COVID-19 FAQs

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ECONOMIC RESILIENCY GRANT - BUSINESS ELIGIBILITY

Yes, if your business was profitable on March 1, 2020 or was a startup and in operation prior to March 1, 2020 and is projected to be profitable within 180 days of March 1, 2020

Typically, a business who has a consumer and a marketplace will be eligible. Private, for profit, nonprofit 501c3 and 501c6, and tribal companies are included in this grant.

According to the ERG guidelines, an additional grant round could be available if funding is not exhausted in Round 1. At this time, there is no date set for Round 2 as it is dependent on the applications in Round 1 completing the review process and meeting the compliance guidelines.  Please continue to check the ERG Website for updates.   

The grantee must be:

  1. Any entity whose business is physically located in North Dakota;
  2. Be able to demonstrate they were financially viable prior to the Coronavirus pandemic (including operational and workforce needs);
  3. Must demonstrate they had a negative financial impact by the Coronavirus pandemic;
  4. The business must demonstrate how the grant will improve facility COVID-19 resiliency, e.g. purchase using grant proceeds will improve business conditions from a health and welfare or consumer confidence perspective;
  5. The business must be in good standing with the ND Secretary of State or Tribal business license authority;
  6. Must have made the investment on or after March 27, 2020 and use the money on or prior to December 29, 2020.

Yes, if you were denied or did not receive the full amount, you may apply again or for the remainder of the allowable grant dollars ($50,000 for one location/$100,000 for more than one location) 30 days first after you have submitted your first award or the opening of the second round whichever comes.  This also applies for businesses that were denied and have other items they wish to submit that fit the grant intent.

If you were denied on the initial (first) application:  You may adjust your application and apply 30 days after your initial application or at the opening of the second round  up to $50,000 per business maximum $100,000 for items.  Reminder – applicant can only spend $50,000 on each location.  We recommend that you review the FAQ’s and presentation to ensure your new application meets the requirement of the grant. 

If you received partial funding: You may submit to receive reimbursement or an award for different items that meet the requirements of the grant 30 days after your initial application date or the second round, whichever comes first.  The total combined applications cannot be larger than $50,000 per business maximum $100,000 for applicants with more than one location.  We recommend that you review the FAQ’s and presentation to ensure your new application meets the requirement of the grant. 

The reviewer team determined that your application did not comply with grant requirements.  There are  number of possible reasons, the most common including:

  • The applicant has not demonstrated that it has a “marketplace” -in other words, a business setting where customers purchase goods or services for money.  Examples of businesses that lack a marketplace would be an office environment without a customer presence, like a call center or a company that doesn’t interact with its customer -like a roofing company. 
    • Another common reason for denial is that the applicant has not described how the investment reduces infection, for example, the expansion of warehouse space or some other capital improvement that has no apparent nexus to infection control. 
    • Or, where the applicant seeks funding to expand into a brand-new line of business.
    • Also, where the applicant seeks funding for what we are calling “version 2.0” – an upgrade to existing equipment where the improvement in infection control is not specifically demonstrated.  The grant was not intended to support these types of investments.   

Government entities, such as counties, cities, schools and universities are not eligible to apply for ERG funds. Exceptions to this would be governmental owned, public facing facilities such as tribal manufacturing and  city/tribal  owned for-profit businesses. Typically, businesses who can relocate their employees to remote and/or home-based work will be ineligible.  Businesses operated out of residential home.  Exceptions to this would be childcare facilities and agriculture related tourism businesses. ERG funds cannot be used for lobbying expenses.

A business with one physical ND location is eligible for up to $50,000.  A business with multiple physical locations in ND is eligible for up to $100,000. The maximum grant per business is $100,000.

Your business will be eligible to receive an award equal to the sum of qualified purchases made after 3/27/2020 and expected to be made within 45 days after award check is issued. Each line item will be individually reviewed, and you will receive the total of the approved expenses not to exceed $50,000 for one location and $100,000 for two or more locations.

Yes.  A business with one physical ND location is eligible for up to $50,000.  A business with multiple physical locations in ND is eligible for up to $100,000.  The maximum grant per business is $100,000.

A business with one physical ND location is eligible for up to $50,000.  A business with multiple ND locations is eligible for up to $100,000.

No. We need to verify that the business has a physical address in North Dakota open to customers. PO Boxes may be used for mailing addresses.

No.  It must be a physical location open to customers.

Your business is eligible to apply a second time 30 days after the first application is submitted.  

Yes.  As long as they have at least one physical address in North Dakota open to customers and do not use funds towards lobbying activities.

Yes, if the business was a viable business prior to March 1, has been impacted by COVID-19 the grant application will be evaluated for COVID-19 related expenses.

Yes, religious entities which are 501c3 nonprofits and are in good standing with the state are eligible and the grant will be reviewed for COVID-19 related expenses or estimates. 

Unless replacement is related to higher standard COVID-19 materials, this would not qualify.

A negative fiscal impact will be self-certified at the beginning of the application and could be asked if the businesses is audited after the grant award.  This impact could be loss of business, delay of business activities, additional purchases for health, safety and continued business operation or business temporary closure. 

Yes, private schools are eligible to apply for ERG funds if they can provide information on how the funds would be used to increase the health and safety of the students and increase consumer confidence.  Technology items would be part of this application.

Yes, they would be eligible because it is first-come, first-serve; and there are objective criteria, thus, there is not enough discretion to create a conflict. 

According to IRS Publication 587 a home-based business is one that uses the owner’s home (or space within the home) as its principal place of business. That is:

  • It is used regularly and exclusively for administration or management of a trade or business, and the owner has no other fixed location where the business carries on a substantial amount of administration or management.

No.  The grant is intended to inspire additional confidence for consumers to return to the marketplace. 

No, they would be eligible because it is first-come, first-serve; and there are objective criteria, thus, there is not enough discretion to create a conflict.

The applicant will be asked to submit a one-page revised request and attach corresponding receipts and/or estimates. The applicant will have 72 hours from the date time stamp of the email to send this documentation. If the information is not received with a revised request within this timeframe, the application will be rejected.

No.  As an owner of multiple businesses, you may only fill out ONE application and will only be eligible for up to $100,000.  The applicant must list each business in a single application and be prepared to provide information for the purchases if audited.

No.  Only physical locations where you have consumer interaction will be considered business locations.

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