The US Department of Treasury recently announced approval of $201.9 million for North Carolina to provide capital for small businesses, particularly in rural areas as a part of the State Small Business Credit Initiative (SSBCI).
The N.C. Rural Center will administer this funding which combined with other sources gives the NC Rural Center a quarter billion dollars to leverage small business lending across NC. The goal is to provide loans for small businesses with fewer than 500 employees. A third of the money is set aside for business owners who are female, people of color or live in rural areas.
Borrowers will apply for money through banks and other financial institutions, and the federal program will lessen the bank’s risk in participation. An estimated $160 million of the $202 million will be to purchase subordinate participations in small business loans made by the banks.
The program will support communities in their efforts to revitalize central business districts, strengthen neighborhoods, foster small business recovery, and support economic growth.
Stay tuned for additional information regarding this captial initiative.
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