Professional Documents
Culture Documents
Stephen E. Collins v. Patrick Meyers: Declaration of Michael Landes
Stephen E. Collins v. Patrick Meyers: Declaration of Michael Landes
Exhibit 1
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 2 of 18
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 3 of 18
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 4 of 18
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 5 of 18
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 6 of 18
Program Manual
for the
Disproportionately Impacted
Business Relief Grant Program
Table of Contents
Business Status 11
Ownership 11
Operation Status 11
Prohibited Activities and Uses 11
Ineligible Activities 12
Required Documentation 13
Duplication of Benefits / Subrogation 14
Appeal Process 14
2
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 8 of 18
Statute
The Disproportionately Impacted Business Program was established by the House Bill 21-
001 on January 21, 2021. This statute presented evidence showing that businesses are less
equipped to survive economic downturns, and the current economic crisis resulting from COVID-
19 pandemic making them difficult to survive. While the state is providing thirty seven million
dollars in direct relief to small businesses, it is critical to allocate an additional four million dollars
in relief payments, loans, grants and other technical support to those small businesses in
Colorado that are suffering disproportionate impact from the COVID-19 pandemic.
(2) Definitions. As used in this section, unless the context otherwise requires:
a) Cares Act: means the "Coronavirus Aid, Relief, and Economic Security Act", Pub.L. 116-
136, 134 Stat. 281 (2020), as amended.
b) COVID-19: means the coronavirus disease caused by the severe acute respiratory
syndrome coronavirus 2, also known as SARS-CoV-2.
c) Economically Distressed Area: includes a state opportunity zone, an enterprise zone, or
an historically underutilized business zone.
d) Enterprise Zone: means an area designated as an enterprise zone pursuant to section
39-30-103.
e) Historically Underutilized Business Zone: means an area designated by the United States
Small business Administration as an Historically Underutilized business zone under the
United States small Business Administration’s Hub zone Program.
f) Minority Owner Business: means a business that is at least fifty one percent owner,
operated and controlled by an individual who is a member of a minority group.
g) Office: means the Office of the Economic Development and International Trade
h) State Opportunity Zone: means a census track designated by the office as opportunity
zone.
(3) Relief payments, grants, and loans to disproportionately impacted businesses. a) (I) The
office shall use a portion of the money appropriated pursuant to SUBSECTION (5) of this section,
including a portion annually for administrative costs, to administer a program to provide:
(A) Relief payments to disproportionately impacted businesses that have been most impacted
by COVID-19 and have lacked meaningful access to federal loans and grants under the CARES
Act; and
(B) Grants and loans to disproportionately impacted businesses for start-up and growth
capital.
(II) The director OF THE OFFICE shall establish a process for disproportionately impacted
3
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 9 of 18
businesses to apply for a relief payment, grant, or loan under the program, including the
deadline for applying, the information and documentation required to be submitted to the
office to demonstrate eligibility for a relief payment, grant, or loan, and any other requirements
specified by the director.
(b) The office shall establish policies setting forth the parameters and eligibility for the
program, including:
(I) The terms of and eligibility for a relief payment, grant, or loan, WITH PREFERENCE
GIVEN TO DISPROPORTIONATELY IMPACTED BUSINESSES THAT MEET THE CRITERION LISTED IN
SUBSECTION (2)(c)(II) OF THIS SECTION AND AT LEAST ONE OTHER CRITERION LISTED IN
SUBSECTION (2)(c) OF THIS SECTION;
(c) The office shall collect sufficient information from DISPROPORTIONATELY IMPACTED
businesses applying for a relief payment or grant pursuant to this SUBSECTION (3) to enable
the OFFICE to issue an internal revenue service form 1099 to a DISPROPORTIONATELY
IMPACTED business that receives a relief payment or grant. In most cases, a valid W9 will
provide the necessary documentation.
4
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 10 of
18
Program Summary
Eligible Applicants Small Businesses, with at least 20% income loss since March 26, 2020, ( compared to
prior year) as a result of the COVID-19 pandemic impact, and have received less
than $20,000 in federal loans and grants under the CARES Act. Short term lodging-
type businesses such as AirBnb and non-profits organizations are not eligible for this
grant.
Business Status Must have been in existence as of January 1, 2020, and still in operation in Colorado.
Must have employed at least 1 FTE (Full-Time Employee Equivalent (40 hours per
week) as of January 1, 2020. Colorado sole proprietors and registered small
businesses in good standing with the state and has been disproportionately
impacted by COVID-19 pandemic according to the eligibility criteria established by
the program.
Financial Documentation Financial, Balance Sheet, Profit/Loss Reports, business Tax Returns, personal tax
Required returns, etc. for 2 years.
Allowable Dates for Grant awards can be no greater than the net financial loss the small business has
Expenses experienced due to the COVID-19 public health emergency from March 1, 2020 to
date of application.
5
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 11 of
18
Duplication of Benefits / Lists all assistance received to date to determine duplicative assistance.
Grant Grant dollars may not be applied to any losses or expenses which have previously
been reimbursed through other federal, state, or local assistance.
Program Description
In March 11 2020, after assessing that COVID-19 had been affected more than 118,000
cases in 114 countries, and 4,291 people have lost their lives, the World Health Organization
declared this virus as a global pandemic. As a consequence of this situation, and as many states
in the country, small businesses in Colorado have been affected resulting in a twenty two
percent decline in the number of small businesses operating in the country from February to
April 2020. The State’s economy was profoundly impacted. Small businesses suffered enormous
economic loss due to the stay at home and order bars, restaurants and other large gathering
places and businesses across Colorado to close due to the pandemic.
While the state continue providing to date support to small businesses that have been affected
by the COVID-19 pandemic by targeting thirty seven million dollars in direct relief payments to
small businesses, the legislators declare critical to allocate additional four million dollars in relief
payment loans and grants, and other technical support to those small business in Colorado that
are suffering disproportionate impact from the pandemic.
According to the Statute 21-001, portions of this should be used to provide relief payments to
disproportionately impacted businesses that have been most impacted by COVID-19 and have
lacked meaningful access to federal loans and grants under the CARES act. Preference shall be
given to disproportionately impacted businesses by COVID-19 pandemic and that meets any of
the following criteria:
1. The business has five or fewer employees, including the business owner;
2. The business is a minority-owned business;
3. The business is located in a economically distressed area, this is in a state opportunity
zone, an enterprise zone or historically underutilized business zone or called hubzone
4. The business owner lives in an economically distressed area
5. The business owner has low or moderate income, according to the United States
department of housing and urban development low and moderate income data used in
the community development block grant program
6. The business owner has low or moderate personal wealth based on household net worth
(applying relevant federal or state data)
7. The business owner has had diminished opportunities to access capital or credit
6
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 12 of
18
The deadline to apply is October 3, 2021. All grants will be awarded by October 29, 2021,
and all funds expended in the first application process, no later than November 30, 2021.
Program Management
Program Documents
CEF and OEDIT prepare all program materials including program documentation
guidance, forms, grant agreements, guarantee agreements, subordination and written
covenants, and other documents necessary to the implementation of the program.
Awards
● Minimum: $1,500
Unmet needs are those financial needs not satisfied by other public or private funding
sources like the Paycheck Protection Program (PPP), Small Business Administration (SBA) loans
and/or private insurance. Grant and loan awards are determined by an applicant’s verified
amount of unmet need which must equal $1,500 or more and up to $10,000. The unmet need
established in the grant review process may vary significantly from the amount estimated by the
applicant on application.
In determining the verified amount of unmet need, factors including the following are assessed,
compared and analyzed during application review:
● Estimated total losses between January 1, 2020 to the day of this application
○ Revenue
○ Income
7
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 13 of
18
○ Inventory
○ Furniture and fixtures
○ Equipment
○ Physical damage to property
● Assistance received since March 1, 2020, including but not limited to any assistance
from the following
○ PPP (Paycheck Protection Program)
○ SBA
○ Private insurance
○ Local government
○ Other local assistance
● Gross sales data
● Expenses narrative
8
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 14 of
18
The maximum grant award an applicant may receive is $10,000 depending on the
amount of verified unmet need.
1. The business has been disproportionately impacted by COVID-19 pandemic. This status will
be self certified by the applicants in the application form according to one or more of the
following criteria:
● One of the business owners or employees missed work due to they or family member
having COVID-19
● My business experienced revenue declines or cost increased due to the negative economic
effects of COVID compared to pre-COVID results or trends
● My business model requires in-person interaction among employees and/or between
employees and customers and could not be reoriented to a work from home model
● My business bank account or personal bank account which was used for the business
regularly had a balance of less than $10,000 at the end of the month after paying business
expenses in the 12 month period immediately prior to the onset of the COVID-10 pandemic
● I financed my business activities with a personal credit card which regularly had an
outstanding balance of more than $2,000 a month in the 12 month period immediately
prior to the onset of the COVID-10 pandemic.
● A substantial part of my customers had jobs, living conditions or economic circumstances
that caused them to be negatively economically impacted by COVID
● I needed to close my business due to state-mandated COVID compliance rules
a) The business has five or fewer employees, including the business owner;
b) The business is a minority-owned business;
c) The business is located in a economically distressed area, this is in a state opportunity
zone, an enterprise zone or historically underutilized business zone or called
hubzone;this can be verified with the address in the following links:
● Is the business located in Colorado Opportunity Zone:
https://oedit.colorado.gov/colorado-opportunity-zone-program or
● Is the business located in Colorado Enterprise Zone:
9
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 15 of
18
https://oedit.colorado.gov/enterprise-zone-program or
● Is the business located in Colorado Hub Zone:
https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5
d) The business owner lives in an economically distressed area; this can be verified with
the owner’s address in the following links:
● Is the business located in Colorado Opportunity Zone:
https://oedit.colorado.gov/colorado-opportunity-zone-program or
● Is the business located in Colorado Enterprise Zone:
https://oedit.colorado.gov/enterprise-zone-program or
● Is the business located in Colorado Hub Zone:
https://maps.certify.sba.gov/hubzone/map#center=39.828200,-98.579500&zoom=5
e) The business owner has low or moderate income, according to the United States
department of housing and urban development low and moderate income data used in
the community development block grant program;This is the business owner has a
income level below $76,000
f) The business owner has low or moderate personal wealth based on household net worth
(APPLYING RELEVANT FEDERAL OR STATE DATA); or
g) The business owner has had diminished opportunities to access capital or credit. This will
be self certified by applicants in the application form by showing a letter of rejection for
a loan.
h) Additionally, to comply with being one of the most impacted businesses by COVID-19,
the business owner applicant needs to show evidence that their business had at least
20% income loss since March 26, 2020 compared to the prior fiscal year as a result of the
pandemic, and have lacked meaningful access to federal loans and grants under the
CARES Act; Short term lodging-type businesses such as AirBnb are not eligible for this
grant.
After reviewing the eligibility criteria of each applicant, and if the total amount of money asked
by participants exceeds the resources available in the grant program, priority will be given to
applicants based on how many of the criteria for which they qualify within the program. Priority
may be further given by assessing applicants’ relative business income (criterion 5 within the
statute) and their relative personal wealth (criterion 6 within the statute). In the event of
multiple applications appearing equal in the assessment of these criteria, preference will be
given to disproportionately impacted businesses that are both minority-owned and meet
additional statutory criteria.
10
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 16 of
18
Business Status
Ownership
All businesses that receive grant awards under this program must have owned the
business as of January 1, 2020, and must still own the business (even if the percentage of
ownership has changed) at the time they receive their award check.
Operation Status
Generally, all businesses that receive grant awards under this program must be open for
business at the time a grant or loan check is generated. Exceptions for businesses forced to
close due to the stay-at-home directives referenced in these guidelines or having other
compelling circumstances may be allowed on a case-by-case basis.
Prohibited Activities: The business is prohibited from using funds provided herein or
personnel employed in the administration of the program for: political activities; inherently
religious activities prohibited by 24 CFR 570.200(j); gambling; lobbying; political patronage; and
nepotism activities
● Inventory
● Furnishings
● Fixtures
● Moveable equipment (where no installation is required)
● Payroll
● Insurance (property insurance, liability insurance, worker’s compensation)
● Mortgage/Lease/Rent payments
● Consultants
● Business taxes
● Service agreements
● Utilities
● Expenses not listed may be considered upon request.
11
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 17 of
18
Ineligible Activities
Any construction or reconstruction cannot be funded by grants or loans from the CARES
Small Business Grant and Loan Program. (Davis-Bacon Act restriction)
570.482(f)(4)(ii)(E) Assistance to a for-profit business while that business or any other business
owned by the same person(s) or entity(ies) is the subject of unresolved findings of
noncompliance relating to previous federal assistance provided to the recipient.
[Vol. 78, No. 43 14339] Use of Funds for Structures Owned by Religious Organizations. The
provision of assistance for buildings used for religious purposes is governed by 24 CFR 570.200(j).
Required Documentation
The Following Documents are Required to Determine Unmet Needs:
12
Ex. A to Landes Declaration
Case 1:21-cv-02713-WJM-NYW Document 15-1 Filed 10/13/21 USDC Colorado Page 18 of
18
● Businesses that have received more than $20,000 in federal loans and grants under the
CARES Act are not eligible.
● CEF will be checking with SBA for any and all approved applications to avoid duplication
of benefits under withdrawn applications or non-reported approvals.
● As part of their application to the grant and loan program, applicants will be required to
establish eligibility through submission of complete documentation.
● Applicants must report all financial assistance they have received from sources including
homeowner’s and/or business insurance, Small Business Administration (SBA), Federal
Emergency Management Agency (FEMA), other local, State, or Federal programs, private
or nonprofit charitable organizations, etc.
● A signed duplication of benefits affidavit, an Assisted Business Grant and Subrogation
agreement is required.
● Applicants must agree to subrogate (commit to the State) any future payments they may
receive after the award amount is determined from sources that represent a duplication
of benefits.
● The subrogation agreement requires the applicant to notify the State if additional funds
are received and to assist the State in collecting any amounts owed to them from these
sources.
● All parties shall comply with standard anti-fraud measures.
Any PPP or SBA loans must be deducted from the applicant’s unmet need for purposes
of receiving a grant from this program to prevent duplication of benefits.
13
Ex. A to Landes Declaration