Yancey County Economic Development Commission
YANCEY COUNTY COVID-19 SMALL BUSINESS RELIEF LOAN FUND NOW OPEN FOR APPLICATIONS
23 April 2020
The Yancey County COVID-19 Small Business Relief Loan Fund is now open and accepting applications from Yancey County small businesses affected by the COVID-19 health crisis seeking financial assistance in dealing with the negative financial impacts of the pandemic on their businesses.
Funded through the Yancey County Economic Development Commission (EDC) with funds allocated by EDC and funding to be appropriated from Yancey County local governments the Yancey County COVID-19 Small Business Relief Loan Fund is a bridge loan program.
“The Yancey County Economic Development Commission is pleased to be partnering with the MAY Coalition to administer the application process for small businesses applying for assistance through this fund” said Yancey EDC Director Jamie McMahan. “MAY Coalition has a long and distinguished history of working to provide financial assistance to small businesses in our community for many years” added McMahan. “Qualified applicants will be processed on a first-come, first-served basis and will be funded as long as funds remain available for appropriation.”
Small businesses wishing to apply for bridge loans through this program may do so by contacting the MAY Coalition online via the following link:
Loan guidelines for the program are as follows:
The Yancey County COVID-19 Small Business Relief Fund is a loan fund designed to be a flexible and rapid source of low-interest loan capital to help Yancey County businesses meet pressing needs and navigate the COVID-19 crisis. Repayment is expected either from more permanent funding sources (such as SBA Disaster Loans) or from future cash flow of the business.
Loans are available for up to $5,000, based on the business’s current revenue. Loan agreements are structured as follows:
- Six months of no payments required at 3.7% (interest accruing), followed by 36 months of principal and interest payments at 3.7% interest.
- There are no prepayment penalties.
- Defaulted loans are subject to collections.
- For-profit businesses
- Have a physical location and be principally based in Yancey County
- Have between 1 (who could be the self-employed owner) and 49 employees
- Have been in business for at least 6 months
- 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. Eligible uses include payroll, accounts payable, fixed debts, or other bills the business is unable to pay due to the COVID-19 crisis
- Agree to provide impact data
- Borrowers are required to assign the proceeds of future assistance programs, including SBA loans, to the repayment of their loans.
- Loans are subject to the availability of funds
Applicants Will Provide:
- One-page simplified loan application which will be made available online
- Statement describing how the COVID-19 has adversely impacted the business
- Copy of driver’s license
- Copy of lease agreement or mortgage statement
- Tax returns (business) 2018 & Profit and Loss statement for 2019
- Tax returns (personal) 2018
- Year-to-date Profit and Loss statement including balance sheet