City of Pittsfield
Covid-19 Small Business Restaurant Recovery
The City of Pittsfield has received funding to help private for-profit restaurants that have
been negatively affected by the COVID-19 pandemic.
Up to $5,000 in grant funding is available per business.
The source of funding for this program is the Federal Community Development Block Grant (CDBG) HUD acknowledges that the Commonwealth of Massachusetts’s Order closing or limiting business operations is sufficient documentation of the need for CDBG assistance to small businesses. At the same time, CDBG funding is intended to assist low and moderate income (LMI) residents. As a result, the funding being provided is tied to job retention or creation of jobs held by low and moderate income persons. Therefore, the City must demonstrate to HUD that this funding is aiding:
1. Businesses owned by low or moderate income residents; and/or
2. In the:
- Retention of existing jobs that are:
- currently held by a low or moderate income employee; or
- can reasonably be expected to turn over within the following two years and steps will be taken to ensure that the job will be filled by, or made available to, a LMI person; or
- Creation of new jobs (or filling former jobs) and that steps will be taken to ensure that the job will be filled by or made available to a LMI Pittsfield resident.
To be eligible businesses must:
- Be located in the City of Pittsfield
- Been in operation since January 1, 2019
- Have at least $20,000 but less than $1,500,000 in gross annual revenues in 2019
- Have experienced a loss of gross revenue of a least 50% or more due to the Covid-19 pandemic since February 29, 2020
- Have no outstanding local, state or federal tax liens or legal judgements, or unresolved noncompliance status for previous CDBG assistance.
Frequently asked Questions for the
City of Pittsfield CDBG Small Business Recovery Grant Program
- How do I apply? The description of the programs and applications are available at www.cityofpittsfield.org and www.BusinessPittsfield.com
- If I have questions or need help with the application, where do I call? The Department of Community Development staff will answer any questions. Specific questions may be emailed to firstname.lastname@example.org and staff will respond to you.
- Once an application is submitted, how long does the review process take and who makes the decision? Your application will be reviewed by the Dept. of Community Development staff for eligibility, use of funds and benefit. Then it will be referred to members of the PERC Board and Finance Committee for review. We anticipate this could take 2-3 weeks.
- What is the timeline to expend this funding? The funds must be used within 6 months of the award date.
- Do I have to pay this funding back? The grant will require repayment only if the terms of grant agreement are not met. Terms of the grant include documentation of the product or service that was purchased with the funds and usage of the grant within a specific amount of time. Preferably within two to three months from the date of grant award.
- Why am I expected to disclose my entire household income, as that does not relate to my business? This is per federal regulations under HUD’s Community Development Block Grant Program and will help the City determine the best source of funds to use to help your business.
- What documentation will I need to apply? If the business owner, you will need to submit your business or personal tax returns for calendar years 2018 and 2019 as well as profit and loss statements for the business for 2018 and 2019. If your business files taxes, you will not need to provide proof of income, but will be required to answer questions about your income and sign a certification stating that all the information provided in the application and attachments is true.
- Can the funds be used for services, equipment, machinery, inventory, supplies or materials that I have already purchased? No, the funds can’t be used for any item or service that you have already purchased. Date of purchase(s) must be after the date of your grant agreement.
- Do I need to supply proof of purchases? Yes, you will need to supply receipts for any items or services purchased with the grant funds.
- Will I be asked about my employees? You will only be asked about detailed employee information if your income as the business owner or the income of your household is higher than shown on the table for low and moderate income households, and are submitting an application on the basis that at least 51% of your existing employees, employees to be rehired, or new employees to be hired are or will be low/moderate income. If you are provided funding from the federal CDBG program, you will be required to provide each employee’s name (or in another way agreed to by the City for identify each individual employee), annual income, and job title. You do not need to get your employees household incomes. 1099 employees do not need to be included.
Eligible uses of the funding, include:
- Payment of payroll
- Payment of rent, mortgage and/or utilities for up to three (3) months
- Acquisition of inventory, materials, supplies, or (in some instances) equipment
- Payment for professional services addressing, but not limited to: business reorganization, accounting, cash flow management, bookkeeping, and/or marketing related activities including website improvements
- Financial costs associated with business expansion or pivoting to manufacture supplies necessary to respond to infectious disease
- Support business expansion for businesses providing medical services, food delivery, cleaning services, and other services to support home health care and quarantine conditions.
The Department of Community Development will administer the program by accepting applications, determining eligibility, preparing the grant agreement and disbursing the funds. At the request of the Department, the Pittsfield Economic Revitalization Corporation (PERC) Finance Committee will review applications and make funding recommendations to the Department. Please note that funds are available on a first come, first eligible, completed application basis, subject to the availability of funding.
The application should clearly define the intended use of the grant and the how these funds will help the business survive and recover from the COVID-19 pandemic. Completed applications should be accompanied by documentation supporting the request, which should include, as applicable:
- A description of business, current status, and intended use of grant funds, including number of employees as of February 29, 2020 and current number of employees
- A proposed budget for the use of the funds, including Price Quote(s) if appropriate
3. A timetable for use of the grant
4. Copies of the business’ balance sheet and profit & loss statements for calendar years 2018 & 2019
5. Latest tax return for business and/or for the business owner for (income verification) if business is owned by a low or moderate income Pittsfield resident
6. Documentation of the efforts taken to date to adapt to the impacts of COVID-19 on the business, including but not limited to applying for funding from state and/or federal relief programs.
7. And other supporting documentation, as appropriate
This funding cannot be used for:
- General promotion of the community
- Assistance to professional sports teams
- Assistance to privately owned recreational facilities
– Acquisition of land or building