Henderson County Gov Small Business Rapid Recovery Lending Program

Henderson County, NC -- Henderson County Government: The Golden LEAF Foundation, Thread Capital, and other nonprofit leaders throughout the state have partnered with the NC Rural Center to launch a new emergency small business lending program in response to the ongoing economic impact of COVID-19 on North Carolina's entrepreneurs and small business owners.

The NC COVID-19 Rapid Recovery Lending Program is funded through the support of the Golden LEAF Foundation and will be managed by the NC Rural Center. Direct lending will be facilitated by Thread Capital, Business Expansion Funding Corporation, Carolina Small Business Development Fund, Self-Help Credit Union, Mountain BizWorks, and Natural Capital Investment Fund.

Loans are available for up to $50,000 based on the business's current revenue. Loan agreements are structured as follows:

Loan sizes are 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.
Requirements and eligibility are as follows:

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 the 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.
Applicants must be a North Carolina small business affected by COVID-19.
Applicants must have at least one employee, who could be the self-employed owner.
Start-up businesses that began operations before March 23, 2020 are eligible.

https://www.hendersoncountychamber.org/news/3-newsflash/679-covid19.html