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More Vermont Businesses Eligible for COVID-19 Relief Assistance

Posted on July 12, 2021

Vermont has expanded an economic recovery program to include businesses that experienced a tax loss because of the COVID-19 pandemic despite receiving financial assistance.

The Vermont Agency of Commerce and Community Development (ACCD) and the Department of Economic Development (DED) announced in a July 7 release that the Economic Recovery Bridge Program's second-tier priority group — business and nonprofits that received prior federal and state assistance but can still show a net loss in 2020 because of the pandemic — are eligible to apply for additional assistance, effective immediately.

The program — launched June 7 by Gov. Phil Scott (R), the ACCD, and the DED — was created to provide $30 million in financial assistance to businesses that were not eligible for state and federal funding and businesses that demonstrated a continued loss of revenue because of the pandemic, according to a June 3 release. If the program had funds left after the initial 30-day period, the program was “also intended to provide funding to businesses that have suffered a net loss even after receiving state or federal aid,” the release said.

“Businesses continue to struggle with the unexpected revenue loss due to COVID-19, and we know that previous state and federal assistance programs were not adequate in replacing that lost revenue,” DED commissioner Joan Goldstein said in the July 7 release. “This program is intended to help bridge that financial gap, and we look forward to processing those applications and getting this critical aid out the door.”

According to the release, businesses must be domiciled in Vermont and must have their primary place of business in the state to qualify for the funds. They also must show that their 2020 net tax loss is larger than any 2019 reported net loss on their federal tax returns.

All businesses are encouraged to apply for the grants, according to the release. However, the grants will be issued on a first-come, first-served basis, and priority will continue to be given to businesses that have not received any state or federal financial assistance in 2020 or 2021, the release said.

Funding for the program was included in H. 315, which became law without Scott's signature on April 17, and H. 439, which Scott signed June 8. The bills appropriated $30 million of the state’s portion of funds from the American Rescue Plan Act of 2021 (P.L. 117-2) for the program, according to the release. 

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