AK-ARPA Business Relief Program The Alaska State Legislature appropriated $90 million from the State’s American Rescue Plan Act (ARPA) Covid State and Local Fiscal Recovery Funds (CSLFRF) toward a tourism and business relief grant program to be administered by the Department of Commerce, Community, and Economic Development (DCCED). Application Period for the AK-APRA Program Opens Friday! The application period opened at 8:00 am on Friday, September 17, 2021 and will remain open until 8:00 am on October 19, 2021. The link to the application portal is under “Application Process” below. The AK-ARPA business grant program is not a first-come, first-served grant opportunity. The AK-ARPA business grant program is not a first-come, first-served grant opportunity. Application Process: Review our AK-ARPA Business Relief Program Grant Application Instructions. Optionally, complete a preliminary AK-ARPA Screening Questionnaire to quickly determine whether your business is eligible for an AK-ARPA Business Relief grant. Applications must be submitted online through the MyAlaska system. Use the AK-ARPA Business Relief Grant Portal to apply for an AK-ARPA Business Relief Grant. For help with your MyAlaska account, visit MyAlaska's Help Page or call 1-866-377-0126. The Juneau Economic Development Council (JEDC) is the administrator for the AK-ARPA business relief program. For assistance with your application, you can contact JEDC’s AK-ARPA hotline at (907) 917-3720 or email ARPAGrant@jedc.org. Unlike the AK CARES program, the AK-ARPA grants will not be issued on a first-come, first-served basis. Eligible businesses have a month-long window to apply, and grants will be issued based on the demonstrated need. Grants will not be awarded until the end of the application period and after all applications have been reviewed. Grant funding from all local, state, and federal grant funding received in 2020 and 2021 will be added to the 2020 income for calculation (such as PPP, EIDL if forgiven, AK CARES, local COVID-related grants, etc.). Applications will be grouped based on Gross Annual Revenue (GAR), but qualification will be based on change in net income. Qualification does not guarantee funding. Applications will be grouped into three tiers based on an applicant business’ 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. To be eligible, businesses must have filed their 2019 and 2020 taxes and must have held an active State Business License as of January 1, 2021 unless exempt under AS 43.70.105 (in which case the business will need to provide proof of the requirement licensure under that exemption, as applicable). The seafood processing, mining, and oil and gas industries were required to make significant investments in order to comply with the State of Alaska’s COVID-19 mitigation policies and continue to operate. Recognizing the unique costs incurred by these industries in order to continue Alaska operations during 2020, companies operating in these three sectors are exempted from the gross revenue cap and may apply for an individual facility and provide audited financials of that facility rather than an IRS schedule in order to qualify. Businesses must be able to demonstrate a 50% or greater loss in net income. Businesses will also need to provide a DUNS number on their application. For guidance on how to obtain and/or manage a DUNS number, visit our DUNS Number Guide. Applicant businesses are required to include proposed use of the funds in the submitted application. Eligibility Requirements: Business must be Alaska-based. Sole proprietorship business must be owned by an Alaskan resident. Must be a for-profit business. Business revenues must primarily be generated in activities and or services performed in Alaska. Reported Gross Annual Revenue (GAR) must be between $10,000 and $50 million in 2019. Business must have held an active State of Alaska Business License as of January 1, 2021 (unless exempt under AS 43.70.105, in which case the business will need to provide proof of the requirement licensure under that exemption, as applicable). Business must have been in operation before January 1, 2020 with proof of a filed 2019 and 2020 tax return. (For a subsidiary filing independently of their corporation, a consolidated tax return with schedules delineating revenue streams is acceptable.) Business must have experienced a decrease of at least 50% in net income between 2019 and 2020 due to COVID-19 public health emergency. To be an eligible commercial fishing business, fisherman must permanently hold a Limited Entry or Interim Entry Permit for 2019 and 2020. Temporary Permit Holders are ineligible. A corporation may file as a whole, or for one subsidiary. Multiple subsidiaries of one corporation may not apply; a corporation and one of its subsidiaries may not both apply. Applicants must self-certify that, barring unforeseen circumstances, they will remain in business through Calendar Year 2022. Seafood processing, mining, and oil and gas industries required to make significant investments in order to comply with the State of Alaska’s COVID-19 mitigation policies in order to operate are exempted from the gross revenue cap and may apply for an individual facility, and provide audited financials of that facility rather than an IRS schedule in order to qualify. Ineligible Businesses: Business with an expired business license. Business that did not have an active business license as of January 1, 2021 (unless exempt under AS 43.70.105, in which case the business will need to provide proof of the requirement licensure under that exemption as of January 1, 2021, as applicable). Business that has permanently closed. Business currently involved in a bankruptcy proceeding. Publicly traded company or nonprofit business. Business with a Gross Annual Revenue (GAR) of less than $10,000 in 2019. Business with a Gross Annual Revenue (GAR) of more than $50 million in 2019. Business with less than a 50% decrease in net income between 2019 and 2020. Marijuana businesses (due to the federal funding of this program). Multiple subsidiaries of one corporation may not apply. A corporation and one of its subsidiaries may not both apply. Grant Amounts: The AK-ARPA Business Relief Program will group applications in three tiers based on an applicant business’ GAR in 2019 (see "Application Process" above for more detail): Tier One: 80% of documented net income loss up to $250,000. Tier Two: 80% of documented net income loss up to $500,000 Tier Three: 80% of documented net income loss up to $1 million An applicant business will demonstrate their Gross Annual Revenue (GAR) and net income for calendar years 2019 and 2020. Grant funding from all local, state, and federal grant funding received in 2020 and 2021 will be added to the 2020 income for calculation (such as PPP, EIDL if forgiven, AK CARES, local COVID-related grants, etc.). Example: If an applicant business demonstrates $1 million in net income for 2019 and $200,000 in 2020, but also received $300,000 in grant funding in 2020, then the amount of documented shortfall would equate to $500,000. Because $500,000 equates to a 50% year-over-year loss, the business would qualify for the program, but the application would not be processed until all applications from businesses with a greater year-over-year loss have been processed. Because 80% of the revenue shortfall exceeds the maximum amount for the applicant business’ GAR tier, the grantee could receive the maximum amount (barring the need to prorate due to the demand). Allowable Use of Funds: Applicant businesses are required to include proposed use of the funds in the submitted application. All costs must be directly related to the applicant business. Grant funds must be expended on past, current, or future costs of the business. Funds may not be retained or invested. Funds must be expended expeditiously. Grant awardees will be required to spend funds by a certain date or return unused funds. The specific deadline to expend all grant funds has yet to be determined but will likely be in Fall 2022. The exact date will be announced before grants are awarded and included on the grant agreements businesses are required to sign to receive the funds. Allowable costs include, but are not limited to: Business operating expenses Professional licensing costs Unemployment Insurance for Calendar Year 2021 Business payroll costs (including sick leave) Payments on any business mortgage obligation or rent payments (not including prepayments) Business debt service (both principal and interest; not including prepayments of principal or interest) Business utility payments Frequently Asked Questions (FAQs): My business’ Gross Annual Revenue (GAR) was just under $2.5 million in 2019. Is there any way to request that I be considered for Tier Two rather than Tier One? No. There are not exceptions to the Tier structure for this program. My business falls under one of the business license exemptions under AS 43.70.105. How do I meet the business license requirement? For reference: AS 43.70.105 Provide a copy of the license or permit you received from the regulatory agency for your business. For example, if you are a commercial fisherman, you will need to provide proof of your Limited Entry or Interim Entry Permit for 2019 and 2020; or if you are an alcohol business licensed under Title 04, provide proof of your alcohol license effective on or before January 1, 2021. How is Gross Annual Revenue (GAR) calculated? Based on the applicant business’ 2019 and 2020 filed taxes. There are no exceptions or workarounds to this structure. How is net income calculated? Based on the applicant business’ 2019 and 2020 filed taxes. There are no exceptions or workarounds to this structure. Is there a way I can request more than 80% of my business’ documented net income loss between 2019 and 2020 if I can provide proof of the need? No. there are no exceptions or workarounds to the grant award structure for this program. I haven’t filed my 2020 federal taxes yet. Are there alternatives to what I can provide in lieu of the 2020 tax return? No. To be eligible for this program, businesses must provide proof of their filed taxes for 2019 and 2020. We strongly encourage any businesses that are eager to apply and have not yet filed to do so now before the program’s application period opens. I was under the impression that I did not need a State Business License. If I obtain one now, will you make an exception to the rule that I must have held an Active State Business License as of January 1, 2021? Unfortunately, no. There are no exceptions to the Business License requirement for this program. Unless your business falls within one of the exemptions under AS 43.70.105, you must have held a business license as of January 1, 2021 to qualify for this program. Businesses that held a valid State Business License that expired on December 31, 2020 and have subsequently renewed are also eligible for this program. If I applied for AK CARES but my application was not processed, do I have to apply again for AK-ARPA, or can my AK CARES application be transferred over? You will need to apply again. AK CARES and AK-ARPA are completely separate programs with different structures and eligibility criteria. Therefore, AK CARES applications cannot be transferred over. How will the application process work for this program? See “Application Process” above. How do I determine if my business is eligible for this program? See “Eligible Businesses” and “Ineligible Businesses” above. What is the maximum grant amount my business may be eligible for? See “Application Process” and “Grant Amounts” above. Is there a way to request an exception to the eligibility requirements? No. Your business must meet all eligibility requirements in order to be eligible for the program. See “Eligible Businesses” and “Ineligible Businesses” above for more details. My nonprofit business is ineligible. Will another program launch that I can apply for? Yes. The Alaska Legislature appropriated $20 million from the State’s American Rescue Plan Act (ARPA) Covid State and Local Fiscal Recovery Funds (CSLFRF) toward a nonprofit grant program to be administered by the Department of Commerce, Community, and Economic Development (DCCED), separate from this AK-ARPA Business Relief Program. The framework and details of the nonprofit grant program are still in development. Please check back periodically for updates. Why are marijuana businesses ineligible for this program if they meet all other requirements? This program will issue grants using the State’s American Rescue Plan Act (ARPA) Covid State and Local Fiscal Recovery Funds (CSLFRF). Because marijuana is still illegal at the federal level, marijuana businesses are ineligible to receive federal funds. Why is there only $90 million allocated to this program? Governor Dunleavy’s original proposal requested an appropriation of $280 million for this purpose, but the amount was reduced during the budget process in part due to the decision by the Federal Department of Treasury to distribute CSLFRF in multi-year tranches. We are hopeful this is the first, not the last, appropriation of ARPA funds to Alaska businesses. Is there a way I can determine whether my business is eligible for the AK-ARPA Business Relief Program before filling out the application? Yes. We recommend reviewing the “eligibility requirements” above or you can complete this quick preliminary AK-ARPA Screening Questionnaire. I’ve been asked by a business owner to complete their grant application. Is this acceptable? Yes, but you will need to complete the AK-ARPA Business Relief Grant Signatory Authority Form and include it with your application. The Form is also available through the application instructions. The application requires a DUNS number. What is that and how do I obtain one? We have created guidance addressing what a DUNS number is, what it’s used for, and how to obtain and manage a DUNS number. This guidance is accessible at DUNS Number Guide. I need help completing my AK-ARPA Business Relief Grant application. What do I do? Review the AK-ARPA Application Instructions. You can also call JEDC’s AK-ARPA hotline at (907) 917-3720 or email ARPAGrant@jedc.org.