Capital Opportunities for Small Businesses - sbtdc

C A P I T A L O P P O R T U N I T I E S F O R SMA L L B U S I N E S S E S
Funds available for transportation-related contracts funded by US Dept. of Transportation
Open to qualifying businesses in North Carolina, South Carolina, and Virginia
For Small Disadvantaged Businesses, Service Disabled Veteran-Owned Businesses,
HUBZone Empowerment Contracting Program participants, or businesses with DOT DBE or SBA 8(a)
certification
One year line of credit for up to $250,000, renewable for up to five years
Variable interest rate tied to the prime rate published in the Wall St. Journal
NC Contact:
The NC Support Center
www.thesupportcenter-nc.org
(919) 803-1437
Rural Development Programs
Business and Industrial Loan Program
Assistance from Rural Development is provided in the form of a loan guarantee whereby the agency contracts to
reimburse the lender for losses up to a maximum of 80 percent of the loan. The maximum loan amount that can
be guaranteed is $25 million. A minimum tangible balance sheet equity of 10 percent is required for established
businesses. Equity of at least 20 percent is required for new businesses.
Rural Development makes the determination as to what constitutes a rural area and gives priority to
applications in towns of 50,000 and fewer people. The program focuses on projects in areas of high
unemployment, projects requiring a low amount of investment per job created or saved, and projects that will
employ members of displaced farm families. Loan proceeds may be used for working capital, machinery and
equipment, buildings and real estate, and certain types of debt refinancing. The primary purpose is to create
and maintain employment and improve the economic climate in rural communities.
Intermediary Re-lending Program (IRP)
The purpose of the program is to finance business facilities and community development projects in rural areas
with population of 50,000 or fewer. Under the IRP program, loans are provided to local organizations
(intermediaries) for the establishment of revolving loan funds. These revolving loan funds are used to assist with
financing business and economic development activity to create or retain jobs in disadvantaged and remote
communities.
An intermediary may borrow up to $2 million under its first financing and up to $1 million at a time thereafter.
Total aggregate debt is capped at $15 million. The maximum loan request that an intermediary may borrower is
$750,000. An ultimate recipient borrower may borrow up to $250,000. All of the IRP funds received by an
intermediary must then be loaned to ultimate recipients with the term of loans set by the intermediary. The
interest rate is negotiated between the intermediary and the ultimate recipient.
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