The Oregon Business Development Department recently announced the Operational Cost Assistance Grant program available to specific businesses affected by COVID-19. The grant program is designed for businesses (with 100 or fewer employees) that experienced financial hardship due to the COVID-19 pandemic in Oregon and that (1) offer consumption of food and/or drink on-premise, (2) provide specified indoor physical exercise, recreational or family entertainment, OR (3) provide specific eligible personal services.

This new program is part of the $100 million provided for commercial rent relief assistance and operational costs assistance to small businesses and landlords the Oregon Legislative Emergency Board allocated on January 8, 2021.  The initial funds were distributed in two rounds through the Commercial Rent Relief assistance grants with the remaining funds (approximately $28 million) to be distributed through the Operational Cost Assistance Grant program.

Businesses that received assistance grants through the State of Oregon Commercial Rent Relief Program for the same location are eligible to receive the grant, if the award amount through the Commercial Rent Relief Program was less than $100,000.

Businesses must have 100 Employees or less per site and awards are based on FTE counts per individual business locations. Awards are as follows:

1. • 0 to 2 Employees (FTE) = $10,000
   • 3 to 6 Employees (FTE) = $20,000
   • 7 to 25 Employees (FTE) = $3,000 per employee
   • 26 to 50 Employees (FTE) = $75,000
   • 51 to 100 Employees (FTE) = $100,000

Applications for the Operational Cost Assistance Grant will be accepted beginning May 26^th. Awards will be selected through a random lottery process from all complete and eligible applications received. Applications will close on June 6^th with the lottery and application reviews held during the week of June 7^th.  Checks will be mailed late-June. Businesses should review the eligibility guidelines on the Business Oregon website prior to applying through the application link which will become available on the grant page on May 26^th.

Our expert team of state and local tax professionals at Geffen Mesher is ready and prepared to help navigate this credit for your business and can be reached at SALT@gmco.com.