NC Rural Center Microenterprise Loan Program

I had the opportunity to meet with Mary Cox from the NC Rural Center this week to discuss their micro loan program. These loans are targeted to small businesses that are having difficulty finding loans from normal sources. If you are an entrepreneur or are thinking about striking out on your own and you think this program may be of assistance, please give me a call. I will be glad to walk through the process with you. We can assist you with the application as well as working on your business plan.

The Microenterprise Loan Program helps rural people become self-sufficient by providing the opportunity for self-employment and small-business growth. It provides loans for the start-up or expansion of small businesses by individuals who have sound ideas but do not qualify for bank loans.
History
The center launched the Microenterprise Loan Program as a demonstration project in 1989 to fill a gap in the types of business financing available in rural areas. It became a permanent center program in 1992. The program has been awarded the 1996 Presidential Award, the 1998 U.S. Small Business Administration’s Award for excellence in microenterprise lending and the 2000 Vision Award. It remains one of the largest microenterprise loan programs in the country.
Funding comes through a variety of sources. A Ford Foundation program-related investment capitalized the loan pool. Other private foundations have provided additional funds, and the N.C. General Assembly supports program operations.
Description
The program provides loans of up to $25,000 for new or expanding businesses. Loans are coupled with technical assistance, provided by community college small business centers, local offices of the Small Business and Technology Development Center of the University of North Carolina System and other community-based agencies.
Individuals may apply directly to the Rural Center or be referred through a network of partnering organizations that provide business assistance in the community. (See list on back.) Program staff and partners work one-on-one with potential borrowers to prepare loan applications based on the borrower’s business plan, character and the local economy.
Who is eligible
The program serves all 85 rural counties in North Carolina with an emphasis on low-income, female and minority borrowers. Loans support a wide range of businesses, including florists, automotive repair shops, child-care providers, small manufacturing firms, craft operations, hair salons and trucking companies.
The business, or proposed business, must be located in North Carolina, and the total project cost cannot exceed $50,000. Borrowers must be at least 18 years of age, be a U.S. citizen or permanent resident, and be a North Carolina resident.
Rural Center contact:
Carolyn Perry, Director
Microenterprise Loan Program
4021 Carya Drive
Raleigh, NC 27610
919-250-4314
www.ncruralcenter.org
Program Results
November 1992 Through June 2010
Number of People Served: 6,223
Number of Businesses Served: 2,948
Number of Business Loans: 1,421
Total Dollars Loaned: $7,512,000
Repayment Rate: 84%
Average Loan Size: $5,277
Service Area: 85 counties
Jobs Created/Sustained: 2,924
Number of Inquiries: 24,820
Technical Assistance Workshops: 198*
Number of Workshop Participants: 3,871*
Loan Customers: 48% Minority, 53% Women,
48% Low Income