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1. How is the Coronavirus Relief Fund (CRF) being funded?

The U.S. Department of
Treasury, as authorized under the Coronavirus Aid, Relief, and Economic
Security (CARES) Act, established a $150 billion relief fund to aid states,
local, and tribal governments with populations over 500,000 people in their
efforts to respond to the nationwide public health emergency caused by the
coronavirus pandemic and COVID-19 outbreak. Funding has been allocated from
Treasury to the State of Minnesota, and, in turn, the City of Arden Hills as
pass-through funds. Based on eligibility, small businesses physically located
within the City of Arden Hills are eligible to apply for funding.

2. What is the eligibility criteria for the Small Business Emergency Assistance Grant Program?

In order to apply,
businesses must meet the following criteria:

• Must have a physical location within Arden Hills.
• Must be in good standing with the City of Arden Hills and Minnesota
  Secretary of State.
• If required by either the state, county, or city, must be
  licensed and in good standing.
• Must be current on property taxes as of March 1, 2020.
• Must have between 3 and 45 employees, including the owner, as of
  March 2020.
• Business directly impacted by COVID-19.
• Must disclose all federal, state, or local grant or loan
  applications for which applicant has applied which has been received or remain
  pending at the time of application.
• Must certify in good faith that the uncertainty of current
  conditions makes the grant request necessary to support ongoing operations.
• Business directly impacted by Minnesota Governor‘s Emergency
  Executive Orders 20-04 and 20-08.
• Business
  shall be registered with the City’s Business Registration program.

3. What types of business are NOT eligible to participate in the program?

Ineligible businesses include:

• Businesses
  that do not have a physical address within the City.
• Businesses
  that derive income from passive investments without operational ties to
  operating businesses within the City; real estate transactions; property
  rentals or property management. 
• Businesses
  that primarily focus in on speculative activities based on fluctuations in
  price rather than the normal course of trade.
• Businesses
  that primarily generate income from gambling activities.
• Businesses
  that engage in activities prohibited by law.
• Businesses
  that have no current or historical financial statements.
• Businesses
  that earn revenue from pyramid schemes, lending services and/or day
  trading/short term investments.
• Businesses
  that previously received emergency funds from the city during the current round
  of funding.

4. My small business employs three or more individuals on a part-time or seasonal basis. Are we eligible to apply?

Businesses must have had
at least three employees prior to March 2020 in order to be eligible for the
City of Arden Hills Small Business Emergency Assistance Grant Program. For the
purpose of this grant program, the business must have less than 45 employees.

5. My small business does not have a physical location in the City of Arden Hills, but the majority of the clients/customers Arden Hills residents. Can we apply?

Businesses must have a
physical location in the City of Arden Hills. The City of Arden Hills will use
legal documents to verify addresses of businesses that apply for this grant.

6. My small business only operates on a seasonal basis, not year-round. Are we eligible to apply?

Yes. Businesses must have
had at least three (3) employees as of March 2020 in order to be eligible for
the City of Arden Hills small business emergency assistance grant program.

7. How many employees must I employ to be eligible to apply?

Businesses that employ between
3 and 45 employees are eligible to apply.

8. I own multiple business locations and my IRS 941 will show more than 45 employees. Can I apply for this grant?

You are eligible to apply
for this grant if the location(s) of your businesses located within the City of
Arden Hills employ between 3 and 45 employees.

9. Are there limits on how the grant can be used?

Arden Hills’s small
business emergency assistance grant program provides funding to assist small
businesses facing financial hardship and/or business interruption due to the
COVID-19 pandemic with financial assistance for necessary expenditures.
Eligible expenses include:  

• Commercial lease or mortgage payments
  (not mortgage prepayments or property taxes) for business properties.
• Accounts payable (AP) if the AP is a
  COVID-19 related expense incurred since March 1, 2020.
• Payroll, unless the business received
  Paycheck Protection Program (PPP) funds or pandemic unemployment insurance (UI)
  to cover the same period payroll expenses.
• Reopening costs or safety improvement
  costs expended since March 1, 2020 (i.e. outdoor seating, plexiglass, cleaning
  products, re-staffing costs, etc.).
• Costs associated with screening employees for COVID-19 upon business reopening.

10. Can I apply for more than the $5,000 award ceiling?

Grants will not exceed $5,000
to cover eligible expenses incurred due to the COVID-19 pandemic after March 1,
2020.  If a second round of funding is
approved, a business may be eligible to receive more than the $5,000 cap.

11. What types of expenses are ineligible for this grant program?

Ineligible expenses include the
following

• Lobbying
  for any purpose.
• Certain
  taxes and fees including those that are considered revenue for federal, state,
  or local governments.
• Replacement
  of lost revenue.
• Line of credit to purchase supplies/equipment.

12. Will this grant be considered taxable income?

Yes.
Please see IRS
guidance. The
City of Arden Hills will be responsible for issuing a 1099 for tax reporting
purposes.

13. How will awardees be selected to receive funding?

Applications will reviewed
on a first-come, first considered/awarded basis. Awards will be made to
applicants that submit a complete application and meet the minimum program
criteria. Please note that not all applicants will be funded.

The City of Arden Hills
intends to review and approve awards for several weeks after the application
period closes.