COVID-19 Loans


Shelby1Fund Small Business Loans aim to provide a rapid source of assistance for City of Shelby-based businesses that have been impacted by COVID-19. Mountain BizWorks is the administrator for the emergency loans program.

This is not a grant program. Shelby1Fund small business loans are designed to be flexible and rapid sources of low-interest loan capital to help local Shelby businesses meet pressing needs and navigate the COVID-19 crisis. Repayment is expected either from more permanent funding sources (like SBA Disaster Loans) or from the future cash flow of the business.

Loan details

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 small businesses
  • Have a physical location and be principally based within Shelby city limits (see our COVID loans page for options for those not in the city)
  • Have between 1 (who could be the self­-employed owner) and 49 employees
  • Have been in business for at least 12 months
  • Demonstrated loss of revenue of 25% or more due to COVID-19



  • 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 assistance programs, including SBA loans, to the repayment of their Shelby1Fund Loan.


Logistics & timeline

  • Shelby1Fund was launched and applications opened on Wednesday, April 15.
  • Businesses interested in applying should be prepared to complete an online application (linked below) and provide tax returns, profit and loss statements, and bank statements.
  • The partners in this program are committed to moving as fast as possible to assist businesses. We are aiming to fund the bulk of initial loans on or before April 29 and then to fund additional on requests on a weekly basis as long as funds are available.
  • Loans are subject to the availability of funds.


Apply Now

Made possible by

The Shelby1Fund loan program received initial funding from the City of Shelby.



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