Second Round of COVID-19 Relief Grants for Alaska Businesses
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The Alaska Department of Commerce, Community, and Economic Development (DCCED) has decided on a structure for the next round of the AK-ARPA Business Relief Program.
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The legislature appropriated $90 million from the state’s share of federal funds from the American Rescue Plan Act. The first round of grants was awarded after an application period last fall. For the second round, applications will be accepted from March 14 through April 15.
The second round differs from the first in the eligibility criteria and how the demonstrated need is calculated. Round two updates the net income loss basis for qualification from round one. A demonstrated loss is still required to qualify. The funding qualification calculation also accounts for grant funding received from all sources in 2020.
“We’ve amended the structure of the AK-ARPA Business Relief Program based on the feedback we received from many Alaskan business owners,” says DCCED Commissioner Julie Sande. “Our goal is to reach more Alaska businesses that may have been ineligible under the first-round criteria.”
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The 30-day application period allows applicants that did not qualify in round one to resubmit using the forms and documentation they already created. Grants will again be awarded after all applications have been received and evaluated on demonstrated need. Qualification does not guarantee grant awards, and proration of final awards may be necessary due to demand.
In round one, applications were grouped into three tiers based on an applicants’ gross annual revenue (GAR) in 2019:
- Tier One: Businesses with 2019 GAR between $10,000 and $2.5 million.
- Tier Two: Businesses with 2019 GAR between $2.51 million and $10 million.
- Tier Three: Businesses with 2019 GAR between $10.01 million and $50 million.
Businesses had to demonstrate a 50 percent or greater loss in net income. Businesses must have filed 2019 and 2020 taxes and held an active State Business License as of January 1, 2021 (allowing for certain exemptions). Businesses that held a valid State Business License that expired on December 31, 2020 but was subsequently renewed were also eligible.
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