2,300 small businesses, nonprofits to receive $105M in Maine COVID relief

PHOTO / RENEE CORDES A new grant program by the state is distributing direct relief to support small businesses affected by the pandemic. Many small businesses, like Portland’s Bard Coffee, seen here, have adjusted to stay open during the health and economic crisis.

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By Staff

A total of $105 million in emergency funds is being distributed to 2,072 Maine small businesses and 257 nonprofits, during first-phase allocation of direct relief through the state's Economic Recovery Grant Program.

Grant letters notifying the recipients of their award were sent Wednesday in collaboration with Maine’s seven Economic Development Districts, which will distribute funds by early November, according to a news release.

In all, the first round of awards will reach 2,329 recipients spanning the state. The average award is just over $45,000.

The hospitality sector, particularly lodging and accommodations, represent the largest percentage of recipients, drawing 35% of the awards.

The program, backed by $200 million in federal CARES Act Coronavirus Relief Funds, provides some financial relief for businesses and nonprofit organizations that incurred business disruptions as a result of the pandemic.

The grants are intended to help sustain the viability of Maine’s small businesses and nonprofits, not to replace lost profits, and will provide short-term relief to help stabilize Maine’s economy.

“There is no question that Maine’s small businesses are struggling to survive unprecedented economic hardships caused by the COVID-19 pandemic,” Gov. Janet Mills said in the release. “While these funds will not make them whole, they offer some lifeline to keep afloat those small businesses that are at the core of our economy.”

The Mills administration worked with the seven Economic Development Districts across the state to operationalize the program. Based on eligibility requirements, which align with allowable uses of CARES Act CRF funds under guidance provided by the U.S. Treasury Department, the districts determined the eligibility of each application, consulting with state agencies when needed.

If a small business or nonprofit applicant did not meet eligibility requirements, it was notified, including a justification for the denial so that the organization can determine their eligibility for Phase 2 of the grant program.

Mills announced the second phase of the Economic Recovery Grant Program on Sept. 21.

The second phase expands access to the program by increasing the number of eligible organizations. Under Phase 2, businesses and nonprofits that employ up to 250 people are eligible for grant awards. In addition, licensed child care and behavioral health organizations will be eligible in this round, along with businesses and nonprofits that are less than one year old. The application portal for Phase 2 of the Economic Recovery Grant Program remains open until Oct.23.

“I encourage all eligible businesses and nonprofits to apply for the second round of this relief as I continue to call on Congress to provide more direct aid to the state of Maine,” said Mills.

Grants awarded through the Maine Economic Recovery Grant Program may be used to cover expenses including: payroll costs and expenses; rent or mortgage payments for business facilities; utilities payments; necessary operating expenses; expenses incurred to replenish inventory or other necessary reopening expenses; and purchase of personal protective equipment required by the business or business-related equipment.

Funds must be spent on operations that are strictly within Maine. Recipients are liable for any misuse of funds, and the grants are subject to audit.

Maine small businesses and nonprofits interested in applying for the program can do so at the Department of Economic and Community’s website. For more information, click here.