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). Approximately $34 million remains to be distributed under the second round of this program.

The Round Two application period has been extended through 5:00pm April 30, 2022.
Please read carefully, as program criteria is expanded during the extended application period. See our new list of criteria changes for details. Businesses that experienced a 30% or greater loss in Gross Annual Revenue (GAR) between 2019 and 2020 are invited to apply.

The AK-ARPA business grant program is not a first-come, first-served grant opportunity. Qualification does not guarantee award, and awards may be pro-rated due to demand.

Businesses that were successful in receiving grant awards under Round One of this program are not eligible to apply under Round Two. This restriction remains in place. Businesses who applied but did not receive a grant under Round One are eligible to apply during the Extended Application Period of Round Two.

If your application was submitted by April 15, 2022 at 5:00pm, please do not submit a new application. Applications submitted under Round Two by the original April 15, 2022 deadline are still being reviewed for eligibility at the 50% or greater level of reduction in Gross Annual Revenue between 2019 and 2020. If the application fails to meet that threshold it will automatically be reviewed for eligibility under the new criteria established for the extended application period.

Application Process:

Review our AK-ARPA Business Relief Program Round Two Grant Application Instructions.

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 an additional 15-day window to apply under Round Two of the program. Review of applications will begin immediately upon receipt.

Applications submitted by the initial April 15, 2022 (5:00pm) deadline are being reviewed for eligibility. Once all initial Round Two applications have been reviewed, awards will be made immediately to those businesses meeting all eligibility requirements, including the 50% reduction in Gross Annual Revenue (GAR) between 2019 and 2020.

Applications submitted between 5:01pm April 15, 2022 and 5:00pm April 30, 2022 will not be awarded until the end of the application period and after all applications have been reviewed and appeals are resolved. Revenue eligibility for the extended application period has changed from a 50% Gross Annual Revenue reduction between 2019 and 2020 to a 30% reduction in Gross Annual Revenue during the same timeframe. It is possible that the grant program will be oversubscribed during this extended application period. If the total of grant awards to eligible applicants exceeds the remaining grant funds, grant awards may be prorated.

Other grants received by individual applicants will be factored into the calculation of the grant amount.

Application Requirements:

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).

Businesses must be able to demonstrate a 30% or greater loss in gross revenue.

Businesses must provide their new Unique Entity ID issued through SAM.gov. DUNS numbers have been replaced with a Unique Entity ID issued through SAM.gov beginning April 4, 2022. Please see the attached Unique Entity ID Guide for assistance. UPDATE: If you are unable to acquire a Unique Entity ID prior to the application deadline, please enter all zeros or all nines where the ID number is required and submit the application timely. Your Unique Entity ID may be submitted once you have received it after the application deadline.

Businesses are required to include proposed use of the funds in the submitted application.

Net Revenue Loss information is collected in the application process for informational purposes only. The Round Two grant program is based on Gross Annual Revenues.

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.

Eligibility Requirements:

• Applicants must not have received a grant award under Round One of this program.
• Business must be Alaska-based. Sole proprietorship businesses must be owned by Alaskan residents.
• Must be a for-profit business.
• Business revenues must primarily (51% or more) 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). Businesses that held a valid State Business License that expired on December 31, 2020 and have subsequently renewed are also eligible for this program.
• 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 30% in gross revenue between 2019 and 2020 due to COVID-19 public health emergency.
• Business must have a Unique Entity ID which has replaced a DUNS number as of April 4, 2022. For guidance on how to obtain and/or manage a Unique Entity ID, visit our Unique Entity ID Guide. UPDATE: If you are unable to acquire a Unique Entity ID prior to the application deadline, please enter all zeros or all nines where the ID number is required and submit the application timely. Your Unique Entity ID may be submitted once you have received it after the application deadline.
• 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 2023.

Ineligible Businesses:

• Businesses that were successful in receiving grant awards under Round One of this program.
• Business with an expired business license.
• Business that did not have an active business license in 2020 and currently (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.
• Businesses not intending to remain in business through Calendar Year 2023.
• 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 30% decrease in gross revenue 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.

Award Amount Calculations:

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

Grant amounts will be based on documented losses with a grant-cap for each tier.

• Tier One: 80% of documented gross revenue loss up to $250,000*
• Tier Two: 80% of documented gross revenue loss up to $500,000*
• Tier Three: 80% of documented gross revenue loss up to $1 million*

* 80% is the maximum percent of loss that will be considered. If qualified applications exceed available funds, the maximum percentage may be lowered in order to accommodate more grantees.

An applicant business will demonstrate their Gross Annual Revenue (GAR) for calendar years 2019 and 2020. Grant funding from all sources will be included in the 2020 calculation (such as forgiven PPP, EIDL if forgiven, AK CARES, local COVID-related grants, etc).

Example: If an applicant business demonstrates $1 million in gross revenue 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 exact date will be announced before grants are awarded and included in 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):

If I applied under Round One of the program and received an award am I now eligible to apply under the Extended Application Period of Round Two as the eligibility criteria have changed? What criteria changed from Round One to Round Two? What criteria changed from the initial Round Two to the Extended Application Period of Round Two? 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? My business falls under one of the business license exemptions under AS 43.70.105. How do I meet the business license requirement? How is Gross Annual Revenue (GAR) calculated? Is there a way I can request more than 80% of my business' documented gross revenue loss between 2019 and 2020 if I can provide proof of the need? 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? 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? If I applied for Round One of AK-ARPA but was determined ineligible, and did not apply during the initial application period of Round Two, may I apply during the Extended Application Period of Round 2? If I applied for Round One of AK-ARPA but was determined to be ineligible, and did not apply during the initial application period of Round Two, can my application be transferred to the Extended Application Period of Round Two? If I applied during the initial application period of Round Two, do I need to reapply during the Extended Application Period of Round Two? How will the application process work distinguishing between the initial application period and the Extended Application Period for Round Two of this program? How do I determine if my business is eligible for this program? What is the maximum grant amount my business may be eligible for? Is there a way to request an exception to the eligibility requirements? My nonprofit business is ineligible. Is there another program that I can apply for? Why are marijuana businesses ineligible for this program if they meet all other requirements? Why is there only $34 million allocated to Round Two of this program? I've been asked by a business owner to complete their grant application. Is this acceptable? The application requires a Unique Entity ID. What is that and how do I obtain one? UPDATE: What if I am unable to acquire a Unique Entity ID by the application deadline? I need help completing the AK-ARPA Business Relief Grant application. What do I do?