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What you need to know about the NC COVID-19 Rapid Recovery Loan

 
NC Rapid Recovery Loan

What is it?

  • The NC COVID-19 Rapid Recovery Loan program supports North Carolina small businesses and family farms as they grapple with, and recover from, the economic impact of COVID-19.

  • The NC COVID-19 Rapid Recovery Loan Program is not a grant program. Repayment is expected either from more permanent funding sources or from the future cash flow of the business.

Who is eligible? 

  • North Carolina businesses who have experienced a revenue loss due to COVID-19

  • Applicants must have at least one employee, who could be the self-employed owner

  • Start-up businesses that began before March 23 

What are the financial terms?

  • Loans are available up to $50,000 based on the businesses current revenue - loan size capped at 2 months current revenue

  • Six months of no payments, followed by 48 months of principal and interest payments at 5.5% interest.

  • There are no prepayment penalties.

  • Defaulted loans are subject to collections.

What are the requirements?

  • 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.

  • The use of loan funds to pay off debts already incurred for qualifying business maintenance or restart purposes may be authorized on a case-by-case basis.

  • Borrowers are required to assign the proceeds of future assistance programs, including SBA loans, to the repayment of their Rapid Recovery Loan.

How does the Rapid Recovery Program work? 

  • Loan applications will be directed to the NC Rural Center, and distributed to non-profit lending partners for underwriting and servicing.

  • After the application is completed, the NC Rural Center connects applicants with one of seven statewide lenders. Applications are reviewed on a first come, first served basis.

Discover more Rapid Recover Loan FAQs here.