GEDC urges businesses to apply for COVID-19 grants 

The Gonzales Economic Development Corporation board of directors is urging businesses within city limits to apply for the COVID-19 grants. Below are frequently asked questions about the grant money.

Am I obligated to sign and adhere to a Performance Agreement provided by the Gonzales Economic Development Corporation (GEDC) in order to receive the COVID-19 Business Grant?

Yes, all approved applicants of the GEDC Covid-19 Business Grant must be in covenant with the GEDC on the terms of the Performance Agreement in order to receive any and all approved funds. 

How long are the terms of the Performance Agreement?

One (1) year (12 months/365 days) from the effective date of the agreement.

How soon after the effective date of the Performance Agreement will I receive funding? 

Within fifteen (15) days.

Who does the word “Developer” refer to within the agreement? 

The individual or business receiving the funding. 

What is a “Full-time Equivalent Position”?

A full-time employee is one who meets the equivalent of 1 FTE unit. Additional (overtime or extra) hours for exempt and non-exempt employees is not calculated for any FTE Unit. Part-time employee hours will be added for sum total amounts of 40 hours per FTE.

Must the business remain in operation for the duration of the Performance Agreement?

Yes. 

How many “Full-time Equivalent Positions” (FTEP) must I maintain employment for at my business to remain in compliance with the agreement?

The number of FTEP(s) that you are required to maintain will be customized for your business and agreed upon at the time of signing. That information will be stated within your Agreement. 

What is the Quarterly Compliance Verification, how often do I submit it and to whom?

The Quarterly Compliance Verification is essentially a report that the Developer provides to the EDC each quarter, beginning three (3) months from the effective date of the Agreement, that verifies the number of FTEPs maintained at your business. Also included within that report should be the average wage of FTEPs, as well as the quarterly IRS 941 returns or Texas Workforce Commission Quarterly reports. 

Is the EDC still required to provide funding if my business discontinues operation, files for bankruptcy or has an Event of Default?

No.

If I/my business default, do I have a grace period to remedy the default?

Yes, the Developer has 30 days to remedy the default. If the default is not remedied, the GEDC can immediately terminate the agreement. 

If I/my business default and am unable or choose not to remedy it, will I/my business have to pay back the funds received?

Yes, all funds provided by the GEDC will be immediately due for reimbursement by the Developer to the GEDC. 

Are there any restrictions regarding whom I/my business may offer employment to in an effort to fulfill the FTEP requirement?

All full-time employment positions must be filled by workers documented by the United States of America. It is unlawful per Chapter 2264 of the Texas Government Code to knowingly employ an undocumented worker. If found to be in violation, the Developer will repay all funds within (120) days of notice of violation, plus interest, at the rate of eight (8) percent, to the GEDC.