Changes to the program will include raising the percent of net uncovered damage to 30% and removing the $20,000 cap
Governor Phil Scott and the Vermont Department of Economic Development Commissioner Joan Goldstein announced, Sept. 20, forthcoming changes to the $20 million Business Emergency Gap Assistance Program (BEGAP) formula, which will increase grant awards to flood impacted businesses, nonprofits, and landlords.
“Helping our employers reopen and stay open after they faced significant flood damage is a top priority for my Administration and an important part of the state’s recovery,” said Governor Scott. “BEGAP is part of that strategy, and that’s why we are giving those struggling organizations more resources to rebuild, reopen their doors, and help Vermonters regain employment.”
Since August, when BEGAP launched, organizations that suffered less than $1 million dollars in physical damage were eligible for grants equaling 20% of net uncovered damages (damages less insurance proceeds, donations, or other grants), with a maximum payout of $20,000. The new formula eliminates the $20,000 cap and increases payouts to 30% of net uncovered damages (outside grants, loans, insurance, etc).
The change applies to all BEGAP grantees — past, present, and future.
For organizations already paid 20%, no action is needed to get the increased award amount. They will automatically receive an additional payment to bring their award up to 30%. For organizations in the queue, they are eligible for the 30% award.
There is no deadline to apply. Grant applications are on a first-come, first-served rolling basis until the funds are expended.Governor Phil Scott
“At the Department of Economic Development, we are dedicated to helping businesses thrive and be great employers,” said Joan Goldstein, Economic Development Commissioner. “This boost in grant awards will allow them to spend less out-of-pocket to make necessary repairs and structural changes so that they can get back to providing services and jobs to Vermonters.”
The $20 million BEGAP grant program was launched Aug. 3. As of the announcement, Sept. 20, the program has seen:
469 successfully submitted applications
280 approved for a BEGAP grant
189 applications currently under review
$21,679 in average awards
$6,070,014 committed so far
$145 million total damage reported in applications
$116 million net damage (uncovered by insurance, grants, fundraising) reported in applications
In addition to the original $20 million, which was awarded from so-far allocated but unspent broadband funds, BEGAP has received at $250,000 in additional funding from the state’s sale of “Vermont Strong” license plates.
The numbers above for the average award and amount of BEGAP funds committed so far will change with this new formula, because it will be retroactively applied to previously approved projects.
It is worth noting, about 20% of all BEGAP applications received are deemed incomplete and sent back to the applicant for revision, which can delay processing.
