Category: WWI News

Two Grant Opportunities for WA Small Wineries

Washington wineries will soon have an option between two small business grant opportunities available through the State’s on-going effort to provide assistance to businesses impacted by the pandemic.

Wineries may be eligible for a grant through the WA Department of Commerce’s “Working Washington” small business grant program OR through upcoming grants that will be made available through the WA Department of Agriculture, targeted at the WA small craft beverage producer sectors.

The portal for Working Washington grant applications is now open and the grant application portal for the Department of Ag small craft beverage producer grants will open in the next two weeks. While wineries may meet eligibility requirements for both grant programs, businesses may receive only one of the two grant types available.

Over the next couple weeks, WWI will be providing information and assistance to help you determine which grant might better serve your business.

In the meantime, we encourage you to read through the eligibility and application requirements for the “Working Washington” grants found here. The Working Washington grant application portal (via the Department of Commerce) will close on April 9th. All applications received within that open period will be considered.

The Department of Ag COVID-19 Recovery Grant website will be updated with eligibility criteria and application requirements for winery, cidery, brewery, and distillery businesses soon.

We truly appreciate the Legislature’s and the Governor’s allocations of funding for small business grants through the Department of Commerce and the Department of Agriculture; and the State’s recognition that craft beverage producers contribute to the health and diversity of the Washington state economy by providing support to disproportionately impacted and previously underserved agricultural sectors, through these new grants for small craft beverage producers.

Please keep an eye out for more info, coming soon!

Open Positions on the Washington State Wine Commission – Letters of Interest Due April 23

Attention:  Washington State Wine Industry

The Washington State Wine Commission was created by the Washington State Legislature in 1987 to promote the growth of the wine industry. Its mission is to raise awareness and demand for Washington State wine through marketing and education, while supporting viticulture and enology research to drive industry growth.

The Commission was constituted under the Washington State Department of Agriculture and is governed by an appointed board of commissioners.

The Commission board is composed of twelve voting members and one non-voting member; five voting members shall be growers, five voting members shall be wine producers, one voting member shall represent the director of the Washington State Department of Agriculture and one voting member shall be a wine distributor.  The non-voting member is a producer of non-vinifera fruit wine. Members serve three-year terms.

On June 30th the terms of four members of the Wine Commission board will expire: two producer and two growers. Candidates must meet qualification requirements as outlined below.

Appointments [RCW 15.88.050(1)]:

The director of the Washington State Department of Agriculture shall appoint the members of the commission. In making such appointments, the director shall take into consideration recommendations made by the growers’ association and the wine institute as the persons recommended for appointment as members of the commission. The director usually makes appointment selections in early May for a July 1, 2021 start to the 3-year term.

Positions expiring on June 30th are currently occupied by:

1. Position #3 – Producer— Shylah Alfonso: Shylah will seek another term.
2. Position #5 – Producer—Steve Griessel: Steve will seek another term.
3. Position #8 – Grower—Sadie Drury: Sadie will seek another term.
4. Position #10 – Grower —Brenton Roy: Brenton will not seek another term.

In accordance with RCW 15.88.030(1), the board seats mush be filled with candidates who meet the Mandatory Qualifications listed below. Additional requirements are as follows:

1. The two producer positions (#3 & #5) have no additional requirements.
2. The grower positions (#8 & #10) have no additional acreage requirements but must be filled by wine grape growers who do not produce and sell their own wine.

Pursuant to RCW 15.88.050, the Washington Winegrowers Association sends grower recommendations and the Washington Wine Institute sends wine producer and distributor recommendations to the Director of the Washington State Department of Agriculture for appointment consideration. The Director usually communicates appointments in May for a July 1, 2020 start to the 3-year term.

If you are an interested, qualifying wine producer, please submit your letter of interest and biographical information to WWI’s Executive Director, Josh McDonald, at josh@wwi.wine.

If you are an interested, qualifying grower, please submit your letter of interest and biographical information to the Washington Winegrowers Association Executive Director, Vicky Scharlau, at vicky@wawinegrowers.org

Candidates will be interviewed by the Association responsible for each open seat (reflected above) and recommendations made to the Director of Agriculture.

Commissioner Duties and Responsibilities:

1. Active involvement in commissioner board meetings through regular attendance and engagement in discussions with meetings
2. Represent and speak for the broader interest of the industry, not that of one’s own business nor that of any particular subset of the industry
3. Have a clear understanding of the mission and be able to articulate its purpose and structure to the industry and general public
4. Serve as an Ambassador for the Commission, educating the broader constituency about the Commission’s strategic direction and programming
5. Be knowledgeable about industry trends
6. Be available to serve on committees and attend Commission-sponsored event
7. Be knowledgeable about state agency governance rules and regulations, i.e. Open Public Meetings Act, State Ethics laws, wine and grape assessment process, etc.
8. Lead with intention, inclusiveness and equity.
9. Have a desire and openness to learn and adapt to new ways of thinking as the wine industry grows.

Mandatory Qualifications [RCW 15.88.030(4)]:

Each member of the Commission must be a citizen and resident of the state and over the age of twenty-one years.  Each member must be engaged in that phase of the growing or wine producing industry that he or she is appointed to represent, and during his or her term of office must derive a substantial portion of income from, or have a substantial investment in the growing of vinifera grapes or the production of wine from vinifera grapes as an owner, lessee, partner, or a stockholder owning at least 10% of the voting stock in a corporation engaged in the growing of vinifera grapes or wine production from vinifera grapes; or the manager or executive officer of such a corporation.  These qualifications apply throughout each member’s term of office.

Desired qualifications:

1. Strong grasp of marketing principles and tactics
2. Strong understanding of the various wine marketing channels, including trade, media, distribution, and the consumer
3. Collegial and collaborative approach to decision making and problem solving
4. Strong leadership and management skills
5. Strong communication skills
6. Solid understanding of, a strong belief in the importance of, V&E research
7. Global perspective of the wine business
8. Extensive contacts and relationships throughout the industry and in the broader community (both within Washington and beyond)
9. Strong record of participation or involvement in industry activities
10. High level of integrity

Current Board of Commissioners includes:

1. Steve Griessel, Betz Family Winery (winery)
2. John Sportelli, Columbia Winery (winery)
3. Casey McClellan, Seven Hills Winery (winery and grower)
4. Brenton Roy, Oasis Farms (grower)
5. Dan Werth, Ste. Michelle Wine Estates (winery)
6. Sadie Drury, North Slope Management (grower)
7. Dick Boushey, Boushey Vineyards (grower)
8. Ryan Lumaco, Southern Glazer Wine and Spirits (wine distributor)
9. Serena Roberge Gordon, Fletcher Bay Winery (non-vinifera producer
10. Shylah Alfonso, Pomum Winery (winery)
11. Rachel Horn, Aniche Cellars (winery)
12. Lacey Lybecker, Cairdeas Winery (grower)
13. Rianne Perry, Washington State Department of Ag (WSDA rep.)

On March 11th, the Governor announced that on Monday, March 22, the entire state will move to Phase 3 of his Healthy Washington reopening plan.

During Phase 3, wineries and tasting rooms are permitted to offer on premise service at 50% capacity. Physical distancing and masking protocols must still be enforced. Additionally, alcohol service must end at midnight, and there is still a minimal food requirement for indoor service (see below). Additional information including table size will be released next week, and we will share the full guidance as it becomes available. 

The 50% capacity allowance is for up to 400 people maximum. Larger venue events, including baseball games and other sports, are capped at 25% occupancy or up to 9,000 people, whichever is less

Healthy Washington Phase 3 Reopening Metrics

Under the updated plan, the metrics of counties, not regions, will be individually evaluated every three weeks. The evaluations will occur on Mondays with any possible changes taking effect Friday. Large and small counties will have different sets of criteria, as seen below. If any county fails one or more of the metrics below, that county will move down one phase.

We are very pleased to report that HB 1480, which would codify and extend the timeline for the LCB’s temporary COVID-19 sales allowances like curbside service for wineries, cleared the House yesterday by a vote of 86 – 12. We are also thrilled we were able to amend the bill to include allowing restaurants to sell wine by-the-glass to-go. This bill is a high priority for WWI and for our partners in the restaurant and beer industries.

The bill is necessary so that licensees can continue curbside, beer/wine/spirits to go, deliveries, and other COVID-19 related allowances. While the LCB has been a fantastic partner in allowing this flexibility since last March, this bill gives these policies needed backing in state law. The bill will now go to the Senate, where it will need to receive another hearing and vote before it can be signed into law.

Beyond HB 1480, we are working on many different bills to help our member wineries, grape growers, and suppliers while also if possible supporting our colleagues in other hospitality sectors. Some of these bills include:

Alcohol Related Legislation

SB 5417/HB 1480: Extending certain privileges granted to liquor licensees to mitigate the impact of the coronavirus pandemic.

HB 1483: Concerning workforce development in the beverage alcohol industry

COVID Hospitality-Related Relief Bills

SB 5061: Concerning Unemployment Insurance (signed into law)

SB 5272: Concerning temporarily waiving certain liquor and cannabis license annual fees (sent to Gov for signature into law)

HB 1095: Removing tax obligations from PPP and other Federal and State COVID 19 pandemic-related grants

HB 1332: Concerning property tax deferral during the COVID 19 Pandemic

HB 1368: Responding to the COVID pandemic through state actions supported by federal funding (signed into law)

HB 1299: Providing B&O tax relief to the hospitality industry

Labor/Taxes:

SB 5172: Concerning the retroactivity of overtime claims in exceptional cases

HB 1285: Modifying the B&O tax exemption for certain fruit and vegetable businesses

Tourism:

We are helping lead an effort to secure a $12 million budget ask that would go to the Washington Tourism Alliance to market Washington State including our wine regions to the country and world. When we are past the pandemic, we want to be hitting the ground sprinting on tourism vs. barely getting by as-is our current level of state tourism funding.

WWI continues to work with coalitions and act in supporting roles on issues related to the wine industry. In addition to the bills highlighted above WWI is engaging on, there seems to be no shortage of business addressing taxes, labor, environment and other. There is a lot going on in this new and very different virtual format of a legislative session! We will continue providing updates as the 2021 virtual session moves along.

Per the Governor’s office, we have learned that food must be made available on-site for indoor service in Phase 2. However, there have been significant changes to the guidance and three meal offerings are no longer required. Snack options (outlined below) and giving customers options to have food brought in or delivered to the winery will now meet the food criteria for indoor service in Phase 2.

Here’s the new food guidance for wineries:

1. Food offerings must be provided on-site by the licensed business to customers, during COVID-19 business operations, until such time as full capacity in licensed locations is allowed.
2. “Food offerings” means a combination of small serving food items to include a mix of hors d’oeuvre type foods, cheeses, fruits, vegetables, deli-style meats, chips, pretzels, nuts, popcorn, crackers, or similar items.
3. Food offerings may be free-of-charge or sold.
4. Food offerings may be prepackaged for individual sale and consumption.
5. Food offerings may be prepared off-site for plating for the customer.
6. Food offerings are not required to have warming, cooking, or heating off-site or on-site prior to service.
7. In addition to the required on-site food offerings, the winery shall post, in a conspicuous place within any tasting room, a list of multiple local restaurants or food trucks where customers can purchase food for consumption in the tasting room. The list shall include names, addresses, contact information, and hours of operation for each restaurant or food truck named.

Puget Sound Region & West Region, as outlined in the map below, are currently in Phase 2 and are therefore permitted to offer indoor service with restrictions at 25% capacity.

At this time, all other regions remain in Phase 1, during which indoor service is not permitted. Outdoor & open air service is permitted during Phase 1, as outlined below.

Healthy Washington: Phase 1 and 2

Under these new phases, the following restrictions are in place for eating and drinking establishments:

Phase 1

1. Indoor service prohibited.
2. Outdoor and Open Air Service: 11pm close, maximum 6 per table, limit 2 households per table.

Phase 2

1. Indoor service: 25% capacity, 11pm close. maximum 6 per table, limit 2 households per table, limit 2 households per table.
2. Outdoor and Open Air Service: maximum 6 per table, limit 2 households per table.

See this chart for all of the restrictions in Phases 1 and 2.

Healthy Washington: Regions

The regions are mostly based on Emergency Medical Services (EMS) regions used for evaluating healthcare services. There are eight regions of four or more counties, divided according to available health care services based on metrics such as hospitalizations, case data and disease mobility.

Every region must meet three of the following metrics before moving to Phase 2, which you can read about in the full plan. The metrics for each region will be updated every other Friday.

The Governor’s Healthy Washington reopening plan divides the state into eight regions and will go into effect January 11. All regions will begin in Phase 1, during which indoor service is still prohibited as outlined below.

Healthy Washington: Phase 1 and 2

Under these new phases, the following restrictions are in place for eating and drinking establishments:

Phase 1

1. Indoor service prohibited.
2. Outdoor service: 11pm close, maximum 6 per table, limit 2 households per table.

Phase 2

1. Indoor service: 25% capacity, 11pm close.
2. Food menu requirements for indoor seated lifted for wineries that allow minors on-premise (bars now defined as 21+ establishments with no food)
3. Outdoor service: maximum 6 per table, limit 2 households per table.

See this chart for all of the restrictions in Phases 1 and 2.

We were successful in getting the Governor’s office to change how a “bar” is defined under this new reopening plan. Moving forward, wineries will belong to the “eating and drinking establishments” group that includes all food and drink industries except those that serve 21+ only and do not serve food.

Healthy Washington: Regions

The regions are mostly based on Emergency Medical Services (EMS) regions used for evaluating healthcare services. There will be eight regions of four or more counties, divided according to available health care services based on metrics such as hospitalizations, case data and disease mobility.

Each region will begin in Phase 1 and must meet the following metrics before moving to Phase 2:

1. Decreasing trend in two-week rate of COVID-19 cases per 100K population (decrease >10%)
2. Decreasing trend in two-week rate new COVID-19 hospital admission rates per 100K population (decrease >10%)
3. ICU occupancy (total — COVID-19 and non-COVID-19) of less than 90%
4. COVID-19 test positivity rate of <10%

To remain in Phase 2, regions must meet at least 3 metrics:

1. Decreasing or flat trend in two-week rate of COVID-19 cases per 100K population
2. Decreasing or flat trend in two-week rate new COVID-19 hospital admission rates per 100K population
3. ICU occupancy (total — COVID-19 and non-COVID-19) of less than 90%
4. COVID-19 test positivity rate of <10%.

The metrics for each region will be updated every Friday. DOH will move eligible regions into a new phase the following Monday.

The Washington State Department of Commerce is now accepting applications for $50 million in Working Washington Small Business grants. This is part of a committed $135 million in new COVID relief effort CARES Act funds announced by the Governor and meant for the most hard-hit industries including the hospitality industry. We have confirmed with the Department of Commerce that Washington wineries are eligible for these grants. Applications received before December 11 will get priority.

NOTE: Businesses that applied for the resiliency grant program will not need to take any action.

Application & Grant Criteria

Priority for grants will be given to:

Small businesses with annual revenues of $5 million or less in 2019.

AND

1. Businesses in the sectors that are most impacted by the recent public health measures as well as businesses in sectors that have experienced significant, cumulative impacts. Examples include full-service restaurants, fitness centers, bowling alleys and music and event venues.
2. Certain nonprofits may also be eligible if they have a primary business activity that falls into a similar category as noted above. Example – a nonprofit full-service restaurant or nonprofit music venue.
3. If Commerce is able to fund all the eligible applicants from the priority pool, and funds remain, we may be able to provide grants to additional businesses or nonprofits from other sectors or who have annual revenues larger than $5 million.
4. The maximum award grant will be up to $20,000.
5. The grant can only cover expenses or costs incurred due to COVID-19 and that were necessary to continue business operations.

How to Apply

1. The online application portal is live now. The portal link can be found by clicking here. Additional information about eligibility and prioritization will also be posted there.
2. Priority will be given to applications received by Dec. 10, 2020. If Commerce is able to fund all the applicants who submit by that time, we may be able to consider applicants who submit after the 10th.

Application Checklist

1. Applicant W-9 Request for Taxpayer Identification Number
2. Copy of valid government-issued photo I.D.
3. For tribal-member owned businesses: license or certification if business activity is conducted outside the tribal jurisdiction; letter or certification from the tribe recognizing you as a business if business activity is within the tribal jurisdiction.
4. Copy of 2019 Tax Return or other confirmation of Business Gross Revenues for 2019.
5. For businesses with a physical location, evidence of that location, such as lease, tax statement, utility bill, etc.
6. NAICS code or clear description of your primary business activity. A NAICS code is helpful, but not necessary. The winery NAICS code is 312130.

Assistance for Workers & Individuals

In addition to business relief, additional funds will be released for workers and individuals impacted by the pandemic, including:

1. $20 million in rental assistance is added to the current Eviction Rent Assistance Program. Partner agencies in each county, not Commerce, provide the assistance payments to landlords to cover their qualified tenants. Note that coverage was expanded from 3 to 6 months of eligible rent. Find the list of appropriate contacts by county here.
2. $15 million in utility payment assistance expands the existing Low-Income Home Energy Assistance Program (LIHEAP), also administered through agency partners at the county level, not Commerce. Find information and contacts for each county here