Every time we've helped someone research these, we've found the same thing:

The Feds consider it part of Business income, and it goes on the Sched C. Yes, that makes it subject to SE, as well. And the costs that are offset are still allowed as business costs for reporting as usual. That's the point of these grants.

For your State, they might have different treatment.

The only CARES business grants that are not taxable are specifically stated as exempt in the law for the State (and for Feds). This would include, for instance, HVAC improvement grants, Food Bank grants, and Shuttered Venue grants, just to name a few.

They're reports on 1099-G when they are from a governmental unit; the 1099-Misc is in use from those entities that are not governmental direct grantors, such as a City Health Dept or DNRC program would have gotten the funding to disburse from the State, which got it from the Feds.