LOAN PROGRAM OVERVIEW

Program

Description

Benefits

SBA-504
Loan

For Fixed
Assets
Only

Bank funds 50%. NRDA/SBA funds 40%. Borrower injects 10% (5%-10% higher for start-ups & limited use assets). Maximum: $1,500,000, up to $4,000,000 depending on project, on SBA portion.

504 is very popular for real estate. Offers low down payments & fixed rates, terms up to 20 years on the portion funded by SBA. Advantages:  Bank receives first mortgage; borrower can put less down, thus freeing up working capital; protects from rate increases; makes it easier for bank to loan more to business as it grows.

EDA/RLF
Revolving
Loan

Most
Purposes

NRDA is the lender.  Makes loans from $35,000 to $150,000 from an internal pool. Terms are up to 20 years. Collateral & personal guarantees required of all principals. Fixed interest rates currently in the 8.5% to 9.5% range.

NRDA administers a pool of $1,300,000 in funds from Economic Development Administration.  Can finance 75% of a project, prefer leveraging with other sources. For example: Bank Funds 45%, Borrower puts down 20%, NRDA funds remainder. Limited funds available. 

USDA
IRP & RBEG Loans

Fixed Assets, Working Capital & Inventory

NRDA is the lender.  Makes loans from $35,000 to $150,000 from an internal pool. Terms are up to 20 years. Collateral & personal guarantees required of all principals. 

NRDA has a pool of $4,100,000 from the Department of Agriculture. Can finance 75% of a project, prefer leveraging with other sources. Similar to our other internal funds. Fixed interest rates at prime plus 2%.  Used to leverage bank loans or can be used without bank.

SBA Community Express Loan

Start-ups, Working Capital, Expansion

Banks, and others are the lenders for this SBA loan program, offering loans of $5,000 up to $25,000. NRDA accepts and processes loan applications. Fast approval, a short application, unsecured loan, 7 year repayment, technical assistance. Variable rate - currently prime plus 4.75%.

Technical assistance is a critical part of this program. NRDA will serve as a technical assistance provider in this program, partnering with SCORE to offer pre- and post- loan closing technical assistance to the borrower. The program is designed for Low and Moderate Income (LMI) areas and also focuses on assisting women, minorities and veterans. Credit Score driven.

Golden LEAF Defense Ventures Fund

NRDA is the lender, utilizing Golden LEAF Foundation funding. "Equity Like" subordinated loans of up to $225,000 can be used for expansion, real estate, M + E or working capital. May have deferred P + I payments, 10+ year terms, rates subject to market conditions.

Program is designed for any NC company, or company relocating to NC, currently or interested in expanding into defense related manufacturing, or service businesses, or aerospace manufacturing or service. Subordinated nature of funding creates an additional "equity" source for small businesses.

USDA Business and Industry
(B+I) Program
 

Banks are lenders with USDA as guarantor up to 80% up to $5 million, 70% up to $10 million and 60% up to $25 million. Priority given to rural areas with populations under 25 thousand. NRDA arranges and packages the project.

Max term: Working capital 7 years M+E 15 years (or useful line) Real Estate- 30 years. Reduces collateral concerns, allows lenders to loan above lending limits. Assists businesses in expansion.