The deadline for businesses impacted by the COVID-19 pandemic to apply for Phase 2 of the Business Recovery Grant Program (BRG) is Wednesday, June 1. BRG will issue a one-time payment to eligible North Carolina businesses that suffered an economic loss of at least 20 percent during the pandemic. BRG is funded by the federal American Rescue Plan. The N.C. Department of Revenue is administering the program.
“Small businesses are the backbone of the North Carolina economy, and the Business Recovery Grant Program is an important way for the state to support those that were impacted by the pandemic,” said Governor Roy Cooper.
“We encourage any eligible business that suffered financial setbacks during the pandemic to apply for these grants before the application deadline,” said NCDOR Secretary Ronald Penny. “Our goal is to provide every penny of the grant funds to these businesses to help them recover.”
As of May 27, the NCDOR has received more than 13,000 applications. Applicants must submit online applications before midnight on June 1. Paper applications must be received by the NCDOR at the location designated on the application on or before June 1.
Eligibility for grants has been expanded for Phase 2 of the BRG. In addition to COVID-impacted businesses in the hospitality industry such as restaurants and hotels, the BRG is open to all other industries. Additionally, a business that received other COVID-19 relief may now be eligible for a grant in Phase 2. A non-exhaustive list of businesses that may be eligible for a grant is below:
Farmers and Agribusinesses
Gyms and Personal Training businesses
Salons and Barbershops
Massage Therapy businesses
Interior Design businesses
Tailor and Dry Cleaning businesses
Approximately $200 million remains to be granted of the $500 million in American Rescue Plan funds appropriated for the program.
Two types of grants are available to eligible businesses for Phase 2:
A hospitality grant is available to an eligible arts, entertainment, or recreation business, as well as an eligible accommodation or food service business such as a hotel, restaurant, or bar (NAICS code 71 and 72).
A reimbursement grant is available to an eligible business not classified in NAICS Code 71 and 72.
Gross receipts reported on an expanded list of tax forms can be used to calculate an economic loss for Phase 2, making the BRG available to eligible sole proprietors, corporations, and other businesses that do not report gross receipts on Form E-500 or Federal Form 1065. This change may also allow businesses that primarily provide services to apply for a larger grant award during Phase 2.
Eligible business owners may apply for Phase 2 online at https://www.ncdor.gov/business-recovery-grant. More detailed information and answers to Frequently Asked Questions is also available on the agency website.
The program is being supported, in whole or in part, by federal award number SLRFP0129 awarded to the State of North Carolina by the U.S. Department of Treasury.