OKLAHOMA CITY – The state Commerce Department is offering financial aid to local businesses across the state that have been adversely affected by the coronavirus pandemic.
Companies that are located in Oklahoma can apply for grants through the Oklahoma Business Relief Program (OBRP). Gov. Kevin Stitt has designated $50 million in Federal CARES Act funds for the program.
The Commerce Department team, along with the state Office of Management and Enterprise Services, “has been working hard to get this program launched quickly, but also to make sure this program runs as smoothly as possible for both the businesses and the financial institutions that are assisting with the application process and distribution of funds,” said Sean Kouplen, Oklahoma Secretary of Commerce and Workforce Development.
Qualifying businesses can apply for OBRP through participating financial institutions. July 10 is the deadline for applications. Distribution of the grants will start a week later.
Businesses that have suffered a decrease in revenue of 25% from 2019 to 2020 due to the impact of COVID-19 may be eligible. Applications will be accepted on a first-come, first-served basis; however, at least 20% of the program funds are designed for minority-owned businesses.
Grants will be awarded to approved companies in the amount equal to two months of average total payroll, with a maximum award of $25,000.
The funds can be used for business expenses for which the business has not or will not receive reimbursement from another source, such as other federal, state or city grants or insurance proceeds. A service fee of up to $500 may be charged by the financial institution for business- es that are awarded funds. Award funds may not be used to pay the fee.
A list of participating financial institutions, as well as program details, rules and a pre-application form, can be found at okcommerce.gov/relief.
Participating financial institutions already include several in Lawton, Duncan, Altus, Marlow and Waurika in southwest Oklahoma, and the list will be upgraded as more institutions join the program, Kouplen said.
Kouplen said that during development of the program he consulted with the Gover- nor’s Minority Business Council (GMBC) to identify and remove potential barriers for minority business owners. A key topic of discussion was to ensure at least 20% of the program funds be designated for minority-owned businesses, which corresponds to the percentage of minority-owned businesses in Oklahoma.
“We anticipate that the undesignated funds will be spoken for very quickly, and we know from the SBA PPP program results that minority businesses were not well represented in the first round due to many obstacles minority business owners face,” said GMBC Chairman David Castillo. “We encourage minority business owners not only to apply for OBRP, but also to check the box designating your business as minority-owned, which may give your business a better chance at being awarded funds.”
Minority business owners are not required to apply under the designation, but those who choose to check the minority-owned designation box will be asked to provide either a birth certificate, passport or tribal identification card.
More dates will be announced after the initial applications for economic grants are received. Applications sent directly to Commerce by a business will not be considered for participation in the program, Kouplen said.