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The purpose of the Orange County Emergency Small Business Funding Program is to assist Orange County-based small businesses that are experiencing financial difficulties such as mandated shutdowns, employee layoffs, and operating losses as a result of ongoing efforts nationwide to contain and minimize the spread of the Covid-19 virus pandemic.
Businesses receiving funding through this program must be based in Orange County, are encouraged to employ Orange County’s residents, and contribute to our community’s economy.
Small business applicants must be located within Orange County, registered with the North Carolina Secretary of State and be in locations zoned appropriately for the intended business activity. Additional criteria include:
An evaluation committee composed of two representatives each from the Small Business Grant Committee, the Agricultural Grant Committee, and the Small Business Loan (SBL) Board will make final determinations for both grants and loans. The Emergency Small Business Funding Committee (Committee) will be staffed by the County’s Chief Finance Officer and Director of Economic Development.
Orange County staff will underwrite and service these loans and grants, to include marketing the program, receiving all applications for review, disbursing funds to award recipients, generating debt repayment billings and administrative reports, and processing all associated documentation.
The Emergency Small Business Funding Program is funded by the Orange County Board of Commissioners which retains the right to amend the loan and grant procedures as necessary to assist the broadest level of Orange County’s small businesses.
The Committee will compare average revenue for two months in 2020 (after the COVID-19 impact) to both:
Additional duties of the Committee shall include generally monitor the duties of the Program administration. These responsibilities will include:
Business expenses in the following categories as a result of a need to expanded a business model to accommodate social distancing:
An applicant can receive a combined maximum award up to $25,000.
The program will charge no interest rate, no loan origination fee and no application fee for small business loans. However, a loan borrower’s delinquencies to make scheduled loan repayments or cause returned check fees will result in related debt collection costs to be assessed to the loan borrower.
The grant program has no application fee and no other costs to the grant recipient.
Loan repayment schedules will be finalized upon loan commitment. All payments shall be due as stipulated in the repayment schedule, with the first payment due six months from the loan origination date. Loans repayments will be collected through an electronic funds transfer (EFT) established between the borrowers’ bank account and Orange County Department of Finance. Loans may be prepaid, in whole or in part, at any time without penalty. In the event the loan payment becomes 30 days overdue, procedures for the Collection of Delinquent Loans shall commence.
On a monthly basis, County staff will create a system-generated Accounts Receivable and Aging Reports to review the collection status of all loans.
For delinquencies of 30 days, Orange County Economic Development staff will mail/e-mail a 30-Day Past Due Notice, and the Orange County Department of Finance & Administration staff will initiate an Automated Clearing House (ACH) draft;
At 60 days delinquent, Orange County Economic Development Department staff will mail/e-mail a 60-Day Past Due Notice, and the Orange County Department of Finance & Administration staff will resubmit the Automated Clearing House (ACH) draft, and initiate a Debt Set-Off and County Attorney Letter.
At 90 days delinquent, Orange County Department of Economic Development staff will mail/e-mail a 90-Day Past Due Notice, and the Orange County Department of Finance &Administration will resubmit the Automated Clearing House (ACH) draft, initiate a Debt Set-Off, County Attorney Letter and a negative Credit Bureau report.
For all delinquencies of 90 days and older, the Orange County Economic Development staff will mail/e-mail 90-Day Past Due Notice, and the Orange County Department of Finance & Administration will resubmit the Automated Clearing House draft, Debt Set-Off, County Attorney Letter, a negative Credit Bureau report, and retain a debt collection agency to pursue the delinquency.
The Committee shall review and consider a number of items in determining whether a loan should be made. Those items shall include at least the following:
The reports referenced above should be PDF financial software system generated reports to the extent possible.
The Board of County Commissioners has allocated $300,000 in funding for the Emergency Small Business Funding Program. Applications will be accepted until the funding runs out.