Hotel-Motel Recovery Grant Program
Montgomery County and the Towns of Blacksburg and Christiansburg have established a grant fund to support small business recovery in response to COVID-19. One-time grants are being provided to offset business impacts during the pandemic.
Businesses meeting all of the following eligibility criteria are encouraged to apply:
- Must be an existing for-profit business physically located in the Town of Blacksburg, Town of Christiansburg, or Montgomery County and possess a valid business license
- Must be current on all fees, permits and taxes as of the time of application, except when extensions have been granted by one of the municipalities due to COVID-19
- Business has active liability insurance within 30 days
- Owner/Applicant is not currently in bankruptcy
- Must demonstrate impacts due to COVID-19 (i.e. has suffered 20% or more decrease in revenue OR net income when comparing 2019 and 2020 local hotel/lodging tax filings)
Note: Bed and Breakfasts are eligible to apply, but short term rentals (Airbnbs) are not.
Eligible Grant Uses
Grant funds must be expended in compliance with state and federal law. Funds may be used to reimburse the cost of business interruption caused by COVID-19, which may include any of the following expenses made after March 15, 2020 (deemed “necessary” expenses for business survival):
- Payroll expenses, including wages or benefits
- Lease or mortgage payments
- Utilities (excluding Town/County water and sewer)
- Personal protective equipment (PPE) or cleaning supplies or services
Ineligible items include anything paid before March 15, anything already being reimbursed by other federal or state funds or local CARES Act funds, and anything not deemed ‘necessary.'
- Completion of the grant application by December 7, 2020
- Maximum amount is based on the # of rooms
- One (1) grant per business establishment
- Funds will be reviewed by a grant review committee and awarded at one time
Maximum funds available per award will be based on the number of hotel rooms multiplied by $250.
Applicants will need to submit receipts for eligible expenses incurred between March 15 and November 1, 2020, up to the maximum award amount at the time of application.
Use of funds restrictions: Funds cannot be used to pay taxes, fees or any other payments due to the County or Towns.
Please register through this grants portal to access and complete the grant application. In addition to a completed application, the following documentation is required (application and below documentation due Dec. 7, 2020):
- Local Hotel Tax Filings from 2019 and 2020
- Copy of Business License
- A signed IRS Form W-9
- Receipts for Eligible Expenses Note: You will need to create one document with copies of all receipts and upload to the online application.
- Payroll: please submit both a payroll report (such as Excel or Quickbooks) and a bank statement showing that the payroll has cleared.
- Mortgage/Rent: please submit a receipt from your landlord for the months that are being claimed that includes the amount, your business name, and the address. Alternatively, we would accept a lease document or a mortgage estimate that contains the same information and a copy of a bank statement that shows payment.
- Utilities and Insurance: please submit a copy of an itemized bill and a bank statement showing that the payment was made.
For all payments made by check please include a cancelled check image in addition to the bank statement.
A review committee will evaluate the applicant’s documents for eligibility. Applicants will receive an email notifying them as to whether their online application has been accepted or denied by December 30, 2020.
This is a reimbursement-based grant program. Successful awardees will only be reimbursed for actual expenses incurred up to the amount requested in their original application. The Economic Development Authority will be distribute payment to approved businesses after proof of payment documentation has been reviewed and approved for payment.
The U.S. Treasury guidance allows states to use Coronavirus Relief Fund (CRF) dollars for expenditures “related to the provision of grants to businesses to reimburse the costs of business interruption caused by required closure.” The Commonwealth of Virginia has elected to disperse a portion of its allocation to local governments. Montgomery County and the Towns of Blacksburg and Christiansburg have elected to use part of their allocation to help preserve local businesses.
Note: Financial assistance provided pursuant to this program shall be provided at the locality’s discretion. When reviewing applications for financial assistance, the locality will use its discretion to determine whether providing such assistance would violate the intent of the provided program criteria or any related funding limitations.