Established in collaboration with the Golden LEAF Foundation and other statewide partners, the new product will provide long-term assistance to small businesses affected by natural disasters
- Thread Capital, a nonprofit subsidiary of the NC Rural Center, announced today the launch of its second disaster recovery loan program for North Carolina small businesses affected by Hurricane Florence.
Resilient Recovery Loans
are Thread Capital's new long-term loans designed to meet the extended challenges faced during a business's recovery from a natural disaster, including mitigating for future disasters, repairing physical damage, and recouping significant economic losses. Resilient Recovery loans are designed to ensure the business is fully stabilized and is able to handle future economic shocks.
Owners of small businesses with at least one employee (including the owner) that have been impacted by Hurricane Florence can apply for Resilient Recovery Loans of up to $250,000. Loans can be made for a period of up to ten years. To be eligible, a business must demonstrate economic or physical damage as a result of Florence.
In the aftermath of a natural disaster, affected North Carolina businesses often face months, or even years, of financial and physical setbacks. Hurricane Florence hit many communities still struggling to recover from Hurricane Matthew. Resilient Recovery Loans are designed to bring affected businesses back to their pre-storm levels of economic activity and better prepare them for the risk of future disasters.
"North Carolina's economic success depends on resilient small businesses," said Thread Capital Executive Director Jonathan Brereton. "With support from the Golden LEAF Foundation and our partners from across the state, Thread Capital is stepping up to help our state's small business owners recover from--and better plan for--the next natural disaster."
"Golden LEAF is pleased to support the recovery of our small businesses affected by natural disasters," said Golden LEAF Foundation President Dan Gerlach. "Thread Capital has shown both a solid track record of providing loans to support small businesses recovering from disasters and a clear demand from such businesses for additional capital in line with the legislative intent of these funds."
Thread Capital's two disaster recovery loan products are aimed at helping small businesses make a
Rapid Recovery Loan
, launched by Thread Capital even before Hurricane Florence had made landfall, is an expedited bridge loan for up to $50,000 at zero percent interest for six months. The short-term capital helps small businesses to immediately stabilize in the aftermath of a storm by covering things like cleanup costs and lost revenue. These loans provide immediate cash to businesses while they wait for a Small Business Administration (SBA) loan or insurance payouts. To date, Thread Capital's Rapid Recovery lending has supported 66 North Carolina businesses with more than $2 million in gap funding.
Resilient Recovery Loan
program is a partnership of Thread Capital, the NC Rural Center, the Small Business and Technology Development Center (SBTDC), the Community College Small Business Center Network, and Business Link North Carolina (BLNC).
The Resilient Recovery Fund is supported by a grant from the Golden LEAF Foundation funded by the 2018 Hurricane Florence Disaster Recovery Act
About Thread Capital
Thread Capital is a nonprofit organization committed to building a more robust, inclusive ecosystem of entrepreneurship in North Carolina, one that gives
an opportunity to achieve their small business dreams. We do that by weaving together capital, coaching, and connections to create a new era of entrepreneurship across the state.