The bill creates the nonessential small business pandemic grant program (program). The program compensates nonessential small businesses for up to 50% of revenue that was lost due to an order or rule issued to address the COVID-19 pandemic that lowered the business's revenues. In connection with creating the program, the bill authorizes small businesses to apply for and use the grant money for any reasonable business expense that helps the small businesses to remain solvent.
The office of economic development (office) administers the program and the director of the office is authorized to promulgate rules. The office will consult with the Colorado economic development commission. The rules must:
- Specify the time frames for applying for grants and distributing grant money;
- Establish the application form and information needed to apply;
- Specify the qualifications to be awarded a grant; and
- Establish accounting categories for operating a small business and within which the grants are required to be spent.
A small business needs to follow the application process and be qualified to receive a grant. A small business qualifies for a grant under this section if the small business:
- Has not declared the type of bankruptcy that results in liquidation of the business;
- Has been ordered to shut down because of the COVID-19 pandemic within the 90 days before the application is submitted;
- Has lost revenue because of economic hardship caused by the COVID-19 pandemic.
The office must distribute the grant money within 30 days after awarding the grants. The office may use an agent from within or outside state government to administer all or a portion of the program.
A grant recipient must submit a report from 60 to 90 days after receiving a grant with the following information:
- The date the grant was received;
- The total amount of the grant and the total amount of the grant money spent to date; and
- Each accounting category within which the grant was spent
and the amounts spent within each accounting category.
If the first report submitted by the small business does not cover all expenditures, another report is required. By January 1, 2022, the office must submit a summarized report about the program to the business, labor, and technology committee of the senate, the business affairs and labor committee of the house of representatives, and the governor.
The program is funded by an appropriation and repeals September 1, 2022.
(Note: This summary applies to this bill as introduced.)