Raleigh, N.C. Feb 22, 2022 The N.C. Department of Revenue will temporarily pause accepting Phase 2 applications for Business Recovery Grants as the General Assembly considers increasing eligibility for additional types of businesses. Legislation creating the Business Recovery Grants limited eligibility to businesses that collect sales tax and made ineligible certain types of service businesses that were severely impacted by the pandemic. Legislative leaders have expressed willingness to examine eligibility before remaining funds are awarded. The Department of Revenue will continue to process Phase 1 grant awards to approved eligible businesses. Additional applications will not be accepted at this time. “Our discussions with the General Assembly provided us further insight into the intent of the bill,” said NCDOR Secretary Ronald Penny. “We hope to provide further updates soon.” The pause in applications does not affect businesses that applied for grants during the original application period. Those businesses may expect to receive communication from NCDOR about the status of their application and payment within the next week. The NCDOR funds public services benefiting the people of North Carolina. The department administers the tax laws and collects the taxes due in an impartial, consistent, secure, and efficient manner.