CDBG Small Business Loan Program

Purpose

The City of Morganton Community Development Block Grant (CDBG) Small Business Loan  Program (SBLP) is a competitive program offering both startup or expansion companies an opportunity within the City Limits of Morganton to obtain loan funds up to $75,000 upon approval and in compliance with CDBG criteria.  All businesses requesting funds between $5,000 and $30,000 must create at least one new job that meets the HUD income criteria.  All businesses requesting greater than $30,000 must be able to create a minimum of 10 new full time job positions within 1 year of funding.  51% of those jobs must be filled by individuals who fall within HUD Low to Moderate Income and Household Income criteria.  (see criteria below)

Funding

The SBLP funds are derived from the City’s CDBG Entitlement Program, which is provided by the U.S. Department of Housing and Urban Development (HUD).  The loan will be set at a 4% interest rate for nine years with a monthly payment due by the first of each month to the City of Morganton.  If the business maintains a good standing on the loan and completes its original business plan, 50% of the principal will be forgiven after 5 years.