Business Grant Program, Phase 2 $20 million available for grants
Denton County will launch Phase II of the OPEN (Operational Plan for Economic Normalization) Grant with $20 million available through grants for businesses physically operating within Denton County. The goal of this program is to help the businesses that have been negatively financially impacted by COVID-19.
If you still have questions after reading the information below, please email questions to OPENgrants@dentoncounty.gov.
Applications Have Closed
Denton County Commissioners Court launched a small business grant program at noon on Monday, June 22, 2020, through noon on Tuesday, July 7, 2020, to provide up to $50,000 grants to qualifying Denton County businesses who have experienced a negative financial impact during the COVID-19 pandemic.
In Phase II of Denton County OPEN, for-profit businesses located in Denton County with 100 or fewer full time employees (excluding ineligible entities listed below) are eligible to apply.
The amount a business can receive will be based on the documented negative financial impact of COVID-19 between March 1, 2020 and June 20, 2020.
The eligible amount of the grant is the higher of:
The $20 million identified for the Denton County OPEN grant is a portion of the stimulus money Denton County received from the US Department of Treasury under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). Denton County is re-investing these funds into the Denton County OPEN program to benefit Denton County businesses impacted by COVID-19.
General Information
Grants awarded will be up to $50,000.
Individual grants will be awarded based on calculating the negative financial impact due to COVID-19. This may include not only lost revenue due to COVID-19, but also expenses related to implementing new equipment and protocols in your business to meet the CDC guidelines for safety.
Application Process
- Good Faith Certification as to truth and accuracy of information provided
- Submit requested information and documentation
- Certify the grant request is necessary due to conditions caused by COVID-19
- Agreement to audit the use of grant funds received
- Agreement to claw-back provisions if funds are used for ineligible purposes
- Unsworn Declaration of Owner
Types of Businesses
- Corporation
- Individual
- Sole proprietorship
- Single-member limited liability company (LLC)
- LLC treated as a partnership
- LLC – C corporation
- LLC – S corporation
- Partnership
Eligible Uses of Grant Proceeds
- Payroll costs for employees or owners draw (sole proprietors/partners)
- Contract labor
- Supplier payments
- Rent, lease or interest on mortgage payment (for real property used for business purposes, like storefront or warehouse, excluding personal residence.)
- Rent, lease or purchase payment for business property (e.g., delivery vehicle; food truck; kitchen equipment; technology, payment, and communications systems and equipment)
- New or expanded technology applications and Wi-Fi services
- Utility payments for business properties, excluding personal residence.
- Cost of critical business operations (raw materials, marketing expenses, etc. payments)
- PPE and sanitation supplies and equipment
- Interest on other business debt obligations incurred before March 1, 2020, excluding personal residence.
Documents Required
- Documentation of business (Choose one of the following)
- Secretary of State Texas File number; State of Texas License number; DBA, 2018 or 2019 tax return (including all schedules);
- Employer Identification Number or Individual Taxpayer Identification Number, (Example: Occupational license, Sales Tax Certificate)
- Drivers’ license or state-issued ID
- Most recent filed business tax return, if applicable
- Most recent payroll report and number of employees – 1st QTR 941 for 2020, if applicable
- Bank and income statements from January 1, 2020, to May 31, 2020. (If opened between January and May 2020, provide all requested statements for the life of the business. If a new business was never opened due to COVID-19, please include all losses including, but not limited to, rent, utilities, payroll, etc.)
- For Sole Proprietor, applicants provide 2018 or 2019 Schedule C
- Form W-9
- Each business will be required, as part of the application process, to attest that they are not an “Ineligible Business” as listed below.
- Submit documentation for proof of fund uses by February 15, 2021, including Form W-3, Form 941, utility statements, canceled checks/receipts or bank statements
Ineligible Businesses
- Non-Profits
- Sexually/Adult-Oriented Businesses
- Lobbying organizations and political organizations subject to Internal Revenue Code 527
- Gambling Concerns, including casinos, racing operations or other activities whose purpose involves gambling
- Concerns engaged in illegal activities under federal, state or local laws
- A business that is otherwise prohibited by federal or Texas law
- A business that is ineligible or precluded to receive federal or State of Texas funding due to federal laws (including but not limited to the CARES Act) or Texas laws
- Multi-level marketing concerns
- Governmental/taxing agencies/departments