County Provides COVID-19 Stabilization Funds for Small Businesses
In response to the local economic impact of the current health crisis, Mecklenburg County has created a COVID-19 Small Business Emergency Stabilization Loan Fund and a Micro Business Stabilization Fund. The funds were created through the County’s partnerships with Carolina Small Business Development Fund and Centralina Council of Governments.
The Mecklenburg Board of County Commissioners approved the establishment of these funds during its regular meeting on Tuesday, April 7. Funds will be distributed to qualifying small businesses and micro businesses that have been affected in the recent weeks as a result of the COVID-19 pandemic. The application process for both funds is simple and quick, with disbursements available within 10 days of a completed application.
COVID-19 Small Business Emergency Stabilization Loan Fund
The County has committed $5,000,000 for this fund. Small businesses (up to 50 employees) located in Mecklenburg County can apply for loans of $5,000 – $35,000. Funds may be used to cover the day-to-day operating expenses of the business, such as payroll costs, rent, routine real estate and equipment financing payments, utilities or losses due to destabilizing events. Loans will be available with up to 10-year terms at an interest rate of 3%.
Applicants must provide:
- 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 & Profit and Loss statement for 2019
- Tax returns (personal) 2018
- Year-to-date Profit and Loss statement including balance sheet
- One year of income and expense projection including cashflow
The program will consider alternative forms of documentation to supplement standard underwriting requirements.
The County will be an active partner with Carolina Small Business Development Fund by playing a supportive role through all phases of the application and loan process. Additional details regarding program guidelines, loan terms and a link to the online application will be available on MeckNC.gov Monday, April 13.
Micro Business Stabilization Fund
The County has committed $1,000,000 of Community Development Block Grant (CDBG) Funds to support micro businesses with up to five employees who have been negatively impacted by COVID-19. Funds are available to micro businesses in the CDBG program area which includes the towns (with the exception of Mint Hill and the City of Charlotte) and the unincorporated areas of Mecklenburg County. Applicants will be eligible for loans in the amount of up to $10,000 on a first come, first served basis. Applicants must meet the following criteria:
- The business owner or 51% of employees must have a low- or moderate-income (≤80% of the Charlotte Mecklenburg Metropolitan Statistical Area (MSA) Area Median Income)
- The business must have experienced a loss of income due to COVID-19, by certifying that revenue has declined by 25% or more as a result of COVID-19
- The business must provide documentation to help verify the economic hardship suffered as a result of the COVID-19, including, tax returns, financial statements, gross receipts and other financial data
Loans may be used to cover the day-to-day operating expenses, such as payroll costs, including benefits, commercial mortgage payments, rent and utilities. Loans have a maturity of 3 years at 0% interest.
The program will be managed through Centralina Council of Governments (CCOG) which currently administers the County’s CDBG program. A link to the online application will be available on MeckNC.gov Monday, April 13.
NOTE: Kim Fleming, Economic Development Director for the town, is working with all our local businesses and nonprofits.