Business

Golden LEAF loans available to small businesses

$15 million in loans, with no payments or interest for six months, available now.

Posted 2020-03-24T17:42:12+00:00 - Updated 2020-03-24T17:50:28+00:00

More financial relief for startups and small businesses are coming through actions taken by the Federal Reserve on Monday. This follows the news of last week that the US Small Business Administration is making loans up to $2 million for eligible businesses after it approved a "disaster declaration" for North Carolina.

Travis Fain

, WRAL statehouse reporter

Small businesses in North Carolina can apply for loans up to $50,000, with no interest and no payments due for six months, to help them stay afloat as the COVID-19 pandemic shuts down large swaths of the economy.

Golden LEAF, a Rocky Mount-based economic development foundation, announced the rapid recovery loan program Tuesday and said it earmarked $15 million for the project. The program is meant to provide bridge funding for businesses that apply for economic injury loans through the U.S. Small Business Administration but also have more immediate needs.

After six months, these loans automatically convert to term loans.

To apply or learn more, visit ncrapidrecovery.org or call 800.228.8443.

Tuesday's announcement was accompanied by supportive comments from Gov. Roy Cooper, House Speaker Tim Moore and Senate President Pro Tem Phil Berger.

"This action by Golden LEAF is welcome news and much needed," Berger said in the release. "Everybody – the private sector and local, state and federal governments – will need to work toward the common goal of restarting the economic engine once this crisis passes."

Golden LEAF is funded by tobacco settlement money. The nonprofit North Carolina Rural Center will manage the program and partners with various nonprofit lending partners.