COVID Relief Business Recovery Grant Program (Phase 2) – North Carolina

Phase 2 of the Business Recovery Grant program is now open! The Business Recovery Grant Program will issue a payment to an eligible North Carolina business that experienced a significant economic loss due to COVID-19.

Donor Name: North Carolina Department of Revenue

State: North Carolina

County: All Counties

Type of Grant: Grant

Deadline: 06/01/2022

Size of the Grant: $500,000

Details:

The project is being supported, in whole or in part, by federal award number SLRFP0129 awarded to the State of North Carolina by the U.S. Department of Treasury.

Phase 2 authorizes two types of grants:

• 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 (NAICS code 71 and 72).
• A reimbursement grant is available to an eligible business not classified in NAICS Code 71 and 72.

Funding Information 

• Phase 2 grant award for a business cannot exceed $500,000.

Eligibility Criteria

• Business That Did Not Receive a Grant in Phase 1
  • A business is eligible for a grant in Phase 2 if it meets specific conditions. The conditions are dependent on the type of grant.
  • To qualify for a hospitality grant in Phase 2, a business must meet all of the following conditions:
    • The primary activity of the business is properly reflected in NAICS Code 71 or 72 from March 1, 2019, through February 28, 2021.
    • The business is a taxpayer subject to income tax under Article 4 of Chapter 105 of the North Carolina General Statutes.
    • The business suffered an economic loss of at least 20%.
  • To qualify for a reimbursement grant in Phase 2, a business must meet all of the following conditions:
    • The primary activity of the business is NOT properly reflected in NAICS Code 71 or 72 from March 1, 2019, through February 28, 2021.
    • The business is a taxpayer subject to income tax under Article 4 of Chapter 105 of the North Carolina General Statutes.
    • The business suffered an economic loss of at least 20%.
    • The grant amount is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less. Economic loss is determined based on the amount the business’ gross receipts in North Carolina were reduced from the period March 1, 2019 through February 29, 2020 (“Pre-COVID Period”) to the period March 1, 2020 through February 28, 2021 (“COVID Period”).
• Business That Received a Grant in Phase 1
  • A business that received a grant in Phase 1 is only eligible for a grant in Phase 2 if ALL of the following are true:
    • The business has gross receipts that were not reported on Form E-500.
    • The business has gross receipts that were not reported on federal Form 1065.
    • The grant the business received in Phase 1 was less than $500,000.
    • The gross receipts on Line 5b of the Phase 2 application must be greater than the gross receipts on Line 8b of the Phase 2 application.
    • The grant amount for a business that received a grant in Phase 1 is a percentage of the amount by which Line 5b is greater than Line 8b. However, the combined Phase 1.

For more information, visit NCDOR.