Apply for a microloan

Microenterprise Loans

The five counties of Franklin, Granville, Person, Vance and Warren offer loans of $5,000 to $25,000 for “microenterprises” – that is, businesses with five or fewer employees/owners – to start or expand a business.

The COG’s microenterprise loan program is funded with a grant from the U.S. Department of Housing and Urban Development through the N.C. Division of Community Assistance.

Eligible borrowers

The loan program is open to small businesses in the five counties with five or fewer employees/owners. Sixty percent of the businesses employees/owners must have had a low-to-moderate income level in the past year. Income levels are defined by the federal government and vary from county to county.

Eligible expenditures

Microenterprise loans may be used for:

• Land and site improvements
• Building improvements
• Machinery and equipment purchases
• Costs related to establishing the business
• Contingency reserves
• Start-up and working capital
• Infrastructure costs
• Inventory and accounts receivables and reserves
• Debt refinancing
• Farm equipment
• Redemption of stock
• Acquisition of existing companies

Loan terms

The fund makes loans of $5,000 to a maximum $25,000 for projects of any cost.

Terms for repayments are:

• Working capital – up for five years
• Machinery and equipment – life of machinery and equipment up to 10years
• Land and buildings – up to 10 years

The program offers loans at below market interest rates, established by the Loan Review Committee, for companies that cannot obtain conventional financing.

A $250 deposit is required with the application that will be used for legal costs related to loan processing.

Application

Application documents may be obtained online or from the COG office, 1724 Graham Ave., Henderson, NC 27536.

For information, contact: