Fayetteville OKs small-business loan program during pandemic

The Fayetteville City Council on Monday approved a stimulus plan designed to give small businesses a shot in the arm during the coronavirus pandemic.

Posted 12:12 a.m. May 12, 2020 — Updated 12:12 a.m. May 12, 2020

Gilbert Baez

, WRAL Fayetteville reporter

FAYETTEVILLE, N.C. — The Fayetteville City Council on Monday approved a stimulus plan designed to give small businesses a shot in the arm during the coronavirus pandemic.

The plan would give firms that didn't get state or federal money a chance to apply for low-interest loans of about $5,000. Mayor Mitch Colvin said that, while the loans might be small, they may be big enough to prevent some operations from going out of business.

"Right now, times are hard, and Wall Street isn't as important as Main Street – or in this case, Hay Street," said Fernando Duque, who had to move his Quack Quack Phone Repair to a space on Fayetteville's Hay Street after two shopping centers he used to operate from closed amid the pandemic.

Duque said he plans to apply for a city loan.

"It would be very beneficial. We could definitely get more inventory, some fixtures inside, more importantly security – the security of knowing that we're not going belly-up," he said.

Shenee Shaw wants that security too. The hairstylist said she's had to dip into savings to stay afloat, and like Duque, she plans on applying for a city small-business.

"What it definitely would do is to be to help me to reopen back up, as well as cover costs that I've not been able to cover in terms of supporting my business," Shaw said.

Colvin said the small-business stimulus package was designed to help people like Shaw and Duque.

"If you're an entrepreneur, if you're a business owner and you basically make your money by the skills that you have, I think this is for you," he said. "This is just a small amount that may help someone pay a rent, buy supplies or do what they need to do to start back down the path of recovery."

Fayetteville has put aside $250,000 for the program, and the loans are on a first-come, first-served basis until the money runs out. The program will be run through the Center for Economic Empowerment & Development.

Raleigh started accepting applications for its own small-business grant program on Monday.

The capital city set aside $1 million to help businesses with fewer than 49 employees and a storefront in Raleigh stay afloat. The grants are up to $10,000.

Wake County also is setting aside $5 million to help struggling businesses.

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