Shuttered businesses shut out of NC’s $45 million grant program

The restaurant industry panned the legislature’s plan to focus small business assistance on a program that won’t help any business that has laid off more than 10% of its workforce during the COVID-19 pandemic.

Meanwhile, the Senate rejected a Democrat’s amendment to add a broader business grant program to its billion-dollar coronavirus relief package.

The legislature approved the package, House Bill 1105, on Thursday. If the governor signs it, the bill would add $45.5 million to a relatively new Job Retention Grant program. But businesses must have kept 90% of their employees on the payroll from March through May to qualify, and businesses that received a “Rapid Recovery” loan from the state or funding from the federal Paycheck Protection Program aren’t eligible to apply.

Lynn Minges, who leads the NC Restaurant and Lodging Association, tweeted that her industry is “disappointed that still nothing has been proposed by (the NC General Assembly) to financially assist restaurants/hotels/bars forced to shut down. They can’t take on more debt and many will not survive. Having to keep 90% of your employees to qualify doesn’t help those with most need.”

Sen. Kirk deViere, D-Cumberland, proposed an amendment that would direct $20 million to a “small business facilities assistance program” that would help shuttered businesses pay rent, mortgage and other fixed costs, and $10 million to a “small business impact program” to help what are classified as Historically Underutilized Businesses, which include minority-owned businesses.

DeViere said the Job Retention Grants are “not going to ultimately reach the businesses that have been hurt by this,” including restaurants, bars, gyms and bowling alleys. “They’re not asking for a handout, they’re asking to survive,” deViere said during debate over the bill Wednesday. “This isn’t partisan, this is helping our small businesses.”

The Senate voted 28-21 along party lines to table deViere’s proposal, effectively killing it.

Republicans offered a wide range of arguments against the broader business grants. Sen. Carl Ford, R-Rowan, said that allowing the businesses to reopen would be a better approach.

Sen. Jim Perry, R-Lenoir, raised “constitutional concerns” about the deViere amendment.

“I don’t think dangling things that are undeliverable in front of (businesses) is the way to do it,” Perry said during debate Wednesday.

And Sen. Paul Newton, R-Cabarrus, said that while the amendment’s “intention is great,” “we don’t even know administratively if Commerce could deploy those dollars.”

Gov. Roy Cooper’s budget included provisions that were similar to deViere’s amendment, and his administration includes the Department of Commerce.

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