From downtown storefronts to rural tradespeople, businesses that form the foundation of Western North Carolina’s economy were upended by the storm — losing customers, revenue and, in some cases, the ability to operate at all.

The North Carolina General Assembly’s initial relief measure in October 2024 provided $273 million in aid, establishing the Hurricane Helene Disaster Recovery Fund and easing certain regulatory barriers to expedite assistance. Later that month, the NCGA’s second relief bill appropriated over $600 million in additional funding, addressing various recovery needs including health services and infrastructure repairs.

In December 2024, the NCGA’s third relief bill allocated $227 million to Hurricane Helene relief. However, $225 million of that was designated to remain unspent in the Helene Fund pending further legislative action, angering storm victims who pointed out that the bill contained no actual relief but instead codified a partisan power grab that hobbled Democrats who won statewide elections last November — including Gov. Josh Stein.

The NCGA’s fourth bill, passed in March, allocated an additional $524 million for hurricane relief, focusing on homebuilding, agricultural recovery and infrastructure repairs in Western North Carolina.

Between the third and fourth bills, a congressional effort led by Rep. Chuck Edwards (R-Henderson) failed to address the estimated $60 billion in damage across Western North Carolina, even though Edwards sits on the House Appropriations Committee and Republicans control the House, the Senate, White House and the Supreme Court.

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What the five previous relief bills have in common is the complete lack of direct grant support to small businesses affected by the storm, although plenty of  low-interest loans were authorized. Businesses still burdened by COVID-era loans were reluctant to take on more debt, no matter how generous the terms.

In response, North Carolina lawmakers allocated $60 million in the latest installment disaster relief legislation specifically to support those small businesses and help them weather the long recovery ahead — if it’s not already too late for some.

“These local communities need the tax base, and that’s the need we’re trying to meet,” said Rep. Mark Pless (R-Haywood). “If we can get it across the finish line, there’s going to be a lot of people that are going to be elated that we’re able to help them.”

Rep. Mark Pless. File photo

That money is part of the Disaster Recovery Act of 2025 – Part II, a $465 million package aimed at aiding recovery from both Hurricane Helene and subsequent wildfires that scorched thousands of acres in the region, and brings total state appropriations to roughly $1.4 billion. Of all the targeted allocations in the bill, few have generated more public interest than the one-time small business grants established under the Helene Business Recovery Grant Program.

The Department of Revenue is tasked with administering the program, designed to provide direct financial relief to small businesses in the federal disaster area.

Businesses must meet several criteria spelled out in the legislation, including registering and operating in North Carolina for at least two years before applying, being subject to income tax under state law, having no bankruptcies over the past five years and having sustained an economic loss of at least $25,000.

Economic loss is defined in the legislation as a drop in gross receipts, determined by comparing a business’s combined average fourth-quarter gross receipts from 2022 and 2023 to those from the fourth quarter in 2024, the period immediately following Hurricane Helene. That metric is based on the state’s Form E-500 sales and use tax return filings.

Eligible businesses may be awarded up to 25% of verified losses, capped at a maximum of $75,000.

“In the first bill, I pushed really hard for capital money so they could repair their businesses. With this bill here, $75,000 is the most they can get,” Pless said. “They have to really fit into a tight corridor. I think it will help, and it will prevent those folks that were not going to survive anyway from accessing this money. It will go to keeping doors open.”

Funds can be used for working capital and regular business expenses, as long as those uses are consistent with federal guidelines under the SBA’s Economic Injury Disaster Loan program.

All grants are to be awarded on a first-come, first-served basis until the $60 million appropriation is exhausted.

The Department of Commerce is authorized to retain up to 1.5% of the total program funds, approximately $900,000, for administrative costs. This funding is expected to support application development, data verification, compliance monitoring and long-term reporting.

For transparency, the Department is required to submit biannual reports to the General Assembly starting May 1, 2026, detailing the number of grants awarded, average grant amounts, total disbursed funds and recipient locations.

Western North Carolina’s economy is deeply reliant on small businesses, many of which serve as anchor institutions in their communities. They generate local jobs and sales taxes, sustain commercial corridors and attract tourism, yet they are also among the most vulnerable during extended disruptions like those caused by Hurricane Helene.

The law’s explicit focus on “job retention, economic viability and commercial stability” reflects lawmakers’ intent to keep rural and small-town economies intact.

In many mountain communities, traditional federal assistance like FEMA’s individual or public assistance programs may not fully cover the economic losses experienced by businesses. By using state dollars to close that gap, the grant program is expected to serve as a financial bridge for operations that might otherwise shut down for good — if they haven’t already.

The law clearly outlines a framework for delivering aid, if the bill is passed in its current form. What remains is the execution — the creation of a public-facing application system, outreach to eligible businesses and the timely disbursement of grants. Until that happens, many local economies will remain on uncertain footing, with hurricane season already looming once again.

President and CEO of the Haywood Chamber of Commerce David Francis said he’s only aware of five or six businesses in Haywood County that have closed their doors due to Helene but admits there may be more. Francis is pleased with the possibility of businesses receiving long-needed assistance, but concerned about the timing.

“Just from our history with [2021’s Tropical Storm] Fred and how the strings are attached and how the application process works — like the money that’s going to flow from the federal level to the state level to the local level — how do you get that?” said Francis, who’s long been the county’s economic development guru. “What’s the length of time, how long is the checklist and how much longer does that take? Bureaucracy can be helpful, but it can also be frustrating.”

The $60 million grant program is just one component of the broader relief bill that allocates assistance for several interrelated problems. 

“I think there’s two things in there that are more important to me than anything. The very first one of those is the money we put aside for capital projects, for cities and counties,” said Pless. “They can receive money to move forward with what’s important to them at the local level, so that puts them back in control. And as that money gets spent, we will continue to put more money in it so that they get to choose what’s important to them.”

The bill provides $76.25 million to the Office of State Budget and Management for capital projects, debris removal and grants to higher education institutions damaged by Hurricane Helene.

Of that, $50 million is designated for the Helene Local Government Capital Grant Program, supporting infrastructure projects that FEMA deemed ineligible for reimbursement.

These grants will be distributed based on a damage-per-capita formula. Individual counties are capped at receiving no more than 20% of total program funds. For unmet needs in debris and sedimentation removal, particularly where federal aid has fallen short, $15 million is allocated.

Smaller municipalities are expected to benefit most, as many lack either the capacity to manage large-scale cleanup or the resources to navigate complex FEMA application procedures.

The other part of the bill Pless thinks is important hits close to home for the former paramedic.

Western North Carolina’s emergency responders played a critical role in Hurricane Helene’s immediate aftermath — conducting rescues, clearing roads and maintaining community safety during blackouts and floods. Many of those same departments suffered major losses to their own infrastructure.

To support their recovery, the bill sets aside $18 million for fire departments and rescue squads in 24 mountain counties. The funding will be distributed in $50,000 chunks and can be used to repair or replace storm-damaged facilities, purchase new equipment or enhance future wildfire response capabilities, but it can’t be used to hire new personnel, ensuring it focuses squarely on infrastructure and equipment.

“That $18 million is a huge need for a lot of departments. Most of our departments in Haywood County, they have all the money they need. They don’t have all the money they would like to have I’m sure, but we have some very poor counties that were hit and devastated by this flood, and also were hit by the wildfires, so they were spending money out of their budgets, and they didn’t have the backfill to replace it,” said Pless. “Nobody anticipated they were going to be working on fires for two months. No one anticipated they were going to be buying fuel to get back and forth and wearing out equipment and even destroying equipment to run Helene and to do these wildfires.”

Hurricane Helene struck on Sept. 27, 2024 — near the height of the growing season, hitting Western North Carolina’s agricultural sector hard. The $25 million appropriation to the Department of Agriculture and Consumer Services establishes the Farm Infrastructure Disaster Recovery Program, designed to assist farmers in rebuilding essential components of their operations. Eligible expenses include fencing, barns, greenhouses, irrigation systems and farm roads, all categorized as “farm infrastructure” under the law.

“There’s a lot of conversation about the crop loss program, which in WNC, next to nobody participates in, for two reasons,” said Rep. Karl Gillespie (R-Macon). “Number one, it’s expensive. Number two, all crops are not covered. But even if they were fully insured, which is not possible, it covers the crop. It doesn’t cover the dirt it’s planted in. We have many, many farms where the dirt’s gone. We’re just trying to keep that bucket with some money in it. In talking to the agricultural community, we feel like that’s going to be a huge need.”

Rep. Karl Gillespie. File photo

Gillespie grew up on a dairy farm, currently owns and operates a registered black Angus beef cattle farm and was president of the North Carolina Cattleman’s Association. He said the storm mostly spared animals, but certainly not plants, and that the loss of a plant — an apple tree, or a fruit-bearing shrub — means more than the loss of just one year of production. It means the loss of multiple years of production.

Farmers must verify that losses were directly caused by Hurricane Helene to qualify. The Department is required to open a six-month application window within 30 days of the bill becoming law and may audit records to ensure funds are used appropriately. For many small and mid-sized farms, this funding represents the only practical source of aid, as insurance often excludes infrastructure or imposes deductibles farmers cannot afford.

Importantly, the legislation acknowledges agriculture as a cornerstone of rural economies and recognizes that without functioning infrastructure, farmers cannot sustain operations.

Public schools in the storm’s path were not spared. Many experienced catastrophic damage to buildings, bus garages, cafeterias and athletic facilities. To address this, the bill allocates $33 million to the Department of Public Instruction in two distinct grant programs.

The first provides $25 million for full rebuilds of school buildings that were destroyed and not fully reimbursable by insurance or FEMA. To qualify, districts must demonstrate a minimum of $30 million in unreimbursed damages, effectively targeting schools facing the most severe losses.

The second pool of $8 million is available through a competitive grant process for repair projects where insurance and federal assistance have been denied. Grants in this category are capped at $500,000 each and are intended to cover modest but essential repairs to make buildings safe and usable again. These appropriations are critical in small counties where a single school can serve hundreds of students across vast rural areas.

Without functioning schools, communities face disruptions not only in education but in access to meals, mental health support and broadband internet access.

A massive $165 million appropriation to the N.C. Division of Emergency Management represents the single largest allocation in the recovery bill.

This funding is divided among several programs aimed at infrastructure stabilization and mitigation, plus $70 million for the required state match for federal disaster assistance. Had FEMA and President Donald Trump approved Stein’s request for 100% federal cost-share, that $70 million could have been used in other ways.

Another $30 million is earmarked for the Private Road and Bridge Repair Program, helping private property owners and homeowners’ associations rebuild essential access routes that FEMA typically does not cover. The law allows for up to 50% reimbursement for HOA-owned infrastructure and includes a reimbursement process for completed projects.

Additionally, $25 million will fund the Aerial Asset Accessibility Grant Program, which improves emergency access at small regional airports that served as critical supply hubs during the immediate aftermath of the storm.

Another $20 million supports the Hurricane Helene Flood Mitigation Grant Program, focusing on stormwater improvements, culvert upgrades and the hardening of critical infrastructure.

So-called “Volunteer Organizations Active in Disaster” will receive $20 million for housing repairs and reconstruction work already underway.

The bill also allocates $6.25 million in earmarked grants to nine colleges and universities — including Warren Wilson College, Lees-McRae, Mars Hill University and Western Carolina University — to repair storm-related damage or invest in resilience improvements.

An additional $5 million would be split between the North Carolina League of Municipalities, the North Carolina Association of County Commissioners and the North Carolina Association of Regional Councils of Governments for technical assistance with recovery planning, grant writing and code enforcement in under-resourced jurisdictions.

Flooding during Hurricane Helene overwhelmed aging dam infrastructure across Western North Carolina, raising concerns about public safety and environmental hazards. To address this risk, the bill creates the Dam Safety Grant Fund, seeded with $10 million and administered by the Division of Energy, Mineral and Land Resources under the Department of Environmental Quality.

The grants will support repairs, modifications or removals of dams damaged by Helene — particularly those classified as “high hazard” under federal guidelines. Priority will be given to projects that qualify for federal cost-share through FEMA’s High Hazard Potential Dam Rehabilitation Grant Program. However, state funds may also be used for dams that are ineligible for federal dollars, provided they pose similar risks. The move to create a standing dam fund acknowledges a growing infrastructure crisis — many private and public dams in North Carolina were built decades ago, and have not kept up with modern safety standards or climate change realities.

“Helene caused unprecedented damage and pain for our state. Helene, like Tropical Storm Fred before it, also exposed many vulnerabilities across Western North Carolina. We applaud the North Carolina House for dedicating resources to address some of those vulnerabilities while continuing to fund significant recovery needs,” said Tony McEwen, Carolinas director of the American Flood Coalition, a nonpartisan nonprofit that advocates for resiliency and helps small, rural communities get their voices heard at the state and national levels. “The high hazard dam funding, combined with the flood mitigation grants for local governments, are prudent investments that will save precious taxpayer resources and, most importantly, save lives.”

Beyond the state-funded recovery package, North Carolina will receive more than $685 million in federal disaster relief under the American Relief Act of 2024, specifically for water and wastewater infrastructure in Helene-affected areas. The funds are directed through the Clean Water and Drinking Water State Revolving Funds, with over $660 million going to rebuild or repair public treatment plants, drinking water systems, and decentralized wastewater systems that were damaged or disrupted. On March 19, Edwards announced that Canton would receive approximately $41 million in ARA funds made available by President Joe Biden.

An additional $22.5 million will be used to assess the feasibility of connecting homes currently served by failing septic systems to centralized infrastructure — a key issue in rural and mountainous terrain.

These funds are allocated by formula through the U.S. Environmental Protection Agency and are expected to support both immediate emergency repairs and long-term system upgrades. The state legislature included this federal money in the overall bill to expedite disbursement and ensure alignment with other recovery programs.

In a region where topography and underinvestment have long conspired to strain water infrastructure, the infusion of capital is not just about recovery — it’s about modernizing systems for resilience in the face of future storms.

As of press time, the Disaster Recovery Act of 2025 – Part II had passed the House unanimously and was sent to the Senate.

Rep. Mike Clampitt. File photo

“The most important part is we’ve got the governor to agree. It’s a bipartisan effort,” said Rep. Mike Clampitt, who noted the long hours put in by the House Select Committee on Helene Recovery. “No single part is more important than the others. It’s like a watch, you’ve got have all the parts working together.”