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ARIZONA STATE SENATE
Fifty-Fifth Legislature, First Regular Session
small business assistance grants
Purpose
Establishes the Small Business Assistance Relief Fund (Fund) administered by the Arizona Commerce Authority (ACA) to provide small business assistance grants to qualifying businesses. Appropriates $5 million to the Fund in FY 2022 from Coronavirus Aid, Relief and Economic Security Act (CARES Act) monies allocated to Arizona and deposited in the state General Fund.
Background
The ACA promotes economic, community and workforce development. The ACA's duties include the support of statewide business expansion, retention, attraction, workforce development and job training and online assistance for new business start-ups and tax credit administration (A.R.S. § 41-1502).
The
CARES Act establishes various emergency relief programs and appropriates monies
from the federal Coronavirus Relief Fund (CRF) to states, territories, tribes
and certain local governments for necessary expenditures incurred due to the Coronavirus
Disease 2019
(COVID-19) public health emergency. Arizona's total CRF allocation for both the
state and local governments is $2.82 billion, $1.86 billion of which was
received by the state. CRF monies received by the state are allocated by the
Governor (P.L.
116-136, 116th Congress, 2020; JLBC).
H.B. 2282 appropriates $5 million to the Fund in FY 2022 from monies allocated from the CARES Act to Arizona and deposited in the state General Fund.
Provisions
1. Establishes the Fund, administered by the ACA, to consist of legislative appropriations from monies allocated from the CARES Act to Arizona and deposited in the state General Fund to provide grants to small businesses negatively affected by the COVID-19 pandemic.
2. Appropriates $5 million to the Fund in FY 2022 from monies allocated from the CARES Act to Arizona and deposited in the state General Fund to provide financial relief to small businesses negatively affected by the COVID-19 pandemic and exempts the appropriation from lapsing.
3. Allows a small business with 25 or fewer employees to apply to the ACA for a small business assistance grant by December 31, 2021, if the business:
a) is an eligible small business which is defined as a currently operating business that has operated in Arizona since January 1, 2020, demonstrates the intent to operate in Arizona for at least six additional months and provides evidence of at least 20 percent revenue loss since March 11, 2020; or
b) operated in Arizona before January 1, 2020, and provides evidence of business closure as a result of the COVID-19 pandemic.
4. Directs the ACA to:
a) award small business assistance grants of up to $5,000;
b) allocate at least 30 percent of Fund monies to small businesses in counties with a population of fewer than 900,000 persons;
c) review the submitted applications and give priority to eligible small businesses that have not received financial assistance from any federal program; and
d) if there are Fund monies after awarding grants to small businesses that applied by December 31, 2021, extend the application deadline to allow additional businesses to apply.
5. Requires a closed small business applying for a small business assistance grant to provide plans to reopen to the ACA.
6. Includes, in an eligible small business that may apply to the ACA for a small business assistance grant:
a) an individual who operates as a sole proprietor or an independent contractor;
b) an individual who is self-employed and who regularly carries on any trade or business;
c) a tribal small business; or
d) a cooperative and employee-owned business.
7. Directs the ACA to prescribe the application form and requires the application to include:
a) the business's name and date of organization;
b) the number of employees at the time of application; and
c) other information the ACA requires to determine the financial impact on the business resulting from the COVID-19 pandemic.
8. Exempts the small business assistance grants awarded by the ACA from statutory Solicitation and Award of Grants requirements.
9. Exempts the ACA from rulemaking requirements for one year.
10. Specifies that Fund monies are continuously appropriated.
11. Defines eligible small business.
12. Contains a statement of legislative intent.
13. Becomes effective on the general effective date.
House Action
COM 2/16/21 DPA 9-0-0-1
APPROP 2/22/21 DPA 13-0-0-0
3rd Read 3/3/21 55-2-3
Prepared by Senate Research
March 15, 2021
LB/MC/kja