CDBG-CV – Frequently Asked Questions

CDBG-CV Frequently Asked Questions

How much of the business information is public information?

A few things that are open records related to these projects are the following: Name of business; amount of funds received and what they are using the grant funds for; and any PII (Personally Identifiable Information) information related to business. Information on employees is excluded from public release. Also, the job certification form is not public information.

 

What income qualifies as Low-to-Moderate Income(LMI)?

1 Person2 Person3 Person4 Person5 Person6 Person7 Person8 Person
FamilyFamilyFamilyFamilyFamilyFamilyFamilyFamily
LMI36,20041,40046,55051,70055,85060,00064,15068,250

 

 

Is the state issued regular unemployment considered income?

Yes.

 

Federal enhancement provided by the CARES Act is not to be included as income?

Not to the company. But it is to be included as income for the employee on the job certification form.

 

Can CBDG-CV funds be used to pay utilities owned by the county or city?

No.

 

Does having tax liability in arrears with the Kansas Department of Revenue or IRS disqualify a business from receiving CDBG-CV funds?

Yes, it is a question on the application form.

 

Who is responsible to document that there is no Duplication of Benefit?

It is the responsibility of the grantee to document that there is no Duplication of benefits in their files for each business or meal program being awarded CV funds. It is a duplication of benefits for CDBG-CV funding if the CV funding is used for the same time period as other federal funds. The business must use the CV funds for a different project activity or time period than the other federal funds to avoid duplication of benefits. Stimulus payment has no effect on the business, but is to be accounted for as income. CV funds cannot be used to repay debt.

 

Is the 51% LMI requirements for all jobs in a company or just for jobs retained?

51% of all Full Time Equivalent(FTE) jobs retained must meet the LMI requirement.

 

How will we verify LMI information?

LMI is determined by the job certification form and 2020 Kansas Income Limits spreadsheet.

 

How does the owner play into the LMI numbers for a business?

If it’s a micro business (1-5) the business owner can be counted. If the business owner meets the LMI requirements, no employee job certifications form will be required. If they do not qualify as LMI, employee job certification will be needed. If it’s an economic development business (6-50), the owner is not counted as an FTE.

 

Can a contractor utilize the program with a subcontractor as a wage earner?

No, because the wage earner needs to be an employee of the business in order to meet the LMI and job retention requirements. In this example, the subcontractor is not an employee of the contractor.

 

What are the expense categories that should be used/listed?

Must be working capital. No construction or debt payoff.

 

How far in advance can a business use funds to cover rent?

Rent was not specified to a current number of days.

 

Are ag businesses (farmers, ranchers, diaries, orchards, honey producers, etc.) eligible for CV funds so long as they meet the national objective of jobs retained?

No, they are ineligible. Funds are available through USDA for ag businesses.

 

If someone runs a business out of their home what percentage of utilities can be claimed?

Whatever they would claim on taxes as expenses.

 

Is this funding usable for repairs or structural development that has not yet happened?

No, this is not eligible under CDBG-CV

 

Are receipts for monthly bills of already completed repairs (upgrading a garage to a hair salon) that were not able to be paid in March-May acceptable (working capital)?

Upgrading repairs to a building is not eligible, as it is not working capital.

 

Can this be used to facilitate the sale of a business whose sale stalled during COVID?

No, the funds cannot be used to sell a business.

 

How much insurance can be submitted, assuming a pro-rated for 3-months is acceptable.

Insurance from March 1 that could not be paid.

 

Can this be used to pay property taxes accrued outside the three months (March-May) but possibly due during those same months, i.e. 2019 property taxes?

Only the months affected by COVID-19 can be paid using CDBG-CV, Taxes for 2019 cannot be paid with this money.

 

What type of justification, bill or invoice needs to be submitted for self-labor to clean/disinfect a facility?

Invoice for materials is acceptable.

 

How would a self-employed individual justify lost income? 2019 tax return prorated 3-months? March-May 2019 income vs 2020 income?

It is based on the previous 12 months from the date they submit a job certification form. So they will need to account for the losses due to COVID-19. The individual should know whether he/she has worked or not during the time and can justify it that way.

 

Does a business need to have a duns number to benefit from cv funds?

Yes, they are required to have a DUNS.

 

Is there a timeframe (60 days) for inventory receipts or is it any date after 3/1/2020? Can they give us receipts for four months of inventory?

The 60-day timeframe starts on the day the business is allowed to reopen. Only 60 days of receipts are required.

 

What is considered proof of payment? Ex. Invoice with check number and paid date on it?

Yes, an invoice marked paid is acceptable.


Meals Programs

 

What information must a grantee have from the meal programs prior to requesting those funds from the state?

Copies of invoices or payrolls for the expense.

 

Are meal programs allowed to be reimbursed for costs that they incurred starting March 1, 2020?

Yes, any meal program costs from March 1, 2020 forward are acceptable, so long as vouchers can be produced indicating these expenses.

 

For food pantries, they likely do not have cash on hand, so the request for funds would not be a reimbursement. Is the order/bill of sale good enough to request funds?

Yes, and also copies of canceled checks or other proof payment made before the next draw.