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Small Business Mobilization Loan
Building under contructionWhat is the Small Business Mobilization Loan?

The objective of the Small Business Mobilization Loan is to assist owners of certified Small Business Enterprises (SBE’s) acquire short term, low rate financing to support their temporary working capital needs as they participate in City projects.

Small Business Mobilization Loan Application  |   Fact Sheet

Program Description and Requirements
  • The minimum loan amount will be $15,000 and the maximum loan amount will be $75,000, or 85% of contract (receivable) amount, whichever is less.
  • Maximum term of the loan is six months or the term of the contract, whichever is less.
  • All loans will be secured with the first lien position on assigned eligible municipal contracts. The City may require other security as circumstances indicate.
  • Interest rates will be fixed for the term of the loan, and will be tied to the Prime Rate + 1% (as published by the Wall Street Journal) at the time of loan closing, currently, 4.25%.
  • Interest-only payments are due monthly on the outstanding principal balance.
  • Principal repayment of the City’s loan is deferred until payment on the assigned eligible municipal contract has been received.
  • Payments from a prime contractor for all work associated with the City’s loan agreement are required to be made jointly payable to the City and to the SBE.
Eligible Applicants

Each applicant for this loan should meet all of the following criteria:

  • An SBE that has been certified for a minimum of 2 consecutive years
  • Located in Mecklenburg County
  • Private for-profit
  • Engaged in a contracting on eligible municipal contracts and demonstrating a need for working capital for account receivables, acquisition of inventory, and/or materials
Application Process

Applicant applies for this loan directly to the City of Charlotte and will need the following:

  • Applicant will be required to provide:
    • 2 years of Business Tax Returns on Company(s)
    • Two (2) years Personal Tax Returns on the Guarantors
    • Current Personal Financial Statement on the Guarantors showing a personal net value of no more than $750,000
    • Copy of Eligible Municipal Contract
    • Sources & Use of Funds Statement
    • 2 letters of recommendation from prime contractors
    • 2 letters or recommendation from professional references
    • Written explanation of past credit issues & Summary of Action to Correct (if applicable)
  • A $150.00 application fee to be submitted with the loan application. Additionally, a non-refundable 1% commitment fee is due upon loan approval. The application fee will be deducted from the commitment upon loan approval. The commitment fee can be deducted from the loan proceeds.
Additional Program Information
  • This loan is short term and is expected to be paid off when the City of Charlotte disburses funds to the contractor.
  • Standard commercial underwriting and loan documentation requirements will apply.
  • Applicants who fail to qualify for the loan will be referred to other community partners for financial and/or technical assistance.
Additional program requirements or restrictions may apply.