North Carolina creating new relief money for businesses damaged by COVID-19 downturn

The state of North Carolina is preparing to roll out a new economic relief tool for companies that have been hit by the COVID-19 downturn and haven’t received relief money from other programs, like the federal Paycheck Protection Program.

On Tuesday, the N.C. Commerce Department’s Economic Investment Committee gave final approval to a program crafted by state lawmakers called the Job Retention Grant, which was included in House Bill 1023 that Gov. Roy Cooper signed on July 1.

The program, which would be funded through the CARES Act, would give eligible companies grants to cover up to 125% of average monthly payroll costs for two months. The grant amount may not exceed $250,000 per company, according to the Commerce Department.

Applications are expected to open next week on the state Commerce Department’s website, though eligibility is limited.

To qualify for the funds, a company must meet the following criteria:

• It employs at least 90% of the full-time employees during the COVID-19 period (March 1-May 31) as it did for the pay period ending on or about Feb. 28, 2020.

• Its sales for the period are at least 10% below the same period in 2019; or, if it is a nonprofit, its gross receipts for the period are at least 10% below what they were for the same period last year.

• It did not get money from the federal Paycheck Protection Program, the federal Main Street Lending Program, or the North Carolina Rapid Recovery Loan Program.

The grant program is relatively small, though, so the final amount approved for applicants could change.

The program was allocated a total of $15 million. If the total amount of money requested by companies exceeds that total, each grant will be reduced on “a proportionate basis,” according to the Commerce Department.

Applications are expected to be taken until Sept. 1, said David Spratley, Commerce’s senior assistant secretary of finance.

This story was produced with financial support from a coalition of partners led by Innovate Raleigh as part of an independent journalism fellowship program. The N&O maintains full editorial control of the work. Learn more; go to bit.ly/newsinnovate