The NCRPC Business Finance Program has helped customers access financing from a number of specialized programs, including those offered from the U.S. Small Business Administration.
SBA 7(a) Guaranteed Loan Program
Loan amount available:
Guaranteed bank loan up to $2,000,000
Interest rate:
Maximum limitation of Prime + 2.75%
Term:
7 years for working capital, inventory, and equipment 25 years for real estate
Primary eligibility requirements:
Bank participation (this is a bank loan guaranty program)
Special requirements:
- Bonded contractor for construction projects over $10,000
- Third party appraisal for purchase of existing business
Special features:
75-85% guaranty up to $1,500,000 maximum guaranty
SBA Rural Lender Advantage 7(a) Guaranteed Loan Program
Loan amount available:
Guaranteed bank loan up to $350,000
Interest rate:
Maximum limitation of Prime + 2.75%
Term:
7 years for working capital, inventory, and equipment 25 years for real estate
Primary requirements:
Bank participation-this is a bank loan guaranty program
Special requirements:
- Bonded contractor for construction projects over $10,000
- Third party appraisal for purchase of existing business
Special features:
75-85% guaranty
SBA 504 Loan Program
Loan amount available:
30-40% up to $2,000,000 in rural area with secondary collateral position based on appraised value
Interest rate:
20 year fixed market rate
Term:
10 years for equipment with equal or greater useful life, 20 years for real estate
Primary requirements:
50% Bank participation in first collateral position
Special requirements:
- Bonded contractor
- Appraisal on plans/specs prior to submitting application
- Working capital and inventory ineligible
- Special limitations on using for equipment/furniture/fixtures
Special features:
10-20% cash down payment requirement, assuming appraisal doesn’t require additional cash.
See Business Finance Program for assistance.
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