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LEADERSHIP

 

SBCI continues to count successes, hit milestones

 

A federal thumbs-up

The N.C. Small Business Credit Initiative, which is operated by the Rural Center, has been recognized by the U.S. Department of the Treasury as one of the top programs of its kind in the country. In its most recent quarterly report, Treasury ranked NCSBCI in the top 10 of several important national sbci workerscategories, including the percentage of allocated money that has already moved through the program. As of December 31, NCSBCI had loaned or invested

$29 million, leveraged $189 million and created or retained more than 6,433 jobs.  

Operated by the Rural Center in all 100 counties on behalf of the state of North Carolina, NCSBCI was funded by $46.1 million under the federal Small Business Jobs Act of 2010.

NCSBCI team members: accountant Jennifer Craig,          director Tom Wall, associate director Brooks Batchelor.

 

Through NCSBCI, the Rural Center works with lenders to reduce risk so institutions can 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.

Programs such as NCSBCI are judged by the federal government in part on the efficiency and speed in which they disburse this money to help small businesses; more business loans mean more jobs. And by these measures, NCSBCI has been an unqualified success. The initiative ranks sixth nationally in the number of dollars moved. NCSBCI has expended, obligated or transferred 66 percent of its allocated money, which ranks ninth in the country.

State programs receive their funds in three installments, and are not eligible for a new one until the previous installment is nearly spent. Because NCSBCI has been so successful in creating new business opportunities, North Carolina is also one of only a handful of states that has received all three of its installments.

                               
A special thanks

Since NCSBCI began in 2011, 27 institutions have processed program loans in order to grow job opportunities throughout the state. Without their support, this job-creating initiative would not be possible.

 

Yadkin Bank NewBridge Bank Macon Bank, Inc.
North State Bank VantageSouth Bank Select Bank & Trust
Bank of North Carolina KS Bank, Inc. Carolina Trust Bank
Bank of Oak Ridge First Federal High Point Bank & Trust
Carolina Bank First Federal Savings Bank New Dominion Bank
Park Sterling Bank Sound Bank First Citizens Bank & Trust Co.
BB&T Coastal Bank & Trust blueharbor bank
The First National Bank of Shelby Uwharrie Bank The Support Center
Mountain Biz Capital First Federal Bank  

 

  N.C. Community Development Initiative Capital, Inc.

 

In addition, 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.

 

 

 

Tony JohnsonFormer NCSBCI director recognized

The N.C. Small Business Technology Development Center has honored former initiative director Tony Johnson, in recognition for his work in leading the Rural Center’s business-lending efforts.

 

Johnson, who led the initiative in its formative stages, was acknowledged in the SBTDC’s annual report as a “North Carolina Champion.”

 

 

 

 

 

 

 

 

 

 

 

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 by the lender 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 (with a maximum participation of $200,000). Typical loans in the program range from $150,000 to $1.5 million. Borrowers should contact their local lenders to be considered for the program.

Loan Participation Program information for lenders

Loan Participation Program lenders

Loan Participation Program Summary

 

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.

  

Results

2015 Year-end Summary

 

Contacts

 

Tom Wall, Director, Small Business Credit Initiative

 

N.C. Rural Economic Development Center

4021 Carya Drive

Raleigh, NC 27610

Telephone: 919-250-4314

Fax: 919-250-4325

 

 

Return to top


Information for lenders

N.C. Loan Participation Program

See a list of participating lenders.


The N.C. Loan Participation Program helps lenders make more business loans. Typical loans in the program range from $150,000 to $1.5 million.

By purchasing up to 15 percent of an eligible loan (to a maximum of $200,000) the program allows you to reduce your risk while extending credit to eligible businesses.

Lenders that work with the Loan Participation Program appreciate our dedication to fast decisions and procedural ease. The process:

  • A signed master participation agreement covers the responsibilities of both the lender and the Rural Center.
  • The lender indentifies the loans.
  • The lender shares underwriting analysis with the Rural Center.
  • The Rural Center evaluates credit and issues a commitment to buy a stake in the loan.
  • The lender closes the loan and sells a position to the Rural Center.
  • Standard lender fees may be shared pro rata.
  • There are no additional fees to use this program.
  • The lender services the loan and shares proportional principal and interest payments with the Rural Center.

 

Forms

Master participation agreement (PDF)

Loan forms (PDF)

Loan forms (Word Doc)

 

Contacts

Central North Carolina

Tom Wall, Director, Small Business Credit Initiative

 

 

N.C. Rural Economic Development Center

4021 Carya Drive

Raleigh, NC 27610

Telephone: 919-250-4314

Fax: 919-250-4325

 

Return to top


Participating lenders

Loan Participation Program

 

Bank of North Carolina

Bank of Oak Ridge

Carolina Bank

Carolina Trust Bank

Charlotte Metro Federal Credit Union

Coastal Bank & Trust

First Federal Bank

First Federal Savings Bank

High Point Bank & Trust

KS Bank

Lumbee Guaranty Bank

Macon Bank

N.C. Community Development Initiative Capital

New Dominion Bank

NewBridge Bank

North State Bank

Patriot State Bank

Premier Commercial Bank

Select Bank and Trust

SoundBank

The Support Center

VantageSouth Bank

Yadkin Valley Bank & Trust (Piedmont Bank, High County Bank, Cardinal State Bank & American Community Bank)

 

 



Subcategories

LEADERSHIP

 

SBCI continues to count successes, hit milestones

 

A federal thumbs-up

The N.C. Small Business Credit Initiative, which is operated by the Rural Center, has been recognized by the U.S. Department of the Treasury as one of the top programs of its kind in the country. In its most recent quarterly report, Treasury ranked NCSBCI in the top 10 of several important national sbci workerscategories, including the percentage of allocated money that has already moved through the program. As of December 31, NCSBCI had loaned or invested

$29 million, leveraged $189 million and created or retained more than 6,433 jobs.  

Operated by the Rural Center in all 100 counties on behalf of the state of North Carolina, NCSBCI was funded by $46.1 million under the federal Small Business Jobs Act of 2010.

NCSBCI team members: accountant Jennifer Craig,          director Tom Wall, associate director Brooks Batchelor.

 

Through NCSBCI, the Rural Center works with lenders to reduce risk so institutions can 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.

Programs such as NCSBCI are judged by the federal government in part on the efficiency and speed in which they disburse this money to help small businesses; more business loans mean more jobs. And by these measures, NCSBCI has been an unqualified success. The initiative ranks sixth nationally in the number of dollars moved. NCSBCI has expended, obligated or transferred 66 percent of its allocated money, which ranks ninth in the country.

State programs receive their funds in three installments, and are not eligible for a new one until the previous installment is nearly spent. Because NCSBCI has been so successful in creating new business opportunities, North Carolina is also one of only a handful of states that has received all three of its installments.

                               
A special thanks

Since NCSBCI began in 2011, 27 institutions have processed program loans in order to grow job opportunities throughout the state. Without their support, this job-creating initiative would not be possible.

 

Yadkin Bank NewBridge Bank Macon Bank, Inc.
North State Bank VantageSouth Bank Select Bank & Trust
Bank of North Carolina KS Bank, Inc. Carolina Trust Bank
Bank of Oak Ridge First Federal High Point Bank & Trust
Carolina Bank First Federal Savings Bank New Dominion Bank
Park Sterling Bank Sound Bank First Citizens Bank & Trust Co.
BB&T Coastal Bank & Trust blueharbor bank
The First National Bank of Shelby Uwharrie Bank The Support Center
Mountain Biz Capital First Federal Bank  

 

  N.C. Community Development Initiative Capital, Inc.

 

In addition, 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.

 

 

 

Tony JohnsonFormer NCSBCI director recognized

The N.C. Small Business Technology Development Center has honored former initiative director Tony Johnson, in recognition for his work in leading the Rural Center’s business-lending efforts.

 

Johnson, who led the initiative in its formative stages, was acknowledged in the SBTDC’s annual report as a “North Carolina Champion.”

 

 

 

 

 

 

 

 

 

 

 

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 by the lender 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 (with a maximum participation of $200,000). Typical loans in the program range from $150,000 to $1.5 million. Borrowers should contact their local lenders to be considered for the program.

Loan Participation Program information for lenders

Loan Participation Program lenders

Loan Participation Program Summary

 

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.

  

Results

2015 Year-end Summary

 

Contacts

 

Tom Wall, Director, Small Business Credit Initiative

 

N.C. Rural Economic Development Center

4021 Carya Drive

Raleigh, NC 27610

Telephone: 919-250-4314

Fax: 919-250-4325

 

 

Return to top


Information for lenders

N.C. Loan Participation Program

See a list of participating lenders.


The N.C. Loan Participation Program helps lenders make more business loans. Typical loans in the program range from $150,000 to $1.5 million.

By purchasing up to 15 percent of an eligible loan (to a maximum of $200,000) the program allows you to reduce your risk while extending credit to eligible businesses.

Lenders that work with the Loan Participation Program appreciate our dedication to fast decisions and procedural ease. The process:

  • A signed master participation agreement covers the responsibilities of both the lender and the Rural Center.
  • The lender indentifies the loans.
  • The lender shares underwriting analysis with the Rural Center.
  • The Rural Center evaluates credit and issues a commitment to buy a stake in the loan.
  • The lender closes the loan and sells a position to the Rural Center.
  • Standard lender fees may be shared pro rata.
  • There are no additional fees to use this program.
  • The lender services the loan and shares proportional principal and interest payments with the Rural Center.

 

Forms

Master participation agreement (PDF)

Loan forms (PDF)

Loan forms (Word Doc)

 

Contacts

Central North Carolina

Tom Wall, Director, Small Business Credit Initiative

 

 

N.C. Rural Economic Development Center

4021 Carya Drive

Raleigh, NC 27610

Telephone: 919-250-4314

Fax: 919-250-4325

 

Return to top


Participating lenders

Loan Participation Program

 

Bank of North Carolina

Bank of Oak Ridge

Carolina Bank

Carolina Trust Bank

Charlotte Metro Federal Credit Union

Coastal Bank & Trust

First Federal Bank

First Federal Savings Bank

High Point Bank & Trust

KS Bank

Lumbee Guaranty Bank

Macon Bank

N.C. Community Development Initiative Capital

New Dominion Bank

NewBridge Bank

North State Bank

Patriot State Bank

Premier Commercial Bank

Select Bank and Trust

SoundBank

The Support Center

VantageSouth Bank

Yadkin Valley Bank & Trust (Piedmont Bank, High County Bank, Cardinal State Bank & American Community Bank)

 

 



Subcategories