Small Business Loans: The economic growth around North Carolina (NC) for the past decade has been at a very high rate. Businesses booming due to the increase in population and low tax rate; that is making everyone wanting to own a business of their own.
With all this growth and opportunity, it’s no surprise that more people are considering entrepreneurship. The next thing on your mind now is; where and how you could get small business loan around NC?
In this post, we’re going to look at the best opportunities for small business owners in North Carolina. Highlighting all categories; Business loans, grants and investors.
Small Business Bank Loans in North Carolina
If you’re looking to fund your small business in North Carolina using a bank loan, there are many banks in the state where you can shop for the best rate and terms.
Self-Help Credit Union
This credit union provides small business loans up to $250,000. The bank analyzes the business’s cash flow projections, financial statements, debt-to-income, creditworthiness, and management experience.
Last year, Self-Help provided “$75 million in loans to small businesses and nonprofits, creating or maintaining 1,170 jobs” said Chief Executive Officer Martin Eakes.
Small business owners can get a business financial consultation with one of the bank experts to find out what funding alternative would best meet their needs. The bank offers construction loans, business lines of credit, and lump-sum small business loans.
Live Oak Bank
The bank started with a focus on lending to veterinary practices and eventually moved into other industries. Its focus is on small business financing, and the bank has experts in a number of industries to provide financial advice for clients.
Small business loans are available for up to $7.5 million with flexible loan terms that can extend as long as 25 years.
Select Bank and Trust
This bank offers commercial loans for businesses to purchase equipment and real estate. It also administers Small Business Association (SBA) loans for small business needs such as equipment, working capital, and other investment needs.
Coastal Credit Union
Coastal Credit Union serves the needs of small business owners in North Carolina, South Carolina, and Virginia by providing loans at competitive rates. Small business owners with a good financial track record are eligible for loans up to $50,000.
Other Small Business Loans in North Carolina
Banks aren’t the only places that can loan you money for your small business. Plenty of community organizations also offer loans for small businesses. Here’s a look at other funding opportunities in North Carolina.
Carolina Small Business Development Fund
This organization provides loans up to $250,000 for businesses in a variety of industries. The interest rates vary from 8% to 11%, and business owners must submit a package with financial statements, business plan, and management resumes.
This is a loan fund created to provide loans up to $10,000 to support African-American entrepreneurs from any industry in the Charlotte metropolitan area. Applicants should have a strong business plan and cash projections as well as good personal credit.
North Carolina Rural Center
This initiative provides small business funding to rural areas not served by traditional lenders. Small business owners in rural areas can get funding up to $50,000 for borrowers with strong business plans and financial projections.
Center for Economic Empowerment Development
The center supports access to capital for inexperienced and less qualified small business borrowers. It provides funding in amounts between $2,500 and $200,000.
City of Winston-Salem
The city government provides small business loans in North Carolina to owners who place their business in a strategic neighborhood revitalization area.
The city matches funding provided through bank loans or other means, and the average loan amount is for $35,000. Business net worth cannot exceed $6 million, and net profit after taxes must be less than $2 million over the past two years.
Small Business Grants in North Carolina
Getting a small business grant is an ideal way to fund your business since its money that you don’t need to pay back. Grants also do not require you to give up any equity in your company. List of grants available in NC;
This organization awards grants of $1,000 every month to help fund women-owned small businesses. At the end of the year, winners are also eligible for the annual Amber Grant of $9,000.
This organization provides grants up to $15,000 to small businesses for job creation and retention in the city of Raleigh.
City of Charlotte Business Investment Grant
The organization encourages creation, retention, and expansion of small business activity, particularly in areas designated as Investment Zones in the community.
Investors in North Carolina
Perhaps your business just doesn’t qualify for a grant. Or maybe your company doesn’t have the business credit or financial stability to get a business loan. You might want to approach investors to help you take your business to the next level. Here are listed few to consider;
This venture capital firm is based in Durham, N.C., and specializes in investment opportunities in the technology and life sciences sectors. The firm currently has $780 million invested in seven venture capital limited partnerships.
Hatteras Venture Partners
A venture capital firm that is based in Durham, Hatteras Venture Partners currently has approximately $450 million under management in five investment funds.
The firm primarily invests in early-stage companies focused on biopharmaceuticals, medical devices, and healthcare IT.
Charlotte Angel Fund
This fund is a group of investors in the Charlotte area who invest in early-stage companies with strong management teams and promising business opportunities in large markets.
Wilmington Investment Fund
This fund of angel investors is located in Wilmington and provides funding for early-stage companies with high growth potential. They seek investments with a high potential rate of return.
RTP Capital Associates
RTP is a group of angel investors who are passionate in their desire to help entrepreneurs by providing guidance, mentoring, networking, and insight in addition to investment funding. They seek investments across a variety of industries that have high growth potential.
What to Consider When Choosing a Lender
Now that you’re aware of the financing options available to you. The next step now is how to make a right pick. Below are what you need to consider or what you should ask yourself when choosing a lender;
Do I Qualify?
This is an easy question that may immediately eliminate multiple lenders. Do you meet all the requirements of the lender? Is your credit score where it needs to be? Do you have enough revenue? Is your credit report free of anything that would disqualify you from receiving a loan?
Before you seek funding, you should know how much capital you need. Maybe you need just a few thousand dollars to purchase new equipment. Maybe your financial needs are greater, and you need hundreds of thousands to renovate your commercial space. Ponder on this to avoid you making the wrong choice.
Can I Afford This Financing?
Before you submit applications and accept a loan offer, you need to make sure your business can afford to take on new debt. After determining whether your business can afford a loan, shop around to make sure you’re getting the best rates and terms for your business.
After making your choice of that which best suit you. You then contact your lender and procced to what next. Most times you will have to feel some forms so the lender can know more about to what you do.