News Flash

Summary

• $35 million in grants focused on 2,000 of Connecticut’s hardest hit businesses including restaurants and hospitality.
• Grant sizes will range from $10,000 to $30,000.
• No application process – Businesses which meet criteria will be sent a check directly from the Department of Revenue Services (DRS) in early January 2021.
• Checks to be sent out January 8, 2021.

Detailed Eligibility Criteria

• Must have NAICs as follows with CT DRS or be restaurants, hotel/lodging facilities, or theater/entertainment/recreation businesses:
  • 44-45 (Retail), 71 (Arts, Entertainment, and Rec), 72 (Accommodation and Food), and 81 (Other Services), Breweries (312120), Wineries (312130), Movie Theaters (512131 and -2), Travel Arrangement and Reservation (5615 and all sub-NAICS), Other Transit and Ground Passenger Transportation (4859 and 485999), and Commercial and Industrial Machinery and Equipment Rental and Leasing (5324 and all sub-NAICS).
  • Includes businesses which may be in other NAICS but are restaurants, hotel/lodging facilities, or theater/entertainment/recreation businesses. These businesses must still meet the other criteria.
    • Restaurants are defined as (1) having NAICs 722511, OR (2) having 50% or more of 2020 gross receipts are due to prepared meals AND 2020 gross receipts for prepared meals of at least $100,000.
    • Hotels are defined as (1) having NAICs 721110, OR (2) having 50% or more of 2019 gross receipts are due to room occupancy tax AND 2019 gross receipts for room occupancy of at least $100,000.
    • Theater/entertainment/recreation businesses are defined as having 40% of more of 2019 gross receipts due to admissions taxes (not counting receipts due to dues taxes) AND gross receipts due to admissions taxes of at least $100,000.
• Had (1) at least $250,000 in 2019 Wages AND at least $260,000 in 2019 gross receipts, OR (2) had at least $490,000 in 2019 Gross Receipts.
  • Wages are gross Connecticut wages reported on form CT-941 and gross Connecticut nonpayroll amounts reported on form CT-945. Not all firms withhold for wages, in which case the business must meet criteria based on gross receipts alone.
  • Gross receipts are the sum of sales that is reported for the purposes of sales tax (excluding for rental vehicles), room occupancy tax, and admissions and dues tax. Gross receipts are measured from January-September of each year.
    • Sales tax gross receipts is the sum of goods, leases and rentals, and labor and services, but excludes motor vehicle rentals as reported on form OS-114
    • Room occupancy tax gross receipts is the sum of line 1 and line 3 as reported on form OP-210
    • Admissions and dues gross receipts is the sum of lines 1,3,5,7 and 9 as reported on form O-372
• At least $75,000 in 2020 wages OR at least $150,000 in 2020 Gross Receipts
• Suffered declines in gross receipts of at least 25% in the first 9 months of 2020 compared with the same period in 2019, but no more than 95%
• Have less than $12,500,000 in 2019 Gross Receipts, or less than $10,000,000 in 2019 Gross Receipts if in NAICS 81.
• Have less than $5,000,000 in 2019 wages (or less than $10,000,000 in 2019 wages if restaurant, hotel/lodging, or theater/entertainment/recreation). This check doesn’t apply if a business doesn’t withhold for wages.
• Must be an in-state business that filed room occupancy, sales tax, or admissions and dues tax returns for September 2020, and are in good standing as determined by DRS.

 Exclusions

• Non-profits, using NAICS code (all NAICs starting with 611, 623, 7121, and 813) and 501(c) status
• Auto dealerships, tire stores, and other auto/motor services or maintenance. This is done by excluding a list of NAICS (all NAICS starting with 4247, 441, 4471, 45431, and 8111) and any business with “AUTO” or “TIRE” in its name.
• Golf courses and country clubs, by excluding NAICs 71391 and any business with “GOLF” or “COUNTRY CLUB” in its name. Exclude casinos and gambling facilities by excluding NAICS 7132.
• Membership organizations like country clubs and yacht clubs by excluding organizations in which more than 50% of 2019 gross receipts were from dues.

Payment Amount Formula

• Businesses are given 1 point if 2019 gross receipts (Jan - Sep) are between $1M and $2M, and 2 points if above $2M
• Businesses are given 1 point if decrease in gross receipts in 2020 v 2019 is between 40-55%, and 2 points if decrease is greater than 55%
  • Businesses with 0 points will get $10,000
  • Businesses with 1 point will get $15,000
  • Businesses with 2 points will get $20,000
  • Businesses with 3 points will get $25,000
  • Businesses with 4 points will get $30,000
• Businesses cannot receive more than 10% of 2020 gross receipts or 20% of 2020 wages (whichever is higher).