NC S864

Appropriates $250,000,000 in nonrecurring funds from the General Fund to the Department of Commerce for the 2024-2025 fiscal year to assist small businesses impacted by COVID-19.

Creates the COVID-19 Small Business Recovery Program to provide one-time grants to qualifying businesses that had annual receipts of $8,000,000 or less in 2019 and experienced at least a 25% reduction in sales tax collections in 2020 compared to 2019.

Limits individual grants to the lesser of $250,000 or the amount of actual sales tax collection reduction experienced by the business.

Requires recipient businesses to maintain operations for a minimum of six months following grant receipt, with the Department clawing back a proportionate amount of the grant for any portion of those six months operations are not maintained.

Excludes Small Business Recovery Program grants from taxable income under G.S. 105-153.5(b) for taxable years beginning January 1, 2024 through December 31, 2024.