FY22 MD DHCD Project Restore Details

Instructions

Review the steps - read carefully

1. Applicant Eligibility Criteria:

   To be eligible to apply for either a Property Assistance Grant and/or a Business Operations Grant, a business must meet all of the following criteria:

   • May be a new or existing business, but business must be located in Maryland

   • Business must be registered and in good standing with the Maryland Department of Assessments and Taxation (SDAT).

   • Business must open or expand in a retail or commercial space that has been vacant at least 6 continuous months prior to the date of lease for the business space OR commencement of rehab of the formerly vacant space; and, leases and rehab activity cannot have commenced earlier than July 1, 2021..

   • Financially viable business whose operations will continue forward.

2. Not Eligible to Apply:

   Businesses that have the following as their principal purpose are NOT eligible to apply:

   
   

   (1) Adult bookstore, adult video shop, or other adult entertainment facility; (2) Check cashing facility;(3) Gambling facility; (4) Gun shop; (5) Liquor store; (6) Massage parlor; (7) Pawn shop; (8) Tanning salon; or (9) Tattoo parlor.

3. Grant Funding Criteria:

   A. Property Assistance Grant:

   The maximum grant request amount is $30,000 (up to $2,500 per month) for one year, for qualified small business with 50 or fewer employees (full time equivalents). Grant funds can be used to support rent, mortgage, property insurance and/or utility costs based on whether the applicant will lease, purchase or already owns the vacant property they will occupy. Applicant’s monthly cost can exceed $2,500, but the maximum that will be paid by the Property Assistance Grant will be $2,500 per month for one year.

   
   

   To be eligible to apply for a Property Assistance Grant, a business must meet all of the following criteria:

   • Business with 50 or fewer employees (full time equivalents) as of September 1, 2021

   • Business must open or expand in a retail or commercial space that has been vacant at least 6 continuous months prior to the date of lease for the business space OR commencement of rehab of the formerly vacant space; and, leases and rehab activity cannot have commenced earlier than July 1, 2021.

   • At time of application, business must provide a signed letter of intent to lease and occupy the space, or, an executed lease signed on or after July 1, 2021.

   
   NOTE: If awarded funds, the business must provide an executed lease agreement prior to executing a grant agreement and receiving any funds

   • Businesses must occupy the space for a minimum 12 months following receipt of a Rental Assistance Grant.

   • Businesses are prohibited from breaking existing leases to participate in the program; however, those with expired or expiring leases are eligible to apply.

   • Funding requests will be reviewed on a first-come-first-served basis.

   • If the application is fully complete at the time of submission, funding decisions will be made within 30 days of the submission date

   • Grant amounts may be reduced relative to requests, if demand exceeds available funding.

   
   

   Property Assistance Grants Payments:

   If the applicant will be leasing the vacant space rental payments up to $2,500 per month will be paid directly to the landlord. Applicant's monthly rent can exceed $2,500, but the maximum that will be paid will be $2,500 per month for one year. NOTE: Applicant will be required to provide information related to the landlord at time of application.

   If the applicant will be purchasing the vacant property mortgage payments up to $2,500 a month will be paid to the applicant. Applicant's monthly mortgage can exceed $2,500, but the maximum that will be paid to the applicant will be $2,500 a month for one year.

   If the applicant currently owns the vacant space and there is no mortgage up to $2,500 a month will be paid to the applicant for costs related to the premises such as property insurance and utility costs.

   Applicants’ costs related to the property can exceed $2,500, but the maximum that will be paid to the applicant will be $2,500 a month for one year.

   B. Business Operations Grant:

   The maximum grant award amount is $250,000 for 1 or 2 years. The Business Operations Grant can be used for activities and costs related to sustaining and growing the business such as staff costs, capital improvements, marketing, inventory and supplies, utilities and the like and cannot be used for executive salaries or bonuses. Grant awards will be paid quarterly and will be based on sales and use tax generated by and submitted to the state in Calendar Year 2022. Only applications that are fully complete at submission will be considered for funding.

   
   

   To be eligible to apply for a Business Operations Grant, a business must meet all of the following criteria:

   • Business must generate sales and use tax

   • Business must open or expand in a retail or commercial space that has been vacant at least 6 continuous months prior to the date of lease for the business space OR commencement of rehab of the formerly vacant space; and, leases and rehab activity cannot have commenced earlier than July 1, 2021.

   • At time of application, business must provide a signed letter of intent to lease or purchase and occupy the space, or, an executed lease signed on or after July 1, 2021.

   
   NOTE: If awarded funds, the business must provide an executed lease agreement prior to executing a grant agreement and receiving any funds.

   
   

   • If the applicant currently owns the vacant property they must provide, at time of application, a copy of the purchase agreement and cannot occupy or commence rehab in that space prior to July 1, 2021

   • Businesses must occupy the space for a minimum 12 months following receipt of a Business Operations Grant.

   • Businesses are prohibited from breaking existing leases to participate in the program; however, those with expired or expiring leases are eligible to apply.

   • At time of application an existing business must provide information on and proof of the sales and use tax paid to the state for CC and

   • At the time of application, a new business must provide information on the anticipated amount of sales and use tax to be paid for Calendar Year 2019 and Calendar Year 2020.

   • If awarded a Business Operations Grant, business must provide proof of sales and use tax paid to the State of Maryland quarterly starting January 1, 2022.

   • Funding requests will be reviewed on a first-come-first-served basis.

   • If the application is fully complete at the time of submission, funding decisions will be made within 30 days of the submission date

   • Grant amounts may be reduced relative to requests, if demand exceeds available funding.

4. Additional Criteria to determine Business Operations Grant awards

   Award amounts will be determined as follows:

   Grant payments will be based on actual sales and use tax paid to the state beginning January 1, 2022, up to $250,000 for the year. Payments will be made to the business on a quarterly basis, after the Comptroller’s Office has received the sales and use tax submitted to them by the business. Grant amounts will be capped at $250,000 annually, and may be reduced relative to requests, if demand exceeds available funding.

   
   

   Award Term: The funding award term of 1 or 2 years will be determined based on the location of the previously vacant retail or commercial space the business will occupy.

   
   

   Tier 1 Areas: If the previously vacant space is located in one of the following Tier 1 areas, the Business Operations Grant award, up to $250,000, will be for 2 years:

   • Baltimore City, Allegany, Baltimore, Caroline, Cecil, Dorchester, Garrett, Kent, Prince George’s, Somerset, Washington, Wicomico, and Worcester Counties

   • Opportunity Zones

   • State designated Main Streets located in any Maryland county

   
   

   Tier 2 Areas: If the previously vacant space is located in a Tier 2 area, the Business Operations Grant award, up to $250,000, will be for 1 year:

   • All other counties and areas not located in one of the Tier 1 Areas

5. Application Process

   • NOFA release: Thursday, August 5

   • Sample application will be posted no later than August 20

   • Projected on-line Project Restore application portal opens: 12:00 noon, Wednesday, September 8

   • Application portal closes: 5:00 pm, Friday, October 8 at the latest; the portal may close if or when grant requests exceed available funding.

   • Funding decisions will be made on a rolling basis beginning October 11.

6. Application Requirements

   In addition to basic information about the business, such as the type of business, location of business, etc., the following information and attachments will be required in the on-line application in order for an application to be considered complete. Space to answer will be very limited; it is recommended that applicants prepare answers and gather required attachments in advance of the September 8 opening of the on-line application.

   
   

   Business Summary: A brief description of the business and financial ability to start or continue operations.

7. Application Attachments

   The following attachments will be required in the on-line application in order for the application to be considered complete:

   • Online verification of Registration and/or Certificate of Good Standing from the Maryland State Department of Assessments and Taxation for both the applicant and their landlord

   • IRS W-9 Request for Taxpayer Identification Number and Certification for both the applicant and their landlord

   • Signed by both applicant and landlord/owner a letter of intent to lease or purchase and occupy the vacant space or executed lease.

   NOTE: If awarded funds, the business must provide an executed lease or purchase agreement prior to executing a grant agreement and receiving any funds

   • If the applicant currently owns the vacant property, a copy of the signed and dated purchase agreement.

   • Signed by the landlord, if the application is leasing the space, a Project Restore Landlord agreement

   • Existing businesses must provide Profit & Loss financial or Federal Tax return statements for 2019 and 2020

   • New businesses must provide a business plan and proforma and most recent financial statement(s)

   • If applying for the Business Operations Grant, existing businesses must provide proof sales and use tax paid in Calendar Year 2019 and new businesses must provide information on estimated sales and use tax to be paid beginning January 1, 2022.