Small businesses anchor and support the Charlotte community by delivering the products, services, and jobs that help drive economic impact. That’s why Mecklenburg County created the Small Business Loan Program to assist business owners and entrepreneurs with obtaining the financing that fits their needs. In partnership with Carolina Small Business Development Fund, the program offers loans up to $75,000 with prime +2% fixed interest rates to qualified small businesses in Mecklenburg County.
Here’s What You Need to Know:
- 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 a 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.)
potential loan terms
- Loan Amount: Up to $75,000
- Interest Rate: Prime + 2%; fixed at closing
- Term: Up to seven years, depending on the 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 payment 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.