Capital Access Program:
Spurring Small Business Growth in Rural North Carolina
The Capital Access Program recognizes that local banks are the most proficient source of business lending. However, because banks must rely on deposits from individuals and corporations as their primary source of funds, they generally must limit their loans to those containing the very lowest risk. This means that some solid business ideas fail to get financing.
The Capital Access Program gives banks another choice. The program works by creating a special loan loss reserve to enable participating banks to make loans that carry a higher level of risk than allowed by conventional bank guidelines. The reserves are financed by a borrower's fee, of 3 to 5 percent of the loan amount, and matching funds from the program.
Funds for the Capital Access Program reserve, in the amount of $4 million, have been provided by the Golden LEAF Foundation and the Appalachian Regional Commission. These funds are expected to generate over $120 million in small business loans.
Participating Lenders
Anson Bank and Trust
Bank of Stanly
BB&T
Cabarrus Bank and Trust
Dunn Area Committee of 100, Inc.
East Carolina Council of Governments
First Citizens Bank
First National Bank of Shelby
Macon Bank
Neuse River Development Authority
Randolph Bank & Trust Company
Select Bank and Trust
Southern Community Bank
United Community Bank
Yadkin Valley and Trust (Piedmont Bank)
Loan Size
The program can be used to cover loans and/or credit lines of any amount. The average loan size is just over $50,000. Most loans have been made to businesses with fewer than ten employees.
Eligibility
Businesses located in the 85 rural counties of North Carolina are eligible to apply.
How To Apply
Businesses should contact a commercial loan officer of a participating lender.
