Frequently Asked Questions

Overview For Businesses

What is the purpose of the Madison CARES Small Business Grant?

Madison CARES Small Business Grant offers emergency relief to small businesses facing serious financial loss due to the COVID-19 pandemic. The goal of these funds is to provide temporary financial relief to those most impacted by the pandemic and resulting business closures and modifications.

Where did this funding come from?

These funds come from the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. Congress designated a portion of funds to go to local governments to meet urgent financial needs within communities.

Which businesses qualify for this funding?

Small businesses in Madison County that have suffered significant, temporary loss of revenue or job losses directly related to the COVID-19 pandemic, particularly businesses that have been directly affected by state and local business closure orders, are eligible. Please keep reading for specific eligibility criteria.

Does my business qualify for this Grant program if we received other State or Federal CARES / COVID-19 loans?

Yes, your business may still be eligible for the Madison County Grant.  Grant awards may be reduced by the amount of loans you received from other grant programs.

What can I use these funds to pay for?

Funds can be used to reimburse the costs of business interruption caused by required closures.  Grant funding can be used for business expenses, such as employees’ wages, mortgage, rent, utility bills, payroll and other costs, so long as these expenses are not paid for by insurance or another federal assistance program.

These grants may be considered taxable income, so please contact your financial advisor for guidance.

How much funding is available for small businesses?

Madison County has set aside $75,000 for eligible small businesses to each receive a one-time grant of up to $5,000. This $5,000 is not a loan and does not need to be reimbursed.

If I’m approved, how quickly will I receive assistance?

Complete applications with all required documentation will be reviewed on a first-come, first-served basis. Depending on the number of applicants, the goal is to approve applications and process payments within 7-14 days from the date of application submission. Please be advised that no one is guaranteed to receive a grant, and no one has a property right or legal explanation of receipt of funds.

Madison County is committed to helping our small businesses in need of aid as quickly as possible. Due to the widespread impact of the pandemic to our local community, we anticipate a high volume of requests.

What is the application deadline?

Madison CARES Small Business Grant program will begin accepting applications on Wednesday, June 24, 2020. The application period will close when all grant funds have been awarded.

Which Businesses Qualify to Apply, Which Do Not and Why?

Which businesses qualify for the Madison CARES Small Business Grant?

Businesses are eligible for up to $5,000 grant if it meets ALL of the following criteria:

Business is physically located within the boundaries of Madison County, North Carolina.       
Business has been operating since at least October 1, 2019.
Business can demonstrate ongoing business operations as of February 29, 2020.
Business is expected to return to full operations after local and state emergency guidelines during COVID-19 are rescinded.
Business is not a publicly traded company.  
Business suffered from business interruption caused by required closures resulting from the COVID-19 public health emergency.
Business may be eligible if they have received financial assistance from a federal, state or local small business assistance program that was not in excess of $5,000.
Business employed 25 full-time equivalent (FTE) employees or less, including owner, as of February 29, 2020. The firm can have many more part-time employees as long as the total weekly hours of all employees does not exceed 1,000 (25 FTE x 40-hour work week).
Business that have total annual gross receipts and sales of $2 million or less.
Business does not have any current unpaid code enforcement liens.
Business is not operating in violation of any state, federal or local laws.

Am I eligible if I meet some, but not all, of the eligibility requirements?

No, a business must meet ALL eligibility requirements to be eligible.

How do I know if my business suffered economic damages from business interruption caused by COVID-19 since February 29, 2020, excluding those covered by insurance or reimbursement from any federal program”?

Your business needs to be able to attest that it suffered in lost revenue and/or additional business expense since March 1st due to COVID-19. For example, you may want to consider how much revenue you expected to earn since March 1st and compare to how much you have actually earned.

Please remember: Madison CARES grants CANNOT be used to pay for business losses that are paid by insurance or another federal state or local program.

Do all commercial locations qualify?  What about hair salons?

One of the biggest questions we’ve received is about hair salons. Many are operated such that the barber or hair stylist rents the chair in another person’s facility. If you are renting a chair in a salon you would qualify.

What we would need is a professional license showing you are a licensed stylist or barber with the state of North Carolina and your federal tax filing and your actual expenses for March, April and May of 2020.

If you operate out of your home, it would qualify. If you can document losses between March 1, 2020 and May 31, 2020.

Likewise, if you are renting an office in a multi-tenant office building, you would qualify.

If my business received financial assistance from any federal, state or local Small Business Assistance Program am I eligible for this grant?

No, the grant is currently targeted to businesses that have not received any other assistance at this time.  If your business has applied for funding and has not yet been awarded funding, your business may be eligible for funding.

If I am a Sole Practitioners and S-Corporations that does not pay salaries and wages what should I do?

If you are a Sole Practitioner or S-Corporation that does not pay salaries and wages, please input your net income (Schedule C) or distribution (S-Corporation) in the Salaries and Wages line item.

I am a 1099 employee.  Do I qualify?

No, you are considered an employee, not a business owner. 

I employ 1099 workers at my business.  Do they count toward my 1-25 FTE employees?

Yes, all regular employees (reported on W-2s) and contract workers (reported on 1099s) count toward your maximum of 25 full-time equivalent employees. 

What if I own my own business, but have no employees?

As long as you meet all of the other eligibility requirements, you may still apply for a grant.  As the business owner (or owners in the case of a partnership) you are considered the sole employee(s). 

Do sole proprietors qualify?

Sole proprietors with a commercial space may not consider themselves an employee, but if you are a one-person business you do qualify.

Can I apply if my business was deemed nonessential?

Companies that were deemed non-essential under the statewide stay at home order and the county’s stay at home order and forced to close are eligible for the grants, so long as they meet other criteria.  If your business is not specifically mentioned as non-essential in these documents, but you had a commercial storefront and were forced to close, you will likely qualify for a grant as long as you meet the other eligibility requirements. 

Do Nonprofits qualify?

None of the non-profit organizations of any kind would quality for this grant. Madison County has a separate program for non-profits.

Are realtors registered as S-Corps with their home address as a business location eligible?

Realtors may qualify.  Realtors and real estate agents will need to submit their most recent tax filing and list their expenses for March, April and May 2020 for a determination to be made.

Are churches eligible for this grant?

Churches are not eligible for this grant program. 

The Application

What documentation do I need to provide?

Completed W-9 form for business
Copy of your “active” state business registration from North Carolina Division of Corporations (if applicable) or other documentation showing the business was operating prior to October 1, 2019 and meets all regulatory requirements from Madison County or the municipality in which the business is located. 
Applicants will need to submit their most recent tax filing /Tax Return – whichever form is applicable to your type of legal business entity (IRS Form 1040 Schedule C, Form 1120, Form 1120-S, Form 1065).  If you haven’t yet filed for the 2019 tax year, you will also be required to provide a profit and loss statement for 2019.

Important NOTE for business applicants regarding the information on your W-9 form.

Review your W-9 form closely.  For your application to be approved, the form must be completed correctly and each field you enter on your application must match the information on your W-9 exactly.

1. Form 1040, Schedule C (or if short-term lodging)

Then, you are an individual, a sole proprietor or a single member LLC and you should check that box in section 3 of the W-9 and B.13. on the application.
Put your personal given name (as shown on the Schedule C or E) in Box 1 of the W-9 and on B.1. on the application.
Include your “Doing Business As” name (if you have one) in Box 2 of the W-9 and on B.2. of the application.
The address on lines 5 and 6 of the W-9 must match the “Mailing Address for the Grant Check” on line B.6. of the application.
Your “Taxpayer Identification Number (TIN)” on Part I of the W-9 will be your personal social security number (SSN), and this same SSN should be entered on line B.5. of your application.

2. Form 1065

Then, you are a partnership or a “Limited Liability Company – P.”

If you are an LLC, you should check that box on the second line in section 3 of the W-9 and type the letter “P” in the blank to the right.  Also, you should check the “Partnership” box on B.13. of the application.
Otherwise, you should check the “Partnership” box on the first line of section 3 of the W-9 and on line b.13. of the application.

Put the legal name of your partnership (as it appears on Form 1065) in Box 1 of the W-9 and on B.1. on the application.
Include your “Doing Business As” name (if different from the partnership name) in Box 2 of the W-9 and on B.2. of the application.
The address on lines 5 and 6 of the W-9 must match the “Mailing Address for the Grant Check” on line B.6. of the application.
Your “Taxpayer Identification Number (TIN)” on Part I of the W-9 will be your Employer Identification Number (EIN) as it appears on Form 1065, and this same EIN should be entered on line B.5. of your application. Do not use your Social Security Number.

3. Form 1120

Then, you are a C Corporation or a “Limited Liability Company – C.”

If you are an LLC, you should check that box on the second line in section 3 of the W-9 and type the letter “C” in the blank to the right.  Also, you should check the “Corporation” box on B.13. of the application.
Otherwise, you should check the “C Corporation” box on the first line of section 3 of the W-9 and the “Corporation” box on line b.13. of the application.

Put the legal name of your corporation (as it appears on Form 1120) in Box 1 of the W-9 and on B.1. on the application.

Include your “Doing Business As” name (if different from the corporation name) in Box 2 of the W-9 and on B.2. of the application.
The address on lines 5 and 6 of the W-9 must match the “Mailing Address for the Grant Check” on line B.6. of the application.
Your “Taxpayer Identification Number (TIN)” on Part I of the W-9 will be your Employer Identification Number (EIN) as it appears on Form 1120, and this same EIN should be entered on line B.5. of your application. Do not use your Social Security Number.

4. Form 1120S

Then, you are an S Corporation or a “Limited Liability Company – S.”

If you are an LLC, you should check that box on the second line in section 3 of the W-9 and type the letter “S” in the blank to the right.  Also, you should check the “Corporation” box on B.13. of the application.
Otherwise, you should check the “S Corporation” box on the first line of section 3 of the W-9 and the “Corporation” box on line b.13. of the application.

Put the legal name of your corporation (as it appears on Form 1120S) in Box 1 of the W-9 and on B.1. on the application.
Include your “Doing Business As” name (if different from the corporation name) in Box 2 of the W-9 and on B.2. of the application.
The address on lines 5 and 6 of the W-9 must match the “Mailing Address for the Grant Check” on line B.6. of the application.
Your “Taxpayer Identification Number (TIN)” on Part I of the W-9 will be your Employer Identification Number (EIN) as it appears on Form 1120S, and this same EIN should be entered on line B.5. of your application. Do not use your Social Security Number.

How do I submit a W9 Form?

You can download the standard IRS W9 form from https://www.irs.gov/pub/irs-pdf/fw9.pdf and fill out the form.  The form requires either a digital signature or a scanned signature to be accepted.  Scanned copies or photos of a completed W9 are acceptable.  Without a completed AND signed W9 form, your grant application cannot be completed.

I own more than one business in Madison County. Can I apply for more than one grant?

Yes, you can qualify for a grant for each legal business entity. Each entity must occupy a separate physical location and have a unique business name.  You must provide separate financial statements and staffing documentation for each location.  If you are a private franchisee of a chain of food or retail establishments, you will qualify.  However, corporate-owned locations of franchised chains do not qualify. 

I have a Parent Holding Company that owns several businesses.  How should I complete the application process?

You will file a separate application for each of the “Child” companies.  Use the tax form filed by the Parent to report income to the IRS (Schedule C, 1065, 1120 or 1120S) as a Business Financials documentation in Section D of the application for each of the child companies.  You will also need to file a Profit & Loss Statement (P&L) for each child.  Each child business must occupy a separate physical storefront and have a unique business name.  All grant checks should be sent to the mailing address of the Parent, and the Parent’s Taxpayer Identification Number (TIN) should be used on all of the W-9s and all of the applications. 

I own one or more commercial properties that I rent to others for them to conduct business on the premises.  Do I qualify for a grant?

No.  Landlords do not qualify, whether the businesses to which they rent space are essential or non-essential. 

How do I apply?

Madison CARES Small Business Grant applicants must submit an online form with financial documentation and payroll records. The application can be found HERE.

How quickly will I receive my grant once approved?

Once an application is approved, businesses can expect to receive grant funds after payment processing and due diligence has been completed. Depending on the number of applicants, it may take up to 7-14 days from the start of application review until eligible business applicants will receive the approved funding.

Will my business be required to report how I spent funds that are awarded?

The County reserves the right to request such information. Also note that your business may be required to provide access to such records as may be necessary to prevent fraud or ensure compliance with federal requirements.

Can I apply for this loan through a local lending institution?

Local banks are not involved in the grant program, so no prior banking relationship is required.  Please apply directly through the Madison CARES Small Business Grant portal.

Why did the County set the maximum grant amount at $5,000?

Madison County targeted this amount to provide meaningful financial relief to as many small businesses as possible. Based on the anticipated number of qualified small businesses in the county, an amount of $5,000 allows the County to help all eligible small businesses that may apply.

Please remember: Madison CARES grants CANNOT be used to pay for business losses that are paid by insurance or another federal program.

What is the typical size of grants awarded?

Grants up to $5,000 may be requested for eligible expenses. The business will list how the grant funds will be spent in the application. If awarded a grant, the small business must show documentation that grant funds were spent on eligible expenses listed on the application at the end of the grant term.  Eligible expenses include rent or mortgage payments, employee salaries and utilities.

What if I have businesses in Madison County and another county; can I use the grant for both businesses?

No, the grant funds can only be used to assist the business in Madison County.

Must a small business enter into a Grant Agreement for use of these funds?

The grant application, if approved and signed by the county, shall serve as the grant agreement and shall be binding upon the applicant.