Simple... Business Loans
What is MAY
Coalition?
How does MAY
Coalition accomplish its mission?
Where does MAY Coalition get
its money?
Is MAY Coalition a government
agency?
What is the application process?
How does MAY Coalition
decide who gets a loan?
How long does it take
to get a loan approved?
What are the costs
associated with the loan?
Why
should I borrow from MAY Coalition rather than from my local bank?
Who do I contact about a
MAY Coalition loan?
MAY Coalition is a nonprofit corporation whose mission is "to help create high quality employment opportunities for unemployed and underemployed residents of Mitchell, Avery and Yancey counties in North Carolina."
How does MAY Coalition accomplish its mission?
MAY Coalition has two loan programs. One is for any qualifying business that agrees to create new employment opportunities for residents of the three counties. These loans can range up to $250,000. The jobs created must be full-time and non-seasonal and must pay at least $6.00 per hour. Generally one job is created for each $20,000 of loan.
The second loan program is for low to moderate income business owners. The difference is that these businesses do not necessarily have to create new employment opportunities for others. The loans can be used as an investment to enhance the owner's income. These loans are limited to amounts up to $25,000.
Where does MAY Coalition get its money?
MAY Coalition received a generous grant from the Z. Smith Reynolds Foundation. MAY has received supplemental funding from the Community Foundation of Western North Carolina, the North Carolina Department of Commerce, and from the United States Department of the Treasury CDFI Fund. USDA Rural Development has provided additional funding through long-term loans.
Is MAY Coalition a government agency?
No. With most loans there is no government involvement. With USDA Rural Development loans, rejection letters from two lenders and a life insurance policy with a value in the amount of the loan are required.
What is the application process?
All applicants must complete MAY Coalition's two page pre-application form and must provide tax returns for two years, a personal financial statement and a business plan.
How does MAY Coalition decide who gets a loan?
MAY Coalition is governed by a Board of Directors made up of business people, local government representatives, and people who have been hired as a result of MAY's loans. A loan committee appointed by the Board reviews all applications. A majority vote of the entire Board of Directors determines whether a loan is approved. Loan decisions are based on the number and quality of jobs created, the likelihood of repayment, the character and credit history of the borrower, the soundness of the business idea, and the quality of the collateral offered.
How long does it take to get a loan approved?
There is no set time frame. The cleaner the application, the quicker the approval. The Board is composed entirely of volunteers. Staunton Norris, an attorney in Burnsville, closes all loans.
What are the costs associated with the loan?
MAY Coalition charges a rate equal to the prime rate at the time of the loan (but in no case less than 6%). Terms of most loans range up to five years. Terms of larger loans that involve long term needs can range up to 15 years and must meet USDA Rural Development requirements. MAY Coalition charges no application fee and no points. However, the borrower is required to pay the attorney's fees and recording fees associated with the loan.
Why should I borrow from MAY Coalition rather than from my local bank?
MAY Coalition loans are not right for everyone. Sometimes your local bank is the place to go. However, MAY Coalition's loans offer several advantages. MAY's lower rates can provide significant savings over the term of the loan. MAY Coalition's loan decisions are made locally. MAY welcomes requests for small loans. Closing costs are usually lower with MAY Coalition loans.
Who do I contact about a MAY Coalition loan?
Call, write, FAX or visit Bill Weeks. MAY Coalition is located in the old Belk Building at the corner of Crystal and Lower Street in Spruce Pine. The office is generally open between 8am & 5pm Monday through Friday. Mailing address, FAX and phone numbers are listed below.