From Frederick County Office of Economic Development:
FREDERICK COUNTY, MARYLAND FOOD AND BEVERAGE PROVIDER GRANTS:
Frequently Asked Questions
Grant Applications OPEN—— 7:00 am on May 20, 2021
Grant Applications CLOSE —- 3:00 pm on May 26, 2021
What is the Food and Beverage Providers Grant?
This grant program has been created by Frederick County Government (“FCG”) with funding provided from the State of Maryland under the Acts of the Maryland General Assembly of 2021 (Senate Bill 496). It is known as the RELIEF Act to provide financial assistance to eligible businesses within the defined Food and Beverage Provider Service industry. Frederick County has available $877,322 and is required by the State of Maryland to allocate a minimum of 15% of grant funds based upon economic status of the applicant.
What is the maximum grant award?
The maximum grant award available to any one applicant cannot exceed $12,000. Individual awards will be based in part upon the number of applications.
When can I apply for the grant?
Grant applications open Friday, May 21, 2021 at 7:00AM and close on Wednesday, May 26, 2021 at 3:00PM.
Where do I apply?
The application process is electronic and can be completed at: https://ww3.frederickcountymd.gov/EconomicDevelopmentGrants.
Are all businesses eligible for the Food and Beverage Provider Grant?
No. To be eligible, the food service or beverage business must be a Frederick County based business, with principle business office(s) or location physically located in Frederick County. They must also meet US Small Business Administration (SBA) definition of a small business. Applicants must be for-profit.
What types of restaurants can apply?
The business must have a physical location in Frederick County as evidenced by a Food Service Facility License/Permit unless the business is exempt. A business must be engaged in activities that, in accordance with the North American Industrial Classification System, would be included in Code 722320 (Caterers), Code 7224 (Drinking Places (Alcoholic Beverages), or Code 7225 (Restaurants and Other Eating Places). Food truck and catering companies are eligible to apply. The primary function of the business must be food service. Liquor stores and convenience stores are not eligible under this grant.
Why does the application ask about economic status?
The economic status questions in the application are required by the State of Maryland for this grant program in order to determine if at least 15% of the funds allocated are awarded to businesses defined as 51% owned by a "disadvantaged" individual. The questions were modeled on the SBA 8(a) program and the net worth/wealth standards only apply to that majority owner. Any other minority (less than the 51% ownership) owner does not need to answer.
My restaurant is closed. Can I apply?
No, the business must be open and operating at the time of application.
Are sole proprietors eligible?
Yes. As long as the business can demonstrate a history of operations and provide supporting documentation, it may be organized under any legal structure.
If I have already received funds through the: COVID -19 Small Business, Emergency Loan or Grant; Food Service Grant; Heater Grant; or Jump Start Grant programs can I apply?
Yes. However, businesses that have not previously received funds will be prioritized. In addition to the allocation mentioned above, priority is given to applicants that have not received prior funding through the State of Maryland or Frederick County.
What expenses can be covered by Food and Beverage Provider Grant?
This grant can be used to reimburse businesses for the following:
Working capital, such as rent, payroll, and job training
Purchase of equipment and services to expand outdoor dining, such as tents, heaters, warmers, and carts
Infrastructure improvements, such as HVAC system upgrades;
Technology to support carry out and delivery
Purchase of PPE and disposable food containers and utensils
Sanitization services
Other COVID-19 related expenses incurred
If I own multiple restaurants, can I apply for each location?
Yes. Each application must have a separate address and food service license/permit.
What are the eligibility requirements?
An applicant must:
Be a properly licensed food & beverage provider located in Frederick County
If provider is exempt per FCG code then this does not apply
Be in good standing with the State of Maryland and Frederick County
Demonstrate a need for assistance
Not be in bankruptcy or litigation that would restrict the receipt of grant funds
Be open and operating at the time of application
Provide all required information including information on economic status
If applicant is a prior recipient of a 2020 Jump Start Grant, be in full compliance the required reporting at the time of application
Is my information on my application kept confidential?
While financial information will be kept confidential, the names of businesses receiving grants, and the amount they receive, are public information and may be included in press releases issued by the County.
Will I have to pay taxes on the grant?
It is possible that emergency grant funds may be reported as taxable income to the businesses. If awarded, grantees will receive a form 1099-G from Frederick County Government. Frederick County Government cannot provide tax advice and recommends that you consult with a tax professional if you have questions.
How do I know if I am approved and when will funds be distributed?
If approved, you will receive an email notification of your award within approximately 1 week after the application period ends. Upon notification, you will need to sign a grant contract agreement and submit the required documentation with a grant contract agreement by the specified date within the contract. The terms of the grant contract agreement are non-negotiable. The funds will be electronically deposited through an ACH direct deposit no later than June 20, 2021.
What is the record retention for the expenses related to this award?
All eligible grantees receiving an eligible grant will be required to (i) maintain records evidencing compliance with the requirements of the eligible grant for a period of five (5) years from the date of the eligible grant.
Are these grant funds subject to audit?
Yes. All eligible grantees receiving an eligible grant will be required to permit any duly authorized representative of the County or the State to inspect and audit all records and documents of the eligible grantee relating to the eligible grant.
If questions are not addressed in this FAQ what can I do?
If you have questions about the Grant program, please email the Office of Economic Development at OED@FrederickCountyMD.gov.
Cover Photo: Courtesy of Visit Frederick