NCDOR to Launch Phase Two of Business Resumption Grant Program May 2

$200 million remains available as eligible business categories expand

The North Carolina Department of Revenue (NCDOR) plans to launch the Phase 2 application for the Business Resumption Grant (BRG) program on Monday, May 2, 2022, with changes to program eligibility criteria allowing many more businesses to qualify for these grants. BRG will issue a payment to an eligible North Carolina business that has suffered an economic loss of at least 20% during the pandemic. The amount of the subsidy 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.

“Barbers, cosmetologists, gyms and other service providers have been hit hard by the pandemic and it’s important to expand these grants to help them as well,” Governor Roy Cooper said. “Our small businesses are the backbone of our economy and strong support for them is essential.”

Many businesses excluded from Phase 1 are eligible to apply for Phase 2. In addition to hospitality businesses impacted by COVID such as restaurants and hotels, the BRG is now open to other impacted businesses by the pandemic such as:

  • Farmers and agro-industries
  • Gyms and trainers
  • Salons and barbers
  • massage therapists
  • Dentists
  • Lawyers
  • Doctors
  • interior designers
  • Hardware stores
  • Pharmacies
  • Landscapers
  • Mechanical
  • Tailors and dry cleaners

In addition, a company’s previous receipt of a grant from certain federal programs will not make it ineligible for a refund grant. This list is not exhaustive and companies are invited to visit https://www.ncdor.gov/business-recovery-grant to learn more about the eligibility criteria as of May 2.

Following the initial application period, which ended on January 31, approximately $203.5 million remained of the $500 million in funds originally authorized for the program. The NCDOR has worked with the NC General Assembly to expand eligibility to select businesses impacted by the pandemic, but which were ineligible for the first round of funding.

“We hope the expanded requirements for the Business Recovery Grant Program will encourage more eligible North Carolina businesses to apply,” said NCDOR Secretary Ronald Penny. “These funds are available to eligible businesses that have suffered financial loss due to the pandemic and we want to make sure those businesses receive them.”

Two types of grants will be available to eligible businesses for Phase 2:

  • A hospitality grant is available for a qualifying arts, entertainment or recreation business, as well as a qualifying accommodation or catering business such as a hotel, restaurant or bar (NAICS codes 71 and 72).
  • A rebate subsidy is available to qualifying businesses that are not classified under NAICS codes 71 and 72. The fact that a company has already received a grant from certain federal programs will not make it ineligible for a reimbursement grant.

Gross receipts reported on the extended 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. This may also provide a larger subsidy to businesses that primarily provide services.

On May 2, eligible business owners will be able to apply for Phase 2 online at www.ncdor.gov. More detailed information and answers to frequently asked questions will also be available on the agency’s website.

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