Frequently asked questions
Terms and eligibility
What are the loan terms?
- Loan amounts from $1,000 to $250,000
- Monthly principal and interest payments
- Fixed interest rates for the life of the loan
- Rates between 9% and 12%
- Origination fees ranging from 3% to 5%
- No prepayment penalties
What can I use the loan for?
Your loan can be used for a wide variety of business needs including equipment, payroll, utilities and rent, supplies, marketing and advertising, and other business expenses. You will be asked to detail the intended use of the loan in your application.
Who is eligible for a loan?
To be eligible for a Charlotte Small Business Growth Fund loan, a small business must meet minimum eligibility requirements detailed below:
- Be located in the Charlotte region. Applications are accepted from businesses located in the following 14 counties: Alexander, Cabarrus, Catawba, Chester, Chesterfield, Cleveland, Gaston, Iredell, Lancaster, Lincoln, Mecklenburg, Rowan, Stanley, York
- Have been operating for at least six months
- Be able to repay the loan through documented cash flow
- Have a minimum FICO score of 575 or no established credit
- Not be engaged in lending, speculation, pyramid sales,
- gambling, tobacco, cannabis, adult entertainment, or any
- industry prohibited by federal law
Who is NOT eligible for a loan?
Any business engaged in lending, speculation, pyramid sales, gambling, tobacco, cannabis, adult entertainment, or any industry prohibited by federal law is ineligible for this program. Businesses are also ineligible if they have been operating for less than six months.
Am I guaranteed approval if I am eligible to apply?
Not all applicants will be able to receive a loan. Applications will be reviewed on a rolling basis, and submitting an application does not mean that a loan will be approved or funded. Additional information will be requested by participating lenders, and each loan decision will be made exclusively by the lender. All rates and loan terms are subject to change.
Do I need collateral?
There is no specific collateral requirement, but the participating lenders may request collateral depending on loan factors such as loan amount or use of loan funds.
Is there a minimum credit score?
To be eligible for a loan, business owners must have a minimum FICO score of 575 or no established credit.
What happens if I miss a loan payment?
If you receive a loan and do not make a loan payment on time, you may be assessed a late fee at the discretion of the lender. A failure to pay according to the terms of your agreement may result in the loan being declared in default. During the loan application process, your community lender will discuss the full terms of your loan agreement to ensure you understand the details regarding late payment and default.
Program Information
How is this loan program different from others?
The Charlotte Small Business Growth Fund has a network of community-based lenders with decades of experience working with business owners from historically excluded communities.
Our goal is to reduce barriers to financial resources by offering:
- Connections to free small business support resources
- A matching program that introduces small businesses to the
- lender best able to serve them
- Competitive loan terms including fixed interest rates and
- flexible loan uses
Who are the participating community-based lenders?
What sets the Charlotte Small Business Growth Fund apart from other sources of capital is the network of nonprofit, community lenders. Each of the lenders that you may be matched with is a nonprofit organization with years of experience helping small businesses succeed. Our partners care about you, your business, and your success. They will work with you to help your business get access to the resources it needs to succeed.
The lending partners in the Charlotte Small Business Growth Fund are:
Application Information
What information is required when I apply online?
When you apply online, we will ask a series of questions to help us get to know your business and your financial history. This will help us determine if you meet the basic eligibility requirements and if you are ready to match with one of the community lenders.
The information we will ask for includes:
- Loan amount request and use of funds
- Business and personal contact information
- Business and personal financial information
- Business and personal bank statement information
- Information and authorization for a soft credit check (no
- impact to credit score)
What information is required if I match with a community lender?
If you match with a lender, you will need to provide some additional information and documentation, including:
- Business and personal tax returns
- Business financial statements
- Additional information as requested
You can provide this information up-front in the document upload section of the application, or you may wait until it is requested by the lender you match with. If you are matched with a participating community lender, they will contact you to collect the required documentation, conduct any additional credit checks, and finalize the application.
Why does the application ask about my demographics?
The funding provided through the Charlotte Small Business Growth Fund is intended to strengthen communities and the small businesses within them. The demographic information provided by the applicants helps ensure that the program reaches all eligible business owners.
Does completing the online application guarantee that I will match with a program lender?
No. Please note that completing the online application does not guarantee that you will be matched with a lender. If your business does not meet the initial eligibility criteria to be matched with a lender, you can still access a network of free or low-cost resources available to businesses in Charlotte. These resources may help you become loan-ready in the future:
- UNC Charlotte Small Business and Technology Development Center
- Prospera – provides bilingual support in English/Spanish
You can also reach out to any of the participating lenders about specific programs they may offer to help small businesses prepare for financing.