​County's Small Business Stabilization Loan Fund

Mecklenburg County understands the difficulties faced by small businesses in response to COVID-19. The County is committed to stabilizing small businesses by providing loans before other Federal or State funds are available. 

General Eligibility

1. Business must be located in Mecklenburg County
2. Must be in operations for past 24 months
3. Business with up to 50 full-time equivalent employees
4. Demonstration of COVID-19 Impact – 20% or more decline in gross revenues as evidenced from current bank statement (February 2020 or later)
5. Length of credit history should be 2 years or greater; No credit accounts > 90 days past due at time of application (excluding medical).
6. Neither Principal nor business has had a bankruptcy filing in the past 3 years
7. No open tax liens
8. No current judgments
9. No outstanding charge-offs or collection accounts > $1,000 (excluding medical)

Start-ups and small businesses that were not profitable prior to the COVID-19 pandemic – as evidenced by tax filings - are not eligible for program participation.

PERMITTED USE OF FUNDS

• Working Capital (Payroll or Utilities Expenses related
• Occupancy (Lease or mortgage payment)
• Existing periodic real property financing payments
• Existing periodic business property financing payments

PROHIBITED USE OF FUNDS

• Payoff of existing debts

GUIDELINES

• Loan Amount:  Minimum $5,000 up to a maximum of $35,000
• Term:  Up to 10 years
• Interest Rate:  3%
• Repayment:  12 months of interest only payments followed by 9 years of principal and interest payments
• Personal guarantee:  Required of anyone with 20% or more ownership in business
• Prepayment: No prepayment penalities and reamortization of loan if any one payment exceeds 20% of outstanding balance
• No application fee; no loan fee; no documentation fee

How to Apply

The loan fund is administered by a leveraging partner, Carolina Small Business Development Fund. The application will be available on April 13, 2020 by visiting the link below to connect with a loan officer at the Carolina Small Business Development Fund.

​Application