In 1986 the Town of Carrboro established a revolving loan fund to support new and existing business in the creation or retention of jobs targeted specifically to low and moderate income persons. The seed monies for this revolving loan fund originated from program income of a Federal/State CDBG project and therefore subject to HUD- CDBG guidelines.

Loans from the fund are made to private non-profit and for-profit firms for projects such as construction or renovation of a building, purchasing existing buildings, the acquisition of equipment, and extension of utilities or streets to new sites, parking lots, and inventory. Other potential projects are explored with applicants as long as it can be shown that new employees will be hired or employees who would otherwise lose their jobs will be retained.

Applicants are required to complete an application which is submitted to the Economic Sustainability Commission for review. The ESC makes recommendations to the Board of Aldermen in regards to approve or not approve and recommendations for terms of the loan. Loan terms are determined based on length of lease, cash projections, and business plan. Interest rates generally run less than market rate.
Funds are subject to availability.

To inquire about fund availability, contact Carrboro's Economic and Community Development Director, Annette D. Stone, (919) 918-7319, 301 W. Main St., Carrboro, N.C. 27510.

1. The project must be located within the town limits of Carrboro.

2. Project description:
A: Location , floor plans, and square footage
B: Type of service, retail, technology or manufacturing business proposed
C: First year's itemized initial start up cost
D: Three to five years estimated cost/revenues
E: Description of other sources of capital funding
F: Financial need to include specific need for revolving loan funds in addition to or in lieu of private financing

3. Project benefit:
A: Estimated annual sales
B: Number of jobs created and annual salaries
C: Improvement to Real Property

4. Describe how the project will serve the community, who are the targeted clients/customers, how are these needs not being met, and how will this project will satisfy those needs.

5. A detailed budget of startup cost and 3 to 5 years pro-forma cost/revenue analysis.

6. Applicants must comply with all applicable Fair Labor Wage laws. Jobs created should demonstrate living wage salaries (living wage salaries are defined as a wage sufficient to meet the basic necessities and comforts essential to an acceptable standard of living) and commitment to employee retention.

7. Project should be able to demonstrate commitment of at least 50% of start-up and 1st year operating expenses.

8. Project must create or retain at least one full-time position for every $25,000 in loan request. At least 51% of the jobs created must be filled by persons who earned less than 80% of the median income for the county they lived in the previous 12 months.

9. Documentation of commitment of other sources of capital.

10. The applicant must demonstrate an ability to repay loan with a personal credit report. Submitted with the application must be a personal (or business if existing business) financial statements and a deed for real property to adequately collateralize the loan.

11. Projects must be consistent with Town policies and ordinances. Although competition is not viewed as a negative impact for existing businesses, data must be presented as to the need for duplication in existing services or products.

12. The Town of Carrboro wishes to attract locally owned sustainable business enterprises that are environmentally and socially responsible. Businesses should demonstrate the ability to be economically viable within a three year timeframe. Businesses that are locally owned and that serve persons of low/moderate income, underserved and disadvantaged populations or that are mission driven and fulfill a social need are encouraged.

13. Loan funds may be allocated on a defined schedule, if after one year the applicant has not used the funds. A request for an extension of the loan would need to be reviewed by the Board of Aldermen.

14. Loans are made at the discretion of the Town Board of Aldermen and subject to loan pool availability.

15. Loan recipients will not discriminate against any individual on the basis of race, color, religion, sex, gender, national origin, disability, sexual orientation or gender expression/identity in any of business activities or operations whether financed in whole or in part by funds received by the Town.