TITLE: Title
Report on Carrboro Small Business and Non-Profit COVID-19 Emergency Loan/Grant Fund and Discussion Regarding Next Steps for Remaining Funds
PURPOSE: The purpose of this agenda item is to provide the Town Council with the requested information on the Carrboro Small Business and Non-Profit COVID-19 Emergency Loan/Grant Fund and allow them to discuss the possible next steps for the remaining funds.
body
DEPARTMENT: Town Manager's Office
CONTACT INFORMATION: David Andrews, Town Manager, dandrews@townofcarrboro.org
INFORMATION:
Background
On March 24, 2020 the Carrboro Town Council approved the design and implementation of the Carrboro Small Business and Non-Profit COVID-19 Emergency Loan/Grant Fund (COVID-19 Fund). The purpose of the Fund was identified as moneys to assist Carrboro-based businesses and non-profits that serve Carrboro residents with short-term payroll and other recurring expenses during the State and Town declared COVID-19 Emergency in order to maintain and sustain operations for existing viable enterprises. Funding is intended to assist small local businesses and non-profits that are in current good standing with creditors, but are low on capital to maintain operations.
The COVID-19 Fund was funded with $475,000 including $300,000 from the Carrboro Revolving Loan Fund and $175,000 in funds that were approved for COVID-19 Fund use by the Carrboro Tourism Development Authority (CTDA). The $175,000 in CTDA Funds can only be used by applicants that qualify under North Carolina Statutes as tourism-related businesses.
The terms of the application, consistent with Council approval, provide for 90% of the funding to be a loan and 10% to be a grant. The loans are unsecured but a minimum credit score of 620 is required along with a personal guarantee by the individual that signs for the loan. Please refer to the Council-adopted resolution approving the COVID-19 Fund (Attachment C) as well as the program summary that identifies the minimum r...
Click here for full text