State Launching New Phase of Grant Program | Business

Claud Mccoid

The N.C. Department of Revenue plans to launch the application for the second phase of the Business Recovery Grant program on Monday, May 2.

The second phase will incorporate changes to the program’s eligibility criteria, allowing many additional businesses to qualify for these grants. The grant program will issue a payment to an eligible North Carolina business that suffered an economic loss of at least 20 percent during the pandemic.

The grant amount is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less. The application deadline is June 1.

“Barbers, cosmetologists, gyms and other service providers were hit hard by the pandemic and it’s important to expand these grants to help them too,” said Governor Roy Cooper. “Our small businesses are the backbone of our economy and strong support for them is critical.”

Many businesses excluded in the first phase are eligible to apply now. In addition to COVID-impacted businesses in the hospitality industry such as restaurants and hotels, the BRG is now open to other businesses affected by the pandemic such as: farmers and agribusinesses; gyms and trainers; salons and barbers; massage therapists; doctors and dentists; lawyers; interior designers; hardware stores; pharmacies; landscapers; mechanics; tailors; and dry cleaners.

Additionally, a business’s previous receipt of a grant award from certain federal programs will not make it ineligible for a reimbursement grant. This list is non-exhaustive, and businesses are encouraged to visit https://www.ncdor.gov/business-recovery-grant to learn more about eligibility criteria beginning May 2.

Following the initial application period, which closed on Jan. 31, approximately $203.5 million remained of the $500 million in funds initially authorized for the program. NCDOR worked with the N.C. General Assembly to expand eligibility to certain businesses impacted by the pandemic but that did not qualify for the first round of funds.

“Our hope is that the expanded Business Recovery Grant program requirements will encourage more eligible North Carolina businesses to apply,” said NCDOR Secretary Ronald Penny. “These funds are available for eligible businesses that suffered a financial loss because of the pandemic and we want to make sure those businesses receive them.”

Two types of grants will be available to eligible businesses for the second phase:

* A hospitality grant is available to an eligible arts, entertainment or recreation business, as well as an eligible accommodation or food service business such as a hotel, restaurant, or bar.

* A reimbursement grant is available to an eligible business not classified in NAICS Code 71 and 72. A business’s previous receipt of a grant award from certain federal programs will not make it ineligible for a reimbursement grant.

Gross receipts reported on the expanded list of tax forms can be used to calculate an economic loss for the second phase, making the grant program available to sole proprietors, corporations and other businesses that do not report gross receipts on Form E-500 or Federal Form 1065. This may also provide a larger grant award to businesses that primarily provide services.

On May 2, eligible business owners will be able to apply online at www.ncdor.gov. More detailed information and answers to frequently asked questions will also be available on the agency website.

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