The NC Department of Revenue announced awards of roughly $200 million to North Carolina businesses as part of Phase 2 of the state’s Business Recovery Grant Program. NCACPA secured passage of legislation in March 2022 that expanded access to the pandemic relief grants for companies that had previously been excluded from applying because of their tax structure.
For the initial round of the grant program, businesses had to demonstrate a decline of at least 20% in gross receipts using only Form E-500 or Form 1065. This limitation rendered businesses that do not collect sales tax and are structured as an S corporation, C corporation, single-member LLC, or sole proprietorship as ineligible for a grant.
Because of the deficiency in the eligibility design of the program, approximately $200 million of the $500 million in available funds went unused in Phase 1.
Thanks to NCACPA’s lobbying on the issue, lawmakers amended and adopted HB 243 with broad, bipartisan majorities before Governor Cooper signed the bill into law as Session Law 2022-6.
The NCDOR advised that businesses should begin receiving their checks during the week of October 3.
In total, more than 7,000 businesses will be helped by Business Recovery Grants. There were 3,406 grants awarded in Phase 1, and 3,931 grants awarded in Phase 2. The application period for Phase 2 of the program ended on June 1, 2022.
If you have questions about this issue or other policy matters, please contact NCACPA Director of Advocacy Robert Broome, CAE.