North Carolina Department of Revenue Resumes Business Resumption Grant Program for People Affected by Pandemic

RALEIGH, NC (WWAY) – The North Carolina Department of Revenue (NCDOR) announced that it is accepting applications for Phase 2 of the Business Resumption Grant (BRG) program beginning today. today.

After suspending the program in February, many more businesses are now eligible for these grants due to updates to the program’s eligibility criteria.

The program will issue a payment to an eligible North Carolina business that has suffered an economic loss of at least 20% during the pandemic. The amount of the subsidy is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less.

The deadline for applications is Wednesday, June 1, 2022.

“Hair salons, cosmetology businesses, gyms and other businesses that provide services have been hit hard by the pandemic and it’s important to expand these US bailout grants to help them,” said Governor Roy Cooper. “Our small businesses are the backbone of our economy and strong support for them is essential.”

Many businesses that did not qualify in Phase 1 are eligible to apply in Phase 2. In addition to businesses in the hospitality sector impacted by COVID, such as restaurants and hotels, the program is open to all other business industries that have been impacted by the pandemic, including but not limited to:

  • Farmers and agro-industries
  • Gyms and personal training companies
  • Salons and hair salons
  • Massage therapy companies
  • Dental offices
  • Law firms
  • Medical practices
  • Interior design companies
  • Hardware stores
  • Pharmacies
  • Landscape companies
  • Tailors and dry cleaning companies

A business that has received other COVID-19 relief may be eligible for a grant in Phase 2.

About $200 million remains to be awarded of the $500 million in US bailout funds earmarked for the program.

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

Two types of grants will be available to eligible businesses for Phase 2:

  • A hospitality grant is available for a qualifying arts, entertainment or recreation business, as well as a qualifying accommodation or catering business such as a hotel, restaurant or bar (NAICS codes 71 and 72).
  • A rebate subsidy is available to eligible businesses not classified under NAICS codes 71 and 72.

Gross receipts reported on an expanded list of tax forms can be used to calculate an economic loss for Stage 2, making the BRG available to sole proprietors, corporations and other qualifying businesses that do not report gross receipts on the E-500 form or the federal form. 1065. This change may also allow businesses that primarily provide services to apply for a larger subsidy in Phase 2.

Eligible business owners can apply for Phase 2 online at https://www.ncdor.gov/business-recovery-grant. More detailed information and answers to Frequently Asked Questions are also available on the agency’s website.

Ryan H. Bowman