Foothills Review

The backbone of state commerce is receiving an influx of funding for relief to assist in recovery from the COVID-19 pandemic.

As loan applications pile up for small businesses, North Carolina legislators are committed to adding $75 million to serve more applicants. It is an effort that has the full support of House Speaker Tim Moore.

“That kind of loan is the difference between a business staying open or closing, between having a job or not,” Moore said to Carolina Coast Online.

The increase in funding is one of the legislative proposals from the House Committee on COVID-19’s Economic Support working group. The committee’s action boosts the funding in the program from $25 million.

The small business loan funding has advanced out of committee and combined with temporary and limited Medicaid expansion and $480 million in public health funding into House Bill 1043, the Winston Salem Journal reported.

Kasey Ginsberg, director of Government Relations and director of Programs of Golden Leaf Foundation told the Carolina Coast Online 4,037 residents have filed for loans so far. A total of 3,000 have been approved or withdrawn. Requests total $139 million with $35,000 per average request.

The legislature has expanded eligibility to the loan program and has included businesses that are independently owned and employ 100 or fewer full-time if similar employees. The loan’s maximum term has been extended 12 months by the committee from 54 to 66.

Access to the Economic Injury Disaster Loan is locked as applications are no longer being accepted. Funding from the loan program is typically awarded following a hurricane. Many state residents began applying for the program in March after all 100 counties in the state were declared a disaster zone, Thomas Stith, North Carolina Small Business Administration district director told Coastal Carolina Online. Since the declaration the program has been overwhelmed with demand despite limited funds.