Qualify as Either:
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an “RZ Business”
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As of Sept. 11, 2001, have had a lease for a business premises within the Restricted Zone that would terminate on or prior to December 31, 2004.
(This requirement with respect to the termination of the lease does not apply to Eligible Businesses within the Oct. 23 Zone, defined below); and
-
After Sept. 11, 2001, either 1) sign a new non-residential lease for an Eligible Premises for a minimum term of five years, 2) extend an existing non-residential lease for an Eligible Premises for an additional minimum of five years from the termination date of the lease in effect on Sept. 11, 2001 or 3) purchase a non-residential Eligible Premises. (In the case of an Eligible Business within the Oct. 23 Zone, the minimum five-year term is determined from the “Commencement Date” defined below).
OR
- a “Non-RZ Business”
- As of Sept. 11, 2001, it either 1) had a lease for a business premises within the Eligible Area that would expire on or prior to Dec. 31, 2004, or 2) was located outside the Eligible Area or did not exist; and
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After September 11, 2001, it either 1) signed a new non-residential lease for an Eligible Premises in the Eligible Area for a minimum term of five years from the “Commencement Date”, 2) extended an existing non-residential lease for an Eligible Premises in the Eligible Area for an additional minimum of five years from the termination date of the lease in effect on Sept. 11, 2001 or 3) purchased a non-residential Eligible Premises in the Eligible Area
Q. What is the “Eligible Area”?
A. The Eligible Area is that area within the Borough of Manhattan bounded on the north by the centerline of Canal Street, from the Hudson River to Rutgers Street, then southeast along the centerline of Rutgers Street and continuing along the centerline of Rutgers Slip to the East River.
Q. What is the “October 23 Zone”?
A. The October 23 Zone (which is entirely contained within the “Restricted Zone”) refers to the area designated by the Mayor’s Office of Emergency Management as restricted from pedestrian and vehicular traffic during the period September 27, 2001 through October 23, 2001. The October 23 Zone is located within the Restricted Zone and is bounded by the centerline of the following streets: Chambers Street starting at North End Avenue, east to Greenwich Street, south to Park Place, east to Broadway, south to Rector Street, west to West Street, north to Albany Street, west to South End Avenue, north to World Financial Center Esplanade, north to Murray Street, west to North End Avenue, north to Chambers Street.
Q. What is the “Restricted Zone”?
A. The “Restricted Zone” refers to the area designated by New York City as restricted from pedestrian and vehicular traffic during the period September 19, 2001 through September 26, 2001. The Restricted Zone is located within the Eligible Area and is bounded on the north by Chambers Street (including buildings with primary entrances on the north side of Chambers Street), on the east by Broadway (including buildings with primary entrances on the east side of Broadway), on the south by Rector Street (including buildings with primary entrances on the south side of Rector Street), and on the west by the Hudson River.
Q. What is an “Eligible Premises”?
A. Eligible Premises means a business premises located in the Eligible Area where the Eligible Business has agreed to operate its business for a period of not less than five years from the Commencement Date. If the Eligible Business was located in the Restricted Zone as of September 11, 2001, then the Eligible Premises may be located anywhere within New York City, if relocation to such premises occurs prior to December 31, 2002.
Q. What is the “Commencement Date”?
A. The Commencement Date is the effective date of the lease, lease extension, or deed for the Eligible Premises.
Q. What documentation is required to apply for a WTC Small Firm Attraction and Retention Grant?
A. Applicants must provide the following documentation to complete the application:
- A completely filled out and signed application form; and
- A photocopy of the lease or deed for the premises at which it conducted its business as of September 11, 2001; and
- For those businesses located in the Eligible Area on Sept. 11, 2001:
-
A photocopy of utility bills for the Eligible Premises (e.g., gas, electric or telephone) for the months of (i) July or August, 2001, and (ii) October or November,
2001 (total of 2 bills); and
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Photocopies of both sides of cancelled checks for rent or common charges for the months of (i) July or August, 2001 and (ii) October or November, 2001
(total of 2 cancelled checks); and
- A photocopy of the lease or lease amendment for the Eligible Premises; and
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If the Eligible Premises is owned by the applicant, a photocopy of the deed and a certification from the Chief Executive Officer of the Eligible Business that it shall remain at the Eligible Premises for a minimum of 5 years from the Commencement Date; and
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A photocopy of the most recent Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return (form NYS-45) filed with New York State, (or a Statement of Deposit from a payroll processing service, if applicable), reporting the number of full-time and part-time employees at the Eligible Premises for the most recent quarter prior to the date of application; and
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A completed form 8821; and
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A voided check imprinted with the name of the Eligible Business.
Additional or alternative documentation may be required.
Q. On September 11, 2001, I had a lease for my business premises in the Eligible Area outside of the Oct. 23 Zone whose term went beyond Dec. 31, 2004. May I terminate my original lease, sign a new lease for the same premises and be eligible for a grant under this Program?
A. No. To be eligible for a grant from this Program, your lease in effect on Sept. 11, 2001 must show an expiration date prior to Dec. 31, 2004. Copies of both your original lease and your new or amended lease are required documentation for application.
Q. I have owned my business premises in the Eligible Area since 1990 and I intend to continue my business operations there. Am I eligible for a grant from this program?
A. No. To be eligible for a grant from this Program, the deed to the Eligible Premises must show a Commencement Date subsequent to Sept. 11, 2001. However, this restriction does not apply if the business premises was located within the October 23 Zone as of Sept. 11.
Q. I have a long term lease for my business premises in the Oct. 23 Zone with an effective term of Feb 1, 1995 to Feb. 1, 2015. Am I eligible for a grant from this Program?
A. Yes. Businesses whose Eligible Premises were located as of Sept. 11, 2001 in the Oct. 23 Zone are eligible even if the expiration date on their existing lease extends beyond Dec. 31, 2004, provided that all other eligibility criteria are met.
Q. Since September 11, my business has already relocated into an Eligible Premises. May I apply for a grant?
A. Yes. You must provide a copy of your lease or deed as of Sept. 11, 2001, a copy of the new lease or new deed signed after Sept. 11, 2001, and all other required documentation.
Q. I had a lease for my business premises in the Eligible Area in effect on Sept. 11, 2001 that had a termination date of Dec. 31, 2003. The new lease I just renegotiated for the premises has a Commencement Date of Sept. 30, 2002. Which date will be used to base the 5-year minimum term determination for eligibility in this Program?
A. In the case where the terms of the prior lease and the current lease overlap, you must show a lease for the Eligible Premises with a minimum term of 5 years beginning at the termination date stated in the lease in effect on Sept. 11, 2001. In the example given, the new lease must not expire earlier than Dec. 31, 2008.
Q. What is the definition of a Full-time Permanent Employee? If my business employs part-time employees as well, how would they be counted in determining the grant?
A. Full-time Permanent Employee is defined as (i) a full-time, permanent employee on the Eligible Business’ payroll, that has worked at the Eligible Premises for a minimum of thirty-five hours per week for not less than four consecutive weeks and who is entitled to receive the usual and customary fringe benefits extended by the Eligible Business to other employees with comparable rank and duties; or (ii) two part-time, permanent employees on the Eligible Business’ payroll, that have worked at the Eligible Premises for a combined minimum of thirty-five hours per week for not less than four consecutive weeks and who are entitled to receive the usual and customary fringe benefits extended by the Eligible Business to other employees with comparable rank and duties. Part-time workers who work less than half-time and contract or temp employees cannot be included; or (iii) an owner, partner, or member of the Eligible Business that is not on the Eligible Business’ payroll but works at the Eligible Business for not less than 35 hours per week.
Q. How is the grant amount calculated?
A. Grant amounts for businesses of over three people are determined as follows:
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If an RZ Business remains at an Eligible Premises or relocates to an Eligible Premises within the Eligible Area, the business is eligible for a grant equal to (i) $2,500 times the number of its Full-time Permanent Employees at the Eligible Premises at the time of submission and acceptance of a completed application (the “Application Date”) (provided it has no more than 200 employees) plus (ii) $2,500 times the number of Full-time Permanent Employees (up to 250 employees) at the Eligible Premises on the 18-month anniversary of the Application Date.
-
If an RZ Business relocates to an Eligible Premises outside the Eligible Area but within New York City, the business is eligible for a grant equal to (i) $1,750 times the number of its Full-time Permanent Employees (provided it has no more than 200 employees) at the Application Date plus (ii) $1,750 times the number of Full-time Permanent Employees (up to 250 employees) on the 18-month anniversary of the Application Date.
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If a Non-RZ Business was located within the Eligible Area as of September 11, 2001 and it remains at the Eligible Premises within the Eligible Area, the business is eligible for a grant equal to (i) $1,750 times the number of its Full-time Permanent Employees (provided it has no more than 200 employees) at the Application Date plus (ii) $1,750 times the number of Full-time Permanent Employees (up to 250 employees) on the 18-month anniversary of the Application Date.
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If an Eligible Business was located outside the Eligible Area and relocated to an Eligible Premises in the Eligible Area, or is a new business, the business is eligible for a grant equal to (i) $1,750 times the number of its Full-time Permanent Employees (provided it has no more than 200 employees) at the Application Date plus (ii) $1,750 times the number of Full-time Permanent Employees (up to 250 employees) on the 18-month anniversary of the Application Date.
Q. How will the grant be disbursed?
A. Grants will be disbursed in two installments by electronic transfer to the business bank account. ESDC will make every effort to disburse the initial grant within 30 business days of approval of a completed application and the second disbursement within 30 business days of the approval of a completed “18-Month Disbursement Request” (defined below). All grant disbursements are subject to the availability of funds and the continued eligibility of the applicant.
Q. What is the “18-Month Disbursement Request” and what documentation is necessary to complete it?
A. To receive the second disbursement of the grant, the Eligible Business must provide updated information by completing and submitting the 18-Month Disbursement Request and include the following documentation:
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A completely filled out and signed 18-Month Disbursement Request form; and
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A photocopy of the New York State Department of Labor Form NYS-45 (Quarterly Combined Withholding, Wage Reporting and Unemployment Insurance Return) reporting the number of full- time and part-time employees at the Eligible Premises for the most recent quarter, or a Statement of Deposit from a payroll processing service, if applicable; and
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A photocopy of a current utility bill (e.g. gas, electric, telephone); and
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A photocopy of the most recent cancelled check (both sides) or cash receipt for the payment of rent; and
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A current voided check imprinted with the name of the Eligible Business.
The 18-Month Disbursement Request form will be sent to grant recipients following disbursement of the initial grant. It must be submitted within two years of the date of approval of the initial application.
Q. My business only has three people, including me, the owner. How does disbursement work?
A. If an Eligible Businesses has three or fewer Full-time Permanent Employees on the Application Date, then it shall receive the entire grant in one disbursement. The grant shall be calculated using the same formulas as for larger businesses, in the amount of either $5,000 per employee (RZ Businesses staying downtown) or $3,500 (other Eligible Businesses).
Q. If the business no longer exists on the 18-month anniversary of the Application Date, will I receive the second grant disbursement?
A. No.
Q. I am self-employed at my business in the Eligible Area. Am I eligible for a grant from this Program?
A. Yes, if the five-year commitment is demonstrated by a commercial lease or a deed for commercial property. A residential lease is not acceptable.
Q. If I have more than 200 Full-time Permanent Employees on my payroll at the time I submit the 18-Month Disbursement Request, will I receive an additional grant amount for the jobs created in excess of 200?
A. Yes. The second disbursement of the grant will be based on the number of Full-time Permanent Employees on the Eligible Business’ payroll on the 18-month anniversary of the Application Date up to a maximum of 250 employees. The grant amount will be based on the applicable formula described above.
Q. My business has several locations. May I apply for a grant for each Eligible Premises?
A. Yes, but you must file a separate application for each location of your business at an Eligible Premises. Employment cannot exceed 200 at each Eligible Premises at the time of application.
Q. My business is currently located outside of the Eligible Area but I wish to relocate to the Eligible Area. Am I eligible for a grant from this Program?
A. Yes. If you had no business operations in the Eligible Area as of Sept. 11, 2001, you may apply for a grant from this Program when you can present a deed to an Eligible Premises or lease for an Eligible Premises with a term of at least five years and employ no more than 200 employees at the Eligible Premises. All other eligibility criteria must be met.
Q. Is the WTC Small Firm Attraction and Retention Grant reported to the Internal Revenue Service (IRS)?
A. Yes. Both the IRS and the grant recipient will receive a Form 1099-G at the end of the year. Please consult your tax advisor on the treatment of this item on your tax return.
Q. What if my business has already received a grant under ESDC’s WTC Disaster Retail Recovery Grant Program, the WTC Business Recovery Grant Program or EDC’s Lower Manhattan Business Retention Grant Program? May I apply for a grant under this new Program?
A. Yes. The WTC Small Firm Attraction and Retention Grant Program and the determination of eligibility and amount of grant assistance awarded to Eligible Businesses are separate from other existing City and State grant programs.
Q. May I use the grant I receive from this Program for any purpose I choose?
A. By accepting a grant from this Program, applicants must agree to use the assistance for the payment of wages to salaried employees that were on the Eligible Business’ payroll as of the date of application. Grant funds provided under this Program may not be applied to the same specific uses as disaster loans made by the United States Small Business Administration (“SBA”). Applicants that apply for or receive an SBA disaster loan are required to advise SBA of their application or receipt of assistance under this Program. SBA may require that grant funds received under the Program be applied to pay off or reduce the outstanding balance of the SBA loan.
Q. Do I need to report my business’ economic losses due to the events of September 11, 2001, or compensation I may have received for economic loss?
A. No. The WTC Small Firm Attraction and Retention Grants are based on the purchase of new facilities or signing or renewing a lease for at least five years in the Eligible Premises. Estimated economic loss or compensation for that loss due to the Sept. 11 attacks are not considered in determining eligibility or the amount of your grant.
Q. Are not-for-profit organizations eligible for a grant from this Program?
A. Yes. A not-for-profit organization may apply for a grant from this Program if it is established under Sections 501(c), 501(e), 501(f), 501(k), 501(n) or 521(a) of the Federal Tax Code and is not involved in religious or political activities, it meets all other criteria for an Eligible Business defined earlier, and it is establishing or extending operations in an Eligible Premises.
Q. If my business has ceased operations due to the September 11 attacks and it has not yet reopened, may I still apply for a grant under this Program?
A. You may apply for assistance from this Program once you resume your business with no more than 200 employees on your payroll and can present a new deed to the Eligible Premises or new lease or lease renewal for the Eligible Premises with a term of at least five years.
Q. I am planning to extend the existing lease for my Eligible Premises but I have not yet reached an agreement on terms and conditions with my landlord. May I still apply for a grant from this Program?
A. You may apply for a grant under this Program when you have reached an agreement with your landlord and you can present a lease or lease extension agreement for the Eligible Premises with a term of at least five years beyond the current lease term. All other eligibility criteria must also be met.
Q. If I acquire a business that received the first disbursement of a grant under this Program, would I be entitled to the second installment of the grant?
A. Yes. The successor business will be entitled to the second disbursement as long as it affirms in writing that all of the obligations set forth in the application made by the Eligible Business comply with the provisions of the Program Guidelines. A successor to an Eligible Business may not apply on its own behalf for a separate grant for the same Eligible Premises under this Program.
Q. How long will it take to receive a grant?
A. ESDC will make its best effort to disburse grants to Eligible Businesses within thirty (30) business days of receipt of a completed application. Incomplete applications will delay the process. Please be sure that your application is complete.
Q. How will I receive my grant?
A. Grant funds will be electronically transmitted to the bank account indicated on the voided check submitted as part of the application. You will be sent a letter advising you of the transfer.
Q. The application for this Program requests the business’ 6-digit Business Activity Code. Where may I find this?
A. The Business Activity Code is found on the business’ federal income tax return. You may also identify this code for your business by logging onto www.census.gov/epcd/www/naicstab.htm. You may also request assistance from a representative at one of the WTC Business Recovery Centers.
Q. If I think my application was incorrectly denied, may I appeal the decision?
A. Yes. If you have submitted an application for assistance and you believe that it was incorrectly denied, you may appeal the decision within twenty business days of receipt of notification of that denial. Your appeal must be in writing to: WTC Small Firm Attraction and Retention Grant Program Appeal, Empire State Development, P.O. Box 4438, Grand Central Station, New York, NY 10017, with a copy to WTC Small Firm Attraction and Retention Grant Program Appeal, NYC Economic Development Corporation, 110 William Street, New York, NY 10038. Include the reason for your complaint and information you would like to have considered. An ESDC appeal committee will review your appeal. All decisions made by the appeal committee shall be final.
Q. What if I want more information on this program?
A. Please read the Guidelines governing this program available on the ESDC web site at
www.nylovessmallbiz.com or EDC’s web site at www.newyorkbiz.com You may also write to WTCGrantProgram@empire.state.ny.us, call 1(800) ILOVENY or 866-227-0458, or come to one of the WTC Business Recovery Centers at 2 Rector Street or 140 William Street.
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WTC Business Recovery Grant Program
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Frequently Asked Questions
Revised August 28, 2002
Q. Which agency administers the WTC Business Recovery Grant Program?
A. This program is administered by the Empire State Development Corporation (ESDC) in coordination with the New York City Economic Development Corporation on behalf of the State of New York.
Q. Where may I obtain an application for this Grant Program?
A. Applications are available at the WTC Business Recovery Centers at 2 Rector Street between Greenwich Street and Trinity Place (N/R trains to Rector Street, 4/5 trains to Wall Street) or 140 William Street (A/C/E, 4/5, 1/2 trains to Fulton Street) in Lower Manhattan Monday, Tuesday, Thursday and Friday from 9:00 a.m. to 5:00 p.m., and Wednesday from 9:00 a.m. to 8:00 p.m. The WTC Business Recovery Centers will be closed on governmental holidays. Applications may also be obtained from the web site at
www.nylovessmallbiz.com
Q. What is the latest date that I may apply for a grant under this program?
A. Applications for the WTC Business Recovery Grant Program will be accepted through December 31, 2002 and will be processed in order of receipt of completed applications. Based on interest in the program and on the availability of program funds, the deadline for submission of applications may be extended beyond December 31, 2002.
Q. Whom should I contact if I have questions about the Grant Program or application process?
A. If you have any questions about the WTC Business Recovery Grant Program or about the application process, please call 1-800-ILOVENY (1-800 456-8369) or you may e-mail your questions to
WTCGrantProgram@empire.state.ny.us. You may also speak to a Program representative at the WTC Business Recovery Center at 2 Rector Street or 140 William Street.
Q. How do I submit my completed application?
A. For speediest processing, you are strongly encouraged to take your completed application and photocopies of all requested attachments to the WTC Business Recovery Center at 2 Rector Street or 140 William Street in Lower Manhattan. Applications may also be mailed to: WTC Business Recovery Grant Program, Empire State Development, P.O. Box 4438, Grand Central Station, New York, NY 10017. You are advised to make photocopies of your application and supporting documents for your own records. Documents will not be returned.
Q. How do I know if my business is eligible for a WTC Business Recovery Grant?
A. Your business is an “Eligible Business” for this program if:
· It is a for profit business entity, or a not-for-profit organization established under Sections 501(c), 501(e), 501(f), 501(k), 501(n) or 521(a) of the Federal Tax Code and is not involved in religious or political activities; and
· The business was located as of Sept. 11, 2001 on or south of 14th Street from the Hudson River to the East River, to the lower end of Manhattan (“Eligible Area”); and
· It maintained a business establishment in the Eligible Area as of September 11, 2001 and has continued its business operations there, or intends to resume its business operations within the City of New York; and
· The business employs fewer than 500 Full-time Permanent Employees defined below, including Full-time Permanent Employees that are on the payroll of affiliated entities; and; and
· Its revenues and/or expenses were derived from operations at the business premises located in the Eligible Area and it had employees on its payroll (or the business owner was self-employed) that worked at its business premises located in the Eligible Area.
Q. What is the Eligible Area for this program?
A. The Eligible Area for assistance under the WTC Business Recovery Grant Program is the entire area of Lower Manhattan on or south of 14th Street, from the Hudson River to the East River, extending to and including the Battery. Within this Eligible Area, there are four separately defined areas (see Map of the Eligible Area attached):
· The “14 St.--Houston Area” refers to the area bounded on the north by 14th Street (including both sides of 14th Street), and on the south by the north side of Houston Street, from the Hudson River to the East River. This area excludes the Houston – Canal Area, the South of Canal Area and the Restricted Zone.
· The “Houston--Canal Area” refers to that area that is bounded on the north by the south side of Clarkson Street from West Street east to Washington Street, then south along the west side of Washington Street to West Houston Street, then east along the south side of West Houston Street and East Houston Street to the East River, and on the south by the north side of Canal Street from the Hudson River running east to the intersection of Rutgers Street, then southeast along the north sides of Rutgers Street and Rutgers Slip to the East River. This area excludes the South of Canal Area and the Restricted Zone.
· The “South of Canal Area” refers to that area that is bounded on the north by the south side of Canal Street, from the Hudson River to Rutgers Street, then southeast along the south sides of Rutgers Street and Rutgers Slip to the East River and on the south by the Battery, and excludes the Restricted Zone.
· The “Restricted Zone” refers to the area bounded on the north by Chambers Street, on the east by Broadway, and on the south by Rector Street as extended due west to the Hudson River. (Businesses that have their primary access on either side of the streets that form the boundary of the Restricted Zone are considered to be within the Restricted Zone.)
Q. If a parent corporation has separately incorporated subsidiaries, can each subsidiary apply for a grant?
A. If the parent corporation has over 500 employees on the payroll of all affiliated entities, and over 200 in the Eligible Area, neither it nor its subsidiaries are eligible for a grant from this Program.
Q. Do I need to calculate financial loss my business suffered from the September 11 attack?
A. Yes, as requested on the application, you must estimate the Eligible Economic Loss suffered by your business during the period September 11 to December 31, 2001 as a result of the attack on the World Trade Center. Such losses may include, but are not limited to, damage to or destruction of real property and other tangible assets including equipment, furniture and fixtures, supplies and inventory; financial loss due to business interruption or reduced business activity; employee wages and contract services fees incurred for work not performed; temporary or permanent relocation expenses; and debris removal and other clean-up costs.
Q. If I received any assistance or insurance reimbursement for losses suffered as a result of the September 11 attack, how would this affect my eligibility for a grant from this Program?
A. Grant assistance provided under this Program may not exceed the business’ net Eligible Economic Loss. Net Eligible Economic Loss is determined by deducting from the business’ Eligible Economic Loss government grant assistance from the NYC Lower Manhattan Business Retention Grant and any insurance payments applied for, approved or received. Assistance received from private or charitable organizations, FEMA or the SBA is not deducted from the business’ Eligible Economic Loss. If the business received a grant from the WTC Retail Recovery Grant Program, that grant amount will be deducted from the estimated grant under this Program. Grantees who receive additional government grants and insurance payments for the same loss after the award of the Grant shall be obligated to repay any part of the Grant that exceeds the applicant’s net loss.
Q. What documentation is required to apply for a WTC Business Recovery Grant?
A. All applicants must fill out and sign an application form and attach the following items to complete the application:
· A photocopy of the business’ signed federal income tax return for the most recent fiscal year ending before September 11, 2001. If the business has more than one location included in a consolidated tax return, also attach the same year’s New York City tax return (Form 3L, 4S, or 202, and a statement from a Certified Public Account that shows the revenue or expenses, as applicable, generated for each such location. However, if the grant amount is expected to be $10,000 or less, the accountant does not have to be a Certified Public Accountant; and
· A photocopy of the business’ lease, deed, or permit for the business premises in the Eligible Area as of September 11, 2001; and
· A photocopy of the business’ current lease if you have relocated from your prior location to a new location within NYC; and
· A completed Form 8821 authorizing ESDC to access tax returns from the Internal Revenue Service; and
· If the premises were leased, copies of both sides of cancelled rent checks or, for rent paid in cash, receipts from your landlord for rent paid for the months of
(i) July or August, 2001 and (ii) October or November 2001 (a total of two checks); and
· A photocopy of a utility bill (for example: gas, electric or telephone) for the months of
(i) July or August, 2001 and (ii) October or November 2001 (a total of two bills); and
· A voided check for the business’ bank account, imprinted with the business name.
Additional documentation may be required.
Q. How is the grant amount calculated?
A. The grant is based on gross revenue, using the following method:
1. Determine average daily gross revenue, assuming a 250-business-day year, by dividing the gross revenue as reported on the company’s federal income tax return by 250.
2. Multiply that daily average by the number of days eligible for reimbursement depending on the business’ location as of Sept. 11, 2001, as follows:
· Eligible Businesses in the 14 St.--Houston Area would receive a grant equal to 3 days (or 1.2%) of gross revenues, up to a maximum grant of $50,000.
· Eligible Businesses in the Houston--Canal Area would receive a grant equal to 5 days (or 2%) of gross revenues, up to a maximum grant of $100,000.
· Eligible Businesses in the South of Canal Area would receive a grant equal to 7 days (or 2.8%) of gross revenues, up to a maximum grant of $150,000.
· Eligible Businesses in the Restricted Zone would receive a grant equal to 25 days (or 10%) of average gross revenues, up to a maximum grant of $300,000.
Area Days of Economic Loss Percent of Annual Gross Revenues or Expenses Maximum Grant Amount
14 St.--Houston Area 3 1.2% $50,000
Houston--Canal Area 5 2% $100,000
South of Canal Area 7 2.8% $150,000
Restricted Zone 25 10 % $300,000
If the Eligible Business derives no revenues from operations in the Eligible Area (such as back office space or a central administrative office for a business with revenue producing locations outside the Eligible Area) then the grant amount is determined based on a statement of expenses. The applicant must provide a statement of operating expenses incurred at the location from a Certified Public Accountant (if the grant amount will be $10,000 or less, the accountant does not have to be a Certified Public Accountant). The statement should allocate expenses separately to show rent and overhead, salaries, inventory, marketing, etc. Inventory can be included if itemized and if it can be allocated to the period in question.
Q. What if I can’t find my business activity code on my tax return?
A. To identify the 6-digit business activity code for your business, you may log onto
www.census.gov/epcd/www/naicstab.htm. You may also request assistance from a representative at the WTC Business Recovery Center.
Q. If my residence is my place of business, may I apply for a grant under this program?
A. Yes, if you meet the requirements for an Eligible Business described above.
Q. I am a street vendor. May I apply for a grant under this program?
A. Yes. You must provide a photocopy of your New York City Department of Consumer Affairs license or permit to operate at a specific location within the Eligible Area. If your business license or permit is not site-specific, then you may be eligible for assistance if you can provide evidence that your business was operating at a location within the Eligible Area for not less than three months prior to September 11, 2001. Acceptable documentation will include an affidavit provided by ESDC to be completed by a nearby permanent business attesting to the vendor’s location.
Q. I am a landlord of a building in the Eligible Area. Am I eligible for a grant from this Program?
A. Yes, if you maintained a business presence in the Eligible Area, as evidenced by at least one employee at that location. In addition to the completed application, property owners and similar businesses that apply for assistance under the Program will be required to submit rent rolls as of September 1, 2001 and January 1, 2002, indicating the status of all rental obligations (i.e. paid or unpaid) to document Eligible Economic Loss.
Q. My business has several locations within the Eligible Area. May I apply for a grant for each location?
A. Yes, but in no case will the total grant assistance from this Program provided to any one business exceed $500,000. You are required to file a separate application for each distinct location of your business within the Eligible Area. If the business filed a consolidated federal tax return combining revenues or expenses for multiple locations, also attach the same year’s New York City tax return (Form 3L, 4S, or 202), and a statement from a Certified Public Account that shows the revenue or expenses, as applicable, generated for each such location. If the grant amount is expected to be $10,000 or less, the accountant does not have to be a CPA.
Q. Is the WTC Business Recovery Grant reported to the Internal Revenue Service (IRS)?
A. Yes. Both the IRS and the grant recipient will receive a Form 1099-G at the end of the year. Please consult your tax advisor on the treatment of this item on your tax return.
Q. What if my business has already received a grant under ESDC’s WTC Disaster Retail Recovery Grant Program? May I apply for a grant under this new program?
A. You may be eligible for additional grant assistance under the WTC Business Recovery Grant Program depending on your business location within the Eligible Area or if ineligible business activities (such as wholesale) were excluded from the previous grant calculation. The amount of your WTC Disaster Retail Recovery Grant will be deducted from this Program’s grant.
Q. If my tax return was destroyed in the attack, may I still apply for a grant from this program?
A. Yes. If you do not have a copy of your business’ federal tax return for the most recent fiscal year ending before September 11, 2001 you may go to one of the three IRS-Taxpayer Assistance Centers in Manhattan to quickly obtain a transcript of your return. To be given priority in processing your IRS request, you must show a copy of your WTC Business Recovery Grant application form. The locations for these Centers are: 290 Broadway (5th Floor); 110 W. 44th Street (2nd Floor); or 55 W. 125th Street (Street Level). Center hours are 8:00 a.m. to 4:30 p.m. Monday, Tuesday, Thursday, Friday, and 8:30 a.m. to 4:30 on Wednesday. Or, you may obtain a transcript of your return by completing Form 8821 or Form 4506, as applicable, and submitting it to the Internal Revenue Service. You may obtain this form from the IRS web site at www.irs.gov.
Q. I don’t have my lease. May I apply for a grant?
A. If the lease for your Eligible Business is missing, you will be required to complete affidavits provided by ESDC (one signed by you and one signed by your landlord) certifying the location of your business premises, in addition to all other required documents.
Q: I live in a loft, and due to the Loft Law my expired lease was never renewed. What should I do?
A: Obtain a letter from your landlord confirming occupancy of the space as of 9/11/01. Rent checks & utility bills are still required.
Q. If my business has ceased operations due to the events of September 11, 2001 and it has not yet reopened, may I still apply for a grant under this program?
A. Yes. You must certify on the application form that you will resume operations in New York City within one year of the receipt of the grant funds in order to avoid repayment of the grant.
Q. My business’ fiscal year ending after September 11, 2001 was better than the year prior. May I submit the better year’s tax return instead?
A. No. In order to treat all businesses consistently, we accept only the tax return for the year ending prior to September 11, 2001.
Q. If I have not yet filed my federal income tax return for my most recent fiscal year ending prior to Sept. 11, 2001 because I have received an extension of time to file, may I still apply for assistance under this program?
A. You may apply after you have filed your tax return for the most recent fiscal year ending prior to September 11, 2001.
Q. My business was in its start-up phase. May I apply for a grant? (MODIFIED 5/20/02)
A. Yes. For purposes of this program a start-up is defined as a company with no revenues prior to January 1, 2000, but had business operations in the Eligible Area as of September 11, 2001. Operating expenses, not revenues will be used for the grant calculation. Capital or one-time start-up expenses are not included. New Businesses will fall into one of the three categories described below.
Type A New Business: A Business whose first revenues commenced after 1/1/00, with a fiscal year ending before 9-11-01 & at least 3 months operations in such fiscal year. A Type A New Business will be required to submit a certified statement setting forth the dates it 1) began operations and 2) first received revenues, together with a copy of its federal tax return filed for the fiscal year ending prior to September 11, 2001.
Type B New Business: A New Business that is not a Type A New Business, and had a fiscal year that ended on or before December 31, 2001 with at least 3 months of operations in such fiscal year. A Type B New Business will be required to submit a certified statement setting forth the dates it 1) began operations and 2) first received revenues, together with a copy of its federal tax return filed for the fiscal year ending on or before December 31, 2001.
Type C New Business: A New Business that does not qualify as a Type A or Type B New Business. (i.e. its first fiscal year ends after December 31, 2001) A Type C New Business will be required to submit a Type C New Business Affidavit setting forth 1) the date it began operations, 2) the date it first received revenues and 3) its intention to file taxes as a business, reporting business income; and a summary of expenses, in form prepared by ESDC, setting forth the operating expenses of the New Business from the date of commencement of operations through August 31, 2001 (or if such New Business commenced operations after June 1, 2001, for up to three months from commencement of operations.)
Q. How long will it take to receive a grant if my application is approved?
A. After approval of a completed application, ESDC will make its best effort to disburse funds to Eligible Businesses within approximately thirty (30) business days. Incomplete applications will delay the process. Please be sure that your application is complete.
Q. How will I receive my grant?
A. Grant funds will be electronically transmitted to the bank account indicated on the voided check submitted as part of the application. You will be sent a letter advising you of the transfer.
Q. If I think my application was incorrectly denied, may I appeal the decision?
A. Yes. If you have submitted an application for assistance and you believe that it was incorrectly denied, you may appeal the decision within twenty business days of receipt of notification of that denial. Your appeal must be in writing to: WTC Business Recovery Grant Program Appeal, Empire State Development, P.O. Box 4438, Grand Central Station, New York, NY 10017. Include the reason for your complaint and information you would like to have considered. Your appeal will be reviewed by an ESDC appeal committee. All decisions by the appeal committee shall be final.
Q. What if I want more information on this program?
A. Please read the Guidelines governing this program available on the ESDC web site at
www.nylovessmallbiz.com . You may also write to
, call 1(800) ILOVENY, or come to the WTC Business Recovery Center at 2 Rector Street or 140 William Street.
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