Baker-Polito Administration Announces $668 Million Small Business Relief Package

The Baker-Polito Administration launched a $668 million program to provide financial assistance to Massachusetts small businesses impacted by the COVID-19 pandemic. The program in part relies on the pending federal COVID-19 relief bill recently passed by Congress. Regardless of the developments at the federal level, the Baker-Polito Administration will start releasing millions in new funding to restaurants, retailers, and other small businesses throughout the Commonwealth as soon as next week.

Earlier this week, the Administration announced nearly $49 million in grants through the Massachusetts Growth Capital Corporation (MGCC) COVID-19 Small Business Program to support over 1,158 small businesses. More than 10,000 applicants had sought relief in this grant round.

Additional grants will be made available to eligible small businesses through MGCC. The Small Business Grant Program was established in the fall, and currently has a pool of eligible applicants awaiting funding. This additional funding will allow the Administration to award more of those pending applicants. Eligible businesses that already applied to the program, but were not funded due to limited funds available, will be prioritized for funding first and do not need to reapply.

The funds will also be used to stand up an additional grant program at MGCC. This program will target the industries most hard-hit during the pandemic.

Eligible industries for the new program include:

• Restaurants, bars, caterers
• Indoor recreation and entertainment establishments
• Gyms and fitness centers
• Event-support professionals (photographers, videographers, etc.)
• Personal services
• Retail

The new business relief program would offer grants up to $75,000, but not more than three months’ operating expenses, to be used for employee wage and benefits costs, space-related costs, and debt service obligations.

The online application portal for the new program will open on Thursday, December 31, and will close on Friday, January 15. Awards are expected to be announced in early February.

More details on how to apply and eligibility requirements are available at www.empoweringsmallbusiness.org.

The following is more information provided by the State on December 29, 2020:

The business relief package consists of two programs: Part 1 - a recapitalization of the first small business relief program, which launched in October, and Part 2 - additional funding for businesses that fall into specific industry sectors. A program overview for the sector-specific program is now online and can be found here.

Grant demographic preferences: Minority-owned, women-owned, veteran-owned, LGBTQ+-owned, businesses owned by persons with disabilities, or businesses located in Gateway Cities. Sector preferences: Restaurants/Bars, independent retailers, indoor recreation and entertainment, personal services, and event support companies.

Additional information:

• The application period for the new program will run from Thursday, December 31-Friday, January 15, 2021.
• Businesses that already applied to MGCC’s first small business relief program from October do not need to reapply to the new program. All applications in the existing program are currently being reviewed.
• Businesses that have already submitted complete and accurate applications to the first program and either (a) meet the demographic preferences from the first program or (b) meet the sector-specific preferences from the new program will receive funding.
• Businesses that have already applied to MGCC through the first program will be notified of their award status by January 18, 2021.
• Businesses that have not already applied to MGCC and choose to apply in the new program will be notified of their award status in February 2021.