N.C. Microenterprise Loan Program:
Small Business Loans To Help Big Ideas Grow
In operation since 1989, the Rural Center's nationally award-winning Microenterprise Loan Program provides rural people with small business loans to help them become self-sufficient through business ownership.
The Microenterprise Loan Program works with individuals who have sound ideas for starting or expanding a small business but do not qualify for bank loans. These individuals may include women, members of minority groups, people with low incomes and limited assets, and people who live in rural areas.
The Microenterprise Loan Program provides loans up to $25,000 in combination with business planning and technical assistance. The technical assistance is offered in partnership with small business centers located at area community colleges and small business technology development centers.
The center runs two types of loan programs: 1) Group lending available in selected counties and 2) Individual lending, available in all 85 counties.
Group lending. Three local lending sites operate group-based lending programs. Individuals participate in these programs by self-selecting into groups of four to 10 people. Each group participates in an intensive training and certification process. Once certified, the group can make credit decisions for its members. All loans must be current in order for the group to consider making additional loans. Group members also work together to support the growth and development of one another's businesses. Click here for a listing of group lending sites.
Individual-based lending. The program also offers individual lending, which is a good choice for those with more business experience and greater financial needs. Program staff work one-one-one with potential borrowers to prepare loan applications based on the borrower's business plan, character, and the local economy. Individuals can apply directly to the Rural Center or be referred by a network of organizations already providing business assistance in the community. Click here for members of the individual lending network.
The program has grown steadily since it began in 1989 as a Rural Center demonstration project. Funding comes from a variety of sources. The N.C. General Assembly provides funds for local site operation. Additional funds come from private foundations and the U.S. Small Business Administration. Loan capital is provided primarily through a program related investment from The Ford Foundation.
The program was awarded the 1996 Presidential Award and the 1998 U.S. Small Business Administration's Award for excellence in microenterprise lending.
Eligibility
Anyone who wishes to start or expand a small business in one of the 85 rural counties of North Carolina and meets the following minimum criteria may apply: is at least 18 years old; has a business with fewer than 10 full-time employees; is a U.S. citizen/permanent resident and resident of North Carolina. Special emphasis is placed on serving rural, low-income, female and minority borrowers. Click here to view a map of rural counties.
How To Apply
Prospective borrowers are encouraged to complete a pre-application questionnaire. This questionnaire will assist the Rural Center in determining whether the Microenterprise Program or another business finance option might best suit the business owner’s needs. It does not bind the business owner or the Rural Center to a financial agreement. All information contained in the questionnaire will be kept strictly confidential and will not be used for any other purpose.
A Rural Center representative will respond within two business days after receipt of the pre-application. Completed questionnaires may be submitted to the business finance office by:
E-mail: businessfinance@ncruralcenter.org
Fax: 919-250-4325/Attention: Ashley Crane
Mail: Ashley Crane, Business Finance Office, N.C. Rural Economic Development Center, 4021 Carya Drive, Raleigh, NC 27610.
The following links may be used to download the formal loan application and cash flow statement. For further information, prospective borrowers may contact the Microenterprise Loan Program’s local lending office in their area or the Rural Center.
