Late Wednesday night time the Home and Senate got here to an settlement on CARES Act appropriation particularly for small companies. These {dollars} have been a part of the $1.25 billion given to the state in response to the COVID-19 pandemic.
The convention report handed by a vote of 116 to 1 within the Home, with Rep. Scott voting no and Rep. Bomgar, Criswell and Barnett voting current. After an extended debate it was handed within the Senate by a vote of 42-2.
The appropriation comes within the type of a conference report on the budget transfer bill, SB 2772. This invoice was initially handed just a few weeks in the past by Legislature. This act was argued between the Governor, who believed he had the authority to divvy up the {dollars}, and Legislative leaders Lt. Governor Hosemann and Speaker Gunn. Ultimately an settlement was made, and Legislature took management.
Senate members introduced the invoice again to the ground for consideration and discussions started on how the cash could be divided. Initially, it was thought that $100 million could be used for small companies in varied methods below the federal pointers.
The authorized plan will transfer $240 million right into a particular fund managed by the Mississippi Growth Authority for small enterprise homeowners entitled “Again to Enterprise Mississippi Grant Fund.” This cash will probably be divvied out as grants, not loans. $60 million will probably be positioned within the Mississippi COVID-19 Reduction Fee Fund, which would be the instant funds despatched to companies. This allocation offers a complete of $300 million to small enterprise.
Every enterprise compelled to shut through the pandemic will obtain a right away cost of $2,000 out of the reduction fund. These funds are a part of the non-application program. Different companies can start the appliance grant course of for $1,500 minimal (with an extra $500). This course of additionally permits companies to use for as much as $25,000 in grants by the Again to Enterprise Grant Fund.
In Part 7 of the invoice it offers a 21-day software interval through which MDA will solely contemplate and evaluate functions from eligible companies that didn’t obtain a U.S. Small Enterprise Administration-Warranty Paycheck Safety Program (PPP) mortgage. After that point interval, different companies impacted will probably be thought-about. MDA will probably be accountable for growing laws, procedures and functions for these grants.
The eligible companies embrace people who have a bodily tackle within the state of Mississippi. They should have been registered earlier than March 1, 2020, had an Employer Identification Quantity or Social Safety Quantity and an energetic division withholding account established earlier than that date. Small companies are labeled as not more than 50 full time staff.
The invoice additionally holds provisions for minority enterprise enterprises. It can particularly present grants of not less than $40 million for these companies who apply inside the first 60 days.
The grant fund will final till the cash runs out. Any unclaimed {dollars} from the Again to Enterprise fund will probably be topic to the discretion of Governor Reeves by November 1, 2020.
— to yallpolitics.com
