The Loudoun County Board of Supervisors this week unanimously approved $5.7 million in additional grant funding for the COVID-19 Business Interruption Fund to support small businesses adversely impacted by the coronavirus pandemic.
The funds were allocated from the $36.1 million in federal funding made available to the county from the Coronavirus Aid, Relief, and Economic Security Act.
The funding follows an initial round of applications for the Business Interruption Fund that distributed $1.4 million in grants to more than 200 randomly selected applicant businesses that met the requirements for three different tranches based on employee count.
The second round of funding will devote $3.7 million to fully fund the first round, distributing grants of $7,500 to the remaining 475 eligible businesses that were not randomly selected in a drawing on May 8. The new grant recipients will be notified immediately on their selection and next steps, according to county officials.
Additionally, the Board of Supervisors allocated $2 million for a third round of funding that will be opened to provide 400 randomly selected applicant businesses with a $5,000 grant. Applicants must demonstrate the following criteria:
-Have up to two W-2 employees (no limit on 1099 contractors);
-Have less than $2.5 million in gross annual receipts;
-Have at least a 25 percent loss in revenue that can be attributed to COVID-19; and
-Be licensed and operational in Loudoun County.
The fund will open for applications at noon on June 3 and remain open for 72 hours, closing at noon on June 6. All submissions will be accepted based on the time stamp that the application was received, verified by county employees and placed into a pool, where businesses will be randomly selected until the funding has expired. More information can be found at LoudounBusinessFund.org.
The board also allocated $1.15 million from the CARES Act funding to replenish the county’s Commercial Business Incentive Fund and Rural Business Incentive Fund and directed the Department of Economic Development to consider future rounds of recovery funding.
In total, county officials say the $6.85 million earmarked by the Board of Supervisors and the $250,000 contributed by the Loudoun Economic Development Authority to the Business Interruption Fund will support more than 1,000 of Loudoun’s most vulnerable businesses without increasing the county debt.
Following board approval, the Loudoun Economic Development Authority will administer the grant process and disburse the funds to selected businesses, starting the final week in June. The Department of Economic Development, Treasurer’s Office, Commissioner of the Revenue, finance department and other county staff will assist in administering and vetting the applicants.