Find out more here: www.commerce.alaska.gov/web/AK-ARPABusinessReliefProgram.aspx
9/21/21
AK-ARPA BUSINESS RELIEF PROGRAM
The Alaska State Legislature appropriated $90 million from the State’s American Rescue Plan Act (ARPA) Covid State and Local Fiscal Recovery Funds (CSLFRF) toward a tourism and business relief grant program to be administered by the Department of Commerce, Community, and Economic Development (DCCED).
APPLICATION PERIOD FOR THE AK-APRA PROGRAM OPENS FRIDAY!
The application period opened at 8:00 am on Friday, September 17, 2021 and will remain open until 8:00 am on October 19, 2021.
The link to the application portal is under “Application Process” below.
The AK-ARPA business grant program is not a first-come, first-served grant opportunity.
Application Process:
Obtain a Dun & Bradstreet DUNS number, prior to starting an application. The ARPA instructions below are incorrect for Skagway residents as the process makes one verify their street address. To bypass this type of verification process, follow these steps:
To Create or Update your DUNS Number, please visit our simplified self-service portal to provide you the fastest service. There you will find step-by-step instructions to guide you through the process.
Step 1: Click Simplified Self-Service Portal link: www.dnb.com/govtduns and choose "Federal Government Contractors or Grantees DUNS Number Support"
Step 2: Click on the “Create a New DUNS Number” or “Update Your Existing DUNS” button (see screenshot below) and follow the step-by-step instructions.
Optionally, complete a preliminary AK-ARPA Screening Questionnaire to quickly determine whether your business is eligible for an AK-ARPA Business Relief grant.
Applications must be submitted online through the MyAlaska system. Use the AK-ARPA Business Relief Grant Portal to apply for an AK-ARPA Business Relief Grant.
The Juneau Economic Development Council (JEDC) is the administrator for the AK-ARPA business relief program. For assistance with your application, you can contact JEDC’s AK-ARPA hotline at (907) 917-3720 or email ARPAGrant@jedc.org.
Unlike the AK CARES program, the AK-ARPA grants will not be issued on a first-come, first-served basis. Eligible businesses have a month-long window to apply, and grants will be issued based on the demonstrated need. Grants will not be awarded until the end of the application period and after all applications have been reviewed. Grant funding from all local, state, and federal grant funding received in 2020 and 2021 will be added to the 2020 income for calculation (such as PPP, EIDL if forgiven, AK CARES, local COVID-related grants, etc.).
Applications will be grouped based on Gross Annual Revenue (GAR), but qualification will be based on change in net income. Qualification does not guarantee funding.
Applications will be grouped into three tiers based on an applicant business’ GAR in 2019:
Tier One: Businesses with 2019 GAR between $10,000 and $2.5 million.
Tier Two: Businesses with 2019 GAR between $2.51 million and $10 million.
Tier Three: Businesses with 2019 GAR between $10.01 million and $50 million.
To be eligible, businesses must have filed their 2019 and 2020 taxes and must have held an active State Business License as of January 1, 2021 unless exempt under AS 43.70.105 (in which case the business will need to provide proof of the requirement licensure under that exemption, as applicable).
The seafood processing, mining, and oil and gas industries were required to make significant investments in order to comply with the State of Alaska’s COVID-19 mitigation policies and continue to operate. Recognizing the unique costs incurred by these industries in order to continue Alaska operations during 2020, companies operating in these three sectors are exempted from the gross revenue cap and may apply for an individual facility and provide audited financials of that facility rather than an IRS schedule in order to qualify.
Businesses must be able to demonstrate a 50% or greater loss in net income.
Businesses will also need to provide a DUNS number on their application. For guidance on how to obtain and/or manage a DUNS number, visit our DUNS Number Guide.
Applicant businesses are required to include proposed use of the funds in the submitted application.
Eligibility Requirements:
Business must be Alaska-based. Sole proprietorship business must be owned by an Alaskan resident.
Must be a for-profit business.
Business revenues must primarily be generated in activities and or services performed in Alaska.
Reported Gross Annual Revenue (GAR) must be between $10,000 and $50 million in 2019.
Business must have held an active State of Alaska Business License as of January 1, 2021 (unless exempt under AS 43.70.105, in which case the business will need to provide proof of the requirement licensure under that exemption, as applicable).
Business must have been in operation before January 1, 2020 with proof of a filed 2019 and 2020 tax return. (For a subsidiary filing independently of their corporation, a consolidated tax return with schedules delineating revenue streams is acceptable.)
Business must have experienced a decrease of at least 50% in net income between 2019 and 2020 due to COVID-19 public health emergency.
To be an eligible commercial fishing business, fisherman must permanently hold a Limited Entry or Interim Entry Permit for 2019 and 2020. Temporary Permit Holders are ineligible.
A corporation may file as a whole, or for one subsidiary. Multiple subsidiaries of one corporation may not apply; a corporation and one of its subsidiaries may not both apply.
Applicants must self-certify that, barring unforeseen circumstances, they will remain in business through Calendar Year 2022.
Seafood processing, mining, and oil and gas industries required to make significant investments in order to comply with the State of Alaska’s COVID-19 mitigation policies in order to operate are exempted from the gross revenue cap and may apply for an individual facility, and provide audited financials of that facility rather than an IRS schedule in order to qualify.
Ineligible Businesses:
Business with an expired business license.
Business that did not have an active business license as of January 1, 2021 (unless exempt under AS 43.70.105, in which case the business will need to provide proof of the requirement licensure under that exemption as of January 1, 2021, as applicable).
Business that has permanently closed.
Business currently involved in a bankruptcy proceeding.
Publicly traded company or nonprofit business.
Business with a Gross Annual Revenue (GAR) of less than $10,000 in 2019.
Business with a Gross Annual Revenue (GAR) of more than $50 million in 2019.
Business with less than a 50% decrease in net income between 2019 and 2020.
Marijuana businesses (due to the federal funding of this program).
Multiple subsidiaries of one corporation may not apply.
A corporation and one of its subsidiaries may not both apply.
Grant Amounts:
The AK-ARPA Business Relief Program will group applications in three tiers based on an applicant business’ GAR in 2019 (see "Application Process" above for more detail):
Tier One: 80% of documented net income loss up to $250,000.
Tier Two: 80% of documented net income loss up to $500,000
Tier Three: 80% of documented net income loss up to $1 million
An applicant business will demonstrate their Gross Annual Revenue (GAR) and net income for calendar years 2019 and 2020. Grant funding from all local, state, and federal grant funding received in 2020 and 2021 will be added to the 2020 income for calculation (such as PPP, EIDL if forgiven, AK CARES, local COVID-related grants, etc.).
Example: If an applicant business demonstrates $1 million in net income for 2019 and $200,000 in 2020, but also received $300,000 in grant funding in 2020, then the amount of documented shortfall would equate to $500,000. Because $500,000 equates to a 50% year-over-year loss, the business would qualify for the program, but the application would not be processed until all applications from businesses with a greater year-over-year loss have been processed. Because 80% of the revenue shortfall exceeds the maximum amount for the applicant business’ GAR tier, the grantee could receive the maximum amount (barring the need to prorate due to the demand).
Allowable Use of Funds:
Applicant businesses are required to include proposed use of the funds in the submitted application. All costs must be directly related to the applicant business.
Grant funds must be expended on past, current, or future costs of the business. Funds may not be retained or invested. Funds must be expended expeditiously. Grant awardees will be required to spend funds by a certain date or return unused funds. The specific deadline to expend all grant funds has yet to be determined but will likely be in Fall 2022. The exact date will be announced before grants are awarded and included on the grant agreements businesses are required to sign to receive the funds.
Allowable costs include, but are not limited to:
Business operating expenses
Professional licensing costs
Unemployment Insurance for Calendar Year 2021
Business payroll costs (including sick leave)
Payments on any business mortgage obligation or rent payments (not including prepayments)
Business debt service (both principal and interest; not including prepayments of principal or interest)
Business utility payments
For Frequently Asked Questions and to find out more check out the following link:
www.commerce.alaska.gov/web/AK-ARPABusinessReliefProgram.aspx