2020-342-E-Economic Dev-Kristin Bartone-Emergency small business funding program

Browse Search

ESBLPLSA LOAN AND SECURITY AGREEMENT THIS Loan and Security Agreement (the "Agreement") is dated as of May 14, 2020, and is by and between, Kristin Bartone Interiors LLC a North Carolina Limited Liability Company ("Borrower") and Orange County, North Carolina, a political subdivision of the State of North Carolina (“County”) WHEREAS, the COVID-19 pandemic has impacted the global markets and disrupted economic and business growth throughout the United States including Orange County; and WHEREAS, on March 10, 2020, the State of North Carolina declared a State of Emergency in response to the COVID-19 outbreak, followed by the federal government declaring a State of National Emergency on March 13, 2020, and a Stay-at-Home Order issued by Orange County on March 26, 2020; and WHEREAS, the pandemic and emergency orders have negatively impacted the workforce, businesses, industries and economies with closures and depressed economic activity; and WHEREAS, the County is committed to supporting its local businesses and created an emergency loan program using approximately $300,000 of Article 46 Sales Tax revenue originally budgeted for the Small Business Loan Program; and WHEREAS, the emergency loan program is targeted to small businesses experiencing revenue loss due to the pandemic in the form of both grants and loans intended to provide immediate financial assistance in order to continue operations, return furloughed employees to work or prevent further closures and layoffs; and WHEREAS, the Borrower has applied for a loan from the County, and the County has agreed to make the loan pursuant to its authority granted in N.C. Gen. Stat. 153A-376 and Chapter 166A; and WHEREAS, this Agreement sets out the terms of the loan, including the terms for payments and the security for the loan. NOW, THEREFORE, in consideration of the mutual promises set out in this Agreement, the parties agree as follows: PART ONE – AGREEMENT TO MAKE AND REPAY THE LOAN 1. The County will loan to the Borrower the sum of [$5,000.00] (the "Loan"). The County is making this loan by giving the Borrower a check for the full amount of the loan at closing. 2. The Borrower will repay the loan. The Borrower’s obligation to repay the Loan will be represented by a promissory note (the “Note), which the Borrower will execute and deliver to the County in exchange for the Loan proceeds. The Note will set out the terms of repayment, including payment dates and interest rates. 3. The Borrower will use the Loan for the purposes of its business (the “Business”) as described in its application to the County for this Loan. PART TWO - SECURITY FOR THE LOAN DocuSign Envelope ID: 0B7B0F30-CBB8-4ABB-840D-820ED7A8B0E4