What are the date parameters that apply to this program?

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.

If my business significantly increased our hours to recover revenue loss due to capacity limits, is the additional labor cost eligible?

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 my business took out a loan to pay for items/employee salaries required to operate during COVID-19, can it be reimbursed for the loan?

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.

If an employee became ill with COVID-19, and they were paid for 10 days to quarantine, is that 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.

Are payroll expenses reimbursable if my business never closed or reduced its hours?

No, unless the payroll expenses were for additional work assigned to your employees for sanitation purposes and other purposes related to COVID-19.

If my business received Paycheck Protection Program (PPP) funds, how does this impact salary reimbursements?

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.

What is considered an overhead expense?

Overhead refers to non-labor expenses to operate your business, including: rent/mortgage, insurance, utilities (electric, gas, phones, internet, etc.), and storage expenses.

Can utility expenses such as phone/internet service be reimbursed?

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.

How are prorated rent, utilities, and other overhead expenses calculated?

Submittable, the electronic application platform onto which you will submit your information, will prorate your expenses after you insert your data.

Is facility rent a reimbursable expense? If so, can my business only be reimbursed for rent during business closure or reduced hours?

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.)

Is loss of revenue covered by this grant?

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.

What documentation is required to show reduced sales?

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.

If my business hours were reduced by choice and not because of a governmental requirement, can it be reimbursed for reduced hours or rent from the time the business was closed?

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.

What kinds of facility reconfiguration projects are 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.

If I had to close a business location and move to another due to COVID-19, can expenses from moving be reimbursed?

Yes, reasonable expenses would be eligible as long as the move was due to COVID-19.

Is purchasing a vehicle for increased deliveries a reimbursable expense?

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.

Is mortgage a reimbursable expense?

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.

My business purchased supplies/equipment that will not show on its bank statement until the purchase has been shipped, but the items won’t ship until later in November. How do I submit this expense for reimbursement?

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.

Can expenses still be reimbursed when a personal account was used for business expenses?

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.

If my business purchases more than the maximum awarded grant amount, can it still include all of the items purchased, but only request the approved reimbursement amount?

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.

Can the line item totals be amended to cover unanticipated expenses in other categories?

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.

What is considered perishable inventory?

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.).

Whom can I contact for more specific questions?

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.

What is the term for which eligible expenses may be submitted?

Expenditures eligible for reimbursement under the Nonprofit Relief and Recovery Grant were or will be incurred from March 1, 2020 – November 16, 2020.

Are we able to reallocate funds from our grant to other approved categories?

Yes. Expenses can be moved between categories as long as all expenses are eligible and the maximum award amount is not exceeded.

Can we request reimbursement for items we did not include in our original request?

As long as they are eligible for reimbursement and your total reimbursement request does not exceed 120% of your awarded amount, yes.

What does the allowance to submit reimbursement requests for 120% of the maximum award amount mean?

The allowance to submit receipts totaling 120% of the maximum award amount means you have some cushion in the event some of the expenses for which you requested reimbursement are ineligible or are missing documentation sufficient for reimbursement.

What if we don’t have relevant bank statements by November 16, 2020? Can we print from our online account and submit that?

Yes. It must be from the organization’s account; the expense amount should match the invoice or receipt, show check number and date, and date the check cleared the account.

What can be used to show proof of purchase for eligible expenses, especially for expenses that might not show on a bank statement by November 16 or that were paid for in cash?

Organizations must provide a receipt, invoice, or some other sufficient documentation to prove the expense was incurred.

For proof of payment for checks and debit/credit charges, organizations must provide a copy of a bank/credit card statement or online bank document to show proof of payment for all non-salary expenses. For cash purchases, a receipt or invoice that clearly shows the expense was paid with cash can be reimbursed.

Organizations can be reimbursed for salaries incurred up until November 16, 2020 if the nonprofit submits proof of payment documentation (bank/credit statement) to the department for those salaries no later than November 30, 2020. No grant reimbursement will be issued for any expense or category of expenses until this documentation has been received.

Is it okay if a personal credit card was used to purchase items for the nonprofit?

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:

a.   The original purchase AND the reimbursement to the individual occurred between March 1 and November 16, 2020; and

b.   The organization must provide proof of the original expense (original receipt/invoice from the store or vendor); and

c.    The organization 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 organization 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).

Is an expense eligible for reimbursement if it was not purchased from a Missouri vendor?

Yes. You do not have to purchase from a Missouri vendor to be reimbursed for an eligible expense.

Can we be reimbursed for paying employees in full when they did not work full hours?

Yes, if your nonprofit was not open during its usual operating hours, you can be reimbursed for a portion of salaries paid if employees were paid their normal salary while working reduced hours due to COVID-19. See the Nonprofit Relief Expense Documentation Guidance for details and examples.

Can we be reimbursed for employee wages if the organization could have furloughed the employees, but instead had them perform other duties (sanitation, etc.) to keep them on board?

No. Salaries can only be reimbursed under the following conditions:

1.   New positions created or additional hours (over and above normal) to meet increased demand for services resulting from the COVID-19 pandemic;

2.   Additional salaries paid in excess of normal hours (average monthly hours prior to March 1, 2020) for COVID-19 sanitation;

3.   Hazard pay (see FAQ #14 concerning hazard pay); and/or,

4.   Salaries of workers who, due to the pandemic, did not work during closure or who worked reduced hours but were paid their regular wages.

For reimbursable employee wages, are additional costs for taxes and benefits also reimbursable?

Yes, FICA taxes, which includes social security and Medicare, and benefits, including unemployment insurance, the employer’s health insurance contribution, etc., are eligible for reimbursement. The organization must prorate benefits to the amount of salaries eligible for reimbursement.

Is hazard pay an eligible expense? If so, is it allowable to back pay the hazard pay?

Hazard pay” is additional pay for performing hazardous duty or work involving physical hardship, in each case that is related to COVID-19. Hazard pay can be reimbursed with these grant funds to the extent an employee’s duties are/were related to COVID-19 and involved such duties or work. For example, hazard pay could be covered for a food pantry employee for their time distributing food and other direct assistance in person, but could not be covered for the employee answering pantry phones or packaging food and not interacting in person with the public. Across-the-board hazard pay for all members of an organization regardless of their duties would not be able to be covered/reimbursable.

Hazard pay does not include bonus or incentive payments used for having a good attendance record. An organization can make a delayed payment for hazard pay, as long as the criteria in this response are met.

Our organization had to hire additional staff due to a decrease in volunteers. Are these salaries reimbursable?

Yes, new positions that were created to meet client demand arising from the COVID-19 pandemic are eligible for reimbursement.

How do we determine what dates we can get reimbursed for employee salaries if we also received Paycheck Protection Program funds?

Organizations can be reimbursed for eligible salaries provided there is no overlap between pay periods or reimbursement between this grant and the Paycheck Protection Program or any other federal, state, or local program, or insurance coverage. Awardees are responsible for confirming the dates and reimbursements under the Paycheck Protection Program, and must refrain from requesting reimbursement for the same under this grant.

Can employee stipends for internet and personal equipment necessary to work remotely be reimbursed?

Yes, newly incurred costs to transition to remote work status are eligible as long as the transition is directly related to the COVID-19 pandemic and prorated for work hours. If an employee was receiving a stipend for these prior to COVID-19, their continued payment would not be eligible for reimbursement.

What is included in COVID-19 supplies? Are additional resources for clients/schools (such as laptops that would not otherwise be necessary) considered COVID-19 supplies?

Supplies that are needed in excess of pre-COVID-19 levels to meet increased demand for services due to COVID-19 are eligible, as well as supplies needed for COVID-19 testing, sanitation supplies, air filters, personal protective equipment, etc. Laptops and equipment that are needed due to a transition to remotely provided services are also eligible, but should be included in the Equipment category.

How do we handle reporting for independent contractors?

If you are requesting reimbursement for the contractor’s work, please provide the contractor’s invoice as well as proof of payment.

What equipment expenses are eligible for reimbursement?

The equipment must be acquired during the eligible timeframe and must be necessary in response to COVID-19. Generally, equipment is an article of tangible property having a useful life of more than one year.

If we purchased cell phones for key staff to better interact with clients, are these expenses reimbursasble?

Equipment necessary to pivot delivery of services to remote/virtual interaction can be eligible for reimbursement.

Are information technology services and equipment (such as software developers, web and videoconferencing packages, website assistance, and computers) eligible for reimbursement?

Yes, if the technology, equipment, website development, and upgrades were necessary for remote work, to provide virtual delivery of services, or to establish virtual fundraising capabilities as a result of COVID-19. Actual costs for individual fundraising events are not eligible, only costs for the platform and system upgrades to make the events possible are reimbursable.

Purchases of additional technology/equipment for client use to ensure delivery of service are also eligible for reimbursement.

What are reimbursable costs for virtual fundraising?

Technology, equipment, website development, and upgrades for moving to a virtual fundraising platform because of COVID-19 are eligible costs for reimbursement. Actual costs for the fundraising events are not eligible, only the costs that go into the platform and system upgrades to make them possible.

Can the purchase of facility reconfiguration supplies or equipment now be reimbursed through this grant?

Yes, facility reconfiguration supplies or equipment for the purposes of social distancing or meeting needs associated with increased demand for services due to the COVID-19 pandemic are eligible for reimbursement.

Can our rent or mortgage payment be reimbursed?

No. Organizations may not request reimbursement for rent or mortgage expenses that are normally part of their budget. If the organization was required to rent or purchase additional space to meet social distancing requirements, the rent or mortgage expense specific to the additional space can be reimbursed through November 16, 2020.

Are move-in costs associated with a relocation an eligible expense?

No, move-in costs are not eligible for reimbursement.

What does the Direct Assistance category include?

Eligible costs under Direct Assistance to at-risk individuals/households may include assistance for: rent or mortgage payments, utilities, transportation (e.g., to program services, for health purposes, for employment), or other basic needs. Organizations can be reimbursed for eligible direct assistance paid to local municipal utility providers, which is a change from the department’s previous guidance.

Organizations can only be reimbursed for direct assistance over and above pre-COVID-19 levels. Awardees will be asked to provide the previous year’s expense documentation to show increased expenditures.

How do we document Direct Assistance expenses?

Organizations will be required to provide a list of clients who received direct assistance during the reimbursement period. The list must include: client last name or ID number, the date the assistance was provided, the dollar amount, and type of assistance (rent, utilities, etc.). Organizations will also be required to submit expense reports showing dollar amount direct assistance provided for the same period in 2019, so that the reimbursable amount over and above pre-COVID levels can be established.

Is hotel rent to temporarily house the homeless until housing can be obtained reimbursable?

Yes, you can reimburse hotel rent for stays incurred by November 16, 2020. You cannot obtain reimbursement for pre-purchased hotel vouchers.

Are rent and utilities to keep people housed acceptable expenditures?

Yes, this would go under the Direct Assistance to Individuals category.

Can we purchase cell phones/minutes for certain clients who need them for job searches, keeping employment, or working with agencies and schools?

Yes, this expense would be listed under the Technology (if phones were purchased) or Direct Assistance categories (if minutes were purchased).

What if we won’t be able to utilize the allocated funding for our grant?

You should still submit the reimbursement request and supporting documentation for what you are able to use. If you will be requesting reimbursement for a significantly lower amount than what was approved, please email us as soon as possible so we can try to reallocate those funds to organizations in need.

We have received additional CARES Act funding covering the same expenses as requested for the Nonprofit Relief & Recovery Grant through the department. What do we need to do?

You may not receive reimbursement from the department’s grant for expenses that will be funded through another grant, insurance, or otherwise from a federal, state, or local program. Those expenses should be removed from your budget and you may attempt to identify other eligible expenses which were not or will not be reimbursed by such sources. If you will be requesting reimbursement for a significantly lower amount than what was approved, please email us as soon as possible so we can try to reallocate those funds to organizations in need.

When will funds for our grant be released?

All grant funds will be paid out by December 30, 2020.

How can we contact the department for more specific questions?

Please email one of the following staff members with questions:

Daniel Epler – daniel.epler@ded.mo.gov

Sarah Warren – sarah.warren@ded.mo.gov

Tyler Trusk – tyler.trusk@ded.mo.gov