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Duplication of Benefits

ACCD and the Department of Taxes are providing the Vermont Coronavirus Emergency Economic Recovery Grants to provide economic support to those businesses in Vermont that have suffered costs and/or economic losses as a result of the COVID-19 public health emergency. There are several other sources of support available for businesses, including (but not limited to) the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL). The State recognizes that these other programs only cover a portion of the costs and/or lost revenues that businesses face as a result of COVID-19, and believes that it has appropriately designed the program to provide support beyond these programs that addresses the portion of costs/lost revenues not covered by other sources of funding.

Because applicants may have received funding from these sources other than the Economic Recovery Grants, an applicant may experience what is called a “duplication of benefits.”

For the Economic Recovery Grant program, your business will be at risk of duplication of benefits if at the end of 2020, your business’s COVID-19 related total sales losses from March-December of 2020, when compared to March-December of 2019, are less than the total amount of aid your business has received from the Economic Recovery Grants, forgiven PPP loans, EIDL Advance Grants, business interruption insurance, and any other federal grants or credits grant your business has received related to COVID-19.

The State of Vermont, by federal rules, is required to monitor and rectify situations where businesses experience a duplication of benefits. If your business experiences a duplication of benefits, you may be required to pay back a portion or all of the grant your business receives. The Department may use information from future tax filings to determine whether businesses have a duplication of benefits.

Businesses seeking additional grant funding are strongly encouraged to consider if additional grant funding may put them at risk of having a duplication of benefits at the end of 2020.