NC may add $75 million to business bridge loan program
Golden LEAF, a Rocky Mount-based economic development foundation, rolled out a $15 million version of this program last month and demand quickly out-stripped the funds.Posted — Updated
The new figure was rolled out Tuesday during a House of Representatives working group meeting, and it won unanimous support. The final number, and other details, may change before final passage, but a bipartisan group of both House and Senate leaders put out a joint statement after the vote, promising "a substantial allocation."
Gov. Roy Cooper offered support for the program as well Tuesday afternoon.
The low-interest loans are essentially bridge funding, with no payments for six months. Golden LEAF, a Rocky Mount-based economic development foundation, rolled out a $15 million version of the program last month, and demand quickly outstripped the funds.
The program has some 3,000 pending applications left, lawmakers heard Tuesday.
“You look at the $15 million that’s already been spent ... I think this is going to be a very good project," House Speaker Tim Moore said during the working group meeting.
The money would come from the state's general fund and be paid back to it, minus defaults and up to 5 percent for administrative costs. Lending institutions that handle logistics would keep interest payments, according to the bill.
Companies that end up getting federal funding from similar programs, duplicating their benefits, would have to pay the state money back when they get the federal money, the bill states.
The General Assembly is scheduled to go into session April 28 to pass COVID-19 related legislation.
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