On October 23rd, Ohio Governor DeWine announced the creation of two small business relief programs designed to provide relief to Ohio businesses that have been negatively affected by COVID-19:

• The Small Business Relief Grant
• The Bar and Restaurant Assistance Fund

Both programs are worth a close review by small business owners who have been impacted by the pandemic.

Small Business Relief Grant

The $125 million grant will provide relief to Ohio businesses.  The funding for the program is the CARES Act passed by Congress in the early days of the pandemic.  To be eligible, a business must:

• be a for-profit entity with no more than 25 total or full-time equivalent Ohio employees as of January 1, 2020;
• have a physical location in Ohio;
• earn at least 90% of annual revenue based on activities performed in and taxable in Ohio;
• have been in continuous operation since January 1, 2020 (except for interruptions required by COVID-19 public health orders; and
• have the ability to continue operations as going concern.

Certain industries are ineligible for the funding. Ineligible business include those that are publicly traded; clubs; lobbying firms; adult entertainment businesses; gambling businesses; businesses engaged in the sale of liquor, tobacco, vaping or cannabis products; lobbying and political companies; hospitals, private schools, long term care facilities; utility providers and businesses subject to the Financial Institutions Tax under Chapter 5725 of the Ohio Revised Code.

Grant funds can be used to reimburse eligible businesses for the following expenses because of revenue loss or unplanned costs caused by COVID-19:

• Personal protective equipment to protect employees, customers, or clients from COVID-19;
• Measures taken to protect employees, customers, or clients from COVID-19;
• Mortgage or rent payments for business premises (personal residences explicitly excluded);
• Utility payments;
• Salaries, wages, or compensation paid to contractors or employees, including an employer’s share of health insurance costs; and
• Business supplies or equipment.

Each business that meets the criteria and submits a complete application will be eligible for a grant of $10,000 in accordance with established guidelines.  $44 million of the grant funds will be set aside to ensure businesses in all 88 counties receive funding. 

At least 50 businesses will be funded in each county.  All applications will be awarded on a first-come, first-served basis. At least 50 businesses will be funded in each county.  The application window will open on November 2, 2020.  Eligible businesses can apply here:  https://www.businesshelp.ohio.gov/

Bar and Restaurant Assistance Fund

The Bar and Restaurant Assistance Fund is designed to assist Ohio’s on-premise liquor permit holders.  This $38.7 million fund will help more than 15,400 licensees significantly impacted by COVID-19 and limited in the full use of their liquor permit. 

Funding for the program is from the CARES Act.

Eligible businesses include:

• 30 permit types including bars, restaurants, breweries, distilleries, wineries, casinos and private clubs (A1, A1A, A1C, A2, D1, D2, D2X, D3, D3A, D4, D4A, D5, D5A, D5B, D5C, D5D, D5E, D5F, D5G, D5H, D5I, D5J, D5K, D5L, D5M, D5N, D5O, D7);
• Permit holders who have had an active on-premise permit as of close-of-business October 23, 2020- the permit holders do not have to be currently open but must have an active liquor license. 

After applying, a licensee will receive $2,500 per unique business location. 

Licensees must present their FEIN or SSN, and liquor permit number and address for each unique location at the time of application.  The Department of Taxation will confirm all entries.  Applications will be accepted through December 30, 2020. 

Once money is received, per CARES Act stipulation, businesses are to use the funds on COVID-related expenses due to business interruptions caused by the pandemic. 

The application window opens Monday, November 2, 2020, and applications will be accepted through December 30, 2020. Funds cannot be distributed after December 31, 2020.

Permit holders may apply for the liquor assistance funding as well as the Small Business Relief Grant through the online application at https://www.businesshelp.ohio.gov/

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Shawna L’Italien, a lawyer in the Salem office of Harrington, Hoppe & Mitchell, focuses on business law, estate planning, probate, elder law and real estate law. She can be reached at (330) 337-6586 or at slitalien@hhmlaw.com.