Please review the information below for an overview of the Frisco/Collin County SBGP. If you still have questions after reading the information below, please contact the third-party administrator, the National Development Council (NDC), via email at NTXsmallbiz@ndconline.org or via phone at 1-833-696-0804.

Purpose: The City of Frisco is launching the Frisco/Collin County Small Business Grant Program (Frisco/Collin SBGP) for businesses physically operating within the Collin County portions of Frisco. The goal of this program is to help the businesses that have been negatively affected and suffered economic hardship due to business closure during the COVID-19 pandemic.

Funding: $3.1 million of Coronavirus Relief Fund funding (as provided by Collin County via the CARES Act).

Definition of small business: Business with no more than 100 employees and annual revenue of no more than $15 million.

Other eligibility requirements: Business must be a for-profit business with physical operations (Storefront/Office) located in the incorporated boundaries of the City of Frisco that are within Collin County. Business must be current in the payment of county and local taxes with no liens. Business must have been in operation on or before March 1, 2019.

Type of assistance: Grant

Maximum grant amount: $50,000

Maximum grant calculation: 3 months of estimated expenses for payroll and fixed costs from March 1 to May 31, 2020.

Payroll: includes gross payroll, retirement costs and health insurance costs.

Fixed costs: includes rent, lease or mortgage payment for real and business property that is paid to an unaffiliated/unrelated third party, utilities, and property/general liability insurance excluding costs of your personal residence.

Excluded persons: Elected City Officials, City Board Appointed Officials, City Employees and any relation within the second degree by consanguinity or the second degree by affinity to any member of the city council, city boards and commissions, and city employees are not eligible to receive grant funds.

Application process includes 

• Good Faith Certification as to truth and accuracy of submitted information/documentation and that the grant request is necessary due to conditions caused by COVID-19 (to be submitted only if grant approval is given).
• Unsworn Declaration of Owner as part of the online application process.

Types of businesses: 

• Corporation
• Individual
• Sole proprietorship
• Single-member limited liability company (LLC)
• LLC treated as a partnership
• LLC – C corporation
• LLC – S corporation
• Partnership
• Franchise  

Eligible Uses of Grant Proceeds

• Payroll costs for employees or owners draw (sole proprietors/partners)
• Contract labor
• Supplier payments
• Rent, lease or interest on mortgage payment for real property used for business purposes, like storefront or warehouse, excluding personal residence.
• Rent, lease or purchase payment for business property (e.g., delivery vehicle; food truck; kitchen equipment; furniture, technology, payment, and communications systems and equipment)
• Insurance (Health, Payroll, Property/General Liability)
• New or expanded technology applications and Wi-Fi services
• Utility payments for business properties, excluding personal residence.
• Cost of critical business operations (raw materials, marketing expenses, etc.)
• PPE and sanitation supplies and equipment
• Interest on other business debt obligations incurred before March 1, 2020, excluding personal residence.

Documents Required 

Documentation of Business - upload at least one:

• Secretary of State Texas File number
• State of Texas License number
• DBA (doing business as filing)
• 2018 or 2019 tax return (return only, schedules not required)
• Employer Identification Number or Individual Taxpayer Identification Number
• Certificate of Filing
• If sole proprietor, please provide documentation on when you started your business (example: include Occupational license and Sales Tax Certificate)

Other documentation required:

• Current driver's license or state issued ID
• Most recent filed business tax return (return only, schedules not required)
• Form 941 for 1st Qtr. 2020 (unless business is a sole proprietorship with no employees)
• Signed monthly Profit and Loss Statement for January 1, 2020 through May 31, 2020
• Bank Statements for the following five months – January to May 2020
• For sole proprietors: 2018 or 2019 Federal Schedule C
• Form W-9
• Documentation of fixed expenses, rent, lease or mortgage payment for real and business property that is paid to an unaffiliated/unrelated third party, utilities, and property/general liability insurance excluding cost of your personal residence
• PPP or EIDL grant agreement or promissory note (if applicable)

My business received PPP funding. Am I still eligible for a Frisco/Collin County SBGP grant?

Yes, businesses that received PPP funding are eligible for the Frisco/Collin SBGP grants. Businesses that have not received PPP funding will receive additional consideration during the review process.

What documentation do I need for proof of the existence of my business?

The Third-party Administrator (“TPA”) only needs to receive one document that proves the existence of a business. That document may be the Secretary of State of Texas File number, State of Texas License number, DBA, or a tax return. It is not necessary to provide more than one of these documents.

What businesses are considered “sole proprietorships” and can net income be used to calculate payroll costs?

Any business with only one owner that does not have payroll cost may report using net income as a sole proprietor. This includes corporations and LLCs with one owner and with no payroll cost; however, sole proprietors who have payroll costs (that file 941’s, W-3’s, etc.) must report payroll costs, not net income.

My business has locations in Collin County and other counties. Do I qualify for the Frisco/Collin County SBGP grant program?

Yes, if your business meets the other criteria, you will qualify.  Payroll and/or fixed cost amounts used to calculate the grant amount should be only for those portions of the business that are located in the City of Frisco within Collin County.

My professional services business was considered essential by local/state government orders, but I feel that my business was affected by the mandates. Can I apply?

Yes, all businesses that otherwise meets the criteria outlined in this Frisco/Collin County SBGP program document may apply if such business is located in the City of Frisco and within Collin County.  You will only be allowed to apply for reimbursement of actual losses that occurred during the time period outlined here.

What date do I show as the date my business was in operation?

To qualify, a business needs to have been in operation at a storefront/office conducting business in Frisco before March 1, 2019. Submittal of lease, mortgage, utilities statements showing occupancy of space before March 1, 2019 need to be submitted.

My business is located in a coworking space, is my business eligible to apply for a grant?

Those businesses that had a coworking space contract before March 1, 2019 on a continuing basis may also be eligible to apply. 

I had a storefront/office location prior to the COVID-19 pandemic restrictions issued by the State of Texas and was forced to close my physical presence. Am I eligible for a grant?

If a business does not currently have a storefront/office location, but had one pre-COVID-19 and vacated the space temporarily due to COVID-19, the business may be eligible for a grant. You may be asked to provide proof that you had a storefront/office location prior to COVID-19

Will I be notified whether or not my application is approved for a grant?

Yes. The TPA will notify all applicants on whether or not they have been approved for a grant or have been disqualified for ineligibility.

Do I need to file all of these documents?

Yes. These documents are necessary to ensure all applicants meet the required eligibility to receive grants. These same documents are required by many state and federal grant programs.

How soon will these grants be awarded?

The Frisco/Collin County SBGP will work to turn around grant funds quickly upon the conclusion of the submission period. The intent is to issue grants on or about mid-July. 

Who makes the grant award decisions?

Grant award decisions are made objectively by a third-party administrator based on a pre-determined set of application criteria and scoring guidelines. No appointed or elected officials are involved in the decision-making or influence the final award decisions. The City will only be conducting a review of approved grant applications identified by the TPA to ensure documentation is complete and appropriate for payment approval. Every applicant will have a fair and abundant opportunity to apply with advance notice.

I provide services outside my home, such as personal training, consulting, or coaching sports. However, I don’t own or lease a commercial storefront or office. Am I eligible to apply for the grant?

If a business does not have a commercial storefront/office location within Frisco, the business is not eligible to apply for the grant.

Will the grant amount awarded to a business be considered taxable income?

The CARES Act is silent regarding whether grant amounts received by small businesses pursuant to the Coronavirus Relief Fund are taxable income and/or whether business-related expenses covered by grant funding may be deducted from taxable income. Furthermore, the IRS has not issued guidance on the matter, although it has released Notice 2020-32 regarding the tax treatment of Paycheck Protection Loan Forgiveness. It is strongly recommended that the applicant consult with a tax advisor regarding the tax treatment of the award for its 2020 tax returns.

Will a 1099 be issued to business that receive a grant?

The TPA is currently awaiting federal guidance regarding the tax treatment of small business grants issued pursuant to the Frisco/Collin County SBGP. It is possible that guidance will be issued later this year and, if a 1099 is required to be issued, the TPA will issue one to each grant recipient. It is strongly recommended that the applicant consult with a tax advisor regarding the tax treatment of the award for its 2020 tax returns.

Are part-time employees included as part of the total number of employees?

Part-time employees are included in the 941 Form, as such, the total number of employees (full-time and part-time) reflected in said form will be used to confirm the eligibility criteria.

I operate a business with different locations. The total number of employees reported on Form 941 is over 100 but only 20 of them work at the City of Frisco locations. Do I still qualify? 

In order to determine qualification, the TPA will look at the number of employees reported on Form 941 for the reporting entity.  For instance, if the activity of all locations flow up to one taxpayer (business or personal) and such taxpayer files a tax return and form 941 at that level, TPA will use the gross revenue and number of employees reported at that level. But if each location or a group of locations are reported as a separate entity with its own tax return and payroll filings, then the TPA will look at what’s provided for that particular taxpayer for qualification

Where is the employer portion of Social Security and Medicare included on the application? 

The only expenses used to calculate the Maximum Grant Amount are those specifically listed on the application and defined as “estimated expenses”. Therefore, the employer portion of social security and Medicare costs are not eligible expenses and will not be included in the calculation. 

What is the required format for a Profit and Loss Statement?

There is no particular format required for a Profit and Loss Statement; however, it must provide appropriate level of detail in order for the TPA to be able to calculate the Maximum Grant Amount. Note that the Profit and Loss Statement must be signed and uploaded as a PDF file. The applicant business may make notes on the Profit & Loss if it so desires to explain any particular line item.

What are eligible utility expenses?

In addition to typical utility expenses like electricity and water, other eligible utility costs may include landline, cell phone, and installed security system costs. Note that all utility costs must be specific to the business.

What type of documentation is required to support fixed costs?

An applicant business may provide support for eligible fixed costs defined under “estimated expenses”, in the form of a lease agreement, mortgage statements, insurance declaration page, utility statements, and receipts. A general ledger detail with bank or credit card statement highlighting the expense may be acceptable, depending on the expense.

Why are the grant programs limited to businesses that have an actual storefront or physical operations within Frisco? (Why not home-based businesses?)

The business grant programs for Frisco businesses in both Collin and Denton Counties are structured to assist businesses with the most significant economic losses as a result of the COVID-19 pandemic and government-mandated closures. The grants are designed specifically to include assistance for operational fixed costs of physical-commercial or industrial locations within Frisco. These costs could include items such as rent, payroll, utilities, insurance excluding insurance for a personal residence, etc. 

Why are non-profits not included? 

The business grant programs for Frisco businesses in both Collin and Denton counties are designed to help for-profit businesses. There are a variety of COVID-19 assistance programs available for non-profit organizations that were not available to for-profit businesses.

Who can I call to answer some general questions I have about this application?

Please contact the third-party grant administrator at ntxsmallbiz@ndconline.org or call toll-free 1-833-696-0804.

I am in the process of completing a grant application in zoomgrants.com but encountered an issue with uploading information, who can help me?

Log into your ZoomGrants account. Then click the 'Help' button in the upper right-hand corner of the page. It will provide you an option to contact the administrator for questions, or to submit a ticket to ZoomGrants Support for technical assistance. You can also search ZoomGrants University at help.zoomgrants.com, email at questions@zoomgrants.com or call at 866.323.5404 ext. 2. ZoomGrants Support Hours are Monday - Friday, 9am – 6pm CST.