Durham City Council has authorized the establishment of the Durham Small Business Recovery Fund program for small businesses adversely affected by the COVID-19 pandemic.
The fund consists of private money for grants and public funds for loans and is approximately $3 million, with $1 million from Duke University for grants and approximately $2 million from the City of Durham and Durham County. The fund is held and administered by the Carolina Small Business Development Fund (CSBDF). In addition to administering the grants, CSBDF also will process, service and collect loans on behalf of the City and County. The agency will also market the programs and provide technical assistance to businesses receiving loans.
Grant applications and loans are selected for review on a first come, first serve basis. Eligible businesses can apply to both the grant and the loan program.
Business must be an independent business located within Durham County
Eligible businesses include sole proprietorships, home businesses, food trucks, and independent contractors
Businesses with 25 or fewer full-time employees
Franchises are only eligible if the franchisor is independent and locally owned
Business with revenue sup to $5 million, according to the most recent tax filing
Business with a minimum of 2 years in a profitable operation*
Business does not have credit accounts > 90 days past due at time of application
Business does not have any current open judgments or tax liens
Business total unpaid collections may not exceed $ 1,000
Business total unpaid charge-offs may not exceed $ 1,000
Business has not filed for bankruptcy within the past 3 years (collections and charged-offs due to medical bills are exempt).
Business demonstrates that financial obligations and operating expenses could have been met absent the economic impact of the COVID-19.
Use of Funds
Funds may be used for legitimate business expenses, including but not limited to working capital, lease payments, existing real estate and equipment financing payments, and covering payroll shortage. Funds may notbe used to pay off existing debts, tax liens, judgments, or collections.
Loan size: $5,000 to $35,000 for 10 years; loan size is lesser of 3x average monthly expenses
Interest rate fixed at 3.00%
Complete simplified online loan application
Statement describing how COVID-19 has adversely impacted the business
Copy of valid/unexpired driver’s license or other government-issued identification
Copy of business formation documents and/or partnership agreements
Copy of lease agreement or mortgage statement, if available and the place of business is owned by the client
2018 or 2019 business tax returns
2019 Balance Sheet
Most recent bank statement
Banking information including your routing, checking account number, and copy of a voided check
Note: *Businesses that can satisfactorily document reasons for a significant disruption in operations during 2019 that impacted profitability will be considered on a case-by-base basis. A “significant disruption” might include flooding, fire, or major damage or forced to close due to an emergency declaration. Satisfactory documentation might include insurance claims, letters from public health, pictures, etc. The business still needs to show at least 1 year of profitable operations.
For more information and to apply, please visit the Durham Small Business Recovery Loan Fund page at Carolina Small Business’ website. Loan applications will be accepted until funds are exhausted. Decisions for loans will be made within 15 calendar days from receiving completed applications, with money provided five calendar days from the closing date.
The City of Durham and its Small Business Advisory Committee are ready to help you bounce back from the pandemic.