North Carolina SB 900: Small Business Investment Grant.

Bill Text

GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2025
S 1
SENATE BILL 900

Short Title: Small Business Investment Grant. (Public)
Sponsors: Senators Smith and Murdock (Primary Sponsors).
Referred to: Rules and Operations of the Senate
April 30, 2026
*S900-v-1*
A BILL TO BE ENTITLED 1
AN ACT TO PROVIDE FUNDS TO ASSIST SMALL BUSINESSES ADVERSELY 2
IMPACTED BY COVID-19. 3
Whereas, the unprecedented issues surrounding COVID-19 have impacted North 4
Carolina's business economy; and 5
Whereas, small businesses, particularly those in underserved areas, have been more 6
significantly impacted; and 7
Whereas, small businesses need access to capital to make crucial investments and stay 8
afloat during this pandemic; Now, therefore, 9
The General Assembly of North Carolina enacts: 10
SECTION 1.(a) Appropriation. – There is appropriated from the General Fund to 11
the Department of Commerce the sum of two hundred fifty million dollars ($250,000,000) in 12
nonrecurring funds for the 2025-2026 fiscal year to be used as provided in this act. Funds 13
appropriated in this section do not revert but remain available to the Department for the purposes 14
provided in this act. 15
SECTION 1.(b) Purpose. – The purpose of this section is to help small businesses 16
in North Carolina that experienced economic disruption as a result of the COVID-19 pandemic 17
by providing grants awarded by the Department, in consultation with the North Carolina 18
Department of Revenue, to offset the economic harm suffered and to promote economic 19
development and maintain economic stability by helping to preserve and sustain a vital element 20
of the State's economy. 21
SECTION 1.(c) Small Business Recovery Program. – There is created the 22
COVID-19 Small Business Recovery Program to be administered by the Department of 23
Commerce. The Department may provide a one-time grant to each qualifying business. For 24
purposes of this section, a qualifying business is an entity (i) subject to income tax under Article 25
4 of Chapter 105 of the General Statutes, (ii) with annual receipts, when combined with the 26
annual receipts of all related persons, for the 2019 tax year of eight million dollars ($8,000,000) 27
or less, and (iii) a reduction of at least twenty-five percent (25%) in sales tax collections resulting 28
from the COVID-19 pandemic for the 2020 tax year when compared to collections for the 2019 29
tax year. 30
SECTION 1.(d) Grant Program Application; Limitations. – A qualifying business 31
must apply to the Department for a grant during the time frame and on a form prescribed by the 32
Department and must include any supporting documentation required by the Department. The 33
Department may accept applications until the funds appropriated in this section have been fully 34
awarded. The grant amount to a qualifying business may not exceed the lesser of (i) two hundred 35
fifty thousand dollars ($250,000) or (ii) the amount of reduction in sales tax collections of the 36

General Assembly Of North Carolina Session 2025
Page 2 Senate Bill 900-First Edition
qualifying business resulting from the COVID-19 pandemic for the 2020 tax year when 1
compared to collections for the 2019 tax year. The total of all grants awarded under this Program 2
may not exceed two hundred fifty million dollars ($250,000,000). The Department shall verify 3
that the business is a qualifying business with the Department of Revenue. Notwithstanding 4
G.S. 105-259, the Department of Revenue may disclose tax information to the Department of 5
Commerce to verify eligibility for the Program. The Department's grant determinations based on 6
applications filed are final. 7
SECTION 1.(e) Clawback. – A grant under the Program authorized in this section 8
shall be conditioned on a recipient business maintaining operations for a minimum of six months 9
following receipt of the grant, and the Department shall clawback a proportionate amount of the 10
grant for any portion of the six months the recipient business does not maintain business 11
operations. 12
SECTION 2. G.S. 105-153.5(b) is amended by adding a new subdivision to read: 13
"(15a) The amount granted to a taxpayer during the taxable year under the Small 14
Business Recovery Program." 15
SECTION 3. Section 2 of this act is effective for taxable years beginning on or after 16
January 1, 2025, and expires for taxable years beginning on or after January 1, 2026. The 17
remainder of this act is effective when it becomes law. 18