Your business or nonprofit organization may be eligible for a grant from the NC Department of Commerce’s new Job Retention program, if you’ve experienced interruption due to the COVID-19 coronavirus pandemic. Your organization may qualify to receive these grant funds if:

• You employ in North Carolina at least 90% of the number of full-time employees during the COVID-19 period (March 1, 2020 – May 31, 2020) as you employed in North Carolina for the pay period ending on or about February 28, 2020;
• You can demonstrate that you’ve experienced an economic loss because of the COVID-19 pandemic as follows:
  • For a business, your sales for the COVID-19 period (March 1, 2020 – May 31, 2020) are at least ten percent (10%) below yours sales for the same period in the preceding calendar year;
  • For a nonprofit, your gross receipts for the COVID-19 period (March 1, 2020 – May 31, 2020) are at least ten percent (10%) below your gross receipts for the same period in the preceding calendar year;
  • You did not participate in the federal Paycheck Protection Program, the federal Main Street Lending Program, or the North Carolina Rapid Recovery Loan Program.

How Much Can You Apply For?

Calculate your Job Retention Grant amount this way: take up to two months of your average monthly payroll costs from 2019, plus an additional 25% of that amount. The maximum grant amount is capped at $250,000.

And speaking of caps: The total of all funds granted under the Job Retention Grant Program may not exceed $15,000,000. If the total amount of grants requested by qualified applicants exceeds the maximum amount of funds available, each grant amount will then be reduced on a proportionate basis prior to the grants being awarded. So the applicant pool may have an impact on grant amounts, even beyond eligibility.

Which Businesses Are Eligible?

These are the classes of businesses and non-profit organizations that 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, of which no part of the net earnings inures to the benefit of any private stockholder or individual. These non-profit types 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;
  • Business leagues, chambers of commerce, merchants’ associations, or boards of trade not organized for profit. (generally, 501(c)(6) nonprofits). It is important to note: Applications for 501 (c)(6) nonprofits are accepted on a provisional basis. This type of nonprofit is not eligible for JRG funds, according to current law. However, the N.C. General Assembly has indicated an interest in making this type of nonprofit eligible. So, these applications are accepted provisionally and will be considered if the statute is amended to make them eligible.

Before You Apply

The NC Department of Commerce is offering a comprehensive briefing on the Job Retention Grant (JRG) Program on Monday, August 17 at 11 AM. The briefing team will offer an overview of the program and point out important details for applicants to keep in mind. They’ll walk through the application process, and answer your questions.

Register Here for the Briefing

As part of the application process, you’ll be asked to upload these documents:

• Your NCUI 101 Report for 2020 Q1 (January – March) – (the NCUI 101 is your Employer’s Quarterly Tax and Wage Report)
• NCUI 101 Report for 2020 Q2 (April – June)
• 2019 federal W-3 document
• 2019 Payroll documentation for your North Carolina employees

You’ll also need the following information with you, before starting your application:

• Contact information for the person applying for the grant, as well as a second person (optional)
• Employer Identification Number (EIN)
• N.C. Secretary of State ID Number (SOS ID – look up your ID here if needed)
• The total number of direct full-time employees (at least 35 hours per week) IN NORTH CAROLINA on the last day of the payroll period that ended immediately prior to March 1, 2020
• The total number of direct full-time employees (at least 35 hours per week) IN NORTH CAROLINA on the last day of the payroll period that ended immediately prior to July 1, 2020
• The total gross receipts of the Applicant (for all locations where the Applicant operates, not just in North Carolina) for the period between March 1, 2019 and May 31, 2019
• Total gross receipts of the Applicant (Applicant-wide, not just in North Carolina) for the period between March 1, 2020 and May 31, 2020.

The Application

The NC Department of Commerce is accepting applications now until Tuesday, September 1, 2020 at 11:59pm. No applications will be accepted after that time. Grants will be awarded after the September 1 deadline, and the potential amount of each grant will not be determined until all applications have been reviewed and awarded.
Once your online application has been submitted, it cannot be revised.

Access the Application Here

The NC Department of Commerce offers this FAQ for those considering applying. You can also review the law authorizing the program.