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What is the We're All In Small Business Grant Phase 2 program?
The We're All In Small Business Grant Phase 2 program is designed to help small businesses get back on their feet as they re-emerge from the COVID-19 pandemic, while also encouraging adoption of best practices to keep employees, customers, and communities safe.
Funded by the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act, the We're All In Small Business Grant Phase 2 program will provide grants to Wisconsin small businesses to assist with the costs of business interruption or for health and safety improvements, wages and salaries, rent, mortgages, and inventory.
Phase 1 of the program was designed, marketed and administered by the Wisconsin Economic Development Corporation (WEDC). Applications are no longer accepted for Phase 1. The Wisconsin Department of Revenue (DOR) is administering Phase 2 of the program and WEDC is focused on marketing the program.
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What does it mean to be a We're All In business?
The program aims to help Wisconsin’s small businesses get back on their feet while also encouraging adoption of best practices to build confidence in reopening Wisconsin’s economy. Grant recipients become We’re All In businesses by pledging to observe health safety best practices in their facilities to protect employees, customers, and the communities in which they operate. Industry-specific safety guidelines can be found at
wedc.org/reopen-guidelines. WEDC and DOR are encouraging all businesses, large and small, to adopt behaviors that maximize safety and balance health and livelihoods. We’re all in this together to be healthy and safe.
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When can I apply?
Applications will be accepted between 8:00 a.m. on Monday, October 19 and ending at 11:59 p.m. on Monday, November 2.
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How do I apply?
The application period ended November 2, 2020.
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Can someone else apply on my behalf?
Businesses may apply themselves or have a representative apply on their behalf. The person that completes the application must enter their first and last name.
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How long will the application take to complete?
The online application will not take long to complete. Applicants should have the business's 2019 federal tax return ready and available before starting the application. The amount of revenue from the appropriate line of your 2019 federal form (see answer to question #9) is used to determine eligibility. You cannot save and complete the application at a later time.
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Can I save the application and complete later?
No. You must complete the application in one session. The online application will not take long to complete.
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Can I print the completed application?
No. You will have to print each page or tab of the application as you complete it. To print each page, right-click on the page and select print from the browser.
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Who is eligible to apply?
A business may apply if
all the following criteria are met:
- The business started operating prior to January 1, 2020, operated in 2020, and suffered an economic loss as a result of the COVID-19 pandemic. An economic loss may be from lost revenue or increased expenses as a result of the pandemic.
- The business filed their 2019 federal and Wisconsin income or franchise tax return (certain exceptions apply for fiscal-year filers – see Question #14 below)
- The business has more than $0 and less than $1 million in annual revenues (gross receipts less returns and allowances) shown on their federal tax return, specifically:
- Line 1c of 2019 Form 1065
- Line 1c of 2019 Form 1120
- Line 1c of 2019 Form 1120-S
- Line 3 of 2019 Schedule C (Form 1040 or 1040-SR)
- The business had 1 to 50 full-time equivalent (FTE) employees in 2019. For purposes of determining eligibility for the We're All In Grant program, a sole proprietor and partner of a partnership who are actively engaged in the operation of the business, count as employees for this criterion. Seasonal businesses should use the highest total FTEs employed during the season. One full-time equivalent (FTE) is one or more employees working a total of 40 hours per week. For example, if you have two employees each working 20 hours per week, then you have one FTE.
- At least 75% of the business's value of real and tangible personal property owned or rented and used by the business in 2019 is located in Wisconsin. For this criterion, real and tangible personal property owned by the business is valued at its original cost, and real and tangible personal property rented by the business is valued at an amount equal to the annual rental paid by the business, less any annual rental received by the business from sub-rentals, multiplied by 8.
- At least 75% of the amount of the business's labor costs deducted in 2019 were paid to individuals for services performed in Wisconsin. For these criteria, labor costs include amounts paid to a professional employer organization or a professional employer group.
- The owner or business must not be on one of the following lists:
- The business must not be a governmental unit or primarily engaged in any of the following North American Industry Classification System (NAICS) codes beginning with:
- 111XXX - Crop Production
- 112XXX - Animal Production or Aquaculture
- 5311XX - Lessors of Real Estate
- 813XXX - Nonprofit Organizations
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Is a disregarded entity eligible for the We're All In Small Business Grant Phase 2 Program?
The owner of the disregarded entity should submit the application under the owner's name and tax identification number. For example, a business that is organized as a single-member limited liability company and reports the income from the business on the owner's individual income tax return (federal Form 1040, Schedule C) should apply using the owner's name and tax identification number (e.g., social security number). If a taxpayer owns multiple disregarded entities, the annual revenue from the owner's tax return must include the annual revenue from all disregarded entities.
A disregarded entity refers to a business entity that, for income tax purposes, is not recognized as a separate entity from its owner and does not file a separate federal income tax return from its owner.
Note: Corporations filing a combined return (Form 6) are not disregarded entities, and these corporations must qualify independently of each other and separately apply for the We're All In Small Business Grant Phase 2 program.
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What if the amount of revenue reported on my tax return is incorrect?
You must file an amended tax return and resolve any errors with DOR by 12:00 p.m. on November 13th. Call (608) 266-2772 or email
DORWeAreAllIn@wisconsin.gov.
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Am I eligible to apply if I am a seasonal business?
Yes. If you operated in 2019, but are not yet open for the season in 2020, you may still apply.
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Am I eligible to apply if I am a sole proprietor?
Yes. Sole proprietors are eligible to apply.
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Are "gig workers" and other independent contractors eligible for the grant?
Yes, if they meet the criteria above. For example, they must have filed an income tax return reporting their business income on Schedule C of their federal tax return.
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What if I have not yet filed my 2019 tax return?
You must first file your 2019 Wisconsin tax return before applying for the We're All In Small Business Grant Phase 2 program.
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I file my taxes on a fiscal year. What amount of annual revenue do I report on the We're All In Small Business Grant Phase 2 program application?
Fiscal year tax filers that are not yet required and haven't filed their 2019 tax returns should use amounts from their 2018 tax returns to report on the application.
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What other information should I have ready for the application?
In addition to your 2019 federal tax return, you will need to provide the North American Industry Classification System (NAICS) code that best matches your business. This information may be reported on your tax return. The application will help you search for NAICS codes. You can also search for the appropriate NAICS code at:
naics.com/search/
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The application asks to identify the race or ethnicity of the owners of the business. What is the description of each type?
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American Indian or Alaska Native – A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment.
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Asian – A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan, the Philippine Islands, Thailand, and Vietnam.
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Black or African American – A person having origins in any of the black racial groups of Africa. Terms such as "Haitian" or "Negro" can be used in addition to "Black or African American."
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Hispanic or Latino – A person of Cuban, Mexican, Puerto Rican, South or Central American, or other Spanish culture or origin, regardless of race. The term, "Spanish origin," can be used in addition to "Hispanic or Latino."
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Native Hawaiian or Other Pacific Islander – A person having origins in any of the original peoples of Hawaii, Guam, Samoa, or other Pacific Islands.
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White – A person having origins in any of the original peoples of Europe, the Middle East, or North Africa.
These descriptions are consistent with the 1997 Standards for the Classification of Federal Data on Race and Ethnicity (Statistical Policy Directive No. 15) set by the Office of Management and Budget.
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I applied for the first round of the We're All In Small Business Grant Phase 1 program and received a grant through WEDC. Can I apply for Phase 2?
Yes, but do not apply if you do not meet the criteria described above.
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I applied with WEDC for Phase 1 of the We're All In Small Business Grant program and was denied. Can I apply for Phase 2 with DOR?
Yes, but do not apply if you do not meet the criteria described above.
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When and how will I receive the money?
DOR will issue payments on December 4. You may request to have the money direct deposited to a bank account or receive a check in the mail.
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Will my payment be intercepted to pay delinquent taxes or other debts?
No.
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What are eligible grant uses?
Grant funds can be used for any operating costs, including but not limited to wages and salaries, rent, mortgages, and inventory, and/or for health and safety improvements.
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Are payments from the We're All In Small Business Grant Phase 2 program considered taxable income?
Income from the program is included in federal income pursuant to sec.
61 of the Internal Revenue Code, unless an exemption applies.
For Wisconsin, this income should be excluded from federal adjusted gross income by making a subtraction modification on the appropriate line of the tax return. Expenses paid for with the program and deducted in the computation of federal adjusted gross income are not required to be added back on the Wisconsin return. Taxpayers should amend their Wisconsin returns if they have already filed and included these amounts in income.
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How will grants be awarded?
Over $50 million in grants will be distributed to more than 10,000 eligible applicants. After the application period closes, applications will be reviewed for eligibility. Eligible applicants will be ranked with priority given to businesses that did not receive a grant from WEDC in Phase 1, have minority ownership, and are in an industry with the greatest negative impact due to the COVID-19 pandemic. Grants amounts will be $5,000 per eligible applicant and paid out based on rank in descending order until all funds are dispersed.
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How will I know if my application is approved or denied?
You will receive an email from DOR if your application is denied. Due to the large volume of applicants for the We're All in Round 2 Grant Program and Governor Evers' expansion of the program to $120 million for 24,000 small businesses, the Department will require additional time to notify selected applicants.
Please expect to hear your status by Monday, November 30.
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If my application is denied, do I resubmit my application?
Please do not resubmit an application. DOR uses information from your 2019 (2018 for certain fiscal year filers) tax returns to determine if you qualify. If you receive an email denying your application, you must contact us by 4:30 p.m. on November 6 to describe any errors submitted on your application. Call (608) 266-2772 or email
DORWeAreAllIn@wisconsin.gov.
Important: No changes can be made after 4:30 p.m., on November 13. Applicants that do not resolve errors by this deadline will not receive a payment from the We're All In Small Business Grant Phase 2 program. Do not reapply to report a different amount of revenue than what you reported on your tax return.
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When will the grant funds be awarded?
Grants will be issued December 4.
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Will the amount of my direct payment be released to the public?
In the event of a public records request, the department will be legally required to provide information, including your name or company name, address, and the amount of any payments you receive through the We're All In Small Business Grant Phase 2 program.
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What if I have other questions?
Contact us:
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Are there other pandemic relief grants available for small businesses?
Governor Tony Evers announced more than $100 million in additional economic stabilization programs available for small businesses and communities hardest hit by the COVID-19 pandemic. Other programs include providing support to the lodging industry, live music and performance venues, cultural non-profits, and privately-owned movie theaters. These efforts are funded through the federal Coronavirus Aid, Relief, and Economic Security (CARES) Act. For more information about these other programs including instructions, eligibility information, and application dates, visit this
website or send an email to one of the addresses below: