Expanding small business opportunities
N.C. Capital Access Program
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Visit the lenders page for enrollment forms, the program manual and other documents.
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The North Carolina Capital Access Program expands business finance options for businesses across the state. By reducing risk, it encourages banks and other qualified lenders to consider loans that otherwise fall just outside conventional underwriting standards.
The program will enable up to $800 million in business lending over two years, freeing capital in a tight credit market. Increasing access to capital helps build a stronger economy through job creation and business expansion.
NC-CAP is made possible by $46.1 million in federal funding under the federal Small Business Jobs Act of 2010. Gov. Beverly Perdue designated the Rural Center to administer the program in all 100 counties.
Download business owner's guide to CAP
Read about the first NC-CAP loan issued
What kinds of loans are eligible?
What do lenders look for in NC-CAP loans?
The program matches an up-front fee, typically 2 percent to 7 percent, paid by the lender and borrower. The combined amount is deposited into a pooled reserve fund held by the lender. The pooled fund includes matching fees from all NC-CAP loans made by the institution and covers losses in the event of a default.
Any North Carolina business with 500 or fewer employees is eligible for an NC-CAP loan.
What kinds of loans are eligible?
- Loans generally range from $25,000 up to the maximum of $5 million.
- Both term loans and lines of credit are eligible.
- Loans may be used to finance most business purposes, including real estate, construction, equipment and working capital. (Loans may not be used for paying delinquent taxes, lending activities, passive or investment real estate, gambling or speculative ventures, or any illegal activity.)
You apply for the loan through your local lender. You may ask to be considered for an NC-CAP loan at that time. The lender will make all loan decisions and determine whether a fee is required. You will be expected to meet all the normal borrowing requirements, including credit rating and collateral.
Lenders are currently being enrolled in the program. Watch our list of participating institutions for regular updates. Eligible institutions are federally insured banks and credit unions, and community development financial institutions.
For lenders, participation is voluntary. If your bank does not participate or needs information, ask the bank to contact the Rural Center at 919-250-4314.
What do lenders look for in NC-CAP loans?
- Good credit. That is, no bankruptcies, judgments, delinquencies or unexplained slow payments.
- A good, actionable business plan.
- Sufficient investment on your part in the business.
- Collateral (fixed assets, equipment, real estate).
- Ability to repay.
Make sure you have a good business plan. The small business center at your local community college or the nearest office of the Small Business and Technology Development Center may be able to help.
Business Link North Carolina also provides an access point to services and other offerings provided by state-supported agencies. To reach a BLNC business consultant, visit www.blnc.gov or call toll-free, 1-800-228-8443.
In addition, the Capital Access Network helps qualified small and mid-size businesses secure financing. It assists borrowers in preparing more effective loan applications and encourages broader bank participation in government-supported lending programs. For more information, go to www.canislending.com or call 1-800-228-8443.
Capital Access Programs have a nationally proven track record lasting more than 20 years. The Rural Center operated a previous version of NC-CAP from 1994 to 2008. During that period, $3.6 million in NC-CAP funds generated $103 million in business loans. A total of 1,850 loans allowed businesses to create or retain more than 27,000 jobs.
Contact
Tony Johnson, Senior Director, Business Development
N.C. Rural Economic Development Center
4021 Carya Drive
Raleigh, NC 27610
Telephone: 919-250-4314
Fax: 919-250-4325