Mecklenburg County Commissioner Susan Harden said small businesses need loan programs to provide financial support during COVID-19. | Courtesy Photo
Mecklenburg County Commissioner Susan Harden said small businesses need loan programs to provide financial support during COVID-19. | Courtesy Photo
Mecklenburg County-based small businesses aren't likely to have the finances to overcome COVID-19, but local commissioners and the Carolina Small Business Development Fund are jointly forming a $6 million loan program to provide financial relief.
The COVID-19 Small Business Emergency Stabilization Loan Fund will offer loans from $5,000 to $35,000 to small businesses in the county, the Mint Hill Times reported on April 10.
”This is a bridge to allow businesses to survive,” Mecklenburg Economic Development Director Peter Zeiler told the county commissioners, according to an April 7 report in the Charlotte Observer. “This is not designed to be a long-term solution. It is a stabilization fund to keep those businesses operating until broader loans can be made available.”
The loan program will have a 3%-interest rate, require no collateral and offer terms that go up to 10 years, the Mint Hill Times reported.
A business qualifies for a loan if it is located in Mecklenburg County, operating for at least 24 months and have 50 or fewer full-time workers, the Mint Hill Times reported.
Mecklenburg County Commissioner Susan Harden told the Charlotte Observer that many small businesses were forced to close because of the coronavirus, which shows the importance of the loan program.
“The small business community is literally devastated,” Harden told the Charlotte Observer. “We need to provide the bridge [and] support to get through this crisis.”
According to the Mint Hill Times, small businesses can apply online at the Carolina Small Business website and will have to provide several documents: 2018 business tax returns, 2019 profit and loss statement, 2019 balance sheet, current bank statement for the business and the lease agreement or mortgage statement. Every owner who has at least 20% ownership will also need to supply 2018 personal tax returns and a copy of their driver's license.
Carolina Small Business Development Fund has formed a Rapid Recovery Loan Program with other partners in the area. According to the Mint Hill Times, any business based in North Carolina that has been impacted by COVID-19 can apply for a loan on the program's website.
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