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Banking & Finance

New Round Of Business Recovery Grants For Small Businesses Launches May 2

By Jenny Callison, posted Apr 14, 2022
North Carolina’s Department of Revenue (DOR) has announced the much-anticipated rollout of a second phase of its Business Recovery Grant Program. Beginning May 2, small businesses may apply for grants from the remaining pool of about $200 million.
 
The program “will issue a payment to an eligible North Carolina business that suffered an economic loss of at least 20% during the pandemic,” the DOR stated in its news release. “The grant amount is a percentage of the economic loss demonstrated by the eligible business or $500,000, whichever is less. The application deadline is June 1, 2022.”
 
Many types of businesses that were not eligible to apply for Phase 1 of the BRG program have been included in Phase 2, according to the release. While Phase 1 targeted restaurants and the hospitality industry, DOR officials say that Phase 2 is open to businesses such as farmers and agribusinesses, gyms and trainers, salons and barbers, massage therapists, dentists, lawyers, doctors, interior designers, hardware stores, pharmacies, landscapers, mechanics and tailors and dry cleaners.
 
“I don’t think that list is exhaustive,” said Jerry Coleman, director of the Small Business Center at Cape Fear Community College. “If you are a small business, you should apply for this grant.”
 
Coleman noted that the state has not yet posted all the information about eligibility criteria, but said that potential applicants should be prepared to submit their 2019 financials as a benchmark against which their pandemic-related losses can be evaluated.
 
“Keep a watchful eye on the BRG website for more details,” Coleman said, adding that the DOR plans to post eligibility criteria and directions for applying beginning May 2, when the application portal opens. The application website is here.  

What the state has announced is that there will be two categories of grants awarded in Phase 2. One is hospitality grants to eligible arts, entertainment and recreation businesses as well as to food service businesses like hotels, restaurants and bars. The second category of grants will be awarded to other types of businesses. Those that received a grant from certain federal programs are still eligible to apply for a Phase 2 Business Recovery Grant, according to the announcement.

Gross receipts reported on the expanded list of tax forms can be used to calculate an economic loss for Phase 2, making the BRG available to sole proprietors, corporations, and other businesses that do not report gross receipts on Form E-500 or Federal Form 1065, the DOR announcement stated. This may also provide a larger grant award to businesses that primarily provide services.

BRG’s Phase 2 funds consist of about $203.5 million that remains from Phase 1, which closed on Jan. 31, 2022 and had a pool of $500 million to draw from. NCDOR officials stated they worked with the N.C. General Assembly to expand eligibility to certain businesses impacted by the pandemic that did not qualify for the first round of funds.

The Small Business Center at Cape Fear Community College, the Small Business Center at Brunswick Community College and the Small Business and Technology Development Center (SBTDC) in Wilmington can help applicants if they need more information than is available on the DOR website.
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