Grant Expenditures Frequently Asked Questions
Do the grants funds received need to be repaid?
No, grant funds received do not need to be repaid. However, all taxes associated with the acceptance and/or uses of cash awarded are the sole responsibility of the individual grantee. Please consult with your tax professionals and/or legal counsel to ascertain the tax impact of the cash awards.
Are the grants funds taxed?
Please consult with your tax professionals and/or legal counsel to ascertain the tax impact of the cash awards. You can also refer to guidance provided by the IRS, see https://www.irs.gov/newsroom/cares-act-coronavirus-relief-fund-frequently-asked-questions.
Will receiving a grant impact other federal assistance?
The awarding of grant funds will not affect the ability to apply for and receive an SBA PPP loan or other federal assistance available under the CARES Act. However, grantees are advised that the same business expenses cannot be funded by the awarded grant funds and federal funds. Recipients of PPP loans or other funding under the CARES Act must be prepared to demonstrate that no other funding source was used to pay for the same costs as those paid for by the PPP loan or CARES Act funding.
Will receiving a grant impact unemployment insurance eligibility?
A grant may affect your unemployment insurance claim if the grant is used to pay payroll expenses during the period you receive unemployment benefits. The amount of unemployment assistance is usually determined by recent earnings, and most likely, you will have to certify on a weekly basis to any income received the previous week as wages. Please consult your state’s unemployment office for more information about unemployment insurance claims.
Grant Expenditures Instructions – Should I submit the checklist of items
to include in the Grant Expenditure report with my supporting documents?
The checklist is not required to be submitted with the supporting documents, but please provide a copy of the List of Expenditures (page 3 of Documentation of Grant Expenditures Instructions) that shows the amounts entered balance with the expenditure supporting documentation.
Grant Expenditures Instructions – I do not have an invoice for my rent
payments, can I provide a copy of the lease agreement?
Yes, please provide a copy of the lease agreement.
Documentation of Grant Expenditures Cover Page – Do I need to submit two
(2) Documentation of Grant Expenditures Cover Pages for the original and
additional grant funds my business received?
You can submit two separate Documentation of Grant Expenditure Cover Pages for both awarded grant funds, or you can combine both onto one Cover Page. If both awards are entered on one form, please provide the information for both checks, including the issued dates and total amounts.
Documentation of Grant Expenditures Cover Page – Can I use the funds on
COVID-19 related expenditures not listed in the Grant Agreement?
No, grant funds must be used for activities listed under Purpose of Grant in Grant Agreement.
Documentation of Grant Expenditures Cover Page – Who should sign the
Confirmed by Signature on the Documentation of Grant Expenditure Cover Page?
This should be an individual who could serve as a second contact at your organization, or and individual that could also take responsibility for administering the agreement.
Please note, if you are a sole proprietor or individual business owner, you do not need to have the confirmed by signature field completed.
Documentation of Grant Expenditures Cover Page – Do you accept digital signatures?
If possible, please provide a wet signature on the form. If you cannot provide a wet signature, a digital signature will be accepted.