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Grants Available to Service and Hospitality Small Businesses, Apply Nov. 16-25

The Arkansas Legislative Council has approved the allocation of $50 million in CARES Act funding for service and hospitality businesses impacted by COVID-19.

The program will open application on Monday, November 16th and close Wednesday, November 25th. The grant will provide reimbursement for a portion of specific eligible expenses incurred by businesses in the personal care, tourism, travel, recreation, and hospitality industry between March 1st and September 30th of 2020. 

The Arkansas Legislative Council on Monday (10/19) approved a business interruption grant for certain Arkansas businesses in the personal care, tourism, travel, recreation and hospitality industries. The grant will provide reimbursement for a portion of specific eligible expenses incurred by businesses in these industries between March 1 and Sept. 30, 2020.

Grants will be awarded on a prorated basis depending on the total number of applicants and the amount of reimbursement requested. The program anticipates making grant awards in late December.

Arkansas small businesses having 250, or fewer, full-time employees located in Arkansas may seek reimbursement for expenses associated with COVID-19 mitigation or certain listed business interruption expenses due directly to local, state or federal government COVID-19 directives.

“Eligible Business” under this grant program, means a for-profit corporation, partnership, sole proprietorship (including independent contractors), limited liability company, joint venture or non-profit 501(c)(3) organization that meets the following criteria: 

  • Operates primarily within the Arkansas personal care, tourism, travel, recreation, hospitality or related industries; 

  • Was established on or before March 1, 2020; 

  • Has an established tax identification number in the state of Arkansas; 

  • Current Economic Uncertainty makes this assistance necessary to support the ongoing operations of the Applicant;

  • If formally organized, is incorporated under the laws of Arkansas or is registered to do business in Arkansas with the Arkansas Secretary of State and, in any case, is listed as being in “Good Standing.” If not incorporated, a business/professional license, sales tax permit, utility bill or bank statement in the name of the business is required as supporting documentation that the business is a bona fide business;

  • Is headquartered in Arkansas or has employees working in Arkansas;

  • Employed an average of two hundred fifty (250), or fewer, Full Time Arkansas Employees per Eligible Business as of September 30, 2020;

  • Must either have:

    • Customers and/or employees physically coming to their Arkansas business premises; or

    • Must conduct business on customer premises in Arkansas;

  • Is not under a bankruptcy order and does not have a pending bankruptcy filing at the time the Application is submitted. An Applicant that files for bankruptcy while the Application is pending shall notify the grant program and withdraw its Application under the program.

  • Does not presently have any tax liens with respect to any unpaid tax owing to the State of Arkansas except for those businesses that have applied for and received a repayment plan from the State of Arkansas and are not in default of that payment plan; and

  • Eligible Businesses shall not include, without limitation, the following:

    • Government entities and quasi-governmental entities such as Government-owned non-profits; and

    • Annual and seasonal indoor and outdoor festivals such as county fairs and carnivals


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