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1. What is the purpose of the County’s financial assistance program?

The purpose of the Orange County Emergency Small Business Funding Program is to assist Orange County-based small businesses that are experiencing financial difficulties such as mandated shutdowns, employee layoffs, and operating losses as a result of ongoing efforts nationwide to contain and minimize the spread of the Covid-19 virus pandemic.

Businesses receiving funding through this program must be based in Orange County, are encouraged to employ Orange County’s residents, and contribute to our community’s economy.

2. What businesses are eligible/ineligible to apply for funding through this program?

Small business applicants must be located within Orange County and in locations zoned appropriately for the intended business activity. Additional criteria include:

• Business applicants must be for-profit business entities.
• Business applicants must have no outstanding tax liens or legal judgments as of February 1, 2021 and have applicable 2019 North Carolina business licenses.
• Ineligible businesses include, but not limited to, companies involved in real estate investment, multi-level marketing, adult entertainment, or firearms. Companies with outstanding local tax liabilities or tax liens as of February 1, 2021 or currently in bankruptcy (Corporate or Personal) are not eligible. Companies that have a past due balance as of February 1, 2021 with the Orange County Small Business Loan Program are also ineligible.
• Businesses who have already received COVID-19 related financial assistance from either the state, federal or local governments are eligible to apply for this round of funding. Examples of these types of programs include Paycheck Protection Program (PPP), Economic Injury Disaster Loan (EIDL), Small Business Administration (SBA) Loan, Carrboro Small Business and Non-Profit Emergency Loan/Grant Fund.

3. Who will review grant applications and determine the awards?

An evaluation committee composed of two representatives each from the Small Business Grant Committee, the Agricultural Grant Committee, and the Small Business Loan (SBL) Board and one representative from each of the three Towns (Carrboro, Chapel Hill and Hillsborough) will assist in the structure of the program. The Emergency Small Business Funding Committee (Committee) will be staffed by the County’s Chief Finance Officer and Director of Economic Development.

Orange County staff will service the grants, to include marketing the program, receiving all applications for review, disbursing funds to award recipients, providing administrative reports, and processing all associated documentation.

The Emergency Small Business Funding Program is funded by the Orange County Board of Commissioners which retains the right to amend the grant procedures as necessary to assist the broadest level of Orange County’s small businesses.

4. What will the application and funding process look like?

• Interested businesses should complete the online application and provide the required financial reports by 5:00 p.m. on Wednesday, January 20, 2021.
  
  
• Orange County staff from the Economic Development and Finance offices will pre-screen the applications to make sure they include all required documentation and meet the guidelines.
  
  
• Applicants will then be contacted by writing to share the evaluation results and what the next steps in the process will include.
  • For grant applicants, a completed W-9 and Electronic Funds Transfer form will be required to process the funds.
• Each venture receiving a grant must provide an accounting of how all funds were used by the venture within 180 days of the receipt of the grant.

5. What criteria will be used to evaluate a small business applicant’s economic need to receive a grant?

The Committee will compare revenue for April 2019 and April 2020.

Additional duties of the Committee shall include generally monitor the duties of the Program administration. These responsibilities will include:

• Determining innovative measures to deploy grant funds to sustain small business development and job creation, leading to recovery.
• Meeting with staff to review grant applications and determine which applications will be recommended for approval to County leadership, including terms and conditions.

• Applicants must submit certain financial and tax information of their small business to Orange County’s Finance & Administration Department including Federal Tax ID # and bank account information.

6. What are the eligible uses of the grant funds?

Business expenses in the following categories as a result of a need to expanded a business model to accommodate social distancing:

• Fund working capital or operational funds
• Purchase equipment, commercial-use vehicles, or machinery for the business
• Improve owner-occupied commercial property; owner must occupy 50% or more of total space
• Sustain or expand business services or products
• Retain or expand workforce development and job creation
• Fund tenant up-fit and lease-hold improvements to the business

7. What are examples of unauthorized uses of grant funds?

• Businesses that are not based in Orange County.
• Refinancing existing bank debt or investor loans
• Purchase of equipment or improvement of real estate to be used for personal use
• Political activities or private membership clubs
• Owner salary and dividend payments beyond an agreed upon amount
• Speculative ventures such as drilling for gas, oil, and commodity futures
• Lending or speculative investment purchases
• Real property held for sale or investment
• Pyramid sales - distribution plan businesses
• Floor plan financing, which is defined as a revolving line of credit that allows the borrower to obtain financing for retail goods; these loans are secured on collateral including vehicles, recreational vehicles and manufactured homes
• Foreign controlled businesses

8. What is the amount of the grant program’s potential award value to a small business applicant?

Orange County is providing up to $250,000 in funding to support individual grants of approximately $3,000 per applicant for all finalist applicants to the Round #3 program. Final award amount will be determined based on the total number of eligible applications received.

9. What is the cost to a small business that receives a grant?

  The grant program has no application fee and no other costs to the grant recipient.

10. What types of financial records and related documentation will be required as part of the grant application process?

• 2019 Tax Return
• Profit/Loss Statement from January 1, 2019 through December 31, 2019
• September 2019 Revenue (Subsidiary ledger and verified by copy of NC DOR E-500 Sales and Use Tax Report)
• September 2020 Revenue (Subsidiary ledger and verified by copy of NC DOR E-500 Sales and Use Tax Report)
• Quarterly Tax and Wage Reports (Form NCUI 101 or IRS 941); business will redact all employee SSN
• Bank Statements (from March-October 2020)
• Copy of front and back of North Carolina driver’s license or government-issued ID.

The reports referenced above should be PDF financial software system generated reports to the extent possible.

11. How much funding is available for the program?

Up to $250,000 in funding is available for the Round #3 Emergency Small Business Funding Program.

 

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[AG1]Number can be updated with the amount left from Round One.