Any cost incurred and paid between March 1 and November 16, 2020, which was not and will not be covered by insurance or federal, state, or local loans or grants, and was necessary in response to COVID-19 has potential to be eligible for reimbursement.
All documentation for the reimbursement process must be submitted by Monday, November 16 by 5:00pm. We are limiting each grantee to one request for reimbursement which must include all expenses. After the documentation is reviewed and approved, reimbursements will be sent out. All reimbursements will be sent out before the end of the calendar year.
Additional labor costs are only eligible if it was for purposes of sanitation or to enforce COVID-19 safety precautions. Therefore, the additional labor costs would not be eligible if the additional labor only consisted of standard work.
If the loan was originated using CARES Act funding or other federal, state, or local government funding, you cannot be reimbursed for the loan. However, interest and principal costs of a loan, including interest and principal due after the period that begins on March 1, 2020, and ends on November 16, 2020 (the “covered period”), could be considered reimbursable if (1) the full amount of the loan is advanced to the borrower within the covered period and (2) the proceeds of the loan are used by the borrower to cover expenses incurred during the covered period. If the loan were only partially used by the borrower to cover eligible costs, then the loan would be eligible for partial reimbursement for the amount of the eligible costs.
No, back pay is not an eligible expense.
No, salaries are allowed only if the facility was closed or had reduced hours or if was a new position hired for COVID-19.
No, unless the payroll expenses were for additional work assigned to your employees for sanitation purposes and other purposes related to COVID-19.
Salaries are only eligible if they were not covered by PPP funds. Any salaries that were not covered by PPP could be eligible if they meet the other criteria.
Overhead refers to non-labor expenses to operate your business, including: rent/mortgage, insurance, utilities (electric, gas, phones, internet, etc.), and storage expenses.
Utility costs are eligible if the business was operating at reduced hours or not at all within the facilities due to COVID-19 restrictions and safety guidelines. For example, if the business was open 40 hours/week before COVID-19 but was operating at an average of 30 hours/week from March 1 to November 16, reimbursement would be for 25% of overhead costs during those three months. (The example given is based on hours of operation. Costs may also be prorated based on a decrease in sales as well.)
Phone and internet services are considered overhead. Therefore, the prorated amount will be eligible for reimbursement just as with any other utility and overhead cost.
Submittable, the electronic application platform onto which you will submit your information, will prorate your expenses after you insert your data.
Rent for leased facilities is eligible for reimbursement if the business was not operating, if the business was operating at reduced hours, or if the business saw a decrease in sales resulting from COVID-19. If that is the case, the rent reimbursement will be prorated along with the utilities. Rent may also be eligible if a business owner: (1) was required to lease additional space in order to continue operating, e.g. to ensure social distancing in the business premises (see the last two paragraphs in Treasury’s FAQ 58 at pdf page 13/15); or (2) maintained a lease that otherwise would have been abandoned but for COVID-19 (see the Treasury’s FAQ 13 at pdf page 3/15.)
No. Property taxes are ineligible.
Loss of revenue itself is not eligible for reimbursement. However, either decreased sales or decreased hours of operation can be used to prorate eligible rent, utility, and other overhead expenses. For example, if sales decreased by 25% from March 1 to November 16 in 2019 compared with the corresponding period in 2020, then 25% of overhead expenses during that period would be eligible for reimbursement.
As mentioned, decreased sales or decreased hours of operation can be used to determine reimbursement of overhead costs. This data will be averaged for the period of March 1 to November 16. Documents showing one or the other will be sufficient for this purpose.
The business would need to show proof of sales from March 1 to November 16, 2019 and another document showing corresponding sales for 2020. Missouri Department of Revenue monthly sales tax reports are necessary and other sufficient documentation must be provided. Additional sales data in Quickbooks, Excel, or other platforms would be helpful documentation but are not essential.
Yes, as long as the closing was in response to the COVID-19 government safety protocols or to maintain the health and safety of employees and customers. If a period of the duration of the closing was in response to safety protocols or for general health and safety, and another period of the duration of the closing was for any other reason, only the costs incurred in the former time period will be eligible for reimbursement.
If facilities were reconfigured as a response to COVID-19 (e.g., to meet social distancing guidelines, to meet increased demand for services), related expenses would be eligible. Facility reconfiguration that was budgeted before COVID-19 or made for other purposes would be ineligible.
Yes, reasonable expenses would be eligible as long as the move was due to COVID-19.
The purchase of an additional vehicle for increased deliveries would be considered eligible if it were deemed to have been a reasonable purchase at the time and necessary with respect to COVID-19. This means the company was not able to meet the need arising from the public health emergency in a cost-effective manner by leasing a vehicle or using a vehicle already owned and has provided supporting documentation In addition, the vehicle must be acquired and used for the intended purposes by December 30.
Costs that meet the preceding criteria and are incurred between March 1 and December 30 would be eligible costs. This includes initial payments, monthly payments, and total payments but excludes licensing, taxes, and insurance for the vehicle. Please note that the proof of payment for costs incurred during November and December are due along with all documentation on November 16 at 5:00 p.m. The business would also need to submit documentation of the credit/loan agreement if it is financing the vehicle.
Similar to monthly rent payments, a prorated amount of mortgage payment could be eligible for reimbursement as overhead based off a decrease in sales or a decrease in hours of operation.
If the mortgage is for a new facility that (1) was purchased or built in order to accommodate for COVID-19 safety regulations and business disruptions and (2) was not included in the budget before COVID-19, then the new mortgage could also be eligible for reimbursement. You will need to submit documentation of the mortgage agreement and proof of payment. All payments eligible for reimbursement need to be incurred by December 30 and paid in the normal course of business by November 16.
A credit card statement can be sufficient for proof of payment. Credit card statements must have items clearly marked, show your business’s name and the vendor’s name, display the charge date and the amount (equal to the amount on the invoice or receipt). Please reference the “CARES Act Documentation Examples” document at the beginning of these FAQs to see examples of proper documentation.
You may print documentation from your online account.
If a personal account was authorized and used to purchase reimbursable expenses, the expenses could be reimbursed if all of the following criteria were met:
1) If the individual is a member of the LLC, the business may provide the individual member’s proof of original expense and proof of payment.
2) If the business is not an LLC or the individual is someone other than a member of the LLC:
a. The original purchase AND the reimbursement to the individual must have occurred between March 1 and November 16; and
b. The business must provide proof of the original expense (original receipt/invoice from the store or vendor); and
c. The business must provide proof of payment by the individual authorized to make the purchase (e.g., copy of the individual’s credit statement, bank statement, or other payment proof showing the purchase on the individual’s account); and
d. The business must provide proof of reimbursement from its organizational account to the individual authorized to make the
purchase (e.g., copy of the bank statement showing the check number, date of reimbursement, and amount reimbursed; or the
electronic cancelled check, printed from the business’s bank account, that clearly shows the date the check was posted to the account).
§ Proof the reimbursement was added to a paycheck if the purchase was made by an employee, to include the paystub or payroll report showing the reimbursement AND the awardee’s bank statement or print out showing payroll came out of the bank account.
Your reimbursement request may include eligible costs for 120% of the maximum awarded granted amount to better ensure that your business will be reimbursed the full award amount.
Yes. Your business may use grant funds to cover all or part of an eligible expense.
Yes, as long as the expenses in the other categories are eligible and in accordance with state and federal guidelines. Although individual categories may be amended, the maximum awarded grant amount will not change.
Yes, as long as the purchase was not in the budget prior to COVID-19.
Perishable inventory is inventory that by its nature is likely to spoil or decay, or that has an actual expiration, use by, or best by date. The inventory being replaced must have expired/spoiled during the covered period (food, medicine, cosmetics, etc.).
Only perishable inventory is reimbursable.
If you have unanswered questions, please visit ded.mo.gov/CARES. If you would like to speak with our team directly, please email grants@ded.mo.gov or call us at (573) 751-4962. Please know that we are here with you and for you and will do our best to respond timely to your communication.