The Rural Venture Fund offers a new source of capital for small businesses seeking to expand in North Carolina's poorest counties. The investments, including equity and subordinated debt, carry the expectation of a return, but on less demanding terms and over a longer period of time than available with traditional business financing. Through their growth, qualifying businesses will help create jobs and build wealth where they are needed most.
The fund was created in 2007 with $6.8 million in available capital, including investments by the N.C. General Assembly, Golden LEAF and the Rural Center.
As part of the program, the Rural Center will assist clients in the successful management of their long-term growth. A partnership with the University of North Carolina System will enhance the center's capabilities. The university-based Small Business and Technology Development Center and several UNC business schools will serve as points of intake for applications or deal identification, conduct investment-related research and data accumulation, and provide specialized technical assistance to companies doing business with the fund.
The Rural Center will make investment decisions on a quarterly basis. An advisory board has been established to assist the center in evaluating applications. Final decisions will rest with the center.
Eligible businesses must demonstrate growth potential and must show that the owner would not receive financing from traditional sources. Target companies for investments will typically be classified as higher risk and in need of capital in the range of $50,000 to $350,000. Funding will be considered for existing businesses only, not for start-ups. The Rural Venture Fund will focus its efforts in counties designated Tier 1 counties by the N.C. Department of Commerce. Businesses in those counties will receive priority consideration.
Among the requirements for applications is a well-developed business plan.
Prospective applicants also are encouraged to complete a pre-application questionnaire. This questionnaire will assist the Rural Center in determining whether the Rural Venture Fund or another business finance program 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 (or Loan) office by:
E-mail: businessfinance@ncruralcenter.org
Fax: 919-250-4325/Attention: Ashley Crane
Mail: Ashley Crane, Business Finance/Loan Office, N.C. Rural Economic Development Center, 4021 Carya Drive, Raleigh, NC 27610.
For additional information, contact the Rural Center’s Business Finance office.
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