Senate Bill 805 Summary

• Appropriates $250,000,000 from the General Fund to the Department of Commerce for the COVID-19 Small Business Recovery Program to provide one-time grants to small businesses impacted by the pandemic.

• Defines qualifying businesses as entities subject to income tax with 2019 annual receipts of $8,000,000 or less and a reduction of at least 25% in sales tax collections in 2020 compared to 2019.

• Limits individual grants to the lesser of $250,000 or the actual reduction in sales tax collections experienced by the business due to COVID-19.

• Requires grant recipients to maintain business operations for a minimum of six months after receiving the grant, with proportionate clawback of funds for any operational gaps during that period.

• Amends G.S. 105-153.5(b) to exclude grant amounts from taxable income for tax years beginning January 1, 2022 through December 31, 2022.