Zickefoose told us Friday that the City still has available $96,000 for loans under their program. The loans are for up to $5,000 per month, or a total of $15,000, provided over three months to qualifying small businesses operating inside the Lincolnton city limits. Zickefoose said the City had received 19 applications; two were rejected because the businesses were located outside the city and one decided not to proceed with the loan.
The Lincolnton Small Business Emergency Loan summary information and application are available on the City of Lincolnton website at www.LincolntonNC.org/Loan. All applications must be completed and submitted via the online application form.
Loan applications are reviewed by a panel of City employees from various departments on Tuesdays each week and loan funds will be distributed on Fridays once all applicant loan documents and promissory notes are completed and signed.
The loan terms are:
- 36 months, with interest accruing at 6.75% per annum.
- Loan payments to the City of Lincolnton will be deferred for the first 12 months, but interest will accrue during the deferred period.
- All loan agreements and terms will be documented by a promissory note, but the loans are unsecured loans and do not require any collateral.
Zickefoose said “This is a way for Lincolnton to support our merchants and alleviate some of the stress of the COVID-19 emergency.”
Mayor Ed Hatley said the funds “are coming from our reserve balance account, which we maintain for emergencies. This is truly a financial emergency and our help may make the difference in the long-term survival of local businesses.”
Eligible small businesses must have a physical location inside the city limits that was in operation on March 10th of this year when State of Emergency orders were issued; must have 50 or fewer employees; must not operate a franchise or as part of a chain; and must be in compliance with all City planning & business regulations. The full details are at www.LincolntonNC.org/Loan.