Emergency Small Business Funding Program-COVID-19
The purpose of the Orange County Emergency Small Business Funding Program is to assist Orange County-based small businesses that are experiencing financial difficulties such as mandated shutdowns, employee layoffs, and operating losses as a result of ongoing efforts at the Federal, State and local authorities to contain and minimize the spread of the COVID-19 pandemic.
Orange County-based businesses that are interested in the Emergency Small Business Funding Program should complete this initial application and begin to collect the required documents as outlined below. Once the application has been submitted, applicants will receive an email from Orange County staff (Recovery Orange) with a secure share file to upload the additional required documentation. The deadline to complete this initial application is Friday, April 10, 2020, by 11:59 PM. Friday (4/10/20) is a County holiday. As a result, eligible businesses who have submitted a complete application by 11:59 PM on 4/10/20 will be notified by Noon on Monday, April 13th to upload the additional required documents for review by 11:59 PM on Tuesday, April 14th. Digital copies of all documentation are required. For additional questions regarding the program and/or process, please see the Emergency Small Business Funding Frequently Asked Questions (FAQ) document.
General Terms and Conditions
- Open to Orange County, North Carolina based for-profit businesses
- Minimum of one-year in operation, hold applicable 2019 business privilege licenses and be registered with appropriate legal entities such as the North Carolina Secretary of State or Register of Deeds office.
- Ineligible businesses include, but not limited to, companies involved in real estate investment, multi-level marketing, adult entertainment, or firearms. Companies with past due tax liabilities or tax liens or currently in bankruptcy (Corporate or Personal) are not eligible.
- Profit and Loss statement indicating profitability prior to coronavirus pandemic
- Maximum award of combined loan and grant funds is $25,000 total
- Maximum grant of $5,000 per small business with no repayment required.
- Maximum loan of $20,000 per small business, according to the following terms:
- Businesses will be required to provide a minimum of 1 year of tax returns. The maximum loan and grant combination available to a small business will be limited to three months of fixed operating expenses.
- Loans will be repaid over a five (5) year term. No payments will be due during the first six months of loan origination.
- No interest, no application or origination fees will be charged on loans.
- Small business will agree to an auto-draft process for loan payments.
- Personal guarantee required of all owners with 20% or more interest in the company
- All asset lien on business
Information Required as Attachments
- Financial documents for the previous two months in 2020 (February and March) demonstrating revenue decrease due to COVID-19
- Financial documents showing your revenue for the same two months in 2019
- Financial documents showing your revenue for the full 2019 calendar year
- Financial documents can include: point-of-sales reports, bank statements, quarterly sales tax fillings, 2019 tax returns, or CPA-certified profit & loss statements
- Copy of front and back of North Carolina driver’s license or government-issued ID
Note: To the extent possible, these reports should be system generated from a financial software.
Eligible Uses of Funds (Expanded to include your business model to accommodate social distancing)
- Fund working capital or operational funds to retain employees during the COVID-19 pandemic
- Retain or expand workforce development and job creation
- Purchase equipment, commercial-use vehicles, or machinery for the business
- Improve owner-occupied commercial property; owner must occupy 50% or more of total space
- Sustain or expand business services or products
- Fund tenant up-fit and lease-hold improvements to the business