Montgomery County Microenterprise Stabilization Program

Community Development Block Grant Program – CARES Act Funding (CDBG-CV)

Montgomery County’s Microenterprise Stabilization Program provides financial assistance to income-eligible for-profit businesses with five or fewer employees that have experienced a reduction in revenue as a result of the current public health emergency. Assistance is up to $10,000 per business.

Applications were accepted from June 10 through June 16.

Once the window closes, each application will be assigned a random number to determine the order in which they will be reviewed. Applicants will have three days to provide the required documentation, as described below, when their application is ready to be reviewed. If documentation is not received within the specified time frame, the application will not be considered. This process will continue until the $1M in Community Development Block Grant funds allocated for this program have been awarded.

Eligibility Requirements

Businesses that have received assistance from Montgomery County through the Public Health Emergency Grant program are NOT eligible to receive funding from the Microenterprise Stabilization Program.

The business must

  • Be physically located in Montgomery County or the owner must reside in Montgomery County and at least 51% of business revenue must be generated in Montgomery County.
  • Employ five or fewer employees.
  • Be able to demonstrate that they have experienced a loss of revenue due to COVID-19.
  • Not be delinquent in any city, state or federal taxes; child support payments; or other penalties and must be in good standing with the State of Maryland ( check "Good Standing" status ).
  • Have been established as of January 1, 2020.
  • Provide business financial documentation ( see business financial documentation ).
  • Have a DUNS number in order to apply.

AND the business owner(s) must

If you meet the eligibility requirements, review these steps to help you prepare to apply for the MSP conditional grant:

1

Gather Required Business Financial Documentation

Established Businesses must provide:

Tax returns
  • 2018 or 2019 Tax Returns for business
AND one of the following documents
  • Profit & Loss Statement for April 2020
  • April 2020 Bank Statement showing revenue from business

Businesses that are less than 2 years old must provide:

One of the following documents
  • Any Tax Returns that have been filed
  • Interim Profit & Loss Statements for any period that the business was operating in 2019
  • Profit and Loss Statements for January, February and March of 2020 if business became operational as of January 1, 2020
  • January, February and March 2020 bank statements showing revenue from business
AND one of the following documents
  • April 2020 Profit & Loss Statement
  • April 2020 Bank Statement showing revenue from business

Businesses must obtain a DUNS number:

Call the Dun & Bradstreet Government Team at 866-705-5711 for assistance in obtaining a DUNS number. Let the D&B Government Team know that you are applying for a Montgomery County Government grant that is funded through Federal Community Development Block Grants.

Steps to determine if you are in “Good Standing” with the State of Maryland (not required for sole proprietors):

  • Go to Maryland Business Express
  • In the "Business Quick Links" section, select "Business Entity Search".
  • Enter your business name and select "Search".
  • Your business will be listed if you are registered.
  • Select your business and check under the General Information tab to verify that your business is in Good Standing. It is not necessary to order a copy of your certificate of good standing.
2

Determine Income Eligibility

Income Qualifications

FY 2020 Income Limit Area: Washington-Arlington-Alexandria, DC-VA-MD HUD Metro FMR Area

Median Family Income: $126,000

FY 2020 Income Limit Category: Low (80% of Median Family Income)

Persons in Family Income Limit
1 $55,750
2 $63,700
3 $71,650
4 $79,600
5 $86,000
6 $92,350
7 $98,750
8 $105,100
3

Gather CDBG-Income Eligibility Documentation

If the business owner meets the low-income qualification, the following documentation is required under Federal law.

One of these documents must reflect that the applicant is a resident of Montgomery County or that the business is located in Montgomery County.

  1. A COPY of the last four most recent paycheck stubs for any household member 18 years and older who is occupying the home (does not apply to the business owner unless the owner receives income from another job).
    • The paycheck stubs must have the year-to-date gross income listed.
    • If you are paid in cash or by personal check, you must provide a letter from your employer stating your year-to-date pay.  This letter must be on company letterhead. Include phone, email and the employer’s fax number for verification.
  2. A COPY of all other sources of income for ALL members of the household that are 18 years and older, including but not limited to current Social Security/SSI benefit letter and Unemployment checks/statement and child support or alimony received. Also include any other retirement pension statements.
  3. A COPY, for ALL HOUSEHOLD MEMBERS, of three months of bank statements for all checking accounts, savings accounts, money market, employer card, reload cards, etc.
  4. A COPY of the most recent year tax return for each adult member (18 years and older).
4

Prepare Answers to these Supplemental Questions

Emergency Need

  1. Describe the negative impact the COVID-19 pandemic has had on your business. Include the number of employees that have been laid off, if any.
  2. Explain how the funding will help your business remain viable and prevent layoffs.
  3. If applicable, describe how will you create new lines of business and services to meet new demand during the COVID-19 pandemic and the number of new jobs created.

Other Funds

  1. List any other funds you have have received or are receiving and the amounts and sources of those funds and total amount (e.g. SBA loan, IRS Employee Retention Tax Credit, unemployment insurance benefits, etc.).
    • An application for, or receipt of, funds from a State or Federal assistance program does not disqualify you from receiving funds from the Microenterprise Stabilization Fund. However, a grant received through this program may not be used for the same business purposes as funds received from other assistance programs (i.e. 'double-dipping' is not allowed).
  2. Describe any other gaps in financing you might have to prevent employee layoffs or create new jobs and your plan to fill those gaps.