Note that all Sheehey guidance regarding COVID-19 is subject to change, as the legal landscape is evolving rapidly. Please note the date of publication for this bulletin, and be aware that things may have changed since then. Please check our COVID-19 landing page for the most up-to-date posts and contact us with any questions.
Governor Phil Scott recently announced that Vermont’s Economic Recovery Grant Program will launch on July 6. This is the first round of multiple grant programs passing through the Vermont legislature and Governor’s office. This first round will be disbursed by the Vermont Department of Taxes and the Agency of Commerce and Community Development.
Grants to be administered by the Vermont Department of Taxes for businesses paying Sales & Use Tax or Meals & Rooms Tax
Fifty million dollars ($50,000,000.00) of the Coronavirus Relief Fund has been appropriated to the Department of Taxes to provide grants to eligible businesses. The maximum grant amount will be $50,000. To be eligible, the business applicant must:
- Be registered to collect and remit Meals and Rooms Tax or Sales and Use Tax on a monthly or quarterly basis;
- Have been open and active before February 15, 2020;
- Have experienced a reduction in total sales reported of at least 75% in any one-month period from March 1, 2020 to August 31, 2020 as compared to the same period in 2019; and
- Be open at the time of application, or be closed as required by COVID-19 restrictions but able to certify an intention to re-open when COVID-19 restrictions are lifted.
The Department of Taxes recommends applicants take the following steps in advance of the July 6 launch.
- First, file all Sales & Use and Meals & Room taxes through the May 31, 2020 period. This data will be necessary to verify eligibility. If possible, file these returns electronically to expedite processing.
- Next, ensure that the business is in good standing with the Dept. of Taxes. Good standing means that all required tax returns are filed and all taxes are paid, or you are in a payment plan for any past due taxes. Sales & Use or Meals & Room taxes owed for February, March, April or May 2020 will not disqualify the business from receiving a grant, but taxpayers deemed not to be in good standing for any other unpaid taxes may be ineligible for grants.
For up-to-date information, visit: https://tax.vermont.gov/coronavirus#relief.
Grants to be administered by the Agency of Commerce and Community Development
Twenty million dollars ($20,000,000.00) of the Coronavirus Relief Fund has been appropriated to the ACCD to provide grants to eligible businesses. A business may apply for a grant if it experienced a reduction in revenue of at least 75% in any one-month period from March 1, 2020 to September 1, 2020 as compared to the same period in 2019. Additionally, the business must:
- Be domiciled or have its principal place of business in Vermont;
- Have one or more non-owner employees in Vermont;
- Have been open and active before February 15, 2020;
- Be open at the time of application, or be closed as required by COVID-19 restrictions but able to certify an intention to re-open when COVID-19 restrictions are lifted;
- Not currently be in Chapter 7 bankruptcy;
- Be in good standing with the Vermont Department of Taxes and Vermont Secretary of State; and
- Not have received a Vermont Emergency Economic Recovery Grant from another State of Vermont agency or department.
The maximum grant amount will be $50,000 and each business or organization can only receive one grant. For more information, and to apply, visit: https://accd.vermont.gov/covid-19/economic-recovery-grants.
Our attorneys are ready to answer any questions about the Economic Recovery Grant Program and other resources available to Vermont businesses as a result of state and federal legislation. To contact an attorney, email attorneys@sheeheyvt.com
