SMALL BUSINESS & NON-PROFIT EMERGENCY FUND
SMALL BUSINESS AND NON-PROFIT EMERGENCY LOAN/GRANT FUND
THE LOAN PROCESS IS NOW CLOSED
Purpose of the fund is to assist Carrboro based businesses and non-profits that serve Carrboro with short term payroll during the State/Town declared COVID 19 Emergency in order to maintain employees. The fund is intended to assist small local businesses and non-profits that are in current good standing with creditors, but are low on capital to retain employees. Loan approval is at the discretion of the Town of Carrboro.
MINIMUM REQUIREMENTS TO APPLY
- Carrboro based business (physical address in the corporate limits) or a non-profit that serves Carrboro.
- Preferred that the business have been in operation at least three (3) months
- At least two (2) full-time equivalent employees (FTE)
- Request loan amounts up to $7200 per FTE and up to $25,000 maximum
- Applicant’s Individual credit score of at least 620
- Loan is secured with a personal guarantee
- 0% Interest
- Deferred payback beginning 6 months after the State of Emergency has been lifted
- Length of loan could be 3, 5 or 7 years based on committee recommendations
- 90/10 Loan/Grant
HOW TO APPLY
Step 1 – submit simple online application (APPLY HERE) button at the bottom of this page:
- Name of Business and Legal Entity Name (if different)
- Ownership Structure
- Physical Business Address
- How long have you been in operation at this location?
- Number of full-time equivalent employees.
- Amount of funds requested.
- Describe how the pandemic has impacted your business and how you are retaining your employees.
Step 2 - Once the loan is applied for and an initial review, which will include verification of business location and a virtual face to face or phone interview, applicant will be asked to submit documentation including, but not limited to;
- Full, current credit report (Equi-fax or Dunn and Brad Street)
- Most recent Year-end and quarterly financial statements including income statement and balance sheet
- Current year (if available) and previous year tax returns
- Payroll - IRS Form 941 or NC equivalent report (6 month period) or 1099 for contractors
- Bank statements for most recent 6 month period
- Lease agreements (for location, equipment, furnishings)/mortgage documents
Emergency review committee will begin taking applications through online application process and schedule phone/video interviews with applicants as soon as possible. The first round of applications are due by April 1, 2020.