RALEIGH – Mecklenburg County is teaming with the Carolina Small Business Development Fund to offer $5 million in loans to small businesses, augmenting funds available through federal programs. And a Wake County commissioner says he is looking into the idea.
Mecklenburg will provide the funding – a decision made on Tuesday – and the CSBDF will administer the loan.
“[T]hey don’t have the capacity to do so, they’ve chosen us through our partnership and our experience to process and administer these loans,” a spokesperson for the CSBDF told WRAL TechWire. CSBDF is a nonprofit lender operating state wide, having invested more than $61.5 million through 749 loans.
Informed about the Mecklenburg offering, Wake Commissioner Sig Hutchison said he found it “interesting” and said “Let me check into this.”
Wendy Jacobs, Durham County Board of Commissioners chair, said some offering for small businesses may come from that county as well.
“I believe the city’s Office of Economic and Workforce Development and other community partners have been in discussions about a loan program for local small businesses,” she told WRAL TechWire.
The CSBDF said it had not heard from Wake, Durham or Orange counties as of Wednesday afternoon.
Mecklenburg and CSBDF call the new program the COVID-19 Small Business Emergency Stabilization Loan Fund.
“Carolina Small Business Development Fund has a history and mission of helping small businesses in North Carolina with affordable access to capital, technical assistance as well as sound and objective advocacy. We stand ready to assist Mecklenburg County with the loans they want to provide to Mecklenburg County’s small businesses because the mission of the COVID-19 Stabilization Fund is in keeping with our mission.,” said Kevin Dick, Chief Executive Officer of CSBDF, in a statement.
Loans between $10,000 and $35,000 are available. Terms are for up to 10 years with an interest rate of 3 percent and interest-only loans for the first 12 months.
• One-page simplified loan application (online)
• Statement describing how the COVID-19 has adversely impacted the business
• Copy of driver license
• Copy of lease agreement or mortgage statement
• Tax returns (business) 2018 & P&L statement for 2019
• Tax returns (personal) 2018
• Year-to-date P&L statement including balance sheet
• One year of income and expense projection including cash flow
Disbursements should be available within 10 days of applying, CSBDF said.
“Funds may be used to cover the day-to-day operating expenses of the business, such as payroll costs, interest on mortgages, rent, utilities or losses due to destabilizing events,” the CSBDF said. “No collateral is required, and businesses will not be charged any fees.”