Expanding business opportunities

Small Business Credit Initiative


The N.C. Small Business Credit Initiative is helping make capital available for business startups and expansions across the state. With more business investment comes more jobs for North Carolinians.

The initiative works primarily through traditional lenders such as banks, certified development financial institutions and credit unions. By reducing the risks involved, it allows lenders to approve some business loans they otherwise could not. The initiative also invests in venture capital and angel funds, which in turn make equity investments in North Carolina businesses.

The initiative is made possible by $46.1 million in federal funding under the Small Business Jobs Act of 2010. On behalf of the state of North Carolina, the Rural Center manages the program in all 100 counties.

With three component programs, the initiative is expected to enable more than $600 million in business loans and equity investments by 2016.

The three components: 


The N.C. Capital Access Program provides matching reserve funds for business loans that are just outside a lender's usual standards. The average NC-CAP loan is $100,000. When a loan is approved and enrolled in NC-CAP, the borrower pays a fee, which is matched with money from the program. The funds together are deposited into a reserve account held by the lender, to offset losses in case of default. Borrowers should contact their local lenders to be considered for the program.

NC-CAP information for lenders

NC-CAP lenders

Business owner's guide to NC-CAP


The N.C. Loan Participation Program reduces a lender's risk by purchasing up to 15 percent of a loan. Typical loans in the program range from $150,000 to $1.5 million. Special consideration may be given for loans to businesses in underserved communities and to businesses owned by women and minorities. Borrowers should contact their local lenders to be considered for the program.

Loan Participation Program information for lenders

Loan Participation Program lenders

Business owner's guide to the Loan Participation Program


The N.C. Fund of Funds Program has invested $10 million in four venture capital and angel funds, which in turn invest in North Carolina businesses as early as the conceptual stage: Hatteras Ventures Partners, IDEA Fund Partners, Inception Micro Angel Fund and Salem Investment Partners. The individual funds are responsible for finding and assessing potential investments in North Carolina businesses.



2015 Year-end Summary



Tom Wall, Director, Small Business Credit Initiative

Damion Smokes, Commerical Loan Process Manager


N.C. Rural Economic Development Center

4021 Carya Drive

Raleigh, NC 27610

Telephone: 919-250-4314

Fax: 919-250-4325



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