Apply Now!
(If you have any questions, or need help, please reach out)
The Seed Funding Grant Program offers up to $25,000 in funds for eligible New York State small businesses. These funds do not need to be paid back.
Two NYS Business Grants
This article is for a grant called “Seed Funding”. There is a similar grant for NYS small businesses called the “Pandemic Recovery Grant” (the deadline for that application is 9/30/2022).
Seed Funding: For businesses that opened after 9/1/2018
Recovery Grant: For businesses that opened before 3/1/2019
You are not eligible for Seed Funding if you already received funding from Recovery Grant.
If your business started between 9/1/2018 and 3/1/2019, you can check which grant will give the higher grant amount. Recovery is 10% of 2019 income, max 50k. Seed Funding is 10% of 2020 or 2021 return, max 25k (or $5k if the business did not yet file a return).
Grant Amount
The grant amount is based on the gross receipts (line 1a, IRS Form 1120 or 1065; line 1 IRS Form 1040 Schedule C) of your most recently filed business tax return (2020 or 2021).
- $0 – $5,000: Likely no grant (somewhat unclear)
- $5,000 – $49,999.99: $5,000
- $50,000 – $99,999.99: $10,000
- $100,000 – $1,000,000: 10% of gross receipts – maximum grant is $25,000
- Over $1,000,000: No grant
- Businesses that have NOT yet filed a Tax Return: $5,000 (as long as the business can demonstrate $5,000 in expenses).
Business Eligibility
ALL of the following are requirements. More details here.
- Be incorporated in New York State or licensed or registered to do business in New York State and must be resident in the State of New York
- exception: independent arts contractors are eligible with NY residency and proof of being an independent art contractor.
- Be a for-profit small business.
- Started business on September 1, 2018 or later and have been operational for at least six months before an application is submitted
- Did not qualify for a Pandemic Recovery Grant (Note: Reports are coming in that Seed Funding is denying applications where the owner received Pandemic Recovery Grant even if it was for a separate business)
- Did not receive more than $250k in PPP (total from both rounds of PPP)
Ineligible Businesses
- All Non-Profits, Churches and other religious institutions; and
- Government-owned entities or elected official offices; and
- Businesses primarily engaged in political or lobbying activities;
- Landlords and passive real estate businesses.
Documentation Requirements
- Most recently filed 2020 or 2021 Federal Business tax return (If business has filed a return since beginning operation)
- If the business has not yet filed a return, it may still be eligible for a $5,000 grant
- Proof of Business Organization (and date of formation if tax document is not available – provide one (1) of the following):
- Current Business License; or
- Articles of Organization; or
- Certificate of Assumed Name (DBA); or
- NYS Certificate of Authority; or
- Certificate of Incorporation; or
- Proof of assignment of EIN by Internal Revenue (IRS Form CP-575); or
- NYS municipality issued document showing authorization to operate in NYS.
- Proof of business location in NYS – any one (1) of the following documents:
- Current lease; or
- Current utility bill; or
- Current business mortgage statement; or
- Business credit card statement; or
- Professional insurance bill; or
- Payment processing statement; or
- NYS ST-809 or ST-100 sales tax collection documentation
- Schedule of ownership:
Listing of names, addresses, Social Security numbers or ITIN numbers, phone numbers, e-mails, percentage ownership, and photo ID for any owners with more than 20% ownership of business. - Prior three months of bank statements for business bank account showing current activity
(statements should reflect sufficient flows to demonstrate required expenses for businesses that have yet to file a tax return). - W-9 and business bank account information.
Business bank account is required for funds distribution.
More details here: nyseedgrant.com/