"These lenders have committed to helping pick up the speed of economic recovery in North Carolina," said Billy Ray Hall, president of the N.C. Rural Economic Development Center. "Now we need businesses to take advantage of this opportunity."

The program encourages lenders to consider loans that fall just outside their traditional underwriting standards. It works by creating reserve funds that cover losses in case of default.

Fueled by $46.1 million in federal funding, NC-CAP expects to enable up to $800 million in business lending during the next two years. Gov. Beverly Perdue designated the Rural Center to administer the program in all 100 counties.

So far, participating lenders include banks, credit unions and community development financial institutions in 97 counties. Lender participation is voluntary, and enrollment is ongoing. An up-to-date list of participating lenders is available at www.nc-cap.org.

Any North Carolina business with 500 or fewer employees is eligible to apply for an NC-CAP loan. Nonprofit organizations are eligible for loans to support business purposes, such as child-care centers. Loans generally range from $25,000 up to the maximum of $5 million.

The process for businesses is simple:

• After writing a business plan that includes a borrowing projection, apply for a loan through a local lender.

• You may ask to be considered for an NC-CAP loan.

• The lender will make all decisions on the loan. If it is enrolled in NC-CAP, you can expect to pay a fee of 2 percent to 7 percent of the loan amount, which can be included in the loan.

• NC-CAP matches the fee, and the funds are deposited into a reserve account that covers loss in the event of default.

"It is taking some time for the word to get down to individual branches, but we don't want businesses to get discouraged," Hall said. "These loans are available, and we'll do what it takes to make the right connections."

For assistance, lenders or businesses may contact the center at 919-250-4314 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .

Since the first loan was awarded in February to a Lincoln County logging company, 20 businesses have received loans totaling over $1 million through the program.

Off the Square restaurant in Albemarle used its $36,400 NC-CAP loan to pay outstanding debts and buy a small panel truck for catering deliveries.

Husband-and-wife owners James Edwards and Ashlee Moseley were especially pleased to settle with a local electrician and an accountant, each of whom helped the couple when they needed it. As entrepreneurs who pride themselves on using local vendors whenever possible, those debts were particularly heavy burdens.

"We had a cloud hanging over our heads," said Moseley, who handles the restaurant's business affairs while her husband runs the kitchen. "All these local businesses helped us, but we weren't able to pay them."

The NC-CAP loan helped lift that cloud and put the couple back on the path to their dream: building Off the Square into a thriving, job-generating business.

Businesses that need help preparing for a loan application have numerous options, including small business centers located at the state's 58 community colleges and the 16 offices of the UNC Small Business and Technology Development Center.

Business Link North Carolina provides an access point to services provided by these and other state-supported agencies. To reach a BLNC business consultant, visit www.blnc.gov or call toll-free, 1-800-228-8443.

In addition, the Capital Access Network assists qualified small and mid-size businesses in preparing more effective loan applications. For more information, go to www.canislending.com or call 1-800-228-8443.

The N.C. Rural Economic Development Center is a private, nonprofit organization whose mission is to develop sound economic strategies that improve the quality of life in rural North Carolina, with a special focus on individuals with low to moderate incomes and communities with limited resources. The center operates a multifaceted program that includes conducting research into rural issues; testing promising rural development strategies; advocating for policy and program innovations; and building the productive capacity of rural leaders, entrepreneurs and community organizations.

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Businesses and lenders needing assistance may call (919) 250-4314 and ask for:

Tony Johnson, director of business development

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Thomas Wall, associate director, NC-CAP

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Brooks Batchelor, associate director, NC-CAP

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Lisa Theall, loan portfolio accountant

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