The Southern Opportunity And Resilience (SOAR) Fund provides flexible, affordable capital and free business support services to small businesses and nonprofits across the south and southeast to help them navigate and rebuild from the Covid-19 economic crisis.
Loans of up to $100,000 available for small businesses and nonprofits with 50 or fewer full-time employees
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Loans are intended for small businesses and nonprofits that have experienced direct economic disruption as a result of COVID-19 shutdowns, have fewer than 50 full-time employees and less than $5 million in annual revenue.
The goal of the fund is to support as many small businesses and nonprofits as possible, but not all organizations will be matched with a participating community lender based on each lender’s initial criteria. If matched, you will be connected with a local community lender, which will be a certified Community Development Financial Institution (CDFI). The community lender will work with you on your full loan application. If approved, the loan will be made through that community lender and you will continue to work with them throughout the life of your loan.
CDFIs are certified by the U.S. Treasury Department to deliver responsible, affordable lending to help low-income, rural, and other historically disadvantaged people and communities.
To be eligible for a SOAR Fund loan, a small business must meet the requirements detailed below. Please note that the pre-application should be completed and submitted by the owner of the business with the largest ownership interest, and that all owners with more than 20% ownership will be required to attest to the information provided.
The following criteria is the minimum required for a business or non-profit to be considered eligible for a loan under this program:
- The business or non-profit must employ 50 or fewer full-time equivalent (FTE) employees;
- The business or non-profit must have suffered a direct economic disruption as a result of COVID-19 in a way that has materially impacted operations;
- The business or non-profit must have been in operation since at least September 2019, unless the business is a for-profit business and meets one of the following additional criteria:
- The business can demonstrate three or more years of operating experience in the industry through previous ownership or management; or
- The business has previously borrowed from the community lender and has had no repayment issues
The community lender will collect financial information from each business or non-profit and its beneficial owner(s) and/or guarantor(s) and underwrite based upon the lender’s credit criteria, which vary based on lender. Lender credit criteria often includes but may not be limited to:
- The business or non-profit’s (or its guarantor) ability to pay back the loan in full;
- The ability to make debt payments from revenues;
- The business or non-profit’s (or its guarantor) history of bankruptcy, delinquency, foreclosure or repossession;
- Whether there are any outstanding tax liens or judgments against the business or non-profit, and/or its guarantor(s) or beneficial owner(s)
There is no minimum credit score that is required under this program, but please note that each community lender may set its own credit score limits for the loan applications it reviews.
INELIGIBLE BUSINESSES
Businesses that are NOT eligible include, but are not limited to:
- Firms engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted
- Corporate-owned franchises
- Branch banks
- Pay day loan stores
- Pawn shops
- Astrology, palm reading
- Adult bookstores, strip clubs
- Track waging facilities
Maximum Loan Amount
The maximum available loan amount is $100,000 or up to 100% of your business’ revenues for any three month period prior to the COVID pandemic outbreak (in 2019 or first quarter of 2020) whichever is less. The maximum loan amount available under this program is $100,000.
Interest Rate
The current fixed annual interest rate for loans issued under the program are:
- 4.00% for for-profit businesses and 3.00% for non-profit organizations for a 60-month term
- 4.50% for for-profit businesses and 3.50% for non-profit organizations for a 72-month term
Any updates to the rate will be communicated through this website.
Borrower Fees
There is a loan origination fee that is up to the greater of (1) 4% of principal or (2) a $1,000 minimum fee. Lenders also may include minimal third-party fees which may be added to the loan balance to cover costs associated with the loan, such as UCC filing fees or wiring fees, for example. All expenses related to this loan will be clearly disclosed by the community lender prior to origination.
Please note that a late fee may be assessed by the lender if the borrower does not make a loan payment on time. You will be shown any fees associated with the loan prior to your acceptance of any loan terms.
Term
5 years (60 months) or 6 years (72 months)
Repayment
There are two different types of loans offered under this program: one with a 60-month repayment schedule and the other with a 72-month repayment schedule. Your eligibility will depend on your financial qualifications, which will be determined by the lender, and the availability of the types of loans at the time of your application.
Both loans include a one-year interest only period. For the first 12 months of the loan you will be making monthly payments only on the interest charged on the loan. For the remaining loan term your monthly payments will include principal and interest payments.
Prepayment
A borrower may prepay the loan, in whole or in part, at any time without penalty.
Proceeds
Proceeds can be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, and other appropriate business purposes.
The loan applicant will be required to detail the proposed use of loan proceeds when they apply.
Security and Guarantees
No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment). A blanket first or second lien may be filed on business assets, at the discretion of the originating CDFI. Personal guarantees will be required for individuals who own 20% or more of a business.
Qualifying small businesses and nonprofit organizations can get loans up to three months of pre-Covid revenue, with a maximum loan size of $100,000.
The loans will need to be paid back over a 5- or 6-year term with a fixed annual interest rate of 4.0 – 4.5% for businesses and 3.0 – 3.5% for nonprofits. The first twelve months of payments will be interest-only, with fixed monthly payments thereafter.
Please note, this program is not associated with the federal Paycheck Protection Program (PPP) or any other Small Business Administration program. The loans are not forgivable in part or whole.
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The Southern Opportunity And Resilience (SOAR) Fund is a broad collaboration to support small businesses and nonprofits as they recover from the effects of COVID-19. The SOAR Fund was created by community lenders in the Southern and Southeastern United States to provide economic recovery loans and free business assistance to small businesses and nonprofits at a time when they are facing unprecedented health and economic challenges. The loans are designed to reach the smallest of small businesses and nonprofits – those with 50 or fewer full-time equivalent employees – and historically underserved businesses, including those in low-income and rural communities and businesses owned by women and people of color. These businesses are critical to providing jobs and resources to communities across the South and Southeast through this recovery.
The SOAR Fund is a partnership of local and national community finance organizations created to address the capital needs of historically underbanked communities across the South and Southeast as they attempt to navigate and rebuild after the unprecedented COVID-19 health and economic crisis. The Community Development Financial Institution (CDFI) industry has operated for more than 40 years to serve these businesses and nonprofits with capital and advisory services. CDFIs are built for purpose – they exist to meet the unique needs of historically underserved communities.
Loans will be made available through local CDFI lenders; currently there are thirteen participating lenders, including:
- Access to Capital for Entrepreneurs (ACE)
- Accion Opportunity Fund
- Ascendus
- Black Business Investment Fund Florida (BBIF)
- Business & Community Lenders of Texas (BCL Texas)
- Communities Unlimited
- LiftFund
- National Development Council (NDC)
- Natural Capital Investment Fund (NCIFund)
- Pathway Lending
- People Fund
- Southern Bancorp Community Partners
- TruFund Financial Services
The fund is aimed at helping small businesses across the South and Southeast. The program will be available to small businesses and nonprofits in Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, Washington, DC and West Virginia.
The pre-application will open at 10am on April 27, 2021 and will stay open for the foreseeable future.
Participating community lenders will begin reviewing pre-applications shortly thereafter, but due to high expected volumes, it may take a few weeks for you to be contacted by a community lender.
The SOAR fund aims to raise $150 million to provide affordable capital and free business support to small businesses and nonprofits across the South and Southeast.
Maximum loan amounts for an individual business or nonprofit are $100,000.
The Fund is aimed at helping small businesses and nonprofits across the South and Southeast.
To qualify, small businesses must employ 50 or fewer full-time equivalent (FTE) employees, have realized gross revenues of less than $5 million per year, and must have experienced a direct economic disruption as a result of COVID-19.
Nonprofits must employ 50 or fewer full-time (FTE) employees, be a 501(c)(3) or faith-based organization providing direct services, have an annual operating budget of less than $5 million and have suffered a direct economic hardship as a result of COVID-19 in a way that materially impacts their operations.
There will be a particular focus on reaching under-resourced and under-banked communities, including businesses and organizations in low- income areas, rural communities, and businesses owned by women and people of color.
Please note that this website, nor any of its pages constitute an offer or a commitment to lend. All rates and loan terms may be subject to change. All loans are subject to underwriting review and approval by participating community lenders, who are responsible for their own credit decisions. Due to a limited amount of funding availability and the high volume of applications expected, it is anticipated that not all eligible applicants will be able to receive a loan.
Free local support can be found through a number of organizations.
- Venturize will allow you to find a free local small business resource center based on your zip code.
- Winrock will provide technical assistance to businesses in seven South and Southeastern states.
- Small Business Development Centers are also available to work with you one on one as you navigate this period of economic uncertainty and consider accessing a loan.
The SOAR Fund pre-application will open on April 27, 2021. All applications are assessed on a case-by-case basis, with a target of 2-3 weeks from when a loan application is submitted to a CDFI to closing, depending on how quickly the lender receives a full completed application and the relevant documents.
To facilitate a timely processing of your loan application, please prepare the required information and documentation in advance and make sure that all information and documentation are complete and accurate.
The maximum loan amount available under this program is $100,000.
For small businesses, loans are available to you in an amount of either $100,000 or up to 100% of your business’ revenues in any 3-month period from 2019 or first quarter of 2020, whichever is less.
For nonprofits, loans are available to you in an amount of either $100,000 or up to 100% of your organization’s expenses in any 3-month period from 2019 or first quarter of 2020, whichever is less.
Please note that the actual size of the loan for which you may be approved will be determined by the lender after review of your business’s documentation and financial information; the amount of the loan for which you may be ultimately approved may be less than the amount indicated by the example above.
The current fixed annual interest rate for loans issued under the program are:
- 4.00% for for-profit businesses and 3.00% for non-profit organizations for a 60-month term
- 4.50% for for-profit businesses and 3.50% for non-profit organizations for a 72-month term
Proceeds can be used for working capital, inventory, marketing, refitting for new social distancing guidelines, operating and emergency maintenance, property taxes, utilities, rent, supplies, and other appropriate business purposes.
You will be required to detail the proposed use of loan proceeds when you apply to the community lender.
Businesses engaged in certain activities are not eligible (please see question below “What types of businesses are not eligible for a loan?“). Participating community lenders are responsible for making their own credit decisions.
Due to a limited amount of funding availability and the high volume of applications expected, it is anticipated that not all eligible applicants will be able to receive a loan.
Applications will be reviewed on a rolling basis and will be managed taking into consideration the program’s goals.
Yes. The main office or headquarters for your business must be located in Alabama, Arkansas, Delaware, Florida, Georgia, Louisiana, Maryland, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, Virginia, West Virginia or Washington, DC to be eligible.
As part of your full loan application, you will need to provide the following documentation to the community lender:
- Most recently filed tax returns, if available and required by the lender;
- Bank statements and/or internally generated financial statements;
- Information regarding business owner(s) with more than 20% ownership, including name, address, SSN, EIN or ITIN, phone number, email, percentage ownership, and photo ID;
- Executed Attestation Form (to be provided by the community lender);
- Brief description of COVID-19 impacts on your business or organization;
- Evidence of legal formation of business or nonprofit entity (e.g., articles of incorporation and bylaws);
- Personal guarantee (for businesses only); and
- Other documentation required by the community lender at or after the time of the application
A participating community lender will reach out to you to collect the required documentation, conduct any credit checks, and finalize the application review process.
Businesses that are NOT eligible include, but are not limited to:
- Firms engaged in activities that are prohibited by federal law or applicable law in the jurisdiction where the business is located or conducted
- Corporate-owned franchises
- Branch banks
- Pay day loan stores
- Pawn shops
- Astrology, palm reading
- Adult bookstores, strip clubs
- Track waging facilities
No specific collateral is required to be eligible (e.g., you do not need to have access to any specific real estate or equipment). A blanket first or second lien may be filed on business assets, at the discretion of the originating CDFI. Personal guarantees will be required for individuals who own 20% or more of a business.
The SOAR Fund’s online loan process is highly secure. SOAR’s platform goes above and beyond to protect your sensitive information. The platform uses TDE (Transparent Data Encryption) in SQL (Structured Query Language), which means the data is encrypted at rest. It also encrypts the data between the app server and the database and uses TLS (Transport Layer Security), which protects communications on the internet, for form submissions.
Your information will be used by SOAR solely for the purposes of the loan program. Among other things, this means that your information may be used in connection with a sale or transfer of your loan, or other transactions involving the loan. We may also follow-up with loan recipients to learn about their customer experience or through customer satisfaction surveys. If an applicant does not receive a loan, we may retain information on file to notify you about changes in eligibility or new products offered.
If each business is a separate legal entity, has a separate tax ID and all businesses combined employ 50 or fewer full-time equivalent (FTE) employees, then you can apply for each of the businesses. Each business must meet all eligibility requirements.
Yes, you can apply to another participating community lender if you match with multiple participating lenders. HOWEVER, please be aware that the approval parameters for the participating lenders are largely identical. Moreover, we ask that you do not apply to a second community lender unless your loan has been rejected by the first lender.
NO, THIS IS NOT A FORGIVABLE LOAN. Please note, this program is not associated with the federal Paycheck Protection Program (PPP) or any other SBA program. The borrower will need to pay back the full amount of the loan with interest over a 5- or 6-year term.
If you do not make a loan payment on time, you may be assessed a late fee by the participating lender per its applicable policies. A failure to pay also can result in the loan being declared in default and the lender’s exercise of its default remedies under the loan documents. Please review the full terms of your loan agreement for additional details regarding default.