Arizona is using federal relief funds to help small businesses struggling to find and keep employees.

The program is for locally owned or operated businesses with five to 25 employees. Eligible businesses could get $1,000 per employee, up to $10,000.

The money is meant to attract new workers and keep current ones so 75% must go to employees. The remaining 25% can be used for other business expenses. Funding must be distributed to employees within three months.

Priority will be given to businesses with up to 50 employees located near and impacted by recent wildfires and floods. And they’re allowed to use the grants for any business expense. 

The Arizona Commerce Authority is operating the Small Business Hiring and Retention Program. The Commerce Authority’s website says, grant applications will undergo a peer review process and be awarded on a first-come, first-serve basis. 

The program is part of “Arizona Back to Work”, an initiative launched last May when Gov. Doug Ducey announced the state would no longer take federal pandemic unemployment compensation. At that time, Ducey directed $300 million in federal funds to offer one-time bonuses, on a first-come, first-served basis, to people who leave unemployment and return to work.