Areas Served: Orange County
The Orange County Small Business Loan Program is a revolving loan fund program designed to stimulate the creation of good jobs for Orange County, North Carolina citizens, as well as to stimulate successful business development and expansion.
The program will attempt to assist businesses that have limited access to financing through conventional means or other government guaranteed sponsored programs.
Eligible Uses of Loan Proceeds 1. Working capital or operational funds.
2. Purchase of equipment, commercial-use vehicles, or machinery.
3. Improvement of owner-occupied commercial property.
(Owner must occupy 50% or more of total space.
) 4. Start-up funding.
5. Expansion of business services or products.
6. Acquisition of owner-occupied commercial real estate (7-year maturation).
7. Tenant up fit and lease-hold improvements.
8. A small business loan request that is to be used in conjunction with other financing will be considered on a case-by-case basis.
9. Work force expansion.
Loan Proceeds Shall Not Be Used For the Following 1. Refinancing of existing bank debt or investor loans.
The Loan Committee may grant an exception of up to 50% of the loan value.
2. Purchase of equipment or improvement of real estate which are used or to be used for personal use.
3. Political activities.
4. Owner salary and dividend payments beyond an agreed amount.
5. Speculative ventures (Examples: drilling for gas, or oil, commodity futures).
6. Lending or investment.
7. Real property held for sale or investment.
8. Pyramid sales – distribution plan businesses.
9. Floor plan financing.
10. Foreign controlled businesses.
11. Non-profit institutions.
12. Private membership clubs.
citizens and to employ Orange County citizens.
Amount of Loans – Maximum: $50,000 – Minimum: $5,000 Should market conditions change, or in the event of an applicant with extraordinary conditions, a loan in amount outside of the maximum or minimum may be considered.
All loans are subject to availability of loan funds.
Loan Term Maximum term5 years (except 7 years for the purchase or improvement of real estate used or to be used wholly for the business purpose of the applicant.
) Interest Rates All loans will be charged finance charges based on a variable interest rate.
The interest rate will be based on the length of the loan term, as follows: – Up to 2 years Prime plus 2.00% – 2 up to 3 years Prime plus 2.25% – 3 up to 4 years Prime plus 2.50% – 4 up to 7 years Prime plus 3.00%
Contact InformationOrange County Economic Development
Address: 200 South Cameron St
City: Hillsborough
State: North Carolina
Website:
http://www.co.orange.nc.us/index.asp
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