January 28, 2021 Relief Program - Qualifications and Application Process for Iowa's $40 Million Restaurant and Bar

Qualifications and Application Process
                   for
Iowa's $40 Million Restaurant and Bar
            Relief Program
           January 28, 2021
                       Speakers:

       Jessica Dunker, President, Iowa Restaurant
                       Association

      Rick Peterson, Deputy Director, Iowa Economic
                 Development Authority

          Ashley Jared, Iowa Finance Authority

The Iowa Restaurant and Bar
Relief Grant
• For nearly 11 months, a series of public health proclamations have mandated
  Iowa restaurants, bars and other hospitality establishments to have intermittent
  closures, limited hours of operation, and continue social distancing measures to
  assist in curbing the further spread of COVID-19. Many of these mandated
  restrictions have effectively placed capacity limits on operations, as well as
  reduced revenue potential.
• The Iowa Restaurant and Bar Relief Grant program will provide eligible
  businesses with one-time grants to assist qualified businesses with short-term
  cash flow.

This grant program is   There is $40 Million
funded by CARES act     dedicated to the
money.                  program.

A Targeted Relief Program

 • The goal of the Iowa Restaurant and Bar Relief program is to assist establishments
   with business models that rely on in-person experiences and therefore were
   significantly impacted by closures and other mitigation efforts.

 • The program seeks to provide these eligible establishments with grants in amounts
   that will be impactful in their efforts to remain open and grow their businesses.

 • While there are additional business types and structures that have also been
   significantly impacted, funding is limited and that factor, combined with the need
   to provide meaningful amounts of assistance, required further eligibility
   refinement.

 • Due to this, businesses that are not categorized as one of the eligible business
   types are ineligible for assistance through this program.

Eligible Establishment Types

1.   An Iowa-based bricks and mortar establishment in which the primary purpose is serving food or
     drink.

     AND

2. Businesses must be one of the following business types:

     •   Full-Service Restaurant*
     •   Bar
     •   Brewery
     •   Brewpub
     •   Distillery
     •   Winery

*How is a Full-Service Restaurant Defined?
If the business is a full-service restaurant, the applicant must certify that:

1. The establishment provides food services to patrons who order and are served while seated (i.e.,
   waiter/waitress service) and pay after eating.
          AND
2. That their business type is one of the following industry categories:
         • Café-Restaurant, Family-Style, Diner
         • Traditional Restaurant, Casual Dining
         • Upscale Casual Dining Restaurant
         • Fine Dining Restaurant

Other Eligibility Requirements
• The business must have experienced at least a 15% decrease in gross sales due to
  the COVID-19 pandemic in combined Q2 and Q3 2020 compared to combined Q2
  and Q3 2019 (April 1-Sept. 30).
• The business must have been open for business on or before April 1, 2020.
• The business must not have permanently closed.
• Must be registered to do business in the State of Iowa and have physical location in
  the state.

Ineligible Businesses

  • Businesses that do not meet the specified eligibility criteria.
  • Businesses that are a part of a national chain or franchise that has a total of 20 or more
    locations doing business under the same name, regardless of the type of ownership.
      • Iowa franchise locations of Iowa-based chains are eligible to apply.
  • Businesses that have received a notice for not abiding by a Governor’s COVID-19 public
    health proclamation.
  • Businesses providing adult entertainment, per Iowa Code 239B.5, subsection 4, paragraph
    “a”.
  • Establishments not in good standing with: Iowa Department of Revenue (IDR), Iowa
    Alcoholic Beverages Division (ABD), Iowa Department of Inspections and Appeals (DIA)

Application Period

The application period will be open from Monday, February 1 at
12:00 p.m. (noon) through Monday, February 15, 2021 at 5:00 p.m.

What information will I
    need when I apply?
     Ownership entities are required to submit one application
                      per business location.

• Gross sales for the periods below as evidenced on Line 1 of
  your tax filings. (Iowa Sales/ Retailer’s Use Tax and Surcharge
  Return)
     Ø   April-June 2019
     Ø   July-Sept. 2019
     Ø   April-June 2020
     Ø   July-Sept. 2020
•   Liquor License Number
•   Food Service Establishment License Number
•   Sales Tax Permit Number
•   Withholding Tax Permit Number
•   Tax Identification Number (TIN)
•   No document uploads required

How do I apply?

       1.   Go to iowabusinessrecovery.com
       2.   Follow links to the Getting Started Page
       3.   Complete pre-application checklist to determine eligibility
       4.   Complete application

IMPORTANT: Applicants are responsible for submitting a complete and error-free
application. Application corrections cannot be guaranteed.

All applications submitted within the application period will be considered for an
award, the program is not first come, first serve.

How Will Sales   • Self certified sales loss as reported on Iowa
                   Sales/Retailer’s Use Tax and Surcharge Return
   Loss be           • Audited by the Iowa Department of Revenue

  Verified?

Award amounts to be determined on a tiered system, based
               on percent of gross sales loss comparing Q2 and Q3 2019 to
               Q2 and Q3 2020.

Tiered Award   The tiers will be dependent on program demand and will be
Amounts        announced following the close of the application and review
               period.

Yes, businesses that received assistance from a
My business has            past relief program are eligible to apply.
received state             Past assistance is inclusive of the following program, among
or federal assistance      others:

through one or more        • Paycheck Protection Program
relief programs, am I      • Iowa Small Business Relief Grant
still eligible to apply?   • Iowa Business Disruption Relief Grant program

My business was
established and
opened for
business between
June 30, 2019 and
April 1,               Yes, newly established businesses may still apply
                       for assistance and will be considered using a
2020, therefore all    modified formula, pending funding availability.
required gross
sales data is
not available, can I
still apply?

How will I know if I'm receiving an award?
All applicants will receive a confirmation email including resources, such as how to
connect with a bank or credit union.

Businesses will be able to track their application through the review process.

Once review is complete, businesses will receive an approval or denial email
notification.

Physical checks will be issued by IEDA accounting and sent to the business address
provided in the application.

The review process will not begin until after the close of the application period.

Who do I contact if I have grant questions?

               FOR MORE INFORMATION: CONTACT:
                  855-454-8075| 515-348-8984
                            OR
                 IOWABUSINESSRECOVERY.COM

Restaurants and bars can still take advantage of the Federal PPP
               program. Restaurants and bars who received a PPP in the first
               stimulus may receive a second PPP if:
               • They employ fewer than 300 employees per locations
Is there any   • They show gross receipt loss of 25% or more across a calendar
                 quarter, when compared to an applicable time period.
additional     • Gross receipts during the first, second, third, or fourth quarter

relief money     in 2020 must show a 25% or more decrease from the gross
                 receipts of the business during the same quarter in 2019.

available?     • If the company was not in business during the first or second
                 quarter of 2019, but was in business during the third and
                 fourth quarter of 2019, its gross receipts during the first,
                 second, third, or fourth quarter of 2020 must show a 25% or
                 more decrease from the gross receipts of the business during
                 the third or fourth quarter of 2019.

Is the Iowa   The Iowa Restaurant Association is continuing to
Restaurant    pursue:

Association   • Additional grant resources
              • Additional tax relief
Seeking       • Alcohol fee waivers
Additional    See our full legislative agenda at
              www.restaurantiowa.com
Relief?

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