Loans are available for up to $10,000, based on the business’s pre-COVID-19 revenue. Loan agreements are structured as follows:
- Six months of no payments required at 4% (interest accruing), followed by 36 months of principal and interest payments at 5.5% interest.
- There are no prepayment penalties.
- Defaulted loans are subject to collections.
Who is eligible?
- For-profit businesses
- Have a physical location and be principally based in Madison County
- Have between 1 (who could be the self-employed owner) and 25 employees
- Have been in business for at least 12 months
- Demonstrated loss of revenue of 25% or more due to COVID-19
- Applicants must be current on all Madison County taxes.
- Applicants must be current with their business license requirements at the North Carolina Secretary of State’s office.
- 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. Eligible uses include payroll, accounts payable, fixed debts, or other bills the business is unable to pay due to the effects of the COVID-19 crisis.
- Agree to provide impact data
- Borrowers are required to assign the proceeds of future SBA EIDL loans or other federal assistance programs to the repayment of their Madison County Small Business Loan Fund loan. (PPP funds and the EIDL grants are excluded from this)
Logistics & timeline
- The Madison County Small Business Loan Fund was launched and applications opened on Tuesday, June 30.
- Applications will be accepted as long as funds are available.
- Businesses interested in applying should be prepared to complete an online application (linked below) and provide their most recent tax return as well as their 2019 year-end Profit & Loss and Balance Sheet statements.
- The partners in this program are committed to moving as fast as possible to assist businesses. We are aiming to fund requests on a weekly basis as long as funds are available.
- Loans are subject to the availability of funds. The partners know that the need is greater than the current fund size. We’re working to expand the available pool so that we can assist as many in our community as possible.