Is Your Business Eligible for a North Carolina Business Recovery Grant?
It has been more than 2 years since the start of the COVID-19 pandemic and many businesses are still navigating the uncertainties it has created. Throughout the pandemic, businesses have had opportunities to apply for funding from various sources to help alleviate some of the economic burdens they have faced. One such source of funding that is still available to North Carolina businesses is the North Carolina Business Recovery Grant program. North Carolina has designated $500 million of the federal monies it received from the American Rescue Plan Act to create this program. The program was created in November of 2021 and the first round of grants were paid out in March of 2022.
With significant funding still available after the first round, recently enacted North Carolina legislation has extended the program and also made it easier for businesses to meet the eligibility requirements.
The second round of the North Carolina Business Recovery Grant program is slated to kick off on May 2, 2022 and applications will be accepted through June 1, 2022.
Is your business eligible for a North Carolina Business Recovery Grant?
To be eligible, a business must meet both of the following requirements:
- (1) They must have had a 20% or greater reduction in gross receipts during the defined “COVID Period” as compared to the “Pre-COVID Period”:
- Pre-COVID Period: March 1, 2019 – February 29, 2020
- COVID Period: March 1, 2020 – February 28, 2021
- (2) They must be subject to North Carolina income tax
Gross receipts equals the sum of:
- (1) the amounts reported on Line 1 of Form E-500 (North Carolina Sales and Use Tax Return) or if amounts were not reported on Line 1 the sum of the amounts reported on Line(s) 4-8 of Form E-500, and
- (2) the amounts reported on the following lines of the business’s federal income tax return (if not already included on Form E-500 and the amounts are apportioned to North Carolina):
- Line 1(a) of Form 1065, 1120 or 1120-S
- Line 1 of Form 1040, Schedule C
- Line 9 of Form 1040, Schedule F
How much is your business eligible to receive?
The answer is….it depends.
For businesses that have already received other forms of “COVID-Related Funding”, the grant will equal 10% of the economic loss the business incurred (up to a maximum of $500,000).
For businesses that have not previously received other “COVID-Related Funding”, the grant will equal 20% of the economic loss the business incurred (up to a maximum of $500,000).
For purposes of determining which percentage will apply, “COVID-Related Funding” is defined in the NCDOR FAQ’s as the following: Paycheck Protection Program (PPP) Funds; EIDL Advance; Restaurant Revitalization Grants; Shuttered Venue Grants; COVID-19 Job Retention Grant (a NC grant program).
So, what is the next step?
We encourage all businesses that operate in North Carolina to review the eligibility requirements and determine if their business is eligible to apply for this grant. If so, be sure to apply online when the program opens on May 2, 2022 and remember the deadline for applying is June 1, 2022.
Click here – to access the North Carolina Department of Revenue (NCDOR) website with more information about the program and to access the grant application when the program launches.
If you have any questions regarding whether your business may be eligible for a North Carolina Business Recover Grant, please do not hesitate to reach out to Jamie Parsons (JParsons@brccpa.com) or your trusted BRC advisor.
Jamie L. Parsons Partner, CPA
Jamie is a Partner in our Firm’s assurance area with over 19 years of experience in public accounting. She works primarily with non-profit organizations and clients involved in the affordable housing industry, including tax credit properties, U.S. Department of Housing and Urban Development and U.S. Department of Agriculture Rural Development sites. She has experience […]
Steve Amigone Consulting Practice Leader
Steve serves as the Firm’s Consulting Practice Leader in the Winston Salem office of Bernard Robinson & Company (BRC). He is responsible for leading and driving growth, client service, and investments in seven key service lines: CFO Consulting, IT Solutions, M&A, Forensics/Valuation, Client Accounting Services, Outsourcing, and Business Transformation. Steve will also serve on […]