ARPA Local Business / Non-Profit Recovery Grant Program

This program is closed. 


61 Small Businesses have been awarded grants worth $1,055,000

28 Non-profits have been awarded grants worth $290,000

The Town of Lexington is offering a grant program to local businesses and non-profit organizations that have been impacted by the ongoing COVID-19 Pandemic. The Select Board has authorized funding through the American Rescue Plan Act (ARPA)  available to the Lexington business community.

For more information or to ask specific questions, please email the Economic Development Office.

Eligible Uses of Funds

Funds can be used for working capital expenses, including but not limited to rent or mortgage payments, payroll expenses including healthcare, and utility expenses.

Eligibility Criteria

To be considered for an award, the applicant must meet basic program eligibility requirements:

  • Less than 35 employees.
  • Less than $1.5 million in annual revenue.
  • Demonstrated a significant revenue loss since the COVID-19 closures in March.

Funding Request

  • Businesses that have not yet received a grant are eligible for up to $25,000. 
  • Businesses that have already been awarded a grant can apply for up to $15,000.
  • Non-Profit Businesses can apply up to $10,000 for both first-time applicants and those who have already received an award.  

Comparative Criteria

All applicants who meet the basic Eligibility Criteria will be graded per Town program priorities, including:

  • COVID-19 Impact: applicants who demonstrate a severe impact on business operations and revenue due to COVID-19 will be prioritized, especially those who face ongoing operational challenges due to the requirements and practicality of social distancing measures.
  • Businesses who prioritized COVID-19 prevention such as:
    • Purchase PPE and/or adopt safer operating procedures
    • Outdoor Dining - Restaurants can utilize the funding to create outdoor dining spaces or enhance/improve their existing outdoor dining spaces to make them ADA compliant, or to purchase furniture, decking, heat lamps, umbrellas, tents, awnings, or lighting.
    • Ventilation - Install or improve ventilation systems to increase air circulation and air quality
  • Brick and Mortar Businesses: Businesses with brick and mortar locations on the first floor of commercial districts will be prioritized.
  • Use of Funds: Given the scarcity of precious funds, applicants that can demonstrate a clear plan for the use of the funds, and explain how the funds will positively impact the viability of the business will be prioritized.
  • Impact on Operating Costs - Offset payroll and benefits costs or expenses related to retaining or hiring/training employees, as well as for mortgage, rent, utilities, inventory etc.
  • Disadvantaged Businesses: Additional consideration will be given to businesses that can demonstrate majority ownership by women, veterans, or minorities.