In late-March the Massachusetts House of Representatives introduced Bill HD.4985, a proposed stimulus package to support micro-business during the COVID-19 pandemic. The proposed grant subsidy, introduced by Rep. Carlos Gonzalez, is intended to provide relief to very small businesses in Massachusetts during the COVID-19 pandemic.
This legislation would provide up to a $15,000 grant subsidy to micro-business owners across the Commonwealth who have fewer than 5 employees and generated up to $200,000 of revenue in 2018. At least 75 percent of the grant must be allocated to direct payment of employees and their compensation, while up to 25 percent may be used for general operations and the provision of goods and services during the COVID-19 pandemic.
Questions remain as to whether self-employed individuals would be eligible for the grant subsidy because the bill does not fully define the term “micro-business” and makes no mention of self-employed residents. Generally, a micro-business is often owned and operated by a single person, suggesting self-employed individuals may be eligible for funds under the proposed legislation.
The bill currently has 19 co-sponsors and has been referred to the House Committee on Rules for further consideration. We will continue to monitor this bill as it proceeds through the state legislature.
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