Johnston Reporter

North Carolina’s legislative leaders are backing additional funding for the Golden LEAF Foundation to expand its bridge loan program for struggling businesses, lawmakers said in a statement in late April.

House Bill 1034, which cleared the House Committee on Finance with a unanimous vote, would provide $75 million for the small business loan program while owners in need of financial assistance are applying for federal or commercial loan programs.

Gov. Roy Cooper joined Senate Majority Leader Phil Berger (R-Rockingham) Senate Minority Leader Dan Blue (D-Wake) House Speaker Tim Moore, (R-Kings Mountain) and House Minority Leader Darren Jackson (D-Wake) to support budgeting the additional funds.

The joint statement said the program has been efficient and effective. Employers can access capital quickly while waiting for federal Small Business Administration (SBA) assistance or other loans.

“We know that this program is already oversubscribed and want to assure small businesses that more help is on the way,” they said in the joint statement.

The Golden LEAF Foundation reported it initially put $15 million in funds for a loan program in response to losses businesses suffered related to COVID-19. The funds to support the NC COVID-19 Rapid Recovery Loan Program provides eligible businesses with loans up to $50,000 with no interest and no payments for six months. After six months, the loans convert to term loans.

A total of $8 billion in Payroll Protection Program (PPP) loans were received by more than 39,000 North Carolina applicants, The Mountaineer reported. Another $147 million in emergency disaster loans were distributed to 763 businesses and nonprofits.

If approved, the Legislature's funding would enable Golden LEAF to expand its program to more applicants. The initial program funded loans up to $50,000 for businesses with no more than 50 employees. New funding would allow businesses with 100 or more employees to apply for a loan, The Mountaineer reported.

Proof of financial loss caused by the response to the COVID-19 pandemic is necessary for eligibility.