Halifax County NC Business Funding and Financing Options

If your company is looking for support for infrastructure development, workforce training or financing, please let us help you explore these state, federal, and private financing sources. Our office is qualified and experienced to assist you in accessing state, federal and other funding sources to support new and expanding business opportunities. The following is a partial listing of financing and funding resources that we have used successfully to support new and expanding business location and expansion:

NC Capital Access Program

The North Carolina Capital Access Program (CAP) works with banks and other eligible financial institutions to create capital opportunities for entrepreneurs who might not otherwise qualify for financing. The program aims to build the North Carolina economy by allowing more small businesses to expand their operations and create new jobs. CAP provides matching loan loss reserves for loans that fall just outside a lending institution’s normal underwriting standards, depositing the funds into a pooled account at the participating institution. It is expected to enable up to $800 million in business lending.

All businesses located in North Carolina with 500 or fewer employees are eligible for loans under the program. The maximum loan amount is $5 million. Loans may be used to finance the acquisition of land, construction or renovation of buildings, purchase of equipment and working capital. Click here for additional information about the {phocadownload view=file|id=54|target=s}.

Industrial Revenue Bonds (IRB’s)

Industrial Revenue Bonds (IRB) are tax exempt securities issued by the Halifax County Industrial Facilities & Pollution Control Financing Authority. IRB’s are tax exempt because the income derived by the bondholder is not subject to federal income tax, therefore, the cost to the company for which the bonds are issued is less than the cost of conventional financing.

IRB’s are used to help finance local manufacturing or industrial facilities. The state’s principal interest in these bonds is to assist new and expanding companies while providing North Carolinians with good jobs at good wages. IRB proceeds can be used only by companies engaged in manufacturing for land, buildings and/or equipment. Bonds can also be issued to finance pollution control projects under different criteria.

• Employment Requirements – A company receiving the bonds must agree to pay its employees the lesser of the average manufacturing wage in the county where the plant is located or the state’s average manufacturing wage plus 10%. It must also agree to a formula-based number of new employees.
• Financing Limits – Federal regulations limit the bond amount per project to $10 million, less any capital expenditures incurred during the period beginning three year before the date of issuance of the bonds and ending three years after the date of issuance of the bonds. Generally, a bond issue must be at least $2.5 million to be cost-effective, but could be smaller under certain circumstances. There is a nationwide maximum for any company of $40 million.
• IRB Process – The Halifax County Industrial Facilities and Pollution Control Financing Authority (the “Bond Authority”) was established by the Halifax County Board of Commissioners to process bond applications for new and expanding manufacturers in Halifax County.

To preserve eligibility for IRB financing under both State and Federal law, it is important that a company enter into an inducement agreement with the Bond Authority prior to making economic commitments or signing contracts or purchase orders for the proposed capital expenditures.

USDA Business & Industry Loan Guarantee (USDA B&I) Program

USDA Rural Development’s Business and Industry (B&I) Guaranteed Loan Program guarantees loans made by eligible lenders to rural businesses. The B&I program’s primary purpose is to improve the economic and environmental climate in rural areas by improving, developing, or financing business, industry, and employment. B&I guarantees are negotiated between the lender and the agency. The maximum percentage of guarantee is 80 percent for loans of $5 million or less, 70 percent for loans between $5 million and $10 million, and 60 percent for loans exceeding $10 million.

USDA Rural Economic Development Loan (REDLG) Program

Through rural electric cooperatives, the Rural Economic Development Loan Program provide zero-interest loans to promote sustainable rural economic development and job creation projects. Up to $750,000 in zero interest financing may be available per qualifying project. Loans may be deferred for up to two years with a total repayment term of up to 10 years.

US Small Business Administration (SBA) Loans

The US Small Business Administration offers diverse financing options for small businesses. Click here for an overview of {phocadownload view=file|id=58|target=s} programs to support small business start-up and expansion. To address the need to provide critical tools to support job creation by small businesses, the Small Business Jobs Act of 2010 was approved by Congress. Click here for information about the many tools and resources available to small businesses through the {phocadownload view=file|id=57|target=s}.  

Community Development Block Grant (CDBG) for Economic Development

Up to $1,000,000 is available to local governments for creating and retaining jobs. Funding for projects is based on the number of jobs to be created. Sixty percent of the jobs created or retained in a project must be for persons qualifying as prior low and moderate income (LMI). CDBG funds are granted to local governments for various types of infrastructure improvements to assist for profit businesses create or retain jobs.

For additional information regarding these and other financing sources, contact the Halifax County Economic Development Commission at 252-519-2630 or e-mail us at hdc@halifaxdevelopment.com