Areas Served: Statewide North Carolina
The North Carolina Rural Economic Development Center offers loans from $500 to a maximum of $25,000. Loans that are $5,000 or less are classified as express loans.
Express loans are meant to be quick loans where approval is a based primarily on credit.
To qualify for an express loan, the credit score must be 550 or higher with no outstanding judgments or liens.
Your credit should show a successful repayment history.
You also must be willing to have monthly payments automatically drafted.
Loans for greater than $5,000 are evaluated based on six criteria: credit, collateral, cash flow, capacity, character and conditions.
– Credit shows the borrowing capacity of the individual and is based on the items shown on the credit report.
You may be asked for an explanation for credit issues that appear on the report.
– You must have tangible collateral for part of the loan that acts as a secondary source of repayment.
Collateral includes auto, real estate, inventory, equipment, etc.
– Cash flow is required to show your business’s cash availability after paying all operating expenses.
– Capacity is your ability to repay debt, past, present and future.
You must show that you have sufficient cash flow to make the loan payment.
– Character is your credibility and experience in the field of your business, which is checked through references and other personal information.
– Conditions include an analysis of the county, city and industry of your business.
ELIGIBILITY You are eligible to participate in the NCMLP if you are a U.S. citizen or permanent resident; reside in North Carolina; are 18 years of age or older; and own and operate a business in rural North Carolina or have definite plans to do so.
In addition, your business must employ fewer than 10 full-time employees.
The total project cost, which the micro loan would assist, cannot exceed $50,000.
Contact InformationNorth Carolina Rural Economic Development Center
Address: 4021 Carya Drive
City: Raleigh
State: North Carolina
Website:
http://www.ncruralcenter.org/
Leave a Reply