H1224 Summary: Pandemic Emergency Assistance for Restaurants and Lodging

• Transfers $125,000,000 from the Coronavirus Relief Reserve to the Coronavirus Relief Fund for the 2019-2020 fiscal year, with $50,000,000 allocated to a Restaurant Stabilization Program and $75,000,000 allocated to a Hotel Stabilization Program.

• Community Development Financial Institutions (CDFIs) selected by the Director of Budget will make loans up to $50,000 per qualifying business at 3.5% interest with terms not exceeding 120 months to restaurants and hotels experiencing greater than 50% gross revenue losses due to COVID-19.

• Restaurants and hotels receive loans in two phases: Phase One (8 weeks) limited to businesses with fewer than 25 locations and gross receipts under $10,000,000; Phase Two opens to all qualifying businesses after eight weeks.

• Loan forgiveness is available for portions used to purchase from North Carolina small farms, property taxes owed, and income taxes owed; restaurants may also receive forgiveness for amounts used by December 30, 2020 to purchase from North Carolina farms.

• The Office of State Budget and Management must submit semi-annual reports on program metrics including jobs retained, loans awarded, loan amounts, repayments, and defaults until all net loan funds are returned to the Coronavirus Relief Reserve.