and no later than date of application.
  • Applicant will self-certify that these criteria will be met as the onus will be on the applicant to ensure that they meet these criteria

Grant Amount:

You may only fill out ONE application and will be eligible for up to $40,000 for one eligible location, up to $80,000 for two or more eligible locations. If you receive a grant for more than one location, you cannot spend more than $40,000 per location. An eligible location must meet business eligibility requirements as listed at https://belegendary.link/PHERG and is defined by a customer facing marketplace. List all locations in which your ownership is 50% or greater, regardless of whether business has a separate EIN. Applicant must list each business under this guideline and will be awarded according to the $40,000 and $80,000 maximum rule.
 
If an eligible entity received funding in HERG PLUS (PHERG) Round 1, they are capped at $40,000; for example, entities that received $40,000 are entitled to $0; an entity that received $15,000 would be eligible for up to $25,000 and an entity that received $5,000 would be eligible for up to $35,000. The same concept applies to multiple entities as the cap remains $80,000 with $40,000 per facility using the same logic. There can be no single entity that receives in excess of a total of $40,000 or group of businesses with combined ownership structure involving multiple eligible entities that receive in excess of $80,000.

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Eligible and Ineligible Expenses

Hospitality ERG PLUS (PHERG) ROUND 2 funds will be used to reimburse eligible entities for costs of operations, such as payroll, rent, utilities and other expenses that comply with federal guidelines. Payroll taxes and other taxes are not eligible for reimbursement.

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Payroll and Benefits

Cost of retaining employees during eligibility period

Eligible Expenses:

  • Wages and salaries
  • Health Benefits or Insurance Plans
  • Work Comp

Ineligible Expenses:

  • Payroll taxes
  • Bonuses
  • Tips
  • FICA
  • FUTA
  • SUTA
  • Pay off PPP, BND, NDDF, EIDL or any loan documents other than mortgage
Mortgage, Operating Expenses and Utilities

Overhead expenses

Eligible Expenses:

  • Rent
  • Mortgage with no BND affiliation
  • Utilities
  • Business Insurance
  • Marketing and advertisements
  • Equipment to prepare food or drink; e.g. ovens, dishwashers, etc.
  • Repairs

Ineligible Expenses:

  • Pay off PPP, BND, NDDF, EIDL or any loan documents other than mortgage
  • Depreciation of materials
  • Food or Alcohol
  • Taxes on purchases
  • Business expansions or new construction
  • No vehicles
  • Items for resale
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REQUIRED DOCUMENTATION:

 

Applicants are responsible for providing sufficient documentation for all costs, justification for why these items are eligible, and proof of payment.

  • Documents must be clear, legible, and high-resolution, e.g. Word, Excel, PDF, QuickBooks, Accounting Software, etc.
    • Documents not not generated by a 3rd party, must include proof of payment, e.g. quarterly tax reports, copy of banking statements, credit card statements, print off from accountant certifying accuracy, etc.
    • To assist with your payroll expenditures, please click HERE for a payroll cost summary template to fill out and upload in your line expenditure with your payroll expenses. You will need to fill out the form and save to your desktop and then upload this file in your line expenditure along with your other needed documentation.
  • Handwritten documents are not allowed
  • Show a detailed description of each expense

 

 

 

  • Clearly identify why and when the costs were incurred.
  • Applicant responsible for indicating which cost category an expense falls into
  • Receipt showing proof of payment
    • Must be Itemized to show all expenses
    • Include a total dollar amount
    • Date of purchase
    • Vendor name and contact information
    • Must tie back to the applicant and the business location (customer name, address, etc.)
    • Payment method noted on receipts
    • Taxes must be itemized (ineligible for reimbursement) 
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RECEIPT DOCUMENTATION:

  • Receipts: Legitimate receipts must include itemization (item description and/or picture), total purchase price, date, verification of payment in full, evidence it came from the vendor (letterhead, etc.)
    • Eligible (standalone) Receipts:
      • Itemized vendor receipt that shows proof of payment
      • Invoices if showed paid-in-full with $0 balance due
      • Screen shots showing the required information above (not just the shopping cart screenshot)
      • Receipts for the items from the distributor/supplier which refer back to the invoice or estimate provided
    •  Eligible (if accompanied by proof of payment: cancelled check, credit card statement/receipt, bank draft, etc.)
      • Invoice, quote, estimate, bid, purchase order, etc. (not showing a zero-balance due).
      • Hand-written/editable receipts
    • Ineligible:
      • Receipts showing applicant as the vendor
    • If ANY of the required information above is missing, or if the receipt is in any way editable, the applicant must provide additional transaction information such as cancelled checks, credit card statements, bank drafts, emails, etc. which provide the missing information.

 

 

 

  • Note: taxes are not an eligible expense, but shipping is.
  • All expenses provided must be clearly tied to the physical business location
  • If multiple items are on a receipt, clearly highlight or mark which items are being claimed for reimbursement
  • If using supplies from existing stock, 3rd party documentation must be provided to show the initial purchase of those items from the wholesale vendor as well as location
  • Limit one expenditure per line item, with corresponding documentation.
  • If you have listed multiple locations in your application, please note in the description of your line item which location this expense is for.
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For questions on the Hospitality ERG PLUS (PHERG) ROUND 2 Program, contact our business help line at businesshelpCOVID19@nd.gov.

 

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