Gov. Cuomo wants to make grant money for small businesses tax-free

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FILE – In this April 28, 2020 file photo, a closed sign is posted at a restaurant along the River Walk in San Antonio. Banks are reporting a little more success in getting small business owners’ applications for coronavirus relief loans into government processing systems. Bank industry groups says changes the Small Business Administration made in its procedures apparently are helping lenders trying to submit thousands of applications for $310 billion in loans. (AP Photo/Eric Gay, File)

ALBANY, N.Y. (NEWS10)-New York’s COVID-19 Pandemic Small Business Recovery Grant Program will begin accepting applications on June 10 and if Governor Andrew Cuomo has his way, small businesses won’t have to pay any taxes on grant money.

He proposed legislation on Tuesday to waive taxes on the $800 million going to small businesses, saying it would further help assist grant recipients recovering financially from the COVID pandemic.

“Small businesses have long been the backbone of New York State’s economy but were devastated by the COVID-19 pandemic, and it was critically important that the state stepped up to help this critical sector,” he said. 

Small businesses eligible for the program will receive grants of up to $50,000 to use for operating expenses, including payroll, rent or mortgage payments, taxes, utilities, personal protective equipment, or other business expenses incurred between March 1, 2020, and April 1, 2021.

“We want to make sure all $800 million of the COVID-19 Pandemic Small Business Recovery Grant Program is available to help grantees, and this legislation will eliminate state taxes on that funding so we can get every single dollar into the pockets of businesses and help rebuild New York’s economy for the future,” Gov. Cuomo said.

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