Areas Served: Statewide North Carolina
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.
How does NC-CAP work? 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.
Who is eligible? Any North Carolina business with 500 or fewer employees is eligible for an NC-CAP loan.
What kinds of loans are eligible?n¢ 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 refinancing of existing debt, paying delinquent taxes, lending activities, passive or investment real estate, gambling or speculative ventures, or any illegal activity.
) How do I get a loan? 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.
Contact InformationNorth Carolina Rural Economic Development Center
Address: 4021 Carya Drive
City: Raleigh
State: North Carolina
Website:
https://www.ncruralcenter.org/lending/capital-access-program/
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