Connecticut Hospitality Industry Support Program

Connecticut Hospitality Industry Support Program

Department of Economic and Community Development (DECD)

Updated: August 8, 2022

 

Connecticut Special Act No. 21-15 as amended by June Sp. Sess., Public Act No. 21-2 included a $30,000,000 American Rescue Plan Act (ARPA) allocation to DECD for “CT Hospitality Industry Support.” To implement this program, DECD utilized data from the Department of Revenue Services (DRS) to identify two groups of recipients that are eligible for a Connecticut Hospitality Industry Support Grant, based on losses incurred due to the COVID-19 pandemic. Business owners who are eligible will receive a check directly from DRS during the week of August 8, 2022—no application is necessary.

 

This funding is available as part of ARPA’s Coronavirus State & Local Fiscal Recovery Funds and must be used in accordance with certain terms and conditions set by the U.S. Department of Treasury. The funding can only be used for eligible expenses incurred on or after March 3, 2021, and must be used to mitigate financial hardship, such as by supporting payroll and benefits; costs to retain employees; mortgage, rent, utility, and other operating costs; maintenance of existing equipment/facilities; or costs to support COVID-19 mitigation and infection prevention measures. Funding cannot be applied to any expenses that are already covered by any other governmental or private source, including insurance proceeds.

 

In the event your business has incurred or will incur eligible expenses that are less than the full Connecticut Hospitality Industry Support Grant amount, you do not want to accept this grant, or if you have any questions, please call the DRS Hotline at 860-297-5799.

 

Eligibility Criteria

 

Existing Businesses

New Businesses

To be eligible for a grant, existing hospitality businesses must have:

  • Experienced a decline of at least 15%, but no more than 95%, in gross receipts from CY 19 to CY 21
    • For the purposes of this calculation, CY 21 gross receipts includes any federal Restaurant Revitalization Fund (RRF) grants
  • At least 50% of total gross receipts coming from the sale of meals and certain drinks, room occupancy, and admissions or be registered with the following NAICS codes:
    • Arts, Entertainment, and Recreation (7111, 7112, 7113, 7114, 7115, 7121, 7131, and 713950)
    • Accommodation and Food (72)
    • Breweries (312120)
    • Wineries (312130)
    • Movie Theaters (512131 and 512132)
    • Travel Arrangement and Reservation (5615)
    • Other Transit and Transportation (4853, 4854, 4855, 4859)
  • More than $100,000, but less than $125,000,000, in CY 21 gross receipts
  • Less than $50,000,000 in CY 21 wages
  • Filed with a CT address to DRS
  • Been in good standing with DRS

To be eligible for a grant, new hospitality businesses must have:

  • Commenced filing with DRS during CY 19, CY 20, or CY 21
  • At least 50% of total gross receipts coming from the sale of meals and certain drinks, room occupancy, and admissions or be registered with the following NAICS codes:
    • Arts, Entertainment, and Recreation (7111, 7112, 7113, 7114, 7115, 7121, 7131, and 713950)
    • Accommodation and Food (72)
    • Breweries (312120)
    • Wineries (312130)
    • Movie Theaters (512131 and 512132)
    • Travel Arrangement and Reservation (5615)
    • Other Transit and Transportation (4853, 4854, 4855, 4859)
  • More than $100,000, but less than $125,000,000, in CY 21 gross receipts
  • Less than $50,000,000 in CY 21 wages
  • Filed with a CT address to DRS
  • Been in good standing with DRS
  • Not received a grant from the federal Restaurant Revitalization Fund (RRF) program

 

Distribution Methodology

 

Eligible existing hospitality businesses will be awarded a grant using a point system that is based on (a) the size of the business (as measured by 2019 gross receipts) and (b) loss in revenue (as measured by the decline in gross receipts when comparing 2019 to 2021). Businesses are awarded points based on the below criteria, and when added together result in a minimum (“base”) grant of $7,500 (or $15,000 if located in a Distressed Municipality) or a maximum grant of $49,999. However, no business can receive more than 10% of their 2021 gross receipts.

 

All eligible 2019, 2020, and 2021 new hospitality businesses will receive a base grant of $7,500 (or $15,000 if located in a distressed municipality). However, no business can receive more than 10% of their 2021 gross receipts.

 

Total Points

Award

0

(Base Grant Amount)

$7,500 ($15,000 if located in a Distressed Municipality)

1

Base + $10,000

2

Base + $20,000

3

Base + $30,000

4

Base + $40,000

5

Maximum Award = $49,999

 

Criteria (Minimum: 0 points, Maximum: 5 points)

Add 1 point each if:

  • 2019 Gross Receipts are $1 million or greater but less than $2 million
  • Decrease in Gross Receipts from CY 19 to CY 21 is greater than 25% but less than 50%

Add 2 points each if:

  • 2019 Gross Receipts are $2 million or greater but less than $4 million
  • Decrease in Gross Receipts from CY 19 to CY 21 is greater than 50%

Add 3 points if:

  • 2019 Gross Receipts are $4 million or greater