Trade Center Grant Program
On January 23, the Empire State Development Corporation (ESDC) announced
the World Trade Center Business Recovery Grant Program, designed to provide
assistance to certain businesses that were economically affected by the events
of September 11. Depending on their location and size, businesses located
downtown can receive up to $300,000 in grant assistance.
A business is eligible if it meets the following criteria:
It is a for-profit business entity, or a not-for-profit
organization as defined by the IRC, and is not involved in religious or
political activities; and
It maintained an office in the eligible area (see below)
as of September 11, 2001, and continues or intends to resume its operations
in New York City;
It employs fewer than 500 full-time permanent employees;
Its revenues or expenses were derived from operations in
the eligible area and it had at least one full-time permanent employee that
worked in the eligible area.
The eligible area is the entire area of downtown Manhattan below 14th Street.
This consists of four separately defined areas that determine the maximum
available grants. The grant amounts are based on annual gross revenues and
the business location within the eligible area:
Eligible businesses located in the 14th StreetHouston
Street area: the lesser of 0.8% of annual gross revenues for the fiscal
year ending prior to September 11, 2001, or $50,000.
Eligible businesses located in the Houston StreetCanal
Street area: the lesser of 1.2% of annual gross revenues for the fiscal
year ending prior to September 11, 2001, or $100,000.
Eligible businesses located in the South of Canal Street
area: the lesser of 2% of annual gross revenues for the fiscal year ending
prior to September 11, 2001, or $150,000.
Eligible businesses located in the restricted zone (area
bounded by Chambers Street, Broadway, and Rector Street): the lesser of
4% of annual gross revenues for the fiscal year ending prior to September
11, 2001, or $300,000.
Eligible businesses must file an application form with the following documentation:
Photocopy of the business federal tax return for
the most recent fiscal year ending before September 11, 2001, as well as
its New York City tax return for the same period if the business had multiple
Copy of the lease, deed, or permit for its business premises
within the eligible area as of September 11, 2001;
Copy of its current lease if it relocated from its prior
location to a new location within New York City;
Completed Form 8821, authorizing the ESDC to access tax
information from the IRS;
If the premises were leased, copies of both sides of rent
checks, or receipts for cash payments of rent, for July, August, and September
Copy of the utility bill for the premises from either July,
August, or September 2001; and
Voided check imprinted with the name of the eligible business
(grants will be paid via electronic transfers).
Applications will be accepted through December 31, 2002, and processed in
order of receipt.
This program is contingent on approval by the U.S. Department of Housing
and Urban Development. Grant applications are subject to audit, and grant
funds are subject to recapture in the event that the recipient fails to resume
its operations in New York City within one year, or relocates out of New York
City within three years. Finally, if a business has received assistance under
any other ESDC-funded programs, this amount will be deducted from the total
grant under this program.
The CPA Journal is
broadly recognized as an outstanding, technical-refereed publication aimed
at public practitioners, management, educators, and other accounting professionals.
It is edited by CPAs for CPAs. Our goal is to provide CPAs and other accounting
professionals with the information and news to enable them to be successful
accountants, managers, and executives in today's practice environments.
©2002 CPA Journal. Legal
Visit the new cpajournal.com.