Gig Harbor Small Business Stabilization Grants
Applications for Small Business Stabilization Grants are no longer being accepted as of Thursday, June 25th at 5:00 p.m.
On May 28th, the Gig Harbor City Council passed a resolution authorizing the creation of a Small Business Stabilization Grant program to support local businesses and the economy. The program is funded with $308,000 from a portion of the City’s CARES Act stimulus package distribution. Each awarded grant will be at least $1,500.
Businesses are eligible to apply for a grant if they meet the following criteria:
- The business must have had a Gig Harbor business license before March 1, 2020
- The business must be physically located in the City of Gig Harbor. You can verify if your address is within city limits here.
- The business must be a for-profit business. The City provides other avenues of support for non-profits, including lodging tax grants and creative endeavor grants.
- The business had ten or fewer full time equivalent employees (FTE) as of March 1, 2020. To determine the number of FTEs employed, for each employee, enter the average number of hours paid per week, divide by 40, and round the total to the nearest tenth. The maximum for each employee is capped at 1.0.
- The businesses is not owned, or partially owned, by employees or public officials associated with the City of Gig Harbor.
- The business must have suffered a financial loss due to executive order or proclamation made by Governor Inslee related to COVID-19.
In the event that the total number of qualified applicants exceeds 205 in number, the City will randomly select 205 of the qualified applicants to receive the $1500 grant award. The City Council reluctantly implemented the lottery system in order to ensure a consequential minimum grant amount of $1500. If there are fewer than 205 total qualified applicants, the entire $308,000 will be divided equally between the applicants.
Selected applicants will be required to sign an agreement with the City for the award of grant funds. The agreement template can be found here. Recipients will be required to submit an invoice to the City, along with copies of receipts, for actual eligible expenses paid. A W-9 form will also be required for payment.
Grant funds may be used for the following expenses. A receipt must be provided showing payment dated on or after March 1, 2020.
- Payment of rent or required monthly loan payments
- Payments of essential wages, taxes, and normal benefits to employees essential to maintain business.
- Normal operating costs that are included in "cost of goods sold" on businesses’ income statement (raw materials for manufacturers, component pieces for assemblers, items for resale for retailers, food for restaurants. etc.)
- Normal operating expenses that are included in "operating expenses" on businesses’ income statement (utilities, insurance, professional services, etc.)
- Normal draw or wages on a weekly or monthly basis to owner
Grant funds may not be used for:
- Any expense that would not be considered an eligible business expense by IRS rules
- Expenses that have been covered by funds previously received from state, federal and/or county grants
- Political contributions
- Bonuses to owners or employees
- Wages to any member of owner’s family who is not a bona fide employee
- Charitable contributions
- Gifts or parties
- Draw or salary to owner that exceeded the amount that they were paid on a weekly or monthly basis for the same period last year
- Pay down or pay off debt by more than required in underlying debt instrument.