7 LONG TITLE
8 General Description:
9 This bill creates a grant program for small businesses that continue to be impacted by
10 the COVID-19 health emergency.
11 Highlighted Provisions:
12 This bill:
13 ▸ provides state financial aid to Utah small businesses for continued industry losses;
14 ▸ creates a targeted small business grant program for business entities with continued
15 revenue declines due to the COVID-19 pandemic;
16 ▸ grants rulemaking authority to the Governor's Office of Economic Development to
17 administer the grant programs;
18 ▸ requires the Governor's Office of Economic Development to report information
19 about the grant programs to certain committees of the Legislature; and
20 ▸ provides for funding reallocation if necessary.
21 Money Appropriated in this Bill:
22 This bill appropriates in fiscal year 2022:
23 ▸ to the Governor's Office of Economic Development -- Business Development --
24 Corporate Recruitment and Business Services, as a one-time appropriation:
25 • from the General Fund, One-time, $30,000,000.
26 Other Special Clauses:
28 Utah Code Sections Affected:
30 63N-3-601, Utah Code Annotated 1953
31 63N-3-602, Utah Code Annotated 1953
32 63N-3-603, Utah Code Annotated 1953
34 Be it enacted by the Legislature of the state of Utah:
35 Section 1. Section 63N-3-601 is enacted to read:
37 63N-3-601. Creation of Small Business Grant Program -- Definitions.
38 As used in this part:
39 (1) (a) "Business entity" means a business that:
40 (i) is a non-profit, for profit, or sole proprietorship;
41 (ii) was in operation in this state on January 1, 2021;
42 (iii) has 250 or fewer full-time equivalent employees;
43 (iv) has employees who report to a physical location in this state; and
44 (v) is properly registered with the Division of Corporations and Commercial Code.
45 (b) "Business entity" does not include a marketplace that connects travelers with
46 private property owners offering accommodation for compensation.
47 (2) "COVID-19" means:
48 (a) severe acute respiratory syndrome coronavirus 2; or
49 (b) the disease caused by severe acute respiratory syndrome coronavirus 2.
50 (3) "Legislative committee" means:
51 (a) the president of the Senate;
52 (b) the speaker of the House of Representatives;
53 (c) the minority leader of the Senate; and
54 (d) the minority leader of the House of Representatives.
55 (4) "Revenue decline" means the sum of the monthly revenue a consecutive four month
56 period during 2019 compared to the same consecutive four month period in 2020.
57 (5) "Startup" means a business that began operations in this state on or after January 1,
58 2020, and can demonstrate, as required by the office, that the business has incurred expenses
59 and is operating at a net loss due to the public health emergency related to COVID-19.
60 Section 2. Section 63N-3-602 is enacted to read:
61 63N-3-602. Program objective -- Eligibility -- Grant limits.
62 (1) There is established a grant program known as the Small Business Grant Program
63 to be administered by the office in accordance with this part.
64 (2) The objective of the program is to provide state funding resources to businesses
65 statewide that continue to be most impacted by the public health emergency related to
67 (3) To be eligible to apply for a grant under this part, a business entity shall:
68 (a) have experienced a decline in revenues due to the public health emergency related
69 to COVID-19; or
70 (b) be a startup business.
71 (4) The program may provide no more than three months of operational expenses,
73 (a) rent;
74 (b) equipment and inventory costs;
75 (c) payroll;
76 (d) insurance; and
77 (e) any other expenses the office determines are related to the decline in business
79 (5) The office shall establish processes and procedures for impacted and eligible
80 startup businesses to participate in the grant program.
81 (6) Eligible startup businesses shall provide capitalization and solvency documentation
82 to the office.
83 Section 3. Section 63N-3-603 is enacted to read:
84 63N-3-603. Duties of the office -- Funding reallocation.
85 (1) As soon as is practicable, but on or before August 1, 2021, the office shall:
86 (a) establish an application process by which a business entity may apply for a grant
87 under this part, which application shall include:
88 (i) a declaration, signed under penalty of perjury, that the application is complete, true,
89 and correct; and
90 (ii) an acknowledgment that the business entity is subject to audit;
91 (b) establish a method for the office to determine which applicants are eligible to
92 receive a grant;
93 (c) establish a formula to award grant funds; and
94 (d) report the information described in Subsections (1)(a) through (c) to the director of
95 the Division of Finance.
96 (2) A scoring preference in the formula to award grant funds shall be given to
97 businesses that can demonstrate the inability to secure similar funding over the past 12 calendar
99 (3) The office shall:
100 (a) participate in the presentation that the director of the Division of Finance provides
101 to the legislative committee under Section 63A-3-111; and
102 (b) consider any recommendations for adjustments to the grant program from the
103 legislative committee.
104 (4) Subject to appropriation, beginning on or before August 1, 2021, the office shall:
105 (a) collect applications for grant funds from business entities;
106 (b) determine which applicants meet the eligibility requirements for receiving a grant;
107 (c) award the grant funds after an initial application period that ends on or before
108 September 1, 2021; and
109 (d) if funds remain after the initial application period, continue to award grants on a
110 rolling basis until the earlier of funds being exhausted or December 31, 2021.
111 (5) (a) The office may audit a business entity to ensure that a business entity
112 experienced the revenue decline reported in the application.
113 (b) The office may recapture grant funds if, after audit, the office determines that a
114 business entity made representations to the office about the business entity's revenue decline
115 that are not complete, true, and correct.
116 (c) (i) A business entity that is subject to recapture shall pay to the Division of Finance
117 a penalty equal to the amount of the grant recaptured multiplied by the applicable income tax
118 rate in Section 59-7-104 or 59-10-104.
119 (ii) The Division of Finance shall deposit the penalty into the Education Fund.
120 (6) The office shall encourage any business entity that receives grant funds to commit
121 to following best practices to protect the health and safety of the business entity's employees
122 and customers.
123 (7) In accordance with Title 63G, Chapter 3, Utah Administrative Rulemaking Act, the
124 office may make rules to administer the grant program.
125 (8) As part of any advertisement of the Small Business Grant Program, the office:
126 (a) shall encourage economically disadvantaged business entities, including
127 minority-owned and woman-owned business entities, that meet the eligibility requirements to
128 apply for grant funds; and
129 (b) may feature any business entity that:
130 (i) shows evidence of a commitment to following best practices to protect the health
131 and safety of the business entity's employees and customers; and
132 (ii) consents to being featured.
133 (9) The office shall provide a written report on the program to the Economic
134 Development and Workforce Services Interim Committee not later than November 1, 2021.
135 The report shall include:
136 (a) the number of applications submitted under the grant program;
137 (b) the number of grants awarded under the grant program;
138 (c) the aggregate amount of grant funds awarded under the grant program; and
139 (d) any other information the office considers relevant to evaluating the success of the
140 grant program.
141 (10) Under the direction of the state's economic response task force, the Governor's
142 Office of Economic Development, and in consultation with the Legislative Committee,
143 remaining grant program funding may be reallocated to provide other COVID-19 pandemic
144 responses and support if needed.
145 Section 4. Appropriation.
146 The following sums of money are appropriated for the fiscal year beginning July 1,
147 2021, and ending June 30, 2022. These are additions to amounts previously appropriated for
148 fiscal year 2022. Under the terms and conditions of Title 63J, Chapter 1, Budgetary Procedures
149 Act, the Legislature appropriates the following sums of money from the funds or accounts
150 indicated for the use and support of the government of the state of Utah.
151 ITEM 1
152 To Governor's Office of Economic Development -- Business Development
153 From General Fund, One-time
154 Schedule of Programs
155 Corporate Recruitment and Business Services $30,000,000
156 The Legislature intends that:
157 (1) appropriations provided under this section be used for the Small Business Grant
158 Program created in Section 63N-3-602; and
159 (2) under Section 63J-1-603, appropriations provided under this section not lapse at the
160 close of fiscal year 2022, and the use of any nonlapsing funds is limited to the Small Business
161 Grant Program created in Section 63N-3-602.