Small Business Resource Grant

In response to the adverse economic impacts of the COVID-19 pandemic, the City of Huntsville is offering COVID-19 Small Business Resource Grants. The grant program provides grants for businesses that have been significantly impacted by the pandemic and that generate sales tax.

As small businesses in Huntsville continue to suffer financial fallout due to the coronavirus pandemic, the City of Huntsville seeks to provide financial assistance through a COVID-19 Small Business Resource Grant. The program is designed to provide funding for small businesses to cover economic damages suffered as a direct result from COVID-19. The City of Huntsville has allocated funding of $375,000 to establish a business assistance grant program

The grant would provide financial relief in amounts up to $10,000 to business who meet the required criteria and have sustained economic losses as a result of COVID-19. No business is guaranteed to receive grant funds.

Eligibility Requirements 

For a business to be eligible it must meet the following requirements:

  • Must show proof of applicant’s ownership of the business, or proof that the owner of such business has approved the application for grant funds
  • Operate as a for-profit business physically located in the city limits of Huntsville
  • Business must be open and operational at the present time unless limited by mandate
  • Must have less than 25 employees
  • Must be current on property tax payments, sales tax remittance and Hotel Occupancy Taxes
  • Experienced a 25% or greater reduction in revenue between March 1, 2020 and May 31, 2020 compared to March 1, 2019 - May 31, 2019, as a result of the COVID-19 pandemic
  • Must have been in business for a least one-year prior to the Disaster Declaration on March 13, 2020
  • Applicant is not currently in bankruptcy nor has filed for bankruptcy in the last 12 months. 

Priority will be given to businesses that have frequent or close contact with customers including retail, hotels, restaurant/food business and personal care (barber shop, nail salons, etc.). Additionally, priority will be given to those businesses that did not receive other funding from the CARES Act; specifically, the Paycheck Protection Program or the Economic Injury Disaster Loan (PPP, EIDL).

The City of Huntsville is the sole and final authority in determining eligibility for funding.

Ineligible Businesses

  • Homebased businesses

Acceptable Uses of Funds

Grant funds may be used for the following purchases:

  • Rent/mortgage
  • Employee support (salaries, insurance, paid leave, etc.)
  • Utilities (electricity, phone/internet, etc.)
  • Purchase of supplies to offer alternative business access (curbside pickup, delivery, shipping, etc.)
  • Purchase of COVID-19 supplies for business/customer protection/cleaning
  • Additional expenses as a result of increased cost from suppliers or alternate supplier
  • Other business needs as approved by the review committee

Submittal Requirements

  • Completed application form with accompanying documents must be received. Accompanying documents include:
    1. A copy of the business’ quarterly wage report filed with the Texas Workforce Commission for year end 2019 or its 4th quarter form 941 for 2019. If the business is a sole proprietorship, please provide verification of such.
    2. Copy of Texas Secretary of State Certificate of Filing. If sole proprietor, please provide documentation on when the business was started.
    3. Business financial statements to include profit and loss statement and balance sheets for March, April and May 2019 and 2020.
    4. Company’s W-9 form.
    5. Verification showing payment for business ad valorem and personal property tax to the Walker County Appraisal District in 2019.
    6. Texas Comptroller of Public Accounts sales tax statement for March 2020 or most recent filing.

Evaluation Criteria 

A review committee will be established by the City of Huntsville to review the applications.  A business’ year over year change in revenue between March-May 2019 and March-May 2020 and the impacts from the pandemic will be a significant influencing factor in determining whether funding will be provided. The evaluation committee reserves the right to conduct an interview with any applicant to clarify questions around the business, its history or any other item in the application (either in person or virtually). 

Only completed applications will be evaluated. The review committee reserves the right to utilize additional criteria in order to make its funding recommendations. 

Anticipated Process

Applications will open November 18, 2020 and close on December 2, 2020 at 5:00 p.m. Checks must be processed and distributed by December 15, 2020. If you have questions, or need assistance with your application, please contact Tammy Gann at tgann@huntsvilletx.gov or 936-294-5793.

The Application Period is Closed