SMALL BUSINESS & NON-PROFIT EMERGENCY FUND

SMALL BUSINESS AND NON-PROFIT EMERGENCY LOAN/GRANT FUND

THE LOAN PROCESS WILL BE RE-OPENED at 5:00 PM on 4/22/2020

On April 21, 2020, the Town Council voted to re-open the loan fund. 

NOTE: If you have received SBA grants of any kind including the PPP and EIDL, you are NOT eligible for the emergency grant/loan fund. We are trying to ensure that funds are given to businesses who were not able to receive federal funding. Thank you for understanding and supporting the spread of funds throughout our community.

The purpose of the fund is to assist Carrboro based businesses and non-profits that serve Carrboro with short term payroll and other recurring expenses during the State/Town declared COVID 19 Emergency in order to maintain and sustain operations for existing viable enterprises. 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 maintain operations. Loan approval is at the discretion of the Town of Carrboro.

MINIMUM REQUIREMENTS TO APPLY

  • Carrboro based business (must have a physical address in the corporate limits) or a non-profit that provides services in 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 $7,200 per FTE and up to $25,000 maximum
  • Applicant’s Individual credit score of at least 620 or comparable Dun & Bradstreet rating (For non-profits that cannot provide such a credit report, please provide other evidence of creditworthiness or available collateral for the loan requested)

TERMS

  • 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
  • Loan agreement includes a requirement to payback loan immediately upon receipt of SBA funding and automatic debit

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
  • Ownership Demographic Information (Optional)
  • How long you have 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 -  Submit the following documentation to: Bob Hornik - Hornik@broughlawfirm.com

  • Full, current credit report  (Equi-fax or Dunn and Brad Street, for non-profits that cannot provide such a credit report, please provide other evidence of Creditworthiness or available collateral for the loan requested)
  • Most recent Year-end and quarterly financial statements including income statement and balance sheet
  • Current year tax filing (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

The second round of applications are due by May 5, 2020 at 5:00 PM.  

If you have questions, please contact Betsy Bertram - elizabeth.bertram1@gmail.com or Bob Hornik - Hornik@broughlawfirm.com

APPLY HERE