North Carolina Business Recovery Grant Update: Applicants Are Starting to Receive Round 2 Grant Payments
Taxpayers who applied for Round 2 of North Carolina’s Business Recovery Grant Program are starting to receive their grant payments from the North Carolina Department of Revenue (NCDOR). These grants were available to North Carolina businesses whose gross receipts were negatively impacted by the COVID pandemic. Eligible taxpayers were required to file an application with the NCDOR by June 1, 2022 under Round 2 of this program.
We have received information that the NCDOR has finished processing all of the grant applications received prior to the June 1, 2022 deadline and applicants have started receiving their grant payments.
The $500 million funding for this program was divided into two buckets: (1) to providing funding to those taxpayers that operate in the hospitality industry (NAICS codes 71 and 72) and (2) to provide funding to all other taxpayers (all other NAICS codes). Due to the way the grant program rules were written, the NCDOR is only allowed to pay out total grants up to a certain amount within each bucket. If the NCDOR received applications for grants in excess of the amounts allowed within that particular bucket, each applicants grant amount within that bucket is required to be reduced proportionately.
As a result of the number of applicants who applied for a grant that operate in hospitality industry (NAICS code 71 or 72), those applicants appear to be receiving 64% of the grant amount they were eligible for under the program. Those applicants not in the hospitality industry (all other NAICS codes) appear to be receiving 100% of the grant amount they were eligible for.
Please do not hesitate to reach out to Jamie Parsons (JParsons@brccpa.com) if you have any questions regarding the status of your application and/or the amount of grant payment you received.