Sen. Smith files COVID-19 recovery bill in North Carolina Senate

A new bill filed by State Sen. Kandie D. Smith in the North Carolina Senate aims to provide financial relief to small businesses impacted by pandemic-related revenue losses, according to the North Carolina State Senate.

The bill, filed as SB 900 on April 29 during the 2025 regular session, was formally listed with the short title: ‘Small Business Investment Grant.’

The following is our breakdown, based on the actual bill text, and may include interpretation to clarify its provisions.

In essence, this bill appropriates $250 million in one-time General Fund money to the Department of Commerce for a COVID-19 Small Business Recovery Program that provides one-time grants to eligible small businesses. It directs the department, in consultation with the Department of Revenue, to award grants to North Carolina businesses with 2019 receipts of $8 million or less that saw at least a 25% drop in 2020 sales tax collections due to the pandemic. Grants are capped at $250,000 or the size of the sales tax decline, whichever is less, and total program awards cannot exceed $250 million. Recipient businesses must stay open at least six months or repay a proportional amount, and grant amounts are excluded from taxable income for tax years beginning in 2025 only.

A related bill, SB 891, was also filed in the North Carolina Senate, introduced by Sen. Kandie D. Smith (and two others) on April 28, 2026.

Of the two sponsors of this bill, Natalie S. Murdock proposed the most bills (92) during the 2025 regular session.

Bills in North Carolina follow a multi-step process before becoming law. A lawmaker starts by filing a bill, which is assigned to a committee for review. The bill must be read three times in each chamber. If one chamber changes the bill after the other passes it, both must agree on the final version. Once both chambers approve the same bill, it goes to the governor, who has 10 days (or 30 if the legislature is not in session) to sign, veto, or let it become law without a signature.

You can read more about the bills and other measures here.

Smith graduated from Charleston Southern University in 1991 with a BA.

Smith, a Democrat, was elected to the North Carolina State Senate in 2023 to represent the state’s 5th Senate district, replacing previous state senator Donald Davis.