NC RURAL CENTER LOANS
The Rural Center is North Carolina's leading resource for rural people and communities. The mission of the North Carolina Rural Economic Development Center is to develop, promote, and implement sound economic strategies to improve the quality of life of rural North Carolinians. The center serves the state's 85 rural counties, with a special focus on individuals with low to moderate incomes and communities with limited resources.
From its earliest days, the Rural Center has addressed the critical importance of small and growing businesses to the economy of rural North Carolina. Three business loan / funding programs are available through the NC Rural Center. They are as follows:
1. MICROENTERPRISE LOAN PROGRAM - The NC Rural Center's MICROENTERPRISE LOAN PROGRAM works with individuals who have sound ideas for starting or expanding a small business but do not qualify for bank loans. These individuals may include women, members of minority groups, people with low incomes and limited assets, and people who live in rural areas.
The MICROENTERPRISE LOAN PROGRAM provides loans up to $25,000 in combination with business planning and technical assistance. The technical assistance is offered in partnership with small business centers located at area community colleges and small business technology development centers.
For more information on the and to download a loan application, visit http://www.ncruralcenter.org/loans/micro.htm.
2. CAPITAL ACCESS PROGRAM - The CAPITAL ACCESS PROGRAM recognizes that local banks are the most proficient source of business lending. However, because banks must rely on deposits from individuals and corporations as their primary source of funds, they generally must limit their loans to those containing the very lowest risk. This means that some solid business ideas fail to get financing.
The CAPITAL ACCESS PROGRAM gives banks another choice. The program works by creating a special loan loss reserve to enable participating banks to make loans that carry a higher level of risk than allowed by conventional bank guidelines. The reserves are financed by a borrower's fee, of 3 to 5 percent of the loan amount, and matching funds from the program.
Funds for the CAPITAL ACCESS PROGRAM reserve, in the amount of $4 million, have been provided by the Golden LEAF Foundation and the Appalachian Regional Commission. These funds are expected to generate over $120 million in small business loans.
Participating Lenders
Branch Banking & Trust Company
East Carolina Bank
First Bank of Troy
First Citizens Bank
First National Bank of Shelby
High Country Bank
Lumbee Guaranty Bank
Macon Bank
Neuse River Development Authority
Piedmont Bank
Randolph Bank & Trust Company
Yadkin Valley Bank
Loan Size
The program can be used to cover loans and/or credit lines of any amount. The
average loan size is just over $50,000. Most loans have been made to businesses
with fewer ten employees.
Eligibility
Any legal business entity in the state North Carolina is eligible to apply.
How To Apply
Businesses should contact a commercial loan officer of a participating lender.
3. RURAL VENTURE FUND - The RURAL VENTURE FUND is a new source of capital specifically designed fro qualified businesses in economically distressed NC counties. Investments will carry the expectation of a return, but on a less demanding terms and over a longer period of time than available with traditional business financing.
Target companies for investment will typically be classified as higher risk and in need of capital in the range of $50,000-$350,000. They will be required to show growth potential and evidence they cannot receive financing from other sources.
For more information on the RURAL VENTURE FUND, contact Patrick Woodie at the NC Rural Center at 919-250-4314. Mr. Woodie can also be reached by email at pwoodie@ncruralcenter.org.
SMALL BUSINESS ADMINISTRATION LOANS
The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation.
The SBA offers numerous loan programs to assist small businesses. It is important to note, however, that the SBA is primarily a guarantor of loans made by private and other institutions and does not offer loans to small businesses.
For more information about SBA guaranteed loan programs, check-out the SBA web site at http://www.sba.gov/services/financialassistance/sbaloantopics/index.html. Also, you can call the Charlotte District Office at the phone numbers below:
Charlotte District Office
6302 Fairview Road, Suite 300
Charlotte, NC 28210-2227
(704) 344-6563 Phone
(704) 344-6769 Fax
BLADEN CLUSTER - NC STEP