CARES Revolving Loan Fund
UDI Community Development Corporation (UDI/CDC) is recipient of a COVID-19 Recovery and Resiliency Project award from the US Department of Commerce Economic Development Agency (EDA), as part of EDA’s CARES Act Recovery Assistance. The award capitalizes a revolving loan fund of $500,000 to address the economic development needs of small businesses and entrepreneurs adversely affected by the coronavirus pandemic.
UDI/CDC CARES Revolving Loan Fund (UDI/CDC CARES RLF)
- Business must be an independently owned business located within Durham County
- Eligible business types include corporations, sole proprietorships, LLC’s, partnerships
- Business with 50 or fewer full-time employees
- Business with revenue of up to $2 million, according to the most recent tax filing
- Business with a minimum of 2 years profitability out of past 3 years operation
- Business does not have credit accounts greater than 90 days past due at time of application and meets other credit criteria
- Business demonstrates that financial obligations and operating expenses could have been met absent the economic impact of the COVID-19
- Business does not have any current open judgments or tax liens
- Business has not filed for bankruptcy within the past 3 years
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. Borrowers who have received loans through the U.S. Small Business Administration (SBA) Paycheck Protection Program (PPP) or EIDL are eligible, but only if UDI/CDC CARES funds will be used for different purposes or time periods than the SBA loans.
- Maximum: $50,000
- Interest rate fixed at 3.75%
- Loan Origination fee 5%
- Loan terms up to 7.5 years; 6 months interest only
- Completed online loan application, including a 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
- Most recent three years business tax returns or Individual tax returns if sole proprietor, must include 2018
- 2019 Balance Sheet and Debt Schedule
- Most recent bank statement
- Banking information including your routing, checking account number, and copy of a voided check
Minority and women-owned business enterprise (MWBE) owners are strongly encouraged to apply.
For more information or to apply, please contact CARES@udicdc.org.