NORTH CAROLINA ESTABLISHES BUSINESS RECOVERY GRANT PROGRAM REWARDING UP TO $500,000. ARE YOU ELIGIBLE TO APPLY?

As the New Year approaches, it brings prospects of change, growth, and a renewed commitment to values and priorities.  But in the face of bright outlooks, many Western North Carolinians are still struggling with hardships precipitated by the COVID-19 pandemic in 2020 and 2021.  Local businesses, in particular, continue to grapple with economic losses that have been accumulating since March 2020.  To aid businesses in economic recovery, North Carolina recently established the Business Recovery Grant Program.

Under the Business Recovery Grant Program, the North Carolina Department of Revenue (NCDOR) may award eligible businesses a one-time grant of up to $500,000.  Based upon the following criteria, businesses may apply for either a “Hospitality Grant” or a “Reimbursement Grant.”

Hospitality Grant

• The business was classified in NCAICS Code 71 or 72 from March 1, 2019, through February 28, 2021;

• The business pays corporate or partnership income taxes pursuant to Chapter 105, Article 4 of the North Carolina General Statutes; and

• The business suffered an “economic loss” of at least 20%

Reimbursement Grant

• The business was classified in NCAICS Code 71 or 72 from March 1, 2019, through February 28, 2021;

• The business pays corporate or partnership income taxes pursuant to Chapter 105, Article 4 of the North Carolina General Statutes;

• The business suffered an “economic loss” of at least 20%; and

• The business has not received an award amount from any of the following:

  • COVID-19 Job Retention Grant

  • Economic Injury Disaster Loan Advance

  • Paycheck Protection Program

  • Restaurant Revitalization Fund

  • Shuttered Venue Operators Grant Fund

As applicable to both the Hospitality Grant and the Reimbursement Grant, “economic loss” is the difference between the business’s “gross receipts” for the period March 1, 2020, to February 28, 2021, and its “gross receipts” for the period March 1, 2019, through February 28, 2020.  Gross receipts are the sum of (1) the gross receipts reported on line 1 of Form E-500; (2) and the gross receipts reported on line 1a of Form 1065, if any, provided the gross receipts are for transactions apportionable to North Carolina.   

To request a Hospitality Grant or Reimbursement Grant, eligible businesses must apply online or submit a paper application by January 31, 2022.  NCDOR may award a grant of up to 20% of a business’s economic loss, but no more than $500,000.  NCDOR will begin issuing grants to qualifying businesses via paper check after January 31, 2022.  Businesses may track payment information on the Business Recovery Grant Payments tab.

For more information about the Business Recovery Grant Program, visit the Program’s FAQ tab or call NCDOR at 1-877-252-4487.

As always, Allen Stahl + Kilbourne stands ready to serve local businesses as they meet the opportunities, challenges, and of rewards of 2022.

If you have any questions about the grant or your eligibility, you can reach out to our attorneys

For More: Hannah Michalove or Derek Allen.

Updated: December 20, 2021

Photograph from the North Carolina Department of Revenue