North Carolina Provides COVID-19 Relief through Job Retention Grant

The North Carolina Department of Commerce (DOC) is accepting applications through Sept. 1, 2020, for the Job Retention Grant (JRG).[1]

Businesses and not-for-profit organizations considering the JRG must meet all of the following criteria:

  1. Did not receive funds from the Main Street Lending Program, the Rapid Recovery Loan Program or the Paycheck Protection Program;
  2. Retained at least 90 percent of their workforce from March 1, 2020, to May 31, 2020, as it employed as of Feb. 28, 2020; and,
  3. Experienced an economic loss related to the COVID-19 pandemic comparable to a reduction in gross receipts of at least 10 percent.

The maximum JRG that can be received by a business or not-for-profit is $250,000. The JRG is calculated as up to two months of the eligible entity’s average monthly payroll costs from 2019, plus an additional 25 percent of that amount. Eligible payroll costs include wages for employees up to $100,000 per individual plus employer paid health insurance premiums, employer paid retirement contributions and state employment taxes.

The North Carolina General Assembly appropriated $15 million for the JRG. To the extent the DOC receives requests by qualified applicants that exceed the appropriation, grant amounts will be reduced on a proportionate basis.  The DOC expects to communicate the amount of the award to applicants shortly after the due date for applications and will distribute grant funds in early October 2020.

Upon receipt, JRG funds must be used for any legitimate operational purposes of the business before Dec. 30, 2020. The JRG recipient names and grant amounts may be disclosed to media.

DHG recommends that business and not-for-profits with North Carolina employees analyze their eligibility for the JRG as the submission deadline is approaching quickly. Please contact the individuals below if you have any questions or reach out to us at tax@dhg.com.


Reference:

[1] Job Retention Grant (JRG), North Carolina Department of Commerce.

Related Knowledge Share