ARPA Small Business Fund Frequently Asked Questions
The American Rescue Plan Act (ARPA) Small Business Emergency Relief Program was approved by the Hyattsville City Council to provide economic relief to Hyattsville business owners. The fund includes $1.5 million to support Hyattsville-based small businesses.
Frequently Asked Questions
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1. Who is eligible to apply?
Small businesses located in the City of Hyattsville that: 1.) hold a Class 1, Class 2, or Class 3 business license from the City of Hyattsville; 2.) were operational in 2020 and are currently operational; and 3.) suffered negative economic consequences are eligible to apply. Visit www.hyattsville.org/isithyattsville to verify that your business address is located within City jurisdiction.
2. Are Independent Contractors eligible to apply?
Individuals who are self-employed in the Personal Care Services Industry may be eligible to apply for the grant if they live or work in the City of Hyattsville and if 50% or more of their gross income in 2020 or 2021 came from Independent Contractor personal care services provided within the City of Hyattsville. Independent contractors may also submit 2019, 2020 and 2021 tax documents to show negative economic impact from the pandemic.
3. What is considered a small business?
A small business is a business with fewer than 250 employees, is independently owned and operated and is not dominant in its field of operation.
4. How do we establish pandemic-related negative economic impact?
Business must have experienced a negative economic impact from the COVID-19 pandemic by meeting one of the criteria below:
- Business is identified as part of the Arts, Entertainment, and Recreation Industry (NAICS 71) or the Accommodation and Food Services Industry (NAICS 72);
- Business is identified as part of the Personal Care Services Industry (NAICS 8121); or
- Business experienced financial harm due to the COVID-19 pandemic, including evidence of a reduction in revenues, decrease in net profits, or experienced a net operating loss.
For a detailed list of the types of business in the NAICS codes listed above, please see Exhibit A here.
5. How do I know which business license I have or if my business license is up to date?
Information about business licenses can be found in the City of Hyattsville Business License Guide. Questions about business licenses can be directed to Christine Redman at firstname.lastname@example.org.
6. What if I do not have a City of Hyattsville Business License, but meet all the other eligibility requirements?
If you meet the other eligibility criteria, including that your business was fully operational in February 2020, City staff will be able to assist you in applying for and quickly processing a Business License Application. We can process your Small Business Emergency Relief Program application after a Business License is issued. Please contact Krissi Humbard for more information at email@example.com.
7. How is the small business emergency funding allocated?
Funding will be available on a first-come, first-served basis to small businesses that meet the criteria while funding is available.
8. How much emergency relief funding may be awarded to my business?
Businesses who meet all eligibility requirements will be awarded up to the following amounts:
- Businesses with a Class 1 license: $5,000*
- Businesses with a Class 2 license: $15,000*
- Businesses with a Class 3 license: $25,000*
*Businesses that select “Other Industry” must show Internal Revenue Service (IRS) tax records to establish that the business experienced pandemic-related negative economic consequences. Grant awards for businesses in the “Other Industry” category are eligible for their total amount of established losses or the amount listed above for their business class, whichever is lesser.
9. What documentation is required for each application?
If your business is classified as a Small Business (not an Independent Contractor) and falls into one of the following industries, the application is the only documentation required:
- Arts, Entertainment, and Recreation Industry (NAICS 71)
- Accommodation and Food Services Industry (NAICS 72)
- Personal Care Services Industry (NAICS 8121)
If you have a small business that does not fall into one of the above categories, you will need to submit 2019, 2020, and 2021 federal tax returns indicating an operating loss, reduction in revenue, or decrease in net profits.
If you are applying as an Independent Contractor in the personal care services industry, you will need to submit 2020 and 2021 federal tax returns.
10. I own a home-based daycare. Am I eligible to apply?
Yes, home-based daycare owners are eligible to apply under "Other Industry." Home-based daycares must be licensed by the State of Maryland and submit complete 2019, 2020 and 2021 tax documents. Home-based daycares are eligible for up to $5,000 in grant awards.
11. I own more than one eligible business in Hyattsville. Can I submit a grant application for each business?
If you own more than one business in Hyattsville, you are eligible to submit an application for each business IF each business operates independently, has its own EIN, and has its own City of Hyattsville business license.
12. I started my business during the pandemic. Am I eligible for this grant program?
No, businesses must have been operational before February 2020, per Treasury Department rules.
13. I own a franchise in the City of Hyattsville. Am I eligible for this grant program?
No, franchises of national chains are excluded from applying. The grant program is only open to small businesses that are independently owned and operated.
14. Are there any businesses that are ineligible for grant funds?
Yes, the following businesses are ineligible for the program:
- Professional offices, including medical, dental, property management, attorneys, and any other offices;
- Motor vehicle repair, paint/body shops, new/used car, boat, recreational vehicle sales (including trailers), boat sales, new/used auto parts sales, gas stations, banks, trust companies, savings and loan, loan companies (payday loans), industrial establishments, manufacturing or rebuilding plants, warehouses, contractor yards, machine/welding shops, recreational establishments including movie theaters, bowling alleys, arcades, and billiards (except as an accessory to a restaurant); and
- Big box, department, clothing, retail, furniture, fitness gym, heating/AC service contractors, warehouses, manufacturing plants, laundromats, grocery, hardware stores, and any other general merchandise store with an interior area of 10,000 square feet or more.
- Independent contractors outside the Personal Care Services Industry or individuals who have separate full-time employment are not eligible for the program.
15. If I applied for a previous grant from the City of Hyattsville, do I have to apply again?
Yes. This is a new grant program. Applications do not roll over to later programs. You must submit a new application to be considered for funding.
16. What can grant funds be used for?
There are no restrictions on the usage of grant funds.
17. Where can I get an application?
Apply online here! You may also pick up a printed copy by request at the Hyattsville City Building, 4310 Gallatin Street, during normal business hours. Please call (301) 985-5000 to request a copy. The application is available in English and Spanish.
18. How do I submit my completed application?
Online applications can be submitted here. Printed applications can be emailed to ARPA@hyattsville.org or delivered to 4310 Gallatin St., Hyattsville, MD 20781 ATTN: Krissi Humbard.
19.When can I expect to hear back about my application?
Please allow up to 30 calendar days in processing time. Applicants will be notified of their status via the email address provided on the application form.
20. How will funds be delivered?
Payments will be made by check and mailed to the business or Independent Contractor listed on the application. Applicants will need to submit a W-9 form for payment.
21. Where can I direct further questions?
Please contact Krissi Humbard at firstname.lastname@example.org or (301) 789-7680.