CDBG Small Business Loan Program Eligibility

Eligibility

Assisted business owners must show experience in similar business ventures or provide evidence that they have the capability to accomplish the goals set forth.  Applicants can also provide evidence of certification through the community college or similar institutions.
Only businesses that primarily employ people with low to moderate -incomes are eligible for funding.  Low to moderate-incomes eligibility is determined by using household income guidelines established annually by HUD.  (51% of the total new employees of the business must fall within the low to moderate-income range.

Home-based businesses or occupations may be eligible for SBLP funding, as long as the activities of the business are eligible under existing city ordinances and regulations and have potential to impact or benefit the entire city.

SBLP funds are available to qualified businesses citywide, but priority will be given to businesses that comply with City Long term planning goals identified through the Adopted Mission 2030 plan, or located within target areas where other city programs are taking place such as redevelopment areas, downtown areas or areas in need of reinvestment such as DIG Zones or Urban Progress Zones.

All Applicants must be a citizen of the United States and the proposed business must be located within the city limits of Morganton.

Eligible Uses

CDBG funds may be used for a variety of activities, some of which include:

  • Purchase of land or buildings
  • Building construction
  • Building renovation
  • Up-fit tenant improvements
  • Purchase capital equipment to conduct the business
  • Purchase of inventory necessary for project start-up
  • Operating Capital

Ineligible Uses

The following activities may not be assisted with CDBG funds:

  • Governmental uses or expenses
  • Political activities
  • Personal property

HUD Income limits per household for Hickory, Morganton, Lenoir MSA:

  • 1 person = < $29,250
  • 2 persons = < $33,400
  • 3 persons = < $37,600
  • 4 persons = < $41,750
  • 5 persons = < $45,100
  • 6 person = < $48,450
  • 7 persons = < $51,800
  • 8 persons = < $55,1500
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