Arkansas Administrative Code
Agency 003 - DEPARTMENT OF COMMERCE
Division 19 - Arkansas Economic Development Commission
Rule 003.19.20-013 - Business Interruption Grant Program

A. Operates primarily within the Arkansas personal care, tourism, travel, recreation, hospitality or related industries;

B. Was established on or before March 1, 2020;

C. Has an established tax identification number in the state of Arkansas;

D. Current Economic Uncertainty makes this assistance necessary to support the ongoing operations of the Applicant;

E. If formally organized, is incorporated under the laws of Arkansas or is registered to do business in Arkansas with the Arkansas Secretary of State and, in any case, is listed as being in "Good Standing." If not incorporated, a business/professional license, sales tax permit, utility bill or bank statement in the name of the business is required as supporting documentation that the business is a bona fide business;

F. Is headquartered in Arkansas or has employees working in Arkansas;

G. Employed an average of two hundred fifty (250), or fewer, Full Time Arkansas Employees per Eligible Business as of September 30, 2020;

H. Must either have:

I. Is not under a bankruptcy order and does not have a pending bankruptcy filing at the time the Application is submitted. An Applicant that files for bankruptcy while the Application is pending shall notify the grant program and withdraw its Application under the program.

J. Does not presently have any tax liens with respect to any unpaid tax owing to the State of Arkansas except for those businesses that have applied for and received a repayment plan from the State of Arkansas and are not in default of that payment plan; and

K. Eligible Businesses shall not include, without limitation, the following:

A. Business expenses incurred as a direct result of COVD-19 mitigation; or

B. Certain ordinary business expenses incurred by an Eligible Business as a direct result of a government mandated business closure or restriction due to COVID-19; or

C. Business expenses incurred due to diminished capacity of operations that are likely to continue until health conditions allow functioning at full capacity.

A. Personal Protective Equipment (PPE) and other related expenses for purchases between March 1, 2020 and September 30, 2020 reasonably necessary to comply with Centers for Disease Control and Prevention (CDC) guidelines or Arkansas Department of Health (ADH) guidelines with proof of purchase via a receipt, paid invoice, or payroll record. See Exhibit A for pre-approved list.

B. Rent or mortgage interest payments on real property incurred between March 1, 2020 and September 30, 2020 with a proof of payment via receipt or cancelled check.

C. Other expenses reasonably necessary to keep the Eligible Business operational, and to safely meet local, state, and federal COVID-19 mitigation requirement with proof of payment via receipt, paid invoice, cancelled check, or proof of incurred expense subject to an established payment plan or other written payment agreement, without limitation:

D. Expenses that are not considered Eligible Expenses for reimbursement under this grant program include, without limitation:

E. All Eligible Expenses must be utilized to cover expenses incurred by the Eligible Business in the state of Arkansas.

F. Any grant award received must be used in Arkansas.

G. To the extent a business has received, or may receive, insurance proceeds covering any of these Eligible Expenses under a Business Interruption insurance policy, such payments, or expected payments, must be deducted from the Eligible Expenses claimed by the Applicant.

"Full Time Arkansas Employee" for purposes of this grant program, is defined as an employee of the business that works an average of at least 30 hours per week at a business location in Arkansas.

"Minority Business Enterprise" for purposes of this grant program, is defined as a business where at least 51 percent of the business owners are a minority as defined in Ark. Code Ann. § 15-4-303 (2).

"Review Committee" for purposes of this grant program, is defined as the Secretaries from the Arkansas Department of Parks, Heritage and Tourism, Arkansas Department of Commerce's Arkansas Economic Development Commission, and the Arkansas Department of Finance and Administration plus one additional designee from each Department who will make the final grant decisions based on quantitative and qualitative data prepared by the Consultants.

" Women-owned Business Enterprise" for purposes of this grant program, is defined as a business where at least 51 percent of the business owners are women.

A. Required Application documentation includes, without limitation.

B. Eligible Businesses will be asked to provide North American Industry Classification System (NAICS) code in the online Application. This information will assist in the analysis and review of the grant Applications.

C. Only one Application per Eligible Business is allowed under this grant program.

D. If the Applicant has previously received any local, state, or federal government assistance or any private or charitable assistance for these types of expenses, such amounts must be deducted from the Applicant's claim because the eligible expense for these items is strictly limited to unreimbursed amounts.

E. This application period will be open for ten calendar days and notification of the grant program will be advertised statewide in advance and during the application period.

F. This is not a first come, first served grant program. Once the grant Application deadline has passed, available funds will be awarded to approved Applicants in accordance with these rules.

G. Once the grant Application deadline has passed, available funds will be apportioned to approved Applicants on an equitable basis.

H. All Applications will be accepted online. Paper Applications cannot be accepted, and Applications via telephone cannot be accepted.

I. As a part of the Application submission process, all Applicants must electronically agree to be bound by all of the legal terms and conditions of the grant program.

J. All grant fund recipients must enter into a written grant agreement contract with the Arkansas Economic Development Commission (AEDC) that will set forth all the legal terms and conditions of the grant award.

K. Applicants will be required to certify, under penalty of perjury and other civil and criminal penalties, that the information contained in their Application package is truthful, complete, and accurate.

L. Applications will only be considered when a complete Application is submitted with all required attachments. Completeness of an Application shall be determined in the sole discretion of AEDC or its designee.

A. Grant amounts will be based on criteria established by the Review Committee that will consider the total amount of eligible reimbursable expenses, overall impact of COVID-19 to the industry of the business, and the differential in the sales tax paid by the business during the time periods of March 1 through September 30 in 2019 and 2020.

B. One metric that will be considered by the Review Committee to determine economic impact to the Eligible Business will be sales tax data. For Eligible Businesses that do not collect and remit sales taxes or Eligible Businesses that have been in business as of March 1, 2020 for less than one year, other data provided by the Applicant such as remittance of sales tax per month since in operation will be considered in determining economic impact. If the business does not collect sales tax, other data may be requested by the committee for consideration of grant awards.

C. Grant awards will not exceed $250,000 per Application.

D. Grant claims and awards are non-transferable to other individuals or entities and subject to state and federal tax laws.

A. In the event an audit reveals an improper payment was claimed and paid, a claw back provision will be triggered under which payment granted to a recipient must be promptly returned, either in full or in part, to the State of Arkansas.

B. This program is contingent upon the availability of funds as directed by the CARES Act Steering Committee of Arkansas as federal funds are appropriated by the Arkansas General Assembly to the Arkansas Department of Commerce's AEDC.

C. Applicability of the Arkansas Freedom of Information Act. AEDC is a public entity of the State of Arkansas and is subject to the requirements of the Arkansas Freedom of Information Act, Ark. Code Ann. § 25-19-101 et. seq. (FOIA). AEDC must disclose to a FOIA requestor information concerning the Applicant when, in the opinion of AEDCs legal counsel, AEDC is legally required to disclose the requested information. Such may include, without limitation, any financial information, operational information, franchise fees, and vendor information. When submitting claims under this grant program, Applicants should carefully consider the risks associated with the information they provide becoming public information and may, accordingly, opt to claim reimbursement for only some certain Eligible Expenses.

D. The threshold goal for this grant is to direct at least 15 percent of the funds to Minority Business Enterprises and Women-owned Business Enterprises. If there are not sufficient Applications from Minority Business Enterprises and Women-owned Business Enterprises, the surplus funds will be directed to the general fund of the grant for distribution.

E. Not all who apply for a grant will be approved. The information provided in this document does not create any obligation by any department or agency of the state of Arkansas to provide any grant funding to any Applicant.

F. All Applicants will be required to disclose information required by Executive Order 98-04 and the rules related thereto. Grant decisions may be affected by these types of disclosures.

G. The grant program is a discretionary incentive program offered by a joint program administered through the ADPHT, Arkansas Department of Commerce's AEDC, and DFA.

EXHIBIT A ITEMS APPROVED BY THE ARKANSAS CARES ACT STEERING COMMITTEE FOR PURCHASE

* N95 Masks

* KN95 Masks

* Surgical Masks

* Cloth Masks

* Isolation Gowns

* Gloves

* Face Shields

* Goggles/Safety Glasses

* No Touch Thermometers

* Forehead Thermometers

* Ear Thermometers

* Thermometer Covers

* Wristbands (paper)

* Batteries

* Basic First Aid Kit

* Rubbing Alcohol

* Hand Sanitizer

* Siphon Pump (for Hand Sanitizer in drum or bucket)

* Plastic Bottles (for Hand Sanitizer in drum or bucket)

* Sanitizing Sprays

* Sanitizing Cleaners

* Sanitizing Soaps

* Sanitizing Wipes

* Bleach

* Mop Bucket

* Mop Handle

* Mop

* Trash Cans with Lids

* Garbage Bags

* Clear Shower Curtain (used to separate customer from employee)

* Shower Curtain Rods (used to separate customer from employee)