The Golden LEAF Foundation is offering a $15 million rapid recovery loan program in response to economic losses related to Coronavirus (COVID-19). The North Carolina COVID-19 Rapid Recovery Lending program supports North Carolina small businesses and family farms. This rapid recovery loan helps small businesses bridge the gap between when crisis strikes and when federal loans, insurance payouts, and other relief funds are approved, or businesses have time to recover.

Golden LEAF funding will make loans available to eligible businesses for up to $50,000 with zero interest and no payments for six months. Loans that are not repaid in six months will automatically convert to term loans. Businesses are eligible if they: 

• are a North Carolina small business affected by COVID-19 (all 100 NC counties are eligible);
• have at least one (1) employee, who could be the self-employed owner;
• began operations before March 23, 2020.
• are a for-profit organization.

Agreements are structured like this:

• Loan sizes capped at approximately two months of current revenue.
• Six months of no interest and no payments, followed by 48 months of principal and interest payments at 5.5% interest.
• Interest will begin to accrue on any unpaid balance at the beginning of the seventh month.
  There are no prepayment penalties.
• Defaulted loans are subject to collections.
• 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.

Visit the NC Rapid Recovery website to learn more and apply online.