The Economic Development Partnership of North Carolina (“EDPNC”) has a page for business relief resources.
Mountain BizWorks is a U.S. Treasury certified non-profit community development financial institution (CDFI). For nearly 30 years, Mountain BizWorks has been making business loans ranging from $1,000 to $250,000 to small businesses in Western North Carolina who may find it difficult to secure funding from banks and other traditional sources. Check them out.
Rapid Recovery Loans – (SEE UPDATE BELOW) A consortium of public, private, and nonprofit partners have come together and launched an innovative recovery-lending program to help support entrepreneurs and small businesses to stabilize North Carolina’s small business sector. This rapid recovery loan helps small businesses bridge the gap between when crisis strikes and when federal loans, insurance payouts, and other relief funds are approved, or businesses have time to recover. The initial funding amount of $15 million is from the Golden LEAF Foundation.
Loans are available for up to $50,000, based on the business’s current revenue. Loan agreements are structured as follows:
- Loan sizes capped at approximately two months of current revenue.
- Six months of no interest and no payments, followed by 48 months of principal and interest payments at 5.5% interest.
- Interest will begin to accrue on any unpaid balance at the beginning of the seventh month.
- There are no prepayment penalties.
- Defaulted loans are subject to collections.
- Any individual with greater than 20% ownership in the applying business must personally guarantee the loan.
- Proceeds from the loan may only be used for maintaining or restarting a business.
- The use of loan funds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.
- Borrowers are required to assign the proceeds of future assistance programs, including SBA loans, to the repayment of their Rapid Recovery Loan.
UPDATE – Subsequent to our posting of this loan program, the Golden LEAF Foundation stated We have received applications in excess of our current funding and are actively seeking additional funding to expand the program. Applications already submitted are being processed in the order they were received. You are welcome to continue with your application, and we will review it as additional funding becomes available. (this statement was issued within two days of the announcement of the Rapid Recovery Loan program)
Video – Business Survival Tactics During Coronavirus – Social Venture Circle hosted a special webinar on “Business Survival Tactics During Coronavirus” led by Josh Knauer (JumpScale Co-Founder and Professor at Carnegie Mellon University). We have not yet watched it, but when we do we will let you know what we think.