AN ACT TO CREATE THE 2020 COVID-19 MISSISSIPPI BUSINESS
ASSISTANCE ACT; TO DEFINE TERMS; TO ESTABLISH THE BACK TO
BUSINESS MISSISSIPPI GRANT PROGRAM, TO BE ADMINISTERED BY THE
MISSISSIPPI DEVELOPMENT AUTHORITY, FOR THE PURPOSE OF MAKING
GRANTS TO ELIGIBLE BUSINESSES TO REIMBURSE THEM FOR ELIGIBLE
EXPENSES; TO ESTABLISH THE PROGRAM WITH $100,750, 000.00
APPROPRIATED BY THE LEGISLATURE PROM THE FUNDS PROVIDED TO THE
STATE BY THE FEDERAL GOVERNMENT FROM THE CORONAVIRUS RELIEF FUND
ESTABLISHED UNDER THE CORONAVIRUS AID, RELIEF, AND ECONOMIC
SECURITY (CARES) ACT; TO SPECIFY THE PRIORITY OF ELIGIBLE
BUSINESSES AWARDED GRANTS UNDER THE PROGRAM; TO DIRECT THE
MISSISSIPPI DEVELOPMENT AUTHORITY TO DEVELOP REGULATIONS,
PROCEDURES AND APPLICATION FORMS TO GOVERN THE ADMINISTRATION OF
THE PROGRAM; TO ALLOW THE MISSISSIPPI DEVELOPMENT AUTHORITY TO
RETAIN A PORTION OF GRANT MONTES, NOT TO EXCEED $750,000.00, TO
COVER ITS EXPENSES IN ADMINISTERING THE PROGRAM; TO PRESCRIBE
THE REQUIREMENTS OF APPLICATION FOR THE GRANT; TO SPECIFY THAT
THE USE OF GRANT FUNDS SHALL BE SUBJECT TO AUDIT, AND
NONCOMPLIANCE WITH THE TERMS OF THE GRANT SHALL REQUIRE,
REPAYMENT OF GRANT MONIES TO THE STATE; TO PROVIDE THAT THE
AMOUNT OF EACH GRANT SHALL BE FROM $1,000.00 T0 $25,000.00, WITH
THE TOTAL ANOUNT OF GRANTS AWARDED NOT TO EXCEED
$100, 000,000.00; TO REQUIRE THAT AT LEAST $15, 000,000.00 IN
GRANTS, EXCLUSIVE OF ADMINISTRATIVE EXPENSES RETAINED BY THE
ADMINISTERING DEPARTMENT, BE AWARDED TO MINORITY BUSINESS
ENTERPRISES; TO SPECIFY THAT GRANTS AWARDED SHALL NOT B= SUBJECT
TO TAX, BUT ELIGIBLE EXPENSES FOR WHICH GRANTS ARE RECEIVED MAY
NOT BE’ ITENIZED AS TAX DEDUCTIONS; TO CREATE THE BACK TO
BUSINESS MISSISSIPPI GRANT FUND IN THE STATE TREASURY TO FINANCE
THE PROGRAM; TO SPECIFY THAT ALL MONIES SHALL BE DISBURSED FROM
THIS SPECIAL FUND IN COMPLIANCE WITH THE REQUIREMENTS OF THE
CARES ACT AND GUIDELINES FROM THE UNITED STATES DEPARTMENT OF
THE TREASURY REGARDING THE USE OF MONIES FROM THE CORONAVIRUS
RELIEF FUND; TO AUTHORIZE THE GOVERNOR TO TRANSFER UNEXPENDED
MONIES IN THE FUND AS OF NOVEMBER 1, 2020, TO ANOTHER STATE
AGENCY FOR USE PURSUANT TO THE CARES ACT; TO PROVIDE THAT A
DECLARATION OF ANY PORTION OF THIS ACT AS INVALID SHALL NOT
AFFECT THE REMAINING PORTIONS OF THIS ACT; AND FOR RELATED
PURPOSES.
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IT ENACTED BY THE LEGISLATURE OF THE STATE OF
MISSISSIpeI:
SECTION 1. This act shall be known and may be cited as the
"2020 CovIp-
9 Mississippi Business Assistance Act.”
SECTION 2. As used in this act, the following terms shall
have the meanings ascribed unless the context otherwise
requires:
(a) "COVID-19" means the Coronavirus Disease 2019.
(>) “Business interruption period" means the period
beginning on March 1, 2020, and running through December 30,
2020, characterized by the disruption of regular business
operations owing to COvID-19,
(c)_ "Eligible business" means a corporation, limited
Liability company, partnership or sole proprietorship, or a
nonprofit corporation with a net worth or annual income not more
than Five Hundred Thousand Dollars ($500,000.00), that:
(4) Was domestic prior to March 1, 2020;
(41) Is in good standing with the Secretary of
State, if applicable;
(444) Has a controlling interest owned by one or
more Mississippi residents, whether individual resident citizens
of Mississippi domestic business entities;
(iv) Filed Mississippi taxes for tax year 2018
or 2019, or intends to file Mississippi taxes for tax year 2020,
unless exempt under Section 27-71-29, Section 27-13-63 or other
applicable provision of law;
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(v) Has customers or employees coming to its
physical premises, conducts business on customer premises, OF
has an owner who is an active participant in the day-to-day
operations of the business;
(vi) Has no more than fifty (50) employees; and
(vid) Does not derive income from passive
investments without active participation in business operations.
(4) “Eligible expense" means any cost eligible for
reimbursement under the guidelines, as they may be amended from
time to time, of the United States Department of the Treasury
regarding the use of monies from the Coronavirus Relief Fund
established by the Coronavirus Aid, Relief, and Economic
Security (CARES) Act.
{e) "Department" means the Mississippi Development
Authority.
(f) "Grant" means an award by the department to an
eligible business to cover eligible expenses in accordance with
this act.
(g) “Program” means the Back to Business Mississippi
Grant Program established in this act.
(n) "Minority business enterprise” means @ socially
and economically disadvantaged small business concern performing
2 commercially useful function which is owned and controlled by
one or more minorities or minority business enterprises
certified by the Mississippi Development Authority, at least
fifty percent (50%) of whom are resident citizens of the State
of Mississippi. Except as otherwise provided, for purposes of
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this act, the term "socially and economically disadvantaged
small business concern" shall have the meaning ascribed to such
term under the Small Business Act, 15 USC Section 637(a), oF
women, and the term "owned and controlled" means a business
which one or more minorities or minority business enterprises
certified by the Mississippi Development Authority own sixty
percent (608) or, in the case of a corporation, sixty percent
(608) of the voting stock, and control sixty percent (60%) of
the management and daily business operations of the business.
SECTION 3. (1) The Legislature facilitates access by
Mississippi small businesses to federal relief and recovery
funds related to COVID-19. Accordingly, the Back to Business
Mississippi Grant Program is established, to be administered by
the department, for the purpose of making grants to eligible
businesses to reimburse them for eligible expenses as defined in
this act. The program shall be established with One Hundred
Million Seven Hundred Fifty Thousand Dollars ($100,750, 000.00)
appropriated by the Legislature from the funds provided to the
state by the federal government from the Coronavirus Relief Fund
established by the CARES Act.
(2) The department shall immediately develop a system to
award grants to, first, eligible businesses that underwent
forced or voluntary closures during the business interruption
period and have not received federal aid related to COVID-19
through the Small Business Administration, and second, all other
eligible businesses.
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(3) The department shall develop regulations, procedures
and application forms to govern the administration of the
Program, The department may retain up to Seven Hundred Fifty *
Thousand Dollars ($750,000.00) of monies appropriated under this
act to pay reasonable expenses incurred in the administration of
the program.
SECTION 4. (1) Any eligible business desiring to
participate in the program shall make application for a grant to
the department in a form satisfactory to the department. The
application shall include verified documentation, signed under
penalty of perjury.
(2) The department shall use the funds provided by this
act to make grants to eligible businesses pursuant to
applications submitted under subsection (1) of this section, to
cover their eligible expenses.
(3) The use of grants shall be subject to audit by the
united states Department of the Treasury's Office of Inspector
General and the Mississippi Office of the State Auditor. A
business found to be fully or partially noncompliant with grant
requirements shall return to the state all or a portion of the
grant monies received. Applicants shall confirm their
understanding of these terms.
(4) The program shall be subject to the following terns
and conditions:
(a) A grant may be avarded to an eligible business in
an amount from One Thousand Dollars ($1,000.00) to Twenty-five
Thousand Dollars ($25,000.00). The total amount of grants under
20/$833/COVID~19 SMALL BUSINESS GRANTS. DOCnet anie Ae A ANN A RIAA STG ANNE RAB Wh
the program shall not exceed One Hundred Million Dollars
($100,000, 000.00).
(b) At least Fifteen Million Dollars ($15, 000,000.00)
in grants, exclusive of administrative expenses retained by the
department, shall be awarded to minority business enterprises.
(c) Grants awarded shall not be subject to taxy
however, eligible expenses for which grants are received may not
be itemized as tax deductions.
SECTION 5. There is created a special fund in the State
Treasury, to be known as the "Back to Business Mississippi Grant
Fund," from which the grants authorized by this act shall be
disbursed by the department. Monies received by legislative
appropriation to carry out the purposes of this act shall be
deposited into this special fund. All monies shall be disbursed
from the fund in compliance with the requirements, as they may
be amended from time to time, of the CARBS Act and guidelines
from the United States Department of the Treasury regarding the
use of monies from the Coronavirus Relief Fund. If on November
1, 2020, there are unexpended monies in the fund, the Governor
shall have the discretion to transfer monies to another state
agency to be used for eligible expenditures pursuant to the
CARES Act.
SECTION 6. If any section, paragraph, sentence, clause,
phrase or any part of this act is declared to be in conflict
with federal law, or if for any reason is declared to be invalid
or of no effect, the remaining sections, paragraphs, sentences,
20/SS33/COVID-19 SMALL BUSINESS GRANTS. DOCuv lauses, ph
2 clauses, phrases or parts thereof shall be in no manner affected
173 thereby but shall remain in full force and effect.
create.
174 ST: 2020 COVID-19 Mississippi Business Assistance Acti
20/8833/COVID-19 SMALL BUSINESS GRANTS.DOC