Seneca Falls Microenterprise Assistance Program
Entrepreneurs New Businesses Existing Businesses
Grant HIGHLIGHTS
The Town of Seneca Falls, in conjunction with the Seneca Falls Development Corporation, is set to boost small business in Seneca Falls thanks in part to a recently awarded Microenterprise Assistance Program (MAP) grant.
The Seneca Falls MAP is structured to help encourage the cultivation of new small businesses while also supporting existing small businesses looking to expand. Made possible through a grant from the New York State Homes and Community Renewal Community Development Block Grant (CDBG) program, the program carries a focus on entrepreneurship and job creation for low-moderate income earners.
Primary Program Objectives
1) Reduce storefront vacancy within the downtown Seneca Falls DRI area.
2) Assist in the start-up or growth of at least 6 small businesses.
3) Create at least 3 new jobs, in addition to self-employment for the business owners.
4) Create opportunities for LMI residents of the town, thereby decreasing poverty and generating household wealth.
5) Generate an economic multiplier that supports various local businesses, whether through the direct purchases of the awardee businesses or critical mass that attracts additional visitors.
Eligible Businesses
Grants are only available only to microenterprises. A microenterprise is defined as a commercial enterprise that has five (5) or fewer employees, inclusive of the owner(s) of the enterprise at the time of application.
Employment Requirement
Projects must result in the creation of at least one Full-Time-Equivalent (FTE) job. 2+ part-time employees who add up to a standard 40-hour work week would fulfill this requirement. In the case where no jobs are to be created, the employer and/owner or current employee base must be low or moderate-income person as established by Community Development Block Grant (CDBG). See next section below for current income eligibility guidelines.
Business Structure
The Microenterprise may be a sole proprietorship, partnership, limited liability company or corporation.
Location Requirement
The business must be located within the Town of Seneca Falls.
Proof of Feasibility
Microenterprise businesses must present a reasonable likelihood for long term viability based upon issues such as feasibility, marketability, management, competition, and capitalization.
Use of Funds
Grants can be used for machinery, equipment, inventory, operating costs, utilities, rent, furniture, fixtures, and other similar expenses. No funds can be used for construction, debt servicing, remodeling, or similar expenses.
Applicant Qualifications
Applicants for financing under this program shall be a United States corporation, LLC, partnership, or sole proprietorship, be able to repay if found in default of program objectives, and possess good character and reputation and be of legal age.
Passive Investing Prohibited
Grant funds will not be utilized for activities that consist primarily of investing, speculation in real estate, or to primarily assist in the sale or purchase of an existing business. Only the eligible expenses listed above are allowed.
Limits on Construction Funding
Construction, rehabilitation and renovation activities are NOT eligible using Microenterprise funding, as such activities would trigger Federal Labor Standards. Construction must be completed before the entity would be eligible for grant funding. As well, the grant must be successfully closed out before any construction can begin, despite the fact that the Microenterprise Assistance Program does not fund or contribute to any construction costs.
Entrepreneurial Training Requirement
Participation in a qualified business training program will be required of all approved program participants, regardless of established business history. The training program syllabus will include a general overview of business; accounting, taxes, and finance; marketing and e-commerce; and development of a business plan.
Awardees can choose to participate in either of the following courses:
• Fast Track to Business Start-up offered by the Onondaga Small Business Development Center (www.onondagasbdc.org) or other SBDC office.
• Business Startup Program offered by an Ibero Business Center (https://www.ibero.org/ibc/), including the Ibero Business Center of the Finger Lakes.
Awardees that have completed this program within 24 months prior to the SFMAP award date may request to waive this requirement. This waiver request can be submitted to SFDC and must include a letter of request from the business owner/entrepreneur, a copy of the awardee’s SFMAP application, a resume for the owner/entrepreneur, and a copy of the training program certificate of completion. This waiver request will be submitted to and must be approved by NYS OCR. If not approved by, the awardee must complete one of the above programs.
Costs should not be incurred by the awardee until the training is complete or waiver is approved, and no grant disbursements will be processed until the certificate of completion or waiver approval are received by SFDC.
Grant Eligibility
Eligible applicants for the SFMAP are entrepreneurs and small businesses that:
• Are located in or planning to locate in the Town of Seneca Falls, with a higher grading score given to those in or contributing to the downtown Seneca Falls DRI boundary. A map of the DRI boundary is below. For new businesses, the proposed location must be determined at the time of application. Any business in Seneca Falls is eligible!
• Currently have 5 or fewer employees, including the owner(s). The number of employees is a headcount, regardless of part-time or full-time status.
• Are up to date on all local, state, and federal taxes and obligations. This includes, but is not limited to, property taxes, any water/sewer fees, sales tax, income tax, fines, etc. An applicant with past due balances being paid under a mutually agreed payment arrangement is considered current as long as the arrangement is current.
• Are owned by or commit to creating at least one job for low- and moderate-income (LMI) person(s). LMI income thresholds for 2022 are attached as appendix B. Applicants qualifying as LMI will be asked to submit their most recent tax return with the application. HUD updates income thresholds annually, so as the program continues, awardees will need to ensure that they have the most up to date verification forms for their job creation reporting. Individuals in Seneca County qualify as LMI if their household meets the following thresholds:
• Commit to using funds for only eligible activities.
• Commit to providing an equity (cash) match of at least 10% of the awarded grant amount.
• Commit to following all applicable local, state and federal laws and regulations, including zoning, codes, business licensure, etc.
Eligible activities for use of SFMAP funds and equity match include:
• Machinery and Equipment (computer related equipment requires prior approval and must be used solely for business purposes).
• Furniture and Fixtures.
• Operating costs, including but not limited to Marketing, Inventory, Rent/Security Deposits, Utilities, Payroll.
• Reimbursement of the cost to participate in one of the entrepreneurial training programs listed below.
• Only expenditures made/incurred after the signed contract date will be eligible.
Funding Details
Grants will be awarded in amounts of $5,000 to $35,000.
Equity Match Requirement
Grant awardees must provide an equity (cash) match of at least 10% of the grant amount. For example, a grant award of $15,000 would require a match of $1,500. Proof of matching funds must be submitted in the form of relevant invoices and receipts showing expenditures made by the awardee. Match must be documented prior to any grant disbursements being requested.
Grant Disbursement
No funds will be disbursed to an awardee until a certificate of completion for the Fast Track to Business Start-up training program is submitted to SFDC, and until the equity match is documented.
Grants will be disbursed in two ways, both requiring submission of a request with supporting documents to SFDC:
1) Reimbursement: Expenditures must be first paid by the awardee and then submitted for reimbursement. The reimbursement request must include relevant invoices and receipts that satisfactorily show proof of payment. Hand written receipts will not be accepted as satisfactorily showing proof of payment. Upon review and approval of the request and documents, SFDC will issue a reimbursement check to the awardee.
2) Incurred Cost: Upon written request and with prior written approval of SFDC (which can be done via email or letter), contract expenditures, such as rent, professional services, or inventory purchases from a contracted vendor, can be submitted as an incurred cost for direct payment to the vendor. An incurred cost request must include an invoice with relevant information about the vendor, including name and address. Upon review and approval of the request and documents, SFDC will issue a check to the vendor to satisfy the invoice.
JOB CREATION
Awardees that do not qualify as LMI owners per the thresholds in Appendix C will be required to create at least 1 full-time equivalent job that will be given or made available to an LMI individual. If more than 1 job is created as a result of the SFMAP funding, at least 51% of the jobs created will need to be filled by LMI individuals. Job creation requirements must be met by August 30, 2024.
Calculating FTE Job Creation
• One full-time employee working at least 35 hours per week year-round will count as 1 FTE.
• When calculating FTE job creation for part-time positions, divide the number of hours worked per week by 40. For example, a part-time employee working 20 hours per week would count as .5 FTE, while an employee working 10 hours per week would count as .25 FTE.
• Seasonal employees can be counted toward FTE job creation on a pro-rata basis (based on 2,000 hours/year) only if the season is long enough for the job to be considered as the employee’s principal occupation (i.e. that the job comprises the majority of the hours worked by the employee during the year). For example, if an employee works 40 hours per week for 32 weeks of the year, that would be approximately 1,280 hours or .64 FTE.
GRANT APPROVALS
Eligibility Review
The SFDC will review each application for eligibility. This includes the eligibility of the applicant, as well as the eligibility of the proposed uses of funds.
Grant Committee
All applications deemed eligible by SFDC will be reviewed by the Grant Committee. The Grant Committee will score each application based on the scoring criteria outlined in Appendix C. Based on that scoring, the grant committee will decide which applications are funded and at what amount. Not all applications will receive funding, and not all awarded applications will receive the full amount requested.
The Grant Committee will be made up of the SFDC Director and the SFDC board, currently:
• Greg Zellers, Director
• Jerry Goodenough
• Kristin Sandroni
• Doug Avery
• Jessica Lorenzetti
• Christine VanDeusen
• Supervisor Mike Ferrara
• Kaitlyn Laskoski
Selected projects and applications will be submitted to the State for review and final approval of grant award.
Scoring criteria is as follows:
PROGRAM APPLICATION
Click here to download the Seneca Falls Microenterprise Application in MS-Word format.
APPLICATION DEADLINE HAS BEEN EXTENDED TO JULY 14, 2023!
It’s best to complete the application within Word and then print/save it since it’s an interactive form. If you need to print and complete with pen, please write legibly and add additional pages as necessary. If you are having trouble and cannot open the document, please email senecafallsdev@gmail.com for alternative options.
You can complete the application and send it by email, postal mail, or make arrangements for hand delivery. Details are provided on the application. Should you have any questions regarding the application, please do not hesitate to contact Greg Zellers at senecafallsdev@gmail.com for assistance.
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