SMALL BUSINESSLOAN PROGRAM

For additional loan program details or to learn about credit coaching please visit MeckNC.gov/EDO or contact

Fred Atiemo at 980-314-2757 or Fred.Atiemo@MeckNC.gov

MECKLENBURG COUNTYOffice of Economic Development

BUSINESS + SUPPORT = SUCCESS

Loan applicants must be prepared to submit the items listed below together with a completed loan application. Additional items may be requested by the lender.

Description of the project

Amount needed and how the funds would be used

Personal financial statement of the business owner

Personal monthly income and expense sheet of the business owner

Tax returns (personal) for the last three years, all pages

Tax returns (business) for the last three years, all pages if applicable

Year-to-date profit and loss statement and balance sheet if applicable

One year of income and expense projection including cash flow

Information about the type of collateral to secure a loan

Résumé of business owner

Business plan (an abbreviated plan will suffice for an existing business)

CHECKLIST OF REQUIRED ITEMS

HOW TO APPLY: CarolinaSmallBusiness.org | 704-412-9061

Small businesses play a significant role in the local and national

economy. They create jobs, help diversify the economy and lead

to neighborhood revitalization. The Mecklenburg County Small

Business Loan Program was created to assist business owners and

entrepreneurs with obtaining the financing that fits their needs,

through our partnership with Carolina Small Business

Development Fund.

The Board of County Commissioners has approved funds to

establish a revolving loan fund that will make loans of up to

$75,000 to qualified small and start-up businesses.

The County is an active partner with both the loan program

administrator and loan applicants by playing a supportive role

through all phases of the application and loan process.

Business located in Mecklenburg County Annual revenue under $1 million No principal and business bankruptcy in the past five years No open tax liens No unpaid judgments Owner/guarantor must have credit score of 625 or better Minimum debt-service coverage ratio of 1.15 or better Equity contribution: Aggressive and accommodating terms Minimum cash reserve to cover six months of expenses for start-up/new

businesses and three months for growing/mature businesses. (Depending on the circumstance of the applicant, the required cash reserve may be funded as part of the requested loan amount.)

Loan Amount: Up to $75,000

Interest Rate: Prime + 2%; fixed at closing

Term: Up to seven years, depending on economic life of the underlying collateral. The term may be longer; up to 10 years.

Amortization: For working capital, bridge loan and equipment purchases, the amortization period shall mirror the loan term. For real estate related ventures, the amortization period may be extended to 15 years, with a 10-year term.

Loan Repayment: Payments begin one month after the loan closes. Up to six months of interest-only payments may be allowed.

Origination Fee: 2% of the loan amount or $500; whichever is less

Documentation Fee: $250

Personal Guarantee: Any person or entity with 10% or more ownership in the business

PROGRAM GUIDELINES

POTENTIAL LOAN TERMS

704-412-9061 | CarolinaSmallBusiness.org

HOW TO APPLY