Vermont Business Magazine The Business Emergency Gap Assistance Program (BEGAP) went live today. This $20 million grant program is intended to help businesses and nonprofits restore, reopen, and bring their employees back to work after suffering physical damages to their property beginning on July 7, 2023, when severe storms swept into Vermont.
The application portal is available on the ACCD site. See more information below.
"More support will be needed, but this $20 million commitment from the State is a strong first step as we work to help employers impacted by catastrophic July flooding,” said Governor Scott. “My team and I will continue to do what we can to help businesses, and work with our congressional delegation to try and secure additional resources that will be needed.”
Businesses and nonprofits are encouraged to visit the Business Emergency Gap Assistance Program page to learn how the program works and what you will need to have in hand before you begin the online application process.
DED held a webinar about the program and a recording of the program can be found on the program page. Additional FAQs about program specifics are posted below.
“We know that our businesses and nonprofits are hurting.” said DED Commissioner Joan Goldstein. “Many of our employers were still recovering from COVID when the flood waters hit, so our team at DED has been working tirelessly to launch this program to give them relief as soon as possible so they can reopen their doors and get their people back to work.”
As a reminder, here are some of the basics of the Business Emergency Gap Assistance Program:
- Grantees can get up to 20% of their net, uncovered damages after factoring in other funding sources like insurance coverage and other grant awards.
- Most organizations can receive up to $20,000. More could be available for entities that suffered $1 million or more in physical damages.
- Physical damage includes damage to real estate, improvements made by lease holders, inventory, and equipment.
- Of the $20 million devoted to the Vermont Business Emergency Gap Assistance Program, $1 million is being set aside for the Vermont Agency of Agriculture, Food and Markets to disburse to farms and farm businesses.
Submissions will be approved on a rolling basis until all funds are expended. Applicants with questions can email the Business Emergency Gap Assistance Program at [email protected].
For the latest flood recovery updates from ACCD and DED, sign up for the Severe Storm Recovery Newsletter.
Business Emergency Gap Assistance Program Guidelines
Program Overview
The Department of Economic Development has created the Business Emergency Gap Assistance Program (BEGAP). This $20 million grant program is for businesses and nonprofits that suffered physical damages from flooding dating back to July 7, 2023. Applicants must intend on restoring, reopening, and bringing their employees back to work as soon as possible and will utilize these grant funds for that purpose.
Incomplete applications will be returned to applicants for revision and will take more time to process. Applications will be approved on a rolling basis until all funds are expended. Find more information from the recorded webinar and FAQs below.
Eligibility Requirements
Businesses and nonprofits that sustained physical damages during the flooding event beginning July 7, 2023.
If you are an agricultural business, please visit the Agency of Agriculture, Food and Markets (AAFM) web site for guidance before applying. If agricultural businesses have questions they can email: [email protected]
An eligible applicant must be a business or nonprofit that meets the following criteria:
- Established prior to the July 2023 flood
- Physical property damages must be located in Vermont
- The location for business operations and/or the business assets must have suffered physical damages from the July 2023 flood
- For the purpose of the BEGAP grant, physical damages include damage to real estate, leasehold improvements, inventory, machinery, and equipment.
- Intends to reopen in the same location or elsewhere in Vermont and will utilize the grant funds for this purpose.
The following are ineligible entities:
- Municipalities
- Businesses or nonprofits that sustained only economic injury (revenue loss)
- Individual homeowners (for home-based businesses, this application only pertains to business assets)
Award Calculation
BEGAP will help applicants recoup a portion of their total net uncovered damages. This is the damage amount remaining after subtracting any insurance proceeds (estimated or received) and other grants or donations to be used to defray the costs of repairing or replacing those damaged assets.
For applicants who have less than $1,000,000 in net uncovered damages:
- The lesser of 20% of net uncovered damage or $20,000
Applicant can only submit one application per damaged property with a three-property maximum.
Applicants submitting applications for more than one property with damages exceeding $1,000,000 are only eligible for one enhanced award (over $20,000).
For applicants who have net uncovered damages in excess of $1,000,000:
- Award is calculated as the lesser of 20% of net uncovered damages or
- $100,000 if applicant employs between 1 and 10 FTEs*
- $250,000 if applicant employs between 11 and 50 FTEs*
- $500,000 if applicant employs over 50 FTEs*
*FTEs are the number of full-time equivalent Vermont-based employees prior to the flood. For the purposes of this grant, one FTE works 35 hours per week.
Applicant Information and Documentation
Information Required:
- Contact information
- Damaged property location and ownership documentation such as property tax bill, lease
- Federal Employer Tax Identification Number (FEIN)
- Insurance policy information: type of coverage, policy number, agent contact
- Dollar amount of damages anticipated to be recouped through insurance
- Other grants or donations received and used to defray the costs of repairing or replacing those damaged assets
- Description of the impact of the flooding on the applicant
- Damage type and estimated costs for repair/replacement
- An economic injury estimate and description (anticipated or actual revenue loss). This is not being used to calculate the award but is for informational purposes only
Documentation Required:
- Most recently filed Federal Tax Return (or 990)
- Profit and Loss Statement if business started in 2023
- An updated IRS Form W-9
- Declaration or Certificate of Insurance for all policies held
- Supporting documentation for claimed damages (insurance adjusters report, vendor estimates)
- Repair estimates for physical structures, equipment, inventory, supply purchases or actual paid expenses
- Photographs of damaged property (maximum of 5)
- Proof of property ownership (e.g. property tax bill, deed, lease agreement)
Application Portal Now Open
Apply for the BEGAP Program below. If this is your first time in the system, you will need to create an account. DED has created a guide to help create an account. If you are returning to an application and already have an account, please use the “returning applicants” button below.
Technical Assistance
- If you are a business owner seeking assistance in preparing to submit this grant application, the Vermont Small Business Development Center can help. Fill out their technical assistance form and VtSBDC will follow up with resources to help.
- If flood damage has led to a dispute between an organization and their landlord, reach out to the Small Business Advocate at Vermont Attorney General’s Consumer Assistance Program. You can email them directly at: [email protected]
- Regional Development Corporations are also available to support businesses. Find the one nearest you.
- Farmers and agricultural business should reach out to the Vermont Agency of Agriculture, Food and Markets. They have a web page and email address dedicated to BEGAP.
Additional Questions and Hours of Operation
For additional questions about the Business Emergency Gap Assistance Program please email [email protected]. The BEGAP hours of operation are Monday though Friday, 8:00 a.m. - 5:00 p.m.
BEGAP FAQs
Frequently Asked Questions for Business Emergency Gap Assistance Program
Eligibility
Q: Are landlords eligible?
A: Yes, commercial and residential landlords are eligible.
Q: Are home-based businesses eligible?
A: Damages to business assets are eligible. Damage to the home is not.
Q: Are businesses eligible that closed temporarily from the flood but have since reopened?
A: Yes.
Q: Are houses of worship eligible?
A: Yes
Q: Is this grant funding available for individuals?
A: No, BEGAP grants are for businesses and nonprofits only.
Business type
Q: Which "business type” do I choose if my business fits into more than one category?
A: If your business falls into more than one sector category, please choose the one that your business operates the majority of the time.
Q: Is this grant for farms and agricultural businesses?
A: Yes, but if you are an agricultural business, please visit the Agency of Agriculture, Food and Markets (AAFM) web site for guidance before applying. If agricultural businesses have questions they can email: [email protected].
Q: What if I am a sole proprietor/a landlord and don’t have an FEIN?
A: If you are a sole proprietor you will be prompted in the application to give your social security number (SSN) rather than an FEIN.
Documentation and supporting information
Q: Which types of insurance should I list?
A: List all relevant types of insurance
Q: How recent does a W-9 need to be?
A: We will need a W-9 that has been signed within the last 6 months.
Q: What if I haven’t heard back from my insurance adjuster?
A: Please upload the insurance documents and details that you do have and also indicate in the application when prompted whether you have specific flood coverage or not.
Q: What kind of documentation should I use to demonstrate proof of ownership?
A: Proof of ownership can be shown via a property tax bill, deed, or lease.
Q: Do I need to report all grants and donations my organization already received?
A: Because this grant program is to be used to restore or reopen your business, you will need to list the funds received for the same purpose.
Q: If economic injury is not being used to calculate a BEGAP grant award, why are you asking for it?
A: We are not reimbursing for economic injury and harm at this time, but we are collecting the information to aggregate data regarding overall impact.
Q: How do I calculate economic injury?
A: At this time we are asking for what your losses are, separate from the physical damage. For example: if your business is closed, what is the estimated monetary value you are losing in revenue each day? Of note: the Small Business Administration (SBA) defines economic injury as the amount of funds you need to stay current on all of your current obligations.
Q: I am a business with multiple physical locations.
A: Businesses with multiple physical locations will need to fill out an application for each location, with a maximum of up to 3 grants per business.
Q: I am a business with multiple locations, how do I indicate FTEs?
A: Please indicate the number of FTEs at each physical location, rather than number of FTEs for the entire business.
Q: Can seasonal and/or part-time workers be considered FTEs?
A: Yes, they can be added up to determine your number of employees. One FTE is equal to 35 hours per week.
Miscellaneous
Q: Is there a deadline to apply?
A: No, grant applications are first-come, first-served on a rolling basis until the funds are expended. It is imperative you submit a complete application. An incomplete application will prolong processing time.
Q: Is a BEGAP award taxable?
A: Yes
Q: What happens if a business or nonprofit is awarded a grant and ultimately isn’t able to reopen?
A: We are sensitive to the fact that for some businesses the concept of reopening is fluid, however, we are asking that only businesses that have a solid plan to reopen apply. This guarantees that funding is available for those that need it the most.
Q: How long will it take for businesses to get grant payments?
A: We estimate approximately 7-10 days from completion of review of the application until disbursement of funds.
Q: I need help applying. What should I do?
A: There is robust technical assistance available for those who need additional help. Please reach out to the Vermont Small Business Development Center and/or a Regional Development Corporation near you.
Q: I have more questions. Who can I ask?
A: Ask the BEGAP team by sending an email to [email protected]