Charlotte Business INClusion

 ​Small Business Mobilization Loan

The objective of the Small Business Mobilization Loan is to assist owners of certified Small Business Enterprises (SBE’s) acquire short ​term, low rate financing to support their temporary working capital needs as they participate in City projects.

  • ​The minimum loan amount will be $15,000 and the maximum loan amount will be $75,000, or 85% of contract (receivable) amount, whichever is less.
  • Maximum term of the loan is six months or the term of the contract, whichever is less.
  • All loans will be secured with the first lien position on assigned eligible municipal contracts. The City may require other security as circumstances indicate.
  • Interest rates will be fixed for the term of the loan, and will be tied to the Prime Rate + 1% (as published by the Wall Street Journal) at the time of loan closing, currently, 4.25%.
    Interest-only payments are due monthly on the outstanding principal balance.
  • Principal repayment of the City’s loan is deferred until payment on the assigned eligible municipal contract has been received.
  • Payments from a prime contractor for all work associated with the City’s loan agreement are required to be made jointly payable to the City and to the SBE.

​Each applicant for this loan should meet all of the following criteria:

  • An SBE that has been certified for a minimum of 2 consecutive years
  • Located in Mecklenburg County
  • Private for-profit
  • Engaged in a contracting on eligible municipal contracts and demonstrating a need for working capital for account receivables, acquisition of inventory, and/or materials

​Applicant applies for this loan directly to the City of Charlotte and will need the following:

  • Applicant will be required to provide: 2 years of Business Tax Returns on Company(s)
  • Two (2) years Personal Tax Returns on the Guarantors
  • Current Personal Financial Statement on the Guarantors showing a personal net value of no more than $750,000
  • Copy of Eligible Municipal Contract
  • Sources & Use of Funds Statement
  • Two (2) letters of recommendation from prime contractors
  • Two (2) letters or recommendation from professional references
  • Written explanation of past credit issues & Summary of Action to Correct (if applicable)

A $150.00 application fee to be submitted with the loan application. Additionally, a non-refundable 1% commitment fee is due upon loan approval. The application fee will be deducted from the commitment upon loan approval. The commitment fee can be deducted from the loan proceeds.

  • This loan is short term and is expected to be paid off when the City of Charlotte disburses funds to the contractor.
  • Standard commercial underwriting and loan documentation requirements will apply.
  • Applicants who fail to qualify for the loan will be referred to other community partners for financial and/or technical assistance.
  • Additional program requirements or restrictions may apply.​

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