Updated 3.11.21

FAQ

Subject to Change

For more information, please visit the website.

Background Information

1. What is the YoCo CHIRP (COVID-19 Hospitality Industry Recovery Program) Fund? Is it a grant or loan program?

The YoCo CHIRP (COVID-19 Hospitality Industry Recovery Program) Fund is awarding grants to eligible hospitality businesses ranging from $5,000 to $50,000 that do not have to be paid back to alleviate revenue losses and pay eligible operating expenses due to the COVID-19 pandemic incurred commencing on March 1, 2020, to the date of application submission.

The York County Economic Development Corporation serves as the Certified Economic Development Organization (“CEDO”) for York County and is an affiliated entity of the York County Economic Alliance (“YCEA”). As such, the County of York has contracted with the York County Economic Alliance and its affiliated entity York County Economic Development Corporation as the authorized CEDO to administer this program. Most of the guidelines for eligibility and criteria for this funding program were created by the legislation included in Act 1 of 2021.

2. What is the total grant program size?

On February 5th, Governor Wolf signed into law Act 1, legislation that set aside $145 million in funds to aid hospitality industry businesses affected by the COVID-19 pandemic. York County will receive $5.08 million to award to hospitality businesses with the NAICS designation 721(Accommodations) and 722 (Food Services and Drinking Places), and to cover administrative costs for operating the program.

3. What can the grant funds be used for?

This grant program was established to alleviate revenue losses and pay eligible operating expenses due to the COVID-19 pandemic incurred from on March 1, 2020 to date of application submission:

1. Funds can be used for working capital/operating expenses including payroll and nonpayroll expenses, that is both ordinary and necessary.

An ordinary expense is one that is common and accepted in an eligible applicant’s industry. A necessary expense is one that is helpful and appropriate for an eligible applicant’s trade or business. The operating expense must have been incurred between March 1, 2020 and the date of application submission.

2. Examples include, but are not limited to

• Payroll costs, costs related to the continuation of group health care benefits during periods of paid sick, medical, or family leave, and insurance premiums.
• Working capital for the purpose of paying mortgage principal and interest payments (but not mortgage prepayments); and principal and interest payments on any other debt obligations that were incurred before February 15, 2020.
• Rent payments, utility payments.

• For rent, lease or mortgage payments, the obligation must have been in force before February 15, 2020. A mortgage or lease agreement in force before February 15, 2020 that was refinanced or restructure after February 15, 2020 is deemed in force and is still eligible. For utility costs, service must have begun before February 15, 2020.

• Working capital for the purpose of covering the costs of re-opening business operations after being fully or partially closed due to the state-mandated business closure period as long as the expense was incurred due to COVID-19.
• Any expenses (costs) incurred related to the expense of implementing COVID-19 preventative measures, including but not limited to specialized equipment, barriers, PPE, and employee training expenses to ensure compliance with state and federal CDC guidelines for reopening.
• Any Covid-19 related expenses not already paid for with other government COVID relief funding programs, including but not limited to: SBA Payroll Protection Program, other SBA Disaster/Emergency Funds, PA COVID-19 Working Capital Access program, YoCo Strong Restart Grant Fund or City of York COVID-19 relief program.

Grant awards may not be used to pay the same eligible operating expenses for which an eligible business received payment, reimbursement, or loan forgiveness from other government COVID relief funding programs, including but not limited to: SBA Payroll Protection Program, other SBA Disaster/Emergency Funds, PA COVID-19 Working Capital Access program, YoCo Strong Restart Grant Fund or City of York COVID-19 relief program. Receipt of a prior Federal Government or Commonwealth grant does not disqualify an applicant.

4. How much can I apply for?

Grant amounts shall be the lower of the eligible grant amount based on the revenue or, the amount of eligible expenses incurred between March 1, 2020 and date of application submission, not already paid for with other government COVID relief funding programs, including but not limited to: SBA Payroll Protection Program, other SBA Disaster/Emergency Funds, PA COVID-19 Working Capital Access program, YoCo Strong Restart Grant Fund or City of York COVID-19 relief program.

Grant awards will range from $5,000 to $50,000 per applicant in $5,000 increments. Award amounts may be adjusted to accommodate grant eligibility and application demand as necessary.

Annual revenue                                        Grant Amount

Up to $25,000                                                $5,000

$25,001 -$50,000                                      up to $10,000

$50,001 - $100,000                                   up to $15,000

$100,001- $250,000                                 up to $20,000

$250,001 - $500,000                               up to $25,000

$500,001- $750,000                                  up to $30,000

$750,001 - $1,000,000                              Up to $35,000

$1,000,001 - $1,500,000                           Up to $40,000

$1,500,001 - $2,500,000                           Up to $45,000

Above $2,500,001                                     Up to $50,000

5. May I apply these grant funds against costs that were used to apply for another grant or loan program (e.g., PPP loan)?

No, funds received under this grant program may not be applied against any costs to satisfy the requirements of another grant or loan program.

6. How will the funds be dispersed?

York County will receive $5.08 million to award to hospitality and restaurant businesses with a NAICS designation within the accommodation sector (721) or Food Services and Drinking Places sector (722). These are the ONLY eligible NAICS codes, pursuant to PA Act 1 of 2021.  A portion of these funds will cover administrative costs for operating the program.

        Priority in the awarding of grants shall be given to eligible applicants that:

• Have not received a loan or grant issued under the authority of the Commonwealth or the Commonwealth's political subdivisions or by the Federal Government under the CARES Act

• For example: SBA Payroll Protection Program, other SBA Disaster/Emergency Funds, PA COVID-19 Working Capital Access program, YoCo Strong Restart Grant Fund or City of York COVID-19 relief program.

• Were subject to closure by the proclamation of disaster emergency issued by the Governor on March 6, 2020, and any renewal of the state of disaster emergency; or can demonstrate one of the following:
• Can demonstrate a reduction in revenue:

Of 50% or more for the period beginning after March 31, 2020, and ending before Dec. 31, 2020, in comparison to the period beginning after March 31, 2019, and ending before Dec. 31, 2019.

If the eligible applicant was not in operation during the entire comparison period, but was in operation on Feb. 15, 2020, a monthly average reduction in revenue of 50 percent or more for the period beginning after March 31, 2020, and ending before Dec. 31, 2020, in comparison to the period beginning after Jan. 1, 2020, and ending before April 1, 2020.

• Historically disadvantaged businesses federally defined as businesses that are 51% or more owned and operated by persons of color.
• Businesses that are 51% or more owned by a woman or armed service veteran.

Although applicants meeting these criteria will receive prioritization, we encourage all eligible applicants to apply and anticipate awarding grants outside these prioritization areas.

Application Information

7. How can I apply?

The application will be available on www.preparedyork.com/CHIRP   

8. When will the application be available?

The application will be available on Monday, March 15 by 9am on www.preparedyork.com/CHIRP and will remain open until Wednesday, March 31 at 5pm. This is not a first come, first served application. All applications will be reviewed after the March 31 deadline.

9. How long will it be open for?

It will remain open until Wednesday, March 31 at 5pm. This is not a first come, first served application.

Applications will not be reviewed until the application window has closed on March 31st at 5:00 p.m. It is anticipated that the total application funding request will exceed the amount of funding available to disburse. In which case, applications will be compiled, reviewed, and scored. A list of recommended approvals will be presented to the County Commissioners for their approval. This list will be presented using unique identification numbers to ensure anonymity of the applicant, until a final award has been made. If funding is awarded, the applicant will be notified. A grant contract will be required to be executed prior to fund disbursement. Upon execution of a grant contract, the grant award will be transferred electronically via ACH. Upon completion of the program and all funding disbursements made, the cumulative award list will be made public in accordance with the Pennsylvania Right to Know Law.

10. What documents will I need to apply?
    The following documents will help you prepare your application and will be needed at the time of submission. It is possible that the applicant will be required to provide additional documentation throughout the review period.

• Applicant will be required to submit their business’s 2019 tax return filed  – must be in an electronic form for online upload, such as PDF or JPEG

• If the applicant does not have one due to starting their business in 2020 prior to February 15, 2020 then a Profit and Loss (P&L) statement for the entire year shall be permitted; and a profit and loss statement from January 1, 2021 through the date of application must be provided in an electronic form for online upload, such as PDF or JPEG.

• If you are unsure how to prepare these documents, there will be a series of webinars on www.preparedyork.com/CHIRP for you to attend and learn how to prepare these documents.

• Applicant business will also need to provide internal financial statements showing revenue for 2019 and 2020.

• A template in spanish and english is available on www.preparedyork.com/CHIRP.

• Any form of acceptable government-issued photo ID for primary business owner; must be in an electronic form for online upload, such as PDF or JPEG.
• Signed Application certification
• W-9 with business mailing address, and a business voided check to process grant check if selected as a recipient.
• Proof of tax payment plan- required only if the applicant is found delinquent of paying 2019, or prior years, York County property tax or 2019, or prior years, County Hotel Excise Tax. Please call the York County Tax Claim Bureau office at 717-771-9232 if you believe you are delinquent on your 2019 business property/hotel tax.

11. What information will I need to apply?

The following list of information may be needed at the time of submission.

NOTE: all submissions MUST be made online. No paper applications will be accepted. If you need assistance with technology, visit one of our office hours listed on www.preparedyork.com/CHIRP 

Business Entity Name

Business DBA Name (if applicable)

Business Entity EIN/SSN

Business Applicant Contact Info

Business Location (Municipality, Street Address, Zip Code)

• Unsure which municipality your business falls in? See this link and enter your address prior to applying.

        Business Industry NAICS Code (See List below in question 12)

Unsure of where to find your NAICS code?  Use the breakdown below to find your NAICS code on your business tax forms.

• If you file a Schedule C as a Sole Proprietor, enter the code from BOX B on the Profit or Loss From Business Form.
• If you file a Form 1065 as a Partnership Entity, enter the business code from BOX C on the U.S Return of Partnership Income Form.
• If you file a Form 1120S as a S Corporation Entity, enter the business activity code from BOX B on the U.S Income Tax Return for S-Corporation Form.
• If you file a Form 1120 as a C Corporation Entity, enter the business activity code from Page 4, Schedule K, Line 2a on the U.S Corporate Income Tax Return for C-Corporation Form.

        Brief Summary of what your business does

        Brief summary of COVID Impact

        Date it was established

        Business website

Business Ownership Breakdown

        Example:

        Number of Employees- Full Time Equivalent Employees (FTE) in calendar year 2019. FTE is calculated by taking the total number of hours compensated for all employees throughout the year and dividing it by 2080.

        Revenue generated in 2019- template available on www.preparedyork.com/CHIRP 

        Revenue generated in 2020- template available on www.preparedyork.com/CHIRP 

        2019 Gross Revenue

        Amount of Grant Request- review the funding tiers in question #4 before entering an amount.

        Use of Grant Funds

        2019 Operating Expenses

        2019 Federal Tax Return

• If the applicant does not have one due to starting their business in 2020 prior to February 15, 2020 then a Profit and Loss (P&L) statement for the entire year is permitted; and a profit and loss statement from January 1, 2021 through the date of application must be provided in an electronic form for online upload, such as PDF or JPEG.

        Information on other government funding sources.(Drop down list)

        Signed and completed W-9 Form

        Signed Application Certificate Form

12. What does NAICS code mean? What are the NAICS codes in the 721 and 722 sectors?

The North American Industry Classification System (NAICS) is the standard used by Federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing, and publishing statistical data related to the U.S. business economy. Pursuant to the language of PA Act 1 of 2021, these are the ONLY eligible codes that can apply for the YoCo CHIRP Grant.

13. How do I calculate annual revenues/gross receipts?

If your business was established prior to January 1, 2020

Revenues are based on the IRS tax form definition: Gross Sales (less any returns and allowances) as reported on Line 1.c. on both the 1120 (corporate return), 1120S (S-Corp return), and on IRS Schedule C for single member LLC's and sole proprietorship, Line 3.

        If your business was established prior from January 1- February 15, 2020

Revenues are based on the IRS tax form definition: Gross Sales (less any returns and allowances) as reported on Line 1.c. on both the 1120 (corporate return), 1120S (S-Corp return), and on IRS Schedule C for single member LLC's and sole proprietorship, Line 3. If you have not filed your 2020 tax returns, use the revenue template provided on www.preparedyork.com/chirp  to calculate your 2020 revenue.

Eligibility Information

14. Who will be eligible?

• The YoCo CHIRP (COVID-19 Hospitality Industry Recovery Program) Fund is awarding grants to eligible hospitality businesses ranging from $5,000 to $50,000 that do not have to be paid back to alleviate revenue losses and pay eligible operating expenses due to the COVID-19 pandemic incurred commencing on March 1, 2020, to the date of application submission.

• Eligible Business must have been in operation by or prior to February 15, 2020.

• An eligible business must be a for-profit entity and not a publicly traded company.

• An eligible business must not have a tangible net worth of more than $15 million as of February 15, 2020.

• An eligible business must have 300 or fewer full-time equivalent employees (FTE’s).
• An eligible business must operate a physical location in York County, Pennsylvania and must file a federal and state tax return. The grant program’s priority will be to exhaust all funds to individual award recipients before funding multiple entities with common ownership.
• An eligible business must have a NAICS designation within the accommodation sector (721) or Food Services and Drinking Places sector (722). These are the ONLY eligible NAICS codes, pursuant to PA Act 1 of 2021.
• An eligible business may be structured as a C-corporation, S-corporation, limited liability corporation, partnership, or sole proprietorship.
• An eligible business must be in operations and cannot cease operations within one year of the date of the application.
• Grant awards may not be used to pay the same eligible operating expenses for which an eligible business received payment, reimbursement, or loan forgiveness from the CARES Act of 2020, Consolidated Appropriations Act of 2021, or the COVID-19 Emergency Supplement to the General Appropriations Act of 2019. Receipt of a prior Federal or Commonwealth grant does not disqualify an applicant.

15. Eligible business must demonstrate:

If the business started between prior to January 1, 2019:

A reduction in annual revenue decline of 25% or reduction in quarterly revenues of 25% or greater when comparing quarterly revenues from the same quarters in 2019 and 2020.

If the business started between July 1-December 31, 2019:

Quarter 3 or Quarter 4 revenue of 2019 must show at least a 25% decline compared to any quarter in 2020.  

If the business started between October 1-December 31, 2019:

Quarter 4 revenue of 2019 must show at least a 25% decline compared to any quarter in 2020.  

If the business started between January 1-February 15, 2020:

The entity must demonstrate at least a 25% revenue decline when comparing the first quarter of 2020 to any other quarter in 2020.

For more information, please visit the website.

16. How many employees does my business need to have to be eligible?

300 or fewer Full Time Equivalent Employees (FTE) in calendar year 2019.

FTE is calculated by taking the total number of hours compensated for all employees throughout the year and dividing it by 2080.

17. If I received other COVID government funding assistance, can I still receive funding from the YoCo CHIRP (COVID-19 Hospitality Industry Recovery Program) Fund?

Yes, you are still eligible to apply. Please note that in your application at time of submission.

18. I own more than one business in York County, am I able to receive more than one grant?

The grant program’s priority will be to exhaust all funds to individual award recipients before funding multiple entities with common ownership.

19. Is a business who was in operation for less than a year eligible to apply?

If the applicant business started between January 1, 2020 and February 15, 2020 you are eligible, but the business must demonstrate at least a 25% revenue decline when comparing the first quarter of 2020 to any other quarter in 2020.

The applicant will also need to provide a Profit and Loss (P&L) statement for the calendar year 2020; and a profit and loss statement from January 1, 2021 through the date of application must be provided in an electronic form for online upload, such as PDF or JPEG.

If the business started after February 15, 2020, it is not eligible for the YoCo CHIRP grant program.

20.  What type of businesses are ineligible?

●     Businesses that do not have a physical location in York County, Pennsylvania.

●     Government-owned entities or elected official offices.

●     Businesses that have ceased operations with no plan to reopen.

●     Businesses that spend more than 51% of their budgeted expenses engaged in political or lobbying activities.

●     Applicant or business currently in bankruptcy proceedings or guilty of criminal fraud felony within the last five years or under current investigation for fraud.

●     Businesses delinquent with 2019, or prior years, County Hotel Tax or County Property Tax with no documented plan for repayment (not on a payment plan).

●     Nonprofit Organizations

●     Applicants not in the specified eligible hospitality NAICS codes pursuant to PA Act 1 of 2021.

Disbursement

21. Who will disburse the funds?

Grant awards will be made via ACH Direct Deposit following grant review and approval of recommended applicants by the County of York.

Other

22. If I have questions for my application, who can I contact?

Telephone assistance will be available at 717-848-4000

To connect with someone from our team via email, visit here.

The York County Economic Alliance will be holding a series of webinars, available here, to assist in the application process. In addition, we will be holding office hours around the county to answer questions about the funding and provide assistance with the preparation of your application. Staff will not be able to complete/submit the application on your behalf.

23. If I applied for the YoCo Strong Restart Grant program, do I need to apply for this program?

Yes, the YoCo CHIRP grant program is separate from the YoCo Restart Grant program and you must submit a separate application along with documentation requested by the YoCo CHIRP program.

24. Will I receive a grant if my application is incomplete, or contains errors?

No. A grant will not be awarded if the application is incomplete, not properly executed, contains erroneous information or lacks proper documentation. Only full, complete and accurate applications will be considered. Applications with technical errors or without the required back-up documentation will be removed from the applicant pool and deemed ineligible. It is the applicant’s responsibility to ensure the application is complete and accurate.

25. Will there be assistance in another language?

Yes, the www.preparedyork.com website is accessible in over 30 languages and our staff can help with assistance in Spanish. To connect with someone from our team via email, visit here.

.