Small Business Loans in North Carolina


Whether your North Carolina small business is in Raleigh, Asheville, Durham, or anywhere else in the state, you need access to capital to keep your business operating at full capacity. Keep reading to learn more about small business loans in North Carolina.

How a Loan Can Help Your Small Business in North Carolina

There is more of 934,000 small businesses in North Carolina, in sectors ranging from accommodation and food services to wholesale. Many of these companies take out financing to help them.

If you’re starting a small business, small business loans can help cover renovation and start-up costs. For established businesses, having access to working capital can help you get through downturns or grow your business.

Options for small business loans in North Carolina

There is a financing solution for every small business in North Carolina, from a startup with bad credit to an established business with great credit.

COVID-19 loans

Few small businesses have not been affected in some way by the coronavirus pandemic. Fortunately, there are state and federal resources to help these businesses get back to normal.

At the federal level, there are two programs, the Paycheck Protection Program and Economic Injury Disaster Loans, which offer loans at low interest rates. There are even options for some of these funds to be forfeited rather than refunded.

At the state level, there is the Emergency Relief Fund for Diversified Small Businesses, which provides grants to businesses owned by minorities and women.

Bank loans

Long-term loans from financial institutions like banks and credit unions are a great place to start your small business finance research. Also Carolina Small Business Development Fund offers loans of up to $ 250,000 to eligible businesses.

SBA loans

The Small Business Administration also offers long-term, low-interest loans that can be used for working capital, real estate, equipment, and other business expenses.

Some SBA loans are specifically meant to promote economic and community development, so read the fine print to see if you qualify.

Credit line

Unlike loans, lines of credit do not provide a lump sum of money up front. Instead, you are approved for a line of credit that you can borrow against. Take it now and later as needed.

Business credit card

If you are short on cash, you might find it difficult to do daily shopping for your business in North Carolina. This is where business credit cards can come in handy. Bill these expenses and then reimburse them when the money arrives. And if you get a card with rewards, those purchases can be refunded with perks like travel vouchers.

Short term loan

Not all businesses (or business owners) have good credit, but there are always financing options. Short-term loans can give you the cash you need, but note that the repayment period may be only a few months and the interest will likely be higher than other options.

Invoice financing

If you bill customers, you might have to wait weeks or months to get paid. But you can take advantage of these invoices with invoice financing, where you borrow funds based on the value of your unpaid invoices.

How to qualify for a small business loan in North Carolina

Eligibility for each of the above financing options depends on the lender. Some, like banks, may have more stringent requirements for your credit scores, while others, like online lenders, may review qualifications other than your credit.

Note that your business credit may be considered. If you haven’t learned how to set up business credit yet, do so to make sure you qualify for better rates.

How to Apply for a Small Business Loan in North Carolina

Once you’ve determined which financing solution is best for your business, review the loan application to see what you’ll need to provide.

While some applications from online lenders are fairly straightforward, requiring little more than details about you and your business, your annual income, and time spent in the business, others like SBA loans or bank loans. , may require more paperwork.

Expect to be asked for last year’s tax return as well as your profit and loss statements. You may also need to provide your business plan. You don’t have a business plan? Do not worry. There are small business centers like the SBTDC and Women’s business center who can help you.

Once you submit your request, you may receive an instant response or wait a few days or weeks for approval. Take a close look at your loan agreement as it will include the amount and terms of your approved loan. Once you sign it, your loan proceeds will be deposited into your business checking account within days.

Uses for small business loans

Small business owners can use loans for any business service or expense… in general. It is a good idea to read the fine print of the loan before applying.

For example, an equipment loan can only be used to purchase equipment or commercial vehicles. An SBA loan can also limit the use of funds.

How long does the loan process take?

As mentioned above, the loan process can vary depending on your lender. Online lenders tend to work quickly, approving loans for borrowers in seconds and depositing funds the same day.

Bank and SBA loans, however, can take weeks to process. Know your expected turnaround time and plan accordingly when applying for your North Carolina small business loan so you don’t have to wait for your application to be approved and funds deposited.

Small Business Loans in North Carolina Help You Grow

Having working capital can provide many opportunities for your business to grow. Spend time finding the best loan terms based on your qualifications, and you could save hundreds or even thousands of dollars in interest.

This article was originally written on July 8, 2021.

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