Businesses and nonprofit groups that were affected by the COVID-19 pandemic can apply for a state grant program.
But a stipulation of the new Job Retention Grant Program is that they can’t have received certain other COVID-19 relief funds such a Paycheck Protection Act loan or a Rapid Recovery loan.
The deadline for applying for the N.C. Department of Commerce’s new grant program, which is funded at $15 million from the Federal CARES act, is Sept. 1, which is set by state law.
The program is an attempt to reach Main Street small businesses, arts and cultural businesses, faith communities and home-based entrepreneurs, according to information from the N.C. Department of Commerce.
These classes of businesses or nonprofit organizations can apply for a Job Retention Grant.
- A publicly held business.
- A privately held business that has at least one W-2 employee and is subject to state income tax.
- Nonprofit organizations that do not have net earnings that benefit a private stockholder or individual.
The types of nonprofit groups that can participate include:
- Generally, 501(c)(3) nonprofits — Cemetery corporations and corporations organized for religious, charitable, scientific, literary or educational purposes, or for the prevention of cruelty to children or animals.
- Generally, 501 (c)(7) nonprofits — Clubs organized and operated exclusively for pleasure, recreation and other nonprofitable purposes.
Businesses and nonprofits have to meet certain eligibility requirements to qualify. They are:
- It employs at least 90% of the number of full-time employees during the COVID-19 period (March 1 through May 31) in North Carolina as it employed in North Carolina for the pay period ending on or about Feb. 28.
- It demonstrates that it experienced an economic loss in connection with COVID-19. For a business, its sales for the COVID-19 period (March 1 through May 31) are at least 10% below its sales for the same period in the preceding calendar year. For a nonprofit, its gross receipts for the COVID-19 period (March 1 through May 31) are at least 10% below its gross receipts for the same period in the preceding calendar year.
- It did not participate in the federal Paycheck Protection Program, the federal Main Street Lending Program or the N.C. Rapid Recovery Loan Program.
The potential amount of each grant will not be determined until all applications have been reviewed and awarded, according to the Commerce Department.