NC General Assembly Approved Grants for North Carolina Businesses
The North Carolina General Assembly approved the use of $15 million from the federal Coronavirus Relief Fund for grants to North Carolina businesses that have not previously received any other assistance.
Eligible businesses include private employers and certain nonprofits, with W-2 employees, which had a significant decline in revenues, have retained at least 90 percent of its full-time employees on the payroll, and have not received assistance from other programs.
A significant decline in revenue consists of at least a 10 percent loss of sales or receipts when comparing March–May of 2019 and 2020. The business must also have been in existence from March through May of 2019 and to have maintained at least 90 percent of the employees it had on the payroll on March 1, 2020.
Furthermore, “No other assistance” is defined as not having received funding from any of the major COVID-19 related business programs such as a PPP loan, Main Street lending program or the Rapid Recovery Loan program (even if the funds will be repaid).
The maximum grant for any taxpayer will be determined based on the lesser of $250,000, or the equivalent of two months of eligible 2019 monthly payroll costs plus 25 percent.
An application is required to secure the grant and businesses must sign a grant agreement. The deadline for submission of the grant application is September 1, 2020. Depending on the number of applicants and requested grants, funds will be allocated to businesses pro rata and awards will be distributed in early October 2020. Grants must be used for legitimate operational aspects of the business by December 31, 2020, and will be taxable income to the recipient.
Cherry Bekaert stands ready to assist companies in applying for the job retention grant. Please contact our State Credits & Incentives professionals for more information. For additional resources on COVID-19 related topics, please visit Cherry Bekaert’s COVID-19 Guidance Center.