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.
