Capital Opportunities for Small Businesses - sbtdc

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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 federal regulations and North Carolina statutes. Interest rates are negotiated between the firm's agent and the bond buyer. The company must agree to pay its employees a wage greater than or equal to 10 percent above the average weekly manufacturing wage of the county or state. Certain high-unemployment counties, however, may waive this wage requirement. Applications normally are approved in eight to ten weeks. Although there is no set minimum, a bond issue generally needs to be for about $1.5 million to be cost effective. Bonds can be taxable or tax exempt. The maximum tax-exempt bond amount is $10 million in any given jurisdiction. Taxable bonds are not subject to this limit. Approximately $89 million of the state’s bond allowance of $382 million for the year was approved through mid-2000. SIGNIFICANT REQUIREMENTS (Manufacturing IRBs) Manufacturing – Must be at least 75% manufacturing. Letter of Credit – Since all bond issues must be supported by a letter of credit, it is important to secure an early commitment from a bank which is rated investment grade or better. Most often, the bank that issues the letter of credit will place the bonds and may purchase them. Environmental Approval – No IRB project may be approved without environmental certification by the North Carolina Department of Environment and Natural Resources (DENR). If the company must obtain required permits, the process could take 60 to 90 days. DENR representatives will guide the company through the process. Abandonment – Company must certify that in building the facility, it is not abandoning another facility (or, if it is, that it is impossible for the company to remain at its present location because of limitation on land use, etc.). Jobs Test – Must create or retain number of jobs with the size of financing (currently one job for every $250,000 in financing). IRB Proceeds -- May be used only for land, building and equipment (fixed assets). NC Department of Commerce, Commerce Finance Center 4318 Mail Service Center Raleigh, NC 27699-4318 919.733.5297 www.nccommerce.com/en/BusinessServices/SupportYourBusiness/FinancingBusinessGrowth/In dustrialRevenueBondsProgram/ NC Board of Science and Technology One N.C. Small Business Program The One North Carolina Small Business Program is comprised of two programs: the North Carolina SBIR/STTR Phase I Incentive Funds Program and the SBIR/STTR Phase I Matching Funds Program. The purpose of the Phase I Incentive Funds Program is to reimburse qualified North Carolina businesses for a portion of the costs incurred in preparing and submitting Phase I Proposals to the Federal Small Business Innovation Research (SBIR) Program and Small Business Technology Transfer (STTR) 70
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 Program. The Phase I Matching Funds Program is designed to award matching funds to North Carolina businesses who have been awarded a SBIR or STTR Phase I award.    Currently, the One NC Small Business Matching Program and the One NC Small Business Incentive Program have fully awarded all available funds. No further funds have been allocated toward the program, and no further solicitations are anticipated during this fiscal year. Additional Solicitations may be available in future years Energy R&D Cost-Sharing Program This Program is designed to help North Carolina research institutions win federally-funded Energy R&D projects that require cost-sharing, expand the volume and range of Energy R&D in North Carolina, and generate intellectual property that can lead to energy-related jobs in the long term. Research organizations compete for funding by submitting proposals in response to solicitations issued for the DOE Programs. This Program is open to any university or other I.R.S. Section 501(c)(3) non-profit organization chartered in North Carolina that intends to apply for U.S. Department of Energy (“DOE”) R&D funds under DOE programs that have a statutory requirement for cost-sharing. Green Business Fund The North Carolina Green Business Fund provides competitive grants to help NC small businesses develop commercial innovations and applications in the biofuels industry and the green building industry, as well as attract and leverage private sector investments and entrepreneurial growth in environmentally conscious technologies and renewable energy products and businesses. Currently, all available NC Green Business Fund monies have been awarded. No further funds have been allocated for the program and no future solicitations are anticipated. NC Board of Science and Technology North Carolina Department of Commerce 301 North Wilmington St. 4301 Mail Service Center Raleigh, NC 27699-1326 919.715.0303 www.ncscitech.com NC Qualified Investment Tax Credit The NC Qualified Investment Tax Credit offers investors in certain types of businesses a credit against state tax liability. Up to $6 million of credits are available annually for investments in “Qualified Businesses Ventures” (QBV) or “Qualified Grantee Businesses.” 71
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