CHARLOTTE, N.C. — 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.
Details will still have to be ironed out before Monday's city council meeting on April 13.
The City of Charlotte won't get the federal dollars until the end of April, so people won't likely see the money until then or early May.
COVID-19 Small Business Emergency Stabilization Loan Fund
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.
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.
A link to the online application will be available on MeckNC.gov Monday, April 13.