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COVID-19 Recovery Grants

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1. What constitutes a QCT?

Qualified Census Tract is a federal designation for census tracts in which at least half of the households have income below 60 percent of the area median income or have a poverty rate of 25 percent or more.

2. Why are grants only being offered in these areas of the city?

For this initial phase of pandemic assistance, the City Council primarily is concerned with assisting small businesses and small non-profits in danger of ceasing operations. It is deliberately giving first priority to low-income areas of the city to ensure an equitable distribution of funds. Additionally, state law restricts the amount of funds and areas in which the city can provide grants to small businesses.

3. I dipped into my savings to pay my mortgage/rent/utilities. Can I get reimbursed?

No. Grants are for past-due amounts only.

4. My businesses is struggling but I’ve kept up with my mortgage/rent/utilities. Can I get help with other expenses?

No, these recovery grants are only for arrears in mortgages, rent or utilities. Businesses with other losses related to the pandemic may qualify for assistance through the N.C. Business Recovery Grant program.

5. My small business is not in a QCT but many of my customers live in QCTs. Am I eligible for a grant?

No. Small businesses must be physically located in a QCT to be eligible.

6. We’re a small non-profit. What documents do we need to submit to show that we serve clients in a QCT?

Documentation can vary but could include a client list with addressing and/or income information. Client names and physical addresses should be redacted (use only street name and/or zip code).

7. What are social service non-profits?

Social service non-profits are those which assist residents with issues related to their quality of life. Examples include housing, food security, crisis management, mental health, family services and similar issues. 

8. I’m a small business. How do I determine how many full-time equivalent (FTE) employees I have?

Add up the total number of hours worked by all your employees (including yourself, if you work for the business) in a typical week and divide this number by 40 to get your number of FTEs. Example: Your business has 12 employees (including yourself) who work a total of 316 hours in a typical week. You have 7.9 FTEs (316/40 = 7.9).

9. How do I document the number of FTEs in my small businesses?

Report your FTEs through self-attestation.

10. Why are grants restricted to assisting with arrears in mortgages, rent or utilities?

Grants have been provided for these purposes to give priority assistance to non-profits and businesses that may be in danger of ceasing operations without access to funding to ensure facilities and basic utilities are available. Additionally, state law restricts the amount of funds and areas in which the city can legally provide grants.  

11. Can I apply if received other state or federal pandemic assistance?

Yes. Any eligible small business or non-profit can receive a grant provided it has past-due balances on mortgage, rent or utility bills.

12. If I receive a grant, do I have to pay taxes on it?

You should inquire with your tax attorney on this question.

13. If I’m approved, how quickly will I receive assistance?

Grants will be dispersed in early March.

14. Do sole proprietors qualify for grants?

Yes, provided they meet all the other eligibility requirements.

15. Do contractors I use count toward FTEs?

No, provided that they are truly contractor employees per applicable rules and laws.

16. How much money is available for relief grants?

The City Council has allocated $3 million for recovery grants. $1 million is available each for small businesses, for small social service non-profits, and small non-profits in the areas of travel, tourism, hospitality, and the arts.

17. Where is the money for the grants coming from?

The money is part of the $51.7 million the city is receiving in federal pandemic relief through the Coronavirus Local Fiscal Recovery Fund.

18. Will the city be offering other pandemic assistance in the future?

Yes. The City Council is considering a recommendation to make more than $15.5 million available for outcome-based partnerships and programs with specific goals tied to the strategic priorities the mayor and City Council adopted earlier this year. The actual amount could vary as the council votes on specific allocations.