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Yes, we have a Rapid Recovery loan for businesses that have experienced revenue losses due to the virus. This low-interest loan is for up to $250,000. It is payment-free at 0.25% interest for the first 18 months. If you have not paid it off before the 19th month, interest begins to accrue at 5.5%, and you start making payments on the balance. Please visit www.ncrapidrecovery.org for more details. Click on the blue “Apply Now” button when you’re ready to apply. Applications are considered on a first-come, first-served basis.
Not all applicants will be approved, but the vast majority will be. It is important to us that we do not give you debt that you are unable to repay. Loan sizes are generally based on the monthly revenue size of your business and its documented ability to make additional debt payments. If you or your business were behind on bills before COVID-19, then you are unlikely to qualify.
You should still apply as soon as you are able. It takes only about 15 minutes to complete Part A of our application and that is all that is initially required. We are processing applications on a first-come, first-serve basis, but not everyone before you will finish an application or provide the documents we require in order to make a decision. We will get to you and your application as soon as resources allow.
No. Our Rapid Recovery loan product is supported by North Carolina entities and is for North Carolina businesses.
The two loan products are NOT connected. You are not required to apply for an SBA loan to qualify for a COVID-19 Rapid Recovery loan. The COVID-19 Rapid Recovery loan is designed to fill lending gaps, including while businesses are waiting on SBA loans. (Note: the NC COVID-19 Rapid Recovery loan is not a forgivable loan.).
You are welcome to apply for both an NC Rapid Recovery Loan and SBA Payroll Protection Program (PPP) financing. You do not need to choose one or the other. PPP loans are designed to be used primarily to retain employees. It is our hope that the NC Rapid Recovery loan will help save your business and your employees. The two can function side-by-side if you choose to pursue both options. However, if you receive an SBA Economic Injury Disaster Loan (EIDL) for your full eligible amount (not just the initial $10,000) then we will ask you to use a portion of those proceeds to pay off your NC Rapid Recovery Loan.
The loans start with 18 months of no payments at 0.25% interest. At the end of the 18-month period, the loans will be termed out for up to 8.5 years (or 102 months) at 5.5% interest.
One application per business. Each business is eligible for a separate loan of up to $250,000. So, if you have six businesses that file separate tax returns, you are eligible for up to $250,000 for each of those six businesses.
Only for-profit businesses qualify for this loan. If your nonprofit has a for-profit affiliate, only the for-profit business can be considered for the loan. The SBA does offer financing for nonprofit organizations.
Generally, no. If you’ve just recently taken on debt to maintain the business during this time, refinancing that debt will be evaluated on a case-by-case basis. For example, if you’ve put expenses on a credit card during the crisis we can consider paying off the debt with the NC COVID-19 Rapid Recovery loan. General business debt consolidation is not covered with this loan, however.
Yes. The NC COVID-19 Rapid Recovery loan is open to everyone. The loan can be used for working capital and to maintain your existing business. Example of uses include, but are not limited to: paying vendors, buying inventory, paying bills, utilities, and rent.
We are asking clients for the following documents:
- Copy of photo identification
- 2019 personal tax return (if not available, proof of tax extension filing and 2018 personal tax return)
- 2019 business tax return (if not available, proof of tax extension filing and 2018 business tax return and 2019 profit and loss statement)
- The business’s three most recent bank statements
- Proof of business ownership: Copy of official business filing/registration (sole proprietorship, LLC, or corporation, etc.)
- Description and documentation of losses due to COVID-19
For startups, we can accept the 2019 profit and loss statement and business bank statements for the months the business operated in 2019 and 2020.
In addition to the three most recent 2020 business bank statements, we will need all of the available bank statements from 2019.
Yes. Each applicant has to submit a separate application in order for us to pull credit and understand all sources of income in the household.
We are experiencing a high volume of applications, and we are working as fast as we can to process
NC COVID-19 Rapid Recovery loan applications. Applications are being processed on a first-
come first-serve basis. We’re asking for minimal documentation and a short application, which should make the process more efficient. We will be in touch as soon as we are able. We ask for your patience and understanding during this time.
Yes, a hard credit pull is required on anyone with more than 20 percent ownership in the business.
We understand this is a stressful time. We’re doing our best to process applications for the NC COVID-19 Rapid Recovery Loan in a timely manner. We are taking applications on a first-come, first-serve basis. Rest assured we will be in touch with you as soon as your application is next in line. If you have any questions, please email email@example.com.
Yes. You created an account to submit an application. Please log in with the same username and password you created and make changes. You can also notify us of the needed changes when we contact you.