The City of Lufkin anticipates receiving approximately $500,000 from the CARES Act and has partnered with the Hotel/Motel Occupancy Tax (HOT) Board to distribute those funds to Lufkin businesses through the We Love Lufkin small business grant program.
Of the funding, three quarters will go towards supporting any small business across the City of Lufkin. The other quarter is specifically dedicated to supporting minority-owned businesses and businesses located in low to moderate-income communities.
Grant applications will be reviewed and processed with the help of members of HOT Board.
Online applications will be accepted from July 10 through 5 PM on July 20. Complete applications will be reviewed as soon as they are received, as long as funds are available.
Grant funds are open to businesses who fit the following criteria:
For more information about eligibility requirements and other questions, a list of frequently asked questions is available.
- Small business (50 employees or fewer).
- Located within the City of Lufkin, with a Lufkin physical address (not just a P.O. Box).
- Registered to do business in the State of Texas.
- Business must have been in operation since Sep. 1, 2019.
- Demonstrate a 20% reduction in business as a result of the COVID-19 pandemic.
- Self-employed individuals, independent contractors, sole proprietors, and nonprofits serving the business community are also eligible.
- If applying as minority-owned, verify the business’s 51% ownership by a minority or group of minorities that are US-citizens, that the business is registered in the State of Texas, and owned, managed and operated on a daily basis by the minority of group or minority owners.
Depending on the number of full-time staff a business employed as of March 20, 2020, the funding levels for a We Love Lufkin grant are:
If a business has already received funds from the Paycheck Protection Program (PPP) or an Economic Injury Disaster Loan, they are still eligible to receive these funds. However, priority will be given to businesses that have not received funding through these programs.
- Level I businesses with less than 5 employees (including owner) are eligible for a grant of $5,000.
- Level II businesses (with 6-20 employees) are eligible for a grant of $7,500.
- Level III businesses (with 21-40 employees) are eligible for a grant of $10,000.
- Level IV businesses (with 41-50 employees) are eligible for a grant of $15,000.
What may these funds be used for?
We Love Lufkin grant funds may be used to reimburse the costs of business interruption due to COVID-19, as a result of required closures, voluntary closures to promote social distancing, or decreased customer demand. Examples of these costs include:
Businesses who receive grant funding will be required to document how the funds are used.
- Working capital.
- Machinery and equipment.
- Payroll expenses.
- Health care benefits.
- Contract labor.
- Supplier payments.
- Rent, lease or mortgage payment for real property used for business purposes. (Ex. A storefront or warehouse. Does not include personal residence.)
- Rent, lease or purchase payment for business property (Ex. delivery vehicle, food truck, kitchen equipment, technology, payment, and communications systems/equipment.)
- Utility payments for business properties. (Not including personal residence.)
- Cost of critical business operations. (Ex. raw materials, marketing expenses, etc.)
- Personal Protective Equipment (PPE), sanitation supplies and equipment.
Business owners can complete their We Love Lufkin funding application more quickly by getting the following business documents in order:
- A completed W-9 form.
- Documentation of Going Concern and Business Verification. This will require one of the following documents: Secretary of State Texas File Number, Employee Identification Number, DBA, 2018 or 2019 tax return (schedules not required).
- Proof of employment. This will require one of the following documents: W-3 form (Transmittal of Wage and Tax Statements), 941 form, or other document showing payroll expenses, employer insurance expenses, or employer retirement expenses for the first quarter of 2020 (prior to the COVID-19 emergency declaration on March 17, 2020) as well a the most current version of this document.
- Profit & Loss (P&L) statement for 2019, as well as a P&L statement as of May 2020.
- For sole proprietors, applicants are required to provide a 2018 or 2019 Schedule C.
- Documentation of minority ownership.