Effective March 1, the N.C. Department of Revenue (NCDOR) began mailing one-time payments to eligible and approved North Carolina businesses that applied for the Business Recovery Grant (BRG) program prior to the Jan. 31, 2022 deadline. Businesses approved for a grant of $50,000 or less can expect to receive payment in the coming days.
The BRG program is funded by the federal American Rescue Plan (ARP) State Fiscal Recovery Fund.
“A number of small businesses were hit hard by the pandemic and these funds can help them recover and thrive. I appreciate the work to get checks out as quickly as possible while we work with legislative leaders to expand eligibility to more businesses,” said Governor Roy Cooper.
Two types of grants were available to businesses that suffered an economic loss of at least 20 percent during the pandemic:
- Hospitality Grant for an eligible arts, entertainment, or recreation business, as well as an eligible accommodation or food service business such as a hotel, restaurant, or bar (NAICS code 71 and 72).
- Reimbursement Grant for an eligible business not classified in NAICS Code 71 and 72 and that did not receive funding from other relief programs including Paycheck Protection Program, COVID-19 Job Retention Grant, and EIDL Advance.
The grant amount is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less. Applicants that were not approved will be notified.
Federal law requires persons or entities receiving grant awards in excess of $50,000 to provide additional information to the department under various reporting requirements including the Federal Funding Accountability and Transparency Act (FFATA). The FFATA makes this information available online via a searchable website so that the public can access information on recipients of Federal funds. NCDOR will contact applicants that will be impacted by these federal requirements regarding next steps via email and US postal service.
Last week, the N.C. Department of Revenue temporarily paused accepting applications for Phase 2 of the 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 and Governor Cooper have expressed willingness to examine eligibility before remaining funds are awarded.
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.