Businesses that may be eligible include
ARTS | ENTERTAINMENT | RECREATION | HOTELS | RESTAURANTS | BARS | FOOD SERVICES | TOUR GUIDES | FARMERS | MASSAGE THERAPISTS | and many others
Overview: Business Recovery Grant Program
Businesses that suffered economic loss during the pandemic of at least 20 percent may be eligible for a one-time payment of up to $500,000 through the Business Recovery Grant program, administered by the N.C. Dept. of Revenue. Phase 2 opens for applications on May 2. The application deadline is June 1, 2022.
Key Differences: Phase 1 versus Phase 2 of the Business Recovery Grant Program
- More businesses will be able to meet the 20% economic loss requirement for hospitality and reimbursement grants
- In Phase 1, a business was required to calculate economic loss using certain gross receipts reported on the following forms:
- Form E-500, NC Sales and Use Tax Return
- Federal Form 1065, U.S. Partnership Return of Income
- In Phase 2, businesses can calculate their economic loss based on gross receipts reported on certain lines of the following forms:
- Form E-500, NC Sales and Use Tax Return
- Federal Form 1065, U.S. Partnership Return of Income
- Federal Form 1120, U.S. Corporate Income Tax Return
- Federal Form 1120-S, U.S. Corporate Income Tax Return-Sole Proprietorships
- Federal Form 1040, Schedule C, Profit or Loss From Business
- Federal Form 1040, Schedule F, Profit or Loss From Farming
- In Phase 1, a business was required to calculate economic loss using certain gross receipts reported on the following forms:
- Businesses excluded in Phase 1 because they received funds from certain federal programs will be eligible in Phase 2
- In Phase 1, a business could not receive a reimbursement grant if it received an award from one of the following programs:
- COVID-19 Job Retention Program
- Economic Injury Disaster Loan Advance
- Paycheck Protection Program
- Restaurant Revitalization Fund
- Shuttered Venue Operators Grant
- In Phase 2, a business may be eligible for a reimbursement grant if it received an award from one of those programs, provided that the business also:
- Is not classified in NAICS Code 71 or 72
- Suffered an Economic Loss of At Least 20%, and
- Subject to NC Income Tax under Article 4 of Chapter 105.
- In Phase 1, a business could not receive a reimbursement grant if it received an award from one of the following programs:
By expanding the types of gross receipts that can be used to calculate economic loss, these changes will make the Business Recovery Grant Program available to sole proprietors, corporations and other businesses that do not report gross receipts on Form E-500 or Federal Form 1065.
This means that farmers and businesses that primarily provides services—such as tour guides and massage therapists, just to name a few—may now be eligible for a grant or a larger grant!