1. Industrial Revenue Bonds -Tax-exempt industrial revenue bonds up to $10 million are available for building, equipment, and land. Interest rates to the borrower currently range in the 1.5% range (see attached chart…VRDB (Variable Rate Demand Bond) is the industrial revenue bond rate). Income derived by the bondholder is exempt from federal taxes, allowing lower interest rates. The timetable to complete the application and approval process is usually 90 days. For capital investments $2,000,000 to $10,000,000.
2. Industrial Development Fund – Low interest loan funds are available to the company at $5,000 per job created up to a maximum of $500,000. The amount borrowed must be matched by a North Carolina bank. The interest rate on the state’s portion is 4%. Funds can be used for equipment and building renovation. This is not available in all counties.
3. Community Development Block Grant – Low interest loan funds are available to the company at same amount for equipment and building renovation. Amount that can be borrowed ranges from $8,000 to $15,000 per job created. The amount borrowed must be matched by a North Carolina bank. The interest rate on the state’s portion is 4%.
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. SBA 504 Loan Program – provides long-term, fixed rate subordinate financing for acquisition and/or renovation of land, building, and equipment. Lower down payments are typically required, allowing more capital to be injected into the project. Collateral is typically the assets financed.
5. Local Revolving Loan Programs – several counties have their individual loan programs with flexible guidelines. Funding is typically used as gap financing to assist the company in securing other methods of financing.
6. Banks and Conventional Lending Institutions – NC’s Southeast has excellent relationships with the region’s banks and lending organizations and can facilitate meetings and introductions to these companies.
7. Advancement Regional Business Lenders, Inc. - Loan program for retail, service, light manufacturing, and health care. Serves as a nonprofit community development financial corporation for several of the suoutheast region counties. |
