Building on SBA’s
www.SBA.gov • connect with us @ facebook.com/SBAgov twitter.com/sbagov youtube.com/sba
Publishers of Small Business Resource
Phone: 863-294-2812 • 800-274-2812
Fax: 863-299-3909 • www.sbaguides.com
Joe Jensen firstname.lastname@example.org
2012 NORTH CAROLINA
FEATURES English Small Business Resource Advertising
3 Introduction 28 Building on SBA’s
Kenna Rogers email@example.com
3 Administrator’s Letter Record Year Production
4 Director’s Message Diane Traylor firstname.lastname@example.org
8 Counseling Applying for Government
Contracts. SBA’s Marketing Office:
Getting help to start up, market and The Small Business Resource Guide is published
29 How Government Contracting under the direction of SBA’s Office of Marketing and
manage your business.
Works Customer Service.
8 SBA Resource Partners 30 SBA Contracting Programs
11 SBA’s Online Tools and Training 32 Getting Started in Contracting Director of Marketing
11 Reaching Underserved Paula
Communities 33 Disaster Panissidi email@example.com
13 Are You Right for Small Knowing the types of assistance Editorial Content
Business Ownership? available for recovery. firstname.lastname@example.org
14 Writing a Business Plan
34 Advocacy and Ombudsman Graphic Design
Watching out for small business
Financing options to start or grow
your business. SBA’s participation in this publication is not an
15 SBA Business Loans 35 Additional Resources endorsement of the views, opinions, products or
services of the contractor or any advertiser or other
16 What to Take to the Lender Taking care of start up logistics. participant appearing herein. All SBA programs
22 Small Business Investment 38 Business Organization: and services are extended to the public on a
Company Program Choosing your Structure nondiscriminatory basis.
23 Small Business Innovation
23 Small Business Technology
39 Other Assistance
Printed in the United States of America
While every reasonable effort has been made
24 Surety Bond Guarantee 43 Lender Listing
to ensure that the information contained herein
was accurate as of the date of publication, the
Program information is subject to change without notice.
25 SBA Loan Program Chart Neither the contractor, the federal government,
or agents thereof shall be held liable for any
damages arising from the use of or reliance on the
information contained in this publication.
SBA Publication # MCS-0018
“Everything you need to know This publication is provided under SBA Contract
about setting up, marketing
and managing the revenue of
your business. ”
2 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
The U.S. Small Business Administration
F R O M T HE ADM I NI STRATOR
2011 was a record year for As our economy continues to strengthen in
the SBA. We helped over 2012, the Obama Administration is focused
60,000 small businesses on making sure that entrepreneurs and small
secure over $30 billion in business owners have the tools they need
lending through our flagship to grow and create jobs. After all, half of
7(a) and 504 programs – an working Americans either own or work for a
all-time record. We also small business, and two of every three new
worked with private-sector jobs are created by small businesses.
partners to drive a record
amount of capital ($2.8 billion) into the Finally, check out our online tools. For
hands of over 1,000 high-growth businesses example, at www.sba.gov/direct you can
through Small Business Investment type in your zip code and a few details about
Companies. your business, and you’ll immediately get
connected to SBA resources in your local
As we entered 2012, the President signed area.
a six-year extension of the Small Business
Innovation Research program which America’s small businesses are gearing up
supports small R&D companies that drive to lead our nation’s economic recovery and
innovation and game-changing technologies create the jobs we need now. Please feel free
to keep America on the cutting edge. We to contact your local SBA office if you have
also continue to streamline the paperwork any questions. We stand ready to help in
on SBA loans in order to help more lending whatever way we can.
partners and their small-business customers.
You can check out all of these programs in
this guide. Also, be sure to take a look at all
of the SBA’s 2011 accomplishments in the
last few pages. Karen G. Mills
Small Business Administration
About the SBA
Your Small Business Resource
Every year, the U.S. Small Business Administration and its nationwide • Contracting
network of partners help millions of potential and current small • Disaster Assistance
business owners start, grow and succeed. • Advocacy and the Ombudsman
Resources and programs targeting small businesses provide an Visit SBA online at www.sba.gov for 24/7 access to small business
advantage necessary to help small businesses compete effectively in news, information and training for entrepreneurs.
the marketplace and strengthen the overall U.S. economy.
All SBA programs and services are provided on a nondiscriminatory
SBA offers help in the following areas: basis.
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 3
Message From The District Director
Rules For Success
Mind Your Business, Inc.
Owner/CEO Like today’s small businesses, large corporate success stories
started with only an entrepreneur and a dream.
Karen Caruso, owner and CEO of Mind Your
Business, Inc. (MYB) in Hendersonville, NC
has been named the 2011 North Carolina he North Carolina Small SBA’s Government Contracting
Small Business Person of the Year. Karen’s Business Resource Guide Business Development Program
entrepreneurial spirit was ignited in 1995 while is designed help you with creates an opportunity for small
watching an Oprah Winfrey show with her
daughter on abusive child care providers. She your business development businesses owned by socially and
decided at that moment what her future would needs by reaching our economically disadvantaged individuals
look like. partners and the SBA team. Whether it to grow through the education of the
Karen’s early career was in security, knowing
is taking the first step to start a business procurement process. SBA also plays a
how to conduct background checks. Seeing a gap or expanding to the next level, the Small major role in the government’s disaster
in the market, she focused on applicant screening Business and Technology Development relief efforts by making low-interest
services to the childcare industry. In 1996, Mind Centers (SBTDC), Women’s Business recovery loans to both homeowners and
Your Business, Inc. (MYB) was launched in the
basement of her New Jersey home with two Centers (WBC) and SCORE, both businesses.
employees and $2,500. partially funded by the SBA, provide free
counseling and technical assistance. Also, Today, small businesses are more
In a field predominantly led by men and large
corporations, MYB faced challenges entering
the North Carolina Community College important than ever. Facing
the marketplace. To combat these obstacles, system has a number of Small Business unprecedented economic challenges,
she turned to SBA sponsored mentors. She has Centers that provide training and one-on- entrepreneurs with a creative, resilient,
taken classes and received counseling through one counseling with your business. and innovative spirit, are expected to
SCORE and the North Carolina Small Business &
Technology Center (SBTDC). lead North Carolina’s vital recovery.
As the nation’s largest single financial Accessing these resources on the
MYB now employs 14 people and owns and backer of small businesses, SBA following pages can help you make the
operates a 3,000 square foot facility in the
mountains of Western North Carolina. MYB
guaranteed loans are made by SBA right connections to be successful. In
posted record profits in 2009 and in 2010. lending specialists in our North Carolina addition, visit our website www.sba.gov/
banks, certified development companies nc or call to 1-800-U-ASK-SBA (1-800-
Annice Brown and Clark Fields at the SBTDC have and lenders located throughout the 827-5722).
worked with Karen to explore innovative ways
to grow. Two recent examples include adding nation. To help prepare for a mutually
drug testing to their services and creating two beneficial banking experience, SBTDC, Sincerely,
proprietary software programs to help clients with WBC and SCORE partners can evaluate
visitor and fleet management screening. With
research and development help from Western your financing options, review a proposed
Carolina University, they brought these products business acquisition or a help with a fixed
to market, creating new customer opportunities. In asset purchase.
November 2010, MYB was approved for a $25,000
SBA Express loan, under the Small Business Jobs Lynn Douthett
Act, through First Citizens’ Bank to market the In addition to guaranteeing loans,
visitor management software. learn how government contracting District Director of
may add value to your business. SBA’s North Carolina District Office
Facing challenges in her local community has
led to Karen’s recognition as a leader for the
advancement of women by the Hendersonville
and Asheville Chambers of Commerce. Karen’s
supports organizations such as United Way,
The Arby’s Foundation for the Boys and Girls
Clubs, and Big Brothers and Big Sisters of South
Carolina through donations, volunteer work, and
4 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
The SBA helps business
owners grow and expand
Doing Business in North Carolina their businesses every day.
THE NORTH CAROLINA DISTRICT OFFICE Free counseling, advice and information
The North Carolina District Office is on starting, better operating or expanding
responsible for the delivery of SBA’s a small business through SCORE, Small We Welcome Your
many programs and services. The District Business & Technology Development Questions
Director is Lynn Douthett. The District Centers (SBTDC) and Women’s Business
Office is located at 6302 Fairview Road, Centers (WBC). They also conduct
For extra copies of this publication or
Suite 300, Charlotte, NC. Office hours training events throughout the district -
questions please contact:
are from 8:00 AM until 4:30 PM, Monday some require a nominal registration fee.
through Friday. North Carolina District Office
Assistance to businesses owned and
6302 Fairview Road, Suite 300
Last fiscal year, ending September 30, controlled by socially and economically
Charlotte, NC 28210
2011, North Carolina District Office disadvantaged individuals through the
approved 1,244 SBA loans for more than Business Development Program.
Tel: 704-344-6563 Fax: 704-344-6769
$479 million available to small businesses. SBA Answer Desk: 800-827-5722
Our resource partners counseled and/ A Women’s Business Ownership
or trained over 45,309 entrepreneurs. Representative is available to assist
These accomplishments have had a major women business owners. Please contact
impact on the local economy and in April Gonzalez at 704-344-6811 or e-mail:
creating jobs. email@example.com.
A Veterans Affairs Representative is
CONTACTING THE NORTH CAROLINA
available to assist veterans. Please contact
DISTRICT OFFICE April Gonzalez at 704-344-6811 or e-mail:
For program and service information, firstname.lastname@example.org.
please contact the Marketing Division
at 704-344-6563. For information on SBA has additional field offices in the
financing, contact the Financing Division following areas:
Mike Arriola, Asheville, NC
SERVICES AVAILABLE 828-225-1844
Financial assistance for new or existing Ivan Hankins, Cary, NC
businesses through guaranteed loans 919-335-1004
made by area bank and non-bank Don Spry, Wilmington, NC
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 5
The U.S. Small Business Administration
Message From The Message From The
Executive Director North Carolina State
of Small Business Director
and Technology NC SCORE District #460
CORE is proud to be part of the North Carolina SBA
Resource Guide. This guide contains many resources that
can be of assistance to new entrepreneurs and existing
small business owners. SCORE is a nonprofit association
dedicated to the formation, growth and continuing
success of small businesses nationwide. SCORE volunteers are
he SBTDC, a business advisory service of The
working and retired executives and business owners who donate
University of North Carolina System, is now in its
their time and expertise to provide free and confidential business
28th year as a leading resource partner of the U.S.
counseling and workshops.
Small Business Administration in North Carolina.
SBTDC staff provides in-depth management
SCORE is a resource partner with the U.S. Small Business
counseling, educational programs, technical assistance
Administration and has 15 Chapters with 445 experienced
services, and other resources to meet the needs of existing
counselors located throughout North Carolina. SCORE chapters
businesses and new business start-ups. Among these is help
are proud to have provided counseling to 7451 business clients
with securing financing - particularly SBA guaranteed loans
and hosted local workshops with 9323 attendees in Fiscal Year
and longer-term SBA 504 loans for buildings and other major
fixed assets. SBTDC services are provided through 18 offices
across the state, and are focused on making North Carolina’s
SCORE offers counseling and assistance to small businesses that
businesses more competitive.
are starting, growing or facing challenges. Please feel free to
contact the SCORE chapter nearest you. A list of our chapters
The North Carolina SBA Resource Guide is a great tool for
can be found in this guide. Visit our website at www.score.org for
small business owners and those planning to start a business.
more information about available SCORE services available from
It provides both extensive business support materials and
our National organization. E-Mail counseling is available thru our
contact information for resources such as the SBTDC that
National web site with experts from many of our chapters.
can help businesses achieve greater success.
As “Counselors to America’s Small Business” SCORE can provide
If you are seeking assistance to improve your business
both practical and technical guidance wherever and whenever it
operations, or looking for help in successfully launching a
is needed from counselors with years of business experience. Good
new business, you can contact the SBTDC toll free at 800-
luck in your business endeavors and call your nearest SCORE office
258-0862, or visit our website at www.sbtdc.org for more
as your first step in evaluating your business decisions.
information about our services.
Scott R. Daugherty North Carolina SCORE District #460
North Carolina State Director
Executive Director of 919-460-2501 • email@example.com
Small Business and Technology Development Center (SBTDC) SCORE National website: www.score.org
North Carolina Commissioner of Small Business 800-634-0245 or 703-487-3612
6 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 7
Getting Help to Start Up, Market and Manage Your Business
entrepreneurs who are just getting
started or in need of a seasoned
business professional as a sounding
board for their existing business. As
members of your community, SCORE
mentors understand local business
licensing rules, economic conditions and
important networks. SCORE can help
you as they have done for more than 9
million clients by:
• Matching your specific needs with a
• Traveling to your place of business for
an on-site evaluation
• Teaming with several SCORE mentors
to provide you with tailored assistance
in a number of business areas
Across the country, SCORE offers
nearly 7,000 local business training
workshops and seminars ranging
in topic and scope depending on the
needs of the local business community
such as offering an introduction to
very year, the U.S. Small finding opportunities to sell your goods the fundamentals of a business plan,
Business Administration or services to the government, and managing cash flow and marketing your
and its nationwide network recovering from disaster. To find your business. For established businesses,
of resource partners help local district office or SBA resource SCORE offers more in-depth training
millions of potential and partner, visit www.sba.gov/sba-direct. in areas like customer service, hiring
existing small business owners start, practices and home-based businesses.
grow and succeed.
Whether your target market is global
SCORE For around-the-clock business advice
SCORE is a national network of and information on the latest trends go
or just your neighborhood, the SBA and to the SCORE website (www.score.org).
its resource partners can help at every over 14,000 entrepreneurs, business
leaders and executives who volunteer as More than 1,500 online mentors with
stage of turning your entrepreneurial over 800 business skill sets answer your
mentors to America’s small businesses.
dream into a thriving business. questions about starting and running a
SCORE leverages decades of experience
If you’re just starting out, the SBA from seasoned business professionals business. In fiscal year 2011, SCORE
and its resources can help you with to help small businesses start, grow mentors served 400,000 entrepreneurs.
loans and business management skills. companies and create jobs in local For information on SCORE and to get
If you’re already in business, you can communities. SCORE does this by your own business mentor, visit
use the SBA’s resources to help manage harnessing the passion and knowledge www.sba.gov/score, go to www.SCORE.org
and expand your business, obtain of individuals who have owned and or call 1-800-624-0245 for the SCORE
government contracts, recover from managed their own businesses and want office nearest you.
disaster, find foreign markets, and to share this “real world” expertise with Asheboro SCORE #0648
make your voice heard in the federal you. Asheboro/Randolph Chamber of Commerce
government. Found in more than 370 offices and 317 E. Dixie Dr.
You can access SBA information at 800 locations throughout the country, Asheboro, NC 27203
www.sba.gov or visit one of our local SCORE provides key services – both 336-626-2626 • 336-626-7077 Fax
offices for assistance. face-to-face and online – to busy
PARTNERS ON THE UPSIDE
• You get to be your own boss.
In addition to our district offices which • Hard work and long hours directly benefit you,
serve every state and territory, SBA rather than increasing profits for someone else.
It’s true, there are a lot of
works with a variety of local resource
reasons not to start your • Earnings and growth potential are unlimited.
partners to meet your small business
own business. But for the
needs. These professionals can help • Running a business will provide endless
right person, the advantages
with writing a formal business plan, variety, challenge and opportunities to learn.
of business ownership far
locating sources of financial assistance,
outweigh the risks.
managing and expanding your business,
8 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
Asheville SCORE #0137 Greensboro SCORE #0246 Upper Coastal Plains SCORE #700
Federal Bldg., Rm. 259 2007 Yanceyville St./P.O. Box 48 Braswell Memorial Library
151 Patton Ave. Greensboro, NC 27405 727 N. Grace St.
Asheville, NC 28801 336-333-5399 • 336-333-5111 Fax Rocky Mount, NC 27804
828-271-4786 • 828-271-4786 Fax 252-442-1173 • 252-442-7366 Fax
Western North Carolina SCORE #0242
Chapel Hill SCORE #0495 Federal Bldg., Rm. 108 Wilmington SCORE #0283
Chapel Hill/Carrboro Chamber of Commerce 140 4th Ave. W. 4010 Oleander Dr.
Hendersonville, NC 28792 Wilmington, NC 28403
104 S. Estes Dr./P.O. Box 2897
Chapel Hill, NC 27515 828-693-8702 910-452-5395 • 910-452-5369 Fax
919-968-6894 • 919-968-6874 Fax
High Point SCORE #0329
Charlotte SCORE #0047 High Point Chamber of Commerce SMALL BUSINESS
6302 Fairview Rd., Ste. 300
Charlotte, NC 28210
1634 N. Main St./P.O. Box 5025
High Point, NC 27262
704-344-6576 • 704-344-6769 Fax 336-882-8625 • 336-889-9499 Fax The U.S. Small Business
Administration’s Small Business
Coastal Carolina SCORE #0660 Outer Banks SCORE #0497 Development Center (SBDC) program’s
3615 Arendell St. Outer Banks Chamber of Commerce mission is to build, sustain, and
Morehead City, NC 28557 101 Town Hall Dr. promote small business development
252-222-6126 • 252-222-6124 Fax Kill Devil Hills, NC 27948 and enhance local economies by
252-441-8148 • 252-441-0338 Fax creating businesses and jobs. This
Down East SCORE #0577 is accomplished by the provision and
c/o Neuse River Council of Governments Raleigh SCORE #0096 ensuing oversight of grants to colleges,
233 Middle St., Ste. 206/P.O. Box 790 Century Post Office Station universities and state governments so
New Bern, NC 28563 300 Fayetteville St. Mall/P.O. Box 406
that they may provide business advice
252-633-6688 • 252-638-1819 Fax Raleigh, NC 27602
919-856-4739 • 919-856-4466 Fax and training to existing and potential
East Carolina SCORE #0693
1385 John Small Ave. Sandhills Area SCORE #0364 The Small Business Development
Washington, NC 27889 10677 Hwy 15-501 Center program, vital to SBA’s
252-974-1848 • 252-946-8700 Fax Southern Pines, NC 28387 entrepreneurial outreach, has been
910-692-3926 • 910-692-0619 Fax providing service to small businesses
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 9
for more than 30 years. It is one of the
largest professional small business
Elizabeth City State University
K.E. White Graduate Center/ECSU
WOMEN’S BUSINESS CENTERS
management and technical assistance 1704 Weeksville Rd./P.O. Box 874 The SBA’s Women Business Center
networks in the nation. With over 900 Elizabeth City, NC 27909-7806 (WBC) program is a network of 110
locations across the country, SBDCs 252-335-3247 • 252-335-3648 Fax community-based centers which provide
offer free one-on-one expert business business training, coaching, mentoring
advice and low-cost training by qualified Fayetteville State University and other assistance geared toward
small business professionals to existing 1200 Murchison Rd. women, particularly those who are
Fayetteville, NC 28302-1334 socially and economically disadvantaged.
and future entrepreneurs. 910-672-1727 • 910-672-1949 Fax
In addition to its core services, the WBCs are located in nearly every state
SBDC program offers special focus areas and U.S. territory and are partially
North Carolina A&T State University funded through a cooperative agreement
such as, green business technology, Nusbaum Center for Entrepreneurs
disaster recovery and preparedness, with the SBA.
2007 Yanceyville St., Ste. 303
international trade assistance, veteran’s To meet the needs of women
Greensboro, NC 27405
assistance, technology transfer and 336-334-7005 • 336-334-7073 Fax entrepreneurs, WBCs offer services
regulatory compliance. at convenient times and locations,
The program combines a unique North Carolina State University including evenings and weekends.
mix of federal, state and private 5 West Hargett St., Ste. 600 WBCs are located within non-profit host
sector resources to provide, in every Raleigh, NC 27601 organizations that offer a wide variety
state and territory, the foundation 919-715-7272 • 919-715-7777 Fax of services in addition to the services
for the economic growth of small provided by the WBC. Many of the
businesses. The return on investment
University of North Carolina WBCs also offer training and counseling
at Chapel Hill and provide materials in different
is demonstrated by the program during 1700 Martin Luther King Jr. Blvd., Ste. 115
2011: languages in order to meet the diverse
Chapel Hill, NC 27599-1823 needs of the communities they serve.
• Assisted more than 13,660 entrepreneurs 919-962-0389 • 919-962-3291 Fax
to start new businesses – equating to 37 WBCs often deliver their services
new business starts per day. through long-term training or group
University of North Carolina
• Provided counseling services to over at Charlotte counseling, both of which have shown to
106,000 emerging entrepreneurs and 8701 Mallard Creek Rd., Ste. 102 be effective. WBC training courses are
nearly 100,000 existing businesses. Charlotte, NC 28262-9705 often free or are offered at a small fee.
• Provided training services to 704-548-1090 • 704-548-9050 Fax Some centers will also offer scholarships
approximately 353,000 clients. based on the client’s needs
The efficacy of the SBDC program University of North Carolina While most WBCs are physically
has been validated by a nationwide at Wilmington located in one designated location, a
impact study. Of the clients surveyed, 1612 Military Cutoff Dr., Ste. 208 number of WBCs also provide courses
more than 80 percent reported that the Wilmington, NC 28403 and counseling via the Internet, mobile
business assistance they received from 910-962-3744 • 910-962-3014 Fax classrooms and satellite locations.
the SBDC counselor was worthwhile. WBCs have a track record of success.
Similarly, more than 50 percent reported Western Carolina University In fiscal year 2011, the WBC program
that SBDC guidance was beneficial in 204 Forsyth Bldg., 2nd Fl. counseled and trained nearly 139,000
Cullowhee, NC 28723-9646
making the decision to start a business. clients, creating local economic growth
828-227-3504 • 828-227-7074 Fax
More than 40 percent of long-term and vitality. In addition, WBCs helped
clients, those receiving 5 hours or more WCU Sub-Center at Asheville entrepreneurs access more than $134
of counseling, reported an increase 46 Havwood St., Ste. 212 million dollars in capital, representing
in sales and 38 percent reported an Asheville, NC 28801 a 400% increase from the previous year.
increase in profit margins. 828-251-6025 • 828-232-5126 Fax Of the WBC clients that have received 3
For information on the SBDC or more hours of counseling, 15 percent
program, visit www.sba.gov/sbdc. Winston-Salem State University indicated that the services led to hiring
In North Carolina, the following 301 N. Main St., Ste. 921A new staff, 34 percent indicated that
offices are available to assist or visit the Winston-Salem, NC 27101 the services led to an increased profit
336-750-2030 • 336-779-7390 Fax margin, and 47 percent indicated that
web site at: www.sbtdc.org.
the services led to an increase in sales.
University of North Carolina In addition, the WBC program has
Appalachian State University at Pembroke
130 Poplar Grove Rd. COMtech 115 Livermore Dr./P.O. Box 1510 taken a lead in preparing women
Boone, NC 28607 Pembroke, NC 28372-1510 business owners to apply for the
828-262-2492 • 828-262-2027 Fax 910-775-4000 • 910-775-4005 Fax Women-Owned Small Business
(WOSB) Federal Contract program
ASU Sub-Center at Hickory North Carolina Central University that authorizes contracting officers to
1990 Main Ave. S.E. School of Business
Hickory, NC 28602
set aside certain federal contracts for
1801 Fayetteville St. eligible women-owned small businesses
828-345-1110 • 828-326-9117 Fax Durham, NC 27707 or economically disadvantaged women-
919-530-7386 • 919-530-7680 Fax owned small businesses. For more
East Carolina University
300 E. First St., Willis Bldg. information on the program, visit
Greenville, NC 27858-4353 www.sba.gov/wosb.
252-737-1385 • 252-737-1382 Fax To find the nearest SBA WBC, visit
10 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
EMERGING LEADERS • All participants were trained on
becoming SBA 8(a) certified firms;
Training is available anytime and
anywhere — all you need is a computer
(e200) INITIATIVE nearly 25 percent of respondents are
currently certified as SBA 8(a) firms,
with Internet access.
SBA’s Emerging Leaders (e200) • More than 30 free online courses and
while other participants reported a
Initiative is currently hosted in 27 workshops available.
focused intention on applying to the 8(a)
markets across the country using a program. • Templates and samples to get your
nationally demonstrated research-based • Nearly 50 percent of participating business planning underway.
curriculum that supports the growth and respondents were female executives • Online, interactive assessment tools are
and 70 percent were minority business featured and used to direct clients to
development of small to medium-sized
executives. appropriate training.
firms that have substantial potential
for expansion and community impact. • 85 percent of responding executives Course topics include a financial
were Satisfied or Very Satisfied with the primer keyed around SBA’s loan-
A competitive selection process results overall training series and results.
in company executives participating in guarantee programs, a course on
To find out more about this executive- exporting, and courses for veterans
high-level training and peer-networking level training opportunity, please
sessions led by professional instructors. and women seeking federal
visit www.sba.gov/e200 for host cities, contracting opportunities, as well as
Post-training, social and economic training schedules, and selection
impact results from responding an online library of podcasts, business
executives who participated in the 2008 publications, templates and articles.
– 2010 training classes indicate: Visit www.sba.gov/training for these
• More than half of participating SBA’S ONLINE free resources.
TOOLS AND TRAINING
businesses reported an increase in
revenue, with an average revenue of
$1,879,266. SBA’s Small Business Training
• Participating businesses averaged $2
million in revenue, with new cumulative Network is a virtual campus complete
financing of $7.2 million secured in 2010. with free online courses, workshops,
• Nearly half of the participants secured podcasts, learning tools and business-
federal, state, local and tribal contracts readiness assessments.
with a cumulative total of $287 million. Key Features of the Small Business
• Approximately half of the participants Training Network:
have hired new workers, creating 275
new jobs in 2010.
REACHING UNDERSERVED COMMUNITIES
SBA also offers a number of programs Women’s Business Centers serve The center offers workshops, individual
specifically designed to meet the needs a wide variety of geographic areas, consultations, technical assistance for
of the underserved communities. population densities, and economic SBA loans, microloans, and peer-to-peer
environments, including urban, mentoring to address many aspects of small
WOMEN BUSINESS OWNERS suburban, and rural. Local economies
vary from depressed to thriving, and Women’s Business Center
Women entrepreneurs are changing range from metropolitan areas to entire of North Carolina
the face of America’s economy. In the states. Each Women’s Business Center 114 W. Parrish St., 4th Fl./P.O. Box 1331
1970s, women owned less than five tailors its services to the needs of its Durham, NC 27701
percent of the nation’s businesses. individual community, but all offer a 919-956-8889
Today, they are majority owners variety of innovative programs, often www.ncimed.com
of about a third of the nation’s small including courses in different languages. firstname.lastname@example.org
businesses and are at least equal owners The Women’s Business Center of North
They provide training in finance, Carolina was created by the N.C. Institute
of about half of all small businesses. management, and marketing, as well as of Minority Economic Development as a
SBA serves women entrepreneurs access to all of the SBA’s financial and program to provide a full range of training
nationwide through its various programs procurement assistance programs. and counseling services for aspiring and
and services, some of which are designed existing women business owners in North
especially for women. Center for Economic Empowerment & Carolina. Additionally, the Center is a source
The SBA’s Office of Women’s Business Development (CEED) of financial consulting, loan packaging, and
Ownership (OWBO) serves as an 230 Hay St. contracting assistance for small businesses.
advocate for women-owned businesses. Fayetteville, NC 28302
OWBO oversees a nationwide network 910-323-3377
www.ncceed.org CENTER FOR FAITH-BASED AND
of 110 women’s business centers that
provide business training, counseling
The Center for Economic Empowerment
and mentoring geared specifically to & Development (formerly known as the Faith-Based and Neighborhood
women, especially those who are socially Women’s Center of Fayetteville) provides Partnerships know their communities,
and economically disadvantaged. The training and business plan assistance and they have earned the communities
program is a public-private partnership to aspiring entrepreneurs and existing trust. Because of their credibility,
with locally-based nonprofits. businesses in business start-up or expansion. they are uniquely positioned to build
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 11
REACHING UNDERSERVED COMMUNITIES
awareness of programs that encourage
entrepreneurship, economic growth and
low-interest-rate financing to small
businesses when an owner or essential
job creation. employee is called to active duty. The
SBA is committed to reaching Military Reservist Economic Injury The SBA Office of Native American
out to faith-based and community Disaster Loan Program (MREIDL) Affairs (ONAA) ensures American
organizations that are eligible to provides loans up to $2 million to eligible Indians, Alaska Natives and Native
participate in the agency’s programs by small businesses to cover operating costs Hawaiians seeking to create, develop
informing their congregants, members that cannot be met due to the loss of an and expand small businesses have
and neighbors about SBA’s programs. essential employee called to active duty full access to the necessary business
In particular, many faith-based and in the Reserves or National Guard. development and expansion tools
community non-profit organizations Among the SBA’s unique services for available through the agency’s
can provide a local financing option veterans are: an Entrepreneurship Boot entrepreneurial development, lending,
for entrepreneurs by becoming SBA and contracting programs. ONAA
Camp for Veterans with Disabilities in
Microloan Intermediaries. An SBA provides a network of training (including
partnership with 6 top U.S. universities
Microloan Intermediary often acts as the online tool “Small Business
(www.whitman.syr.edu/ebv), a program
a bank for entrepreneurs and small Primer: Strategies for Growth”) and
to reach women veteran-entrepreneurs
businesses that might otherwise be counseling services and engages in
(www.syr.edu/vwise) , and a program for numerous outreach activities, such as
unable to find access to capital. Reserve Component family members tribal consultations, development and
called Operation Endure and Grow distribution of educational materials,
VETERANS AND RESERVISTS (www.whitman.syr.edu/endureandgrow). attendance and participation in
BUSINESS DEVELOPMENT For more information about small
business lending programs for veteran
economic development events and
Veterans, service-disabled veterans assisting these small businesses with
business owners and Reserve or SBA programs.
and Reserve and National Guard
Guard members who are activated, Visit www.sba.gov/naa for more
member entrepreneurs receive
including Patriot Express, microloans, information.
special consideration in all of SBA’s
and Advantage loans, see the section
entrepreneurial programs and resources. Cherokee Business Development Center
on Access to Capital. To learn more
Each year, the Office of Veterans Ginger Lynn Welch Complex
about the Veterans Business Outreach
Business Development (OVBD) 810 Acquoni Rd.
program or find the nearest SBA VBOC,
reaches thousands of veterans, Reserve Cherokee, NC 28719
visit www.sba.gov/vets. 828-497-1666 • 828-497-1665 Fax
Component members, transitioning
service members and others who are – www.sequoyahfund.org
Veterans Business Outreach Center email@example.com
or who want to become – entrepreneurs (VBOC)
and small business owners. OVBD Fayettville State University
develops and distributes informational 1200 Murchison Rd., Newbold Station
materials for entrepreneurship such as Fayetteville, NC 28301-4252
the Veterans Business Resource Guide,
VETGazette, and Getting Veterans
Back to Work. In addition, there
are 16 Veterans Business Outreach
Centers strategically located throughout
the country that provide both online
and in-person training, counseling,
mentoring, workshops, referrals, and
more. Each of the SBA’s 68 District
Offices also has a designated veteran’s
business development officer.
The SBA offers special assistance for
small businesses owned by activated
Reserve and National Guard members.
Any self-employed Reserve or Guard
member with an existing SBA loan can
request from their SBA lender or SBA
district office loan payment deferrals,
interest rate reductions and other relief
after they receive their activation orders.
In addition, the SBA offers special
12 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
ARE YOU RIGHT FOR SMALL BUSINESS OWNERSHIP?
Most new business owners who
succeed have planned for every phase
own shoulders. Strong motivation
will help you survive slowdowns and
periods of burnout. Going to work used to mean
of their success. Thomas Edison, the
• How will the business affect traveling from home to a plant, store or
great American inventor, once said,
your family? The first few years of office. Today, many people do some or
“Genius is 1 percent inspiration and all their work at home.
business start-up can be hard on
99 percent perspiration.” That same
family life. It’s important for family
philosophy also applies to starting a members to know what to expect Getting Started
business. and for you to be able to trust that Before diving headfirst into a home-
First, you’ll need to generate a little they will support you during this based business, you must know why
bit of perspiration deciding whether time. There also may be financial you are doing it. To succeed, your
you’re the right type of person to start difficulties until the business becomes business must be based on something
your own business. profitable, which could take months greater than a desire to be your
or years. You may have to adjust to a own boss. You must plan and make
IS ENTREPRENEURSHIP lower standard of living or put family
assets at risk.
improvements and adjustments along
FOR YOU? Once you’ve answered those Working under the same roof where
There is simply no way to eliminate questions, you should consider what your family lives may not prove to be
all the risks associated with starting type of business you want to start. as easy as it seems. One suggestion is
a small business, but you can improve Businesses can include franchises, to set up a separate office in your home
your chances of success with good at-home businesses, online businesses, to create a professional environment.
planning, preparation, and insight. brick-and-mortar stores or any Ask yourself these questions:
Start by evaluating your strengths combination of those. • Can I switch from home
responsibilities to business work
and weaknesses as a potential owner easily?
and manager of a small business.
Carefully consider each of the following
FRANCHISING • Do I have the self-discipline to
maintain schedules while at home?
There are more than 3,000 business • Can I deal with the isolation of
• Are you a self-starter? It will be
franchises. The challenge is to decide working from home?
entirely up to you to develop projects, on one that both interests you and is
organize your time, and follow a good investment. Many franchising Legal Requirements
through on details. experts suggest that you comparison A home-based business is subject to
• How well do you get along with shop by looking at multiple franchise many of the same laws and regulations
different personalities? Business opportunities before deciding on the affecting other businesses.
owners need to develop working one that’s right for you. Some general areas include:
relationships with a variety of Some of the things you should • Zoning regulations. If your business
people including customers, vendors, look at when evaluating a franchise: operates in violation of them, you
staff, bankers, employees, and historical profitability, effective could be fined or shut down.
professionals such as lawyers, • Product restrictions. Certain
financial management and other
accountants, or consultants. Can products cannot be produced in the
controls, a good image, integrity and home. Most states outlaw home
you deal with a demanding client, commitment, and a successful industry.
an unreliable vendor, or a cranky production of fireworks, drugs,
In the simplest form of franchising, poisons, explosives, sanitary or
receptionist if your business interests
while you own the business, its medical products and toys. Some
• How good are you at making operation is governed by the terms of states also prohibit home-based
decisions? Small business owners are the franchise agreement. For many, businesses from making food, drink
required to make decisions constantly this is the chief benefit for franchising. or clothing.
– often quickly, independently, and You are able to capitalize on a business Be sure to consult an attorney and
under pressure. format, trade name, trademark and/ your local and state departments
• Do you have the physical and or support system provided by the of state, labor and health to find
emotional stamina to run a franchisor. But you operate as an out which laws and regulations will
business? Business ownership can independent contractor with the ability affect your business. Additionally,
be exciting, but it’s also a lot of work. to make a profit or sustain a loss check on registration and accounting
Can you face six or seven 12–hour commensurate with your ownership. requirements needed to open your
workdays every week? If you are concerned about starting home-based business. You may need
• How well do you plan and a work certificate or license from the
an independent business venture, then
organize? Research indicates that
franchising may be an option for you. state. Your business name may need
poor planning is responsible for most
business failures. Good organization
Remember that hard work, dedication to be registered with the state. A
— of financials, inventory, schedules, and sacrifice are key elements in separate business telephone and bank
and production — can help you avoid the success of any business venture, account are good business practices.
many pitfalls. including a franchise. Also remember, if you have
• Is your drive strong enough? Visit www.sba.gov/franchise for more employees you are responsible for
Running a business can wear you information. withholding income and social-
down emotionally. Some business security taxes, and for complying with
owners burn out quickly from having minimum wage and employee health
to carry all the responsibility for the and safety laws.
success of their business on their
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 13
WRITING A BUSINESS PLAN
After you’ve thought about what
type of business you want, the
next step is to develop a business
plan. Think of the business plan
as a roadmap with milestones
for the business. It begins as a
pre-assessment tool to determine
profitability and market share, then
expands as an in-business assessment
tool to determine success, obtain
financing and determine repayment
ability, among other factors.
Creating a comprehensive business
plan can be a long process, and you
need good advice. The SBA and its
resource partners, including Small
Business Development Centers,
Women’s Business Centers, Veterans
Business Outreach Centers, and
SCORE, have the expertise to help you
craft a winning business plan. SBA
also offers online templates to get you Marketing • Provide projected income statements,
started. • Discuss the products and services and balance sheets for a two-year
In general, a good business plan your company will offer. period.
• Identify customer demand for your • Discuss your break-even point.
contains: • Explain your personal balance sheet
products and services.
Introduction • Identify your market, its size and and method of compensation.
• Give a detailed description of the locations. • Discuss who will maintain your
business and its goals. • Explain how your products and accounting records and how they will
• Discuss ownership of the business services will be advertised and be kept.
and its legal structure. marketed. • Provide “what if” statements
• List the skills and experience you • Explain your pricing strategy. addressing alternative approaches to
bring to the business. potential problems.
• Discuss the advantages you and your Financial Management
business have over competitors. • Develop an expected return on Operations
investment and monthly cash flow for • Explain how the business will be
the first year. managed day-to-day.
• Discuss hiring and personnel
• Discuss insurance, lease or rent
agreements, and issues pertinent to
• Account for the equipment necessary
to produce your goods or services.
• Account for production and delivery
of products and services.
Summarize your business goals
and objectives and express your
commitment to the success of your
business. Once you have completed
your business plan, review it with
a friend or business associate and
professional business counselor
like SCORE, WBC or SBDC
representatives, SBA district office
business development specialists
or veterans business development
Remember, the business plan is a
flexible document that should change
as your business grows.
14 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
Financing Options to Start or Grow Your Business
loan structure, variety of loan proceed
uses, and availability. The program has
broad eligibility requirements and credit
criteria to accommodate a wide range of
The business loans that SBA
guarantees do not come from the
agency, but rather from banks and other
approved lenders. The loans are funded
by these organizations, and they make
the decisions to approve or not approve
the applicants’ requests.
The SBA guaranty reduces the
lender’s risk of borrower non-payment.
If the borrower defaults, the lender
can request SBA to pay the lender that
percentage of the outstanding balance
guaranteed by SBA. This allows the
lender to recover a portion from SBA of
what it lent if the borrower can’t make
the payments. The borrower is still
obligated for the full amount.
To qualify for an SBA loan, a small
business must meet the lender’s
any entrepreneurs need the applicant small business, the lender criteria and the 7(a) requirements. In
financial resources to start and the SBA. SBA guarantees a portion addition, the lender must certify that it
or expand a small business of the loan (except for Microloans). would not provide this loan under the
themselves and must The business should have its business proposed terms and conditions unless
combine what they have plan prepared before it applies for a it can obtain an SBA guaranty. If the
with other sources of financing. These loan. This plan should explain what SBA is going to provide a lender with
sources can include family and friends, resources will be needed to accomplish a guaranty, the applicant must be
venture-capital financing, and business the desired business purpose including eligible and creditworthy and the loan
loans. the associated costs, the applicants’ structured under conditions acceptable
This section of the Small Business contribution, use of loan proceeds, to SBA.
Resource guide discusses SBA’s primary collateral, and, most important, an
business loan and equity financing explanation of how the business will Percentage of Guaranties
programs. These are: the 7(a) Loan be able to repay the loan in a timely and Loan Maximums
Program, the Certified Development manner. The SBA only guarantees a portion of
Company or 504 Loan Program, the The lender will analyze the any particular loan so each loan will also
application to see if it meets the lender’s have an unguaranteed portion, giving
Microloan Program and the Small
criteria and SBA’s requirements. SBA the lender a certain amount of exposure
Business Investment Company
will look to the lender to do much, if not and risk on each loan. The percentage
Program. The distinguishing features
all, of the analysis before it provides SBA guarantees depends on either the
for these programs are the total dollar
its guaranty on the lender’s loan. In dollar amount or the program the lender
amounts that can be borrowed, the type the case of microlenders, SBA loans
of lenders who can provide these loans, uses to obtain its guaranty. For loans of
these intermediaries funds at favorable $150,000 or less the SBA may guaranty
the uses for the loan proceeds, and the rates to re-lend to businesses with
terms placed on the borrower. as much as 85 percent and for loans
financing needs up to $50,000. The over $150,000 the SBA can provide a
Note: The SBA does not offer grants SBA’s business loan programs provide a
to individual business owners to start or guaranty of up to 75 percent.
key source of financing for viable small The maximum 7(a) loan amount
grow a business. businesses that have real potential but is $5 million. (Loans made under
cannot qualify for long-term, stable
SBA BUSINESS LOANS financing.
the SBAExpress program, which is
discussed later in this section, have a 50
If you are contemplating a business percent guaranty.)
loan, familiarize yourself with the
SBA’s business loan programs to see
7(a) LOAN PROGRAM Interest Rates and Fees
The 7(a) Loan program is the SBA’s The actual interest rate for a 7(a)
if they may be a viable option. Keep
primary business loan program. It loan guaranteed by SBA is negotiated
in mind the dollar amount you seek to
is the agency’s most frequently used between the applicant and lender and
borrow and how you want to use the
non-disaster financial assistance subject to SBA maximums. Both fixed
loan proceeds. The three principal
program because of its flexibility in and variable interest rate structures
players in most of these programs are
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 15
What To Take To The Lender are available. The maximum rate is
comprised of two parts, a base rate and
Documentation requirements may For the Standard, Certified and an allowable spread. There are three
vary; contact your lender for the Preferred methods, the applicant acceptable base rates (Wall Street
information you must supply. fills out SBA Form 4, and the lender Journal Prime*, London Interbank One
Common requirements include the completes SBA Form 4-1. When Month Prime plus 3 percent, and an
following: requests for guarantees are processed SBA Peg Rate). Lenders are allowed
• Purpose of the loan using Express or Advantage methods, to add an additional spread to the base
• History of the business the applicant uses more of the regular rate to arrive at the final rate. For
• Financial statements for three years loans with maturities of less than seven
forms of the lender and just has a few
(existing businesses) years, the maximum spread will be no
• Schedule of term debts (existing federal forms to complete. When SBA
more than 2.25 percent. For loans with
businesses) receives a request that is processed maturities of seven years or more, the
• Aging of accounts receivable and through Standard or Certified maximum spread will be 2.75 percent.
payable (existing businesses) Lender Program procedures, it either The spread on loans under $50,000
• Projected opening-day balance sheet reanalyzes or reviews the lender’s
(new businesses) and loans processed through Express
eligibility and credit analysis before procedures may be higher.
• Lease details
• Amount of investment in the business
deciding to approve or reject. For Loans guaranteed by SBA are
by the owner(s) requests processed through Preferred assessed a guaranty fee. This fee is
• Projections of income, expenses and Lender Program or Express programs, based on the loan’s maturity and the
cash flow as well as an explanation of the lender is delegated the authority to dollar amount guaranteed, not the
the assumptions used to develop these make the credit decision without SBA’s total loan amount. The guaranty fee is
projections concurrences, which helps expedite the initially paid by the lender and then
• Personal financial statements on the processing time. passed on to the borrower at closing.
• Resume(s) of the principal owners and In guaranteeing the loan, the SBA The funds to reimburse the lender can
managers. assures the lender that, in the event the be included in the loan proceeds.
borrower does not repay the loan, the On any loan with a maturity of one
How the 7(a) Program Works government will reimburse the lending year or less, the fee is just 0.25 percent
Applicants submit their loan institution for a portion of its loss. By of the guaranteed portion of the loan.
application to a lender for the initial providing this guaranty, the SBA is On loans with maturities of more than
review. The lender will generally able to help tens of thousands of small one year, the normal guaranty fee is 2
review the credit merits of the request businesses every year get financing percent of the SBA guaranteed portion
before deciding if they will make the they might not otherwise obtain. on loans up to $150,000; 3 percent on
loan themselves or if they will need an After SBA approval, the lender loans over $150,000 but not more than
SBA guaranty. If a guaranty is needed, is notified that its loan has been $700,000; and 3.5 percent on loans over
the lender will also review eligibility. $700,000. There is also an additional
guaranteed. The lender then will
The applicant should be prepared to fee of 0.25 percent on any guaranteed
work with the applicant to make sure
complete some additional documents portion over $1 million.
the terms and conditions are met
before the lender sends the request * All references to the prime rate
before closing the loan, disbursing the refer to the base rate in effect on the
for guaranty to the SBA. Applicants funds, and assuming responsibility
who feel they need more help with the first business day of the month the
for collection and general servicing. loan application is received by SBA.
process should contact their local SBA The borrower makes monthly loan
district office or one of SBA’s resource payments directly to the lender. As with
partners for assistance.
7(a) Loan Maturities
any loan, the borrower is responsible for SBA loan programs are generally
There are several ways a lender repaying the full amount of the loan in intended to encourage longer term small
can apply for a 7(a) guaranty from
a timely manner. business financing, but actual loan
SBA. The main differences between
maturities are based on the ability to
these methods are related to the
What the SBA Looks for: repay, the purpose of the loan proceeds
documentation which the lender
• Ability to repay the loan on time from and the useful life of the assets financed.
provides, the amount of review which
the projected operating cash flow; However, maximum loan maturities
SBA conducts, the amount of the loan
• Owners and operators who are of good have been established: 25 years for real
and the lender responsibilities in case
character; estate; up to 10 years for equipment
the loan defaults and the business’
• Feasible business plan; (depending on the useful life of the
assets must be liquidated. The methods
• Management expertise and equipment); and generally up to seven
• Standard 7(a) Guaranty
commitment necessary for success; years for working capital. Short-term
• Certified Lender Program
• Sufficient funds, including the SBA loans and revolving lines of credit are
• Preferred Lender Program
guaranteed loan, to operate the also available through the SBA to help
business on a sound financial basis small businesses meet their short-term
• Rural Lender Advantage
(for new businesses, this includes the and cyclical working capital needs.
• SBA Express
resources to meet start-up expenses
• Patriot Express
and the initial operating phase); Structure
• Export Express
• Adequate equity invested in the Most 7(a) loans are repaid with
• Small Loan Advantage
business; and monthly payments of principal and
• Community Advantage
• Sufficient collateral to secure the loan interest. For fixed-rate loans the
or all available collateral if the loan payments stay the same, whereas
cannot be fully secured.
for variable rate loans the lender can
re-establish the payment amount
16 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
when the interest rates change or at Nature of Business buildings that will be occupied by the
other intervals, as negotiated with The second eligibility factor is based business borrower.
the borrower. Applicants can request on the nature of the business and the Proceeds can also be used to:
that the lender establish the loan with process by which it generates income or • Expand or renovate facilities;
interest-only payments during the the customers it serves. The SBA has • Acquire machinery, equipment,
start-up and expansion phases (when general prohibitions against providing furniture, fixtures and leasehold
eligible) to allow the business time to financial assistance to businesses • Finance receivables and augment
generate income before it starts making involved in such activities as lending, working capital;
full loan payments. Balloon payments speculating, passive investment, • Finance seasonal lines of credit;
or call provisions are not allowed on any pyramid sales, loan packaging, • Acquire businesses;
7(a) loan. The lender may not charge a presenting live performances of a • Start up businesses;
prurient sexual nature, businesses • Construct commercial buildings; and
prepayment penalty if the loan is paid • Refinance existing debt under certain
off before maturity, but the SBA will involved in gambling and any illegal conditions.
charge the borrower a prepayment fee activity. SBA 7(a) loan proceeds cannot be used
if the loan has a maturity of 15 or more The SBA also cannot loan guaranties for the purpose of making investments.
years and is pre-paid during the first to non-profit businesses, private clubs SBA proceeds cannot be used to
three years. that limit membership on a basis provide funds to any of the owners
other than capacity, businesses that of the business except for ordinary
Collateral promote a religion, businesses owned by compensation for actual services
The SBA expects every 7(a) loan to individuals incarcerated or on probation provided.
be fully secured, but the SBA will not or parole, municipalities, and situations
decline a request to guaranty a loan if where the business or its owners
the only unfavorable factor is insufficient Miscellaneous Factors
previously failed to repay a federal loan The fourth factor involves a variety
collateral, provided all available or federally assisted financing.
collateral is offered. What these two of requirements such as SBA’s credit
policies mean is that every SBA loan elsewhere test and utilization of
is to be secured by all available assets Use of Proceeds personal assets requirements, where the
(both business and personal) until the The third eligibility factor is use of business and its principal owners must
recovery value equals the loan amount proceeds. 7(a) proceeds can be used use their own resources before getting a
or until all assets have been pledged to: purchase machinery; equipment; loan guaranteed by SBA. It also includes
to the extent that they are reasonably fixtures; supplies; make leasehold SBA’s anti-discrimination rules and
available. Personal guaranties are improvements; as well as land and/or limitations on lending to agricultural
required from all the principal owners of
the business. Liens on personal assets of
the principals may be required.
7(a) loan eligibility is based on four
different factors. The first is size, as
all loan recipients must be classified as
“small” by SBA. The basic size standards
are outlined below. A more in-depth
listing of standards can be found at
SBA Size Standards have the following
• Manufacturing — from 500 to 1,500
• Wholesale Trades — Up to 100
• Services — $2 million to $35.5 million
in average annual receipts
• Retail Trades — $7 million to $35.5
million in average annual receipts
• Construction — $7 million to $33.5
million in average annual receipts
• Agriculture, Forestry, Fishing, and
Hunting — $750,000 to $17.5 million
in average annual receipts
There is an alternate size standard
for businesses that do not qualify under
their industry size standards for SBA
funding – tangible net worth
($15 million or less) and average net
income ($5 million or less for two
years). This new alternate makes
more businesses eligible for SBA loans
and applies to SBA non-disaster loan
programs, namely its 7(a) Business
Loans and Development Company
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 17
enterprises because there are other • Active-duty servicemembers eligible local communities, particularly those
agencies of the federal government with for the military’s Transition Assistance facing the challenges of population
programs to fund such businesses. Program; loss, economic dislocation, and high
Generally, SBA loans must meet the • Reservists and National Guard
unemployment. Visit www.sba.gov/
following criteria: members;
• Every loan must be for a sound • Current spouses of any of the above, content/rural-business-loans for more
business purpose; including any servicemember; information.
• There must be sufficient invested • The widowed spouse of a servicemember
equity in the business so it can operate or veteran who died during service or of Advantage Loans
on a sound financial basis; a service-connected disability. In early 2011, SBA rolled out two
• There must be a potential for long- Advantage loan initiatives aimed
term success; The Patriot Express loan is offered
• The owners must be of good character by SBA’s nationwide network of at helping entrepreneurs and small
and reputation; and business owners in underserved
private lenders and features the fastest
• All loans must be so sound as to communities gain access to capital.
reasonably assure repayment. turnaround time for loan approvals. Both offer a streamlined loan application
For more information, go to Loans are available up to $500,000 and process and the regular 7(a) loan
www.sba.gov/apply. qualify for SBA’s maximum guaranty of guarantee for loans under $250,000.
85 percent for loans of $150,000 or less The Small Loan Advantage program
and 75 percent for loans over $150,000 is available to lenders participating in
up to $500,000. For loans above the Preferred Lenders Program. SBA
7(a) LOAN PROGRAMS $350,000, lenders are required to either lenders who are not participating in the
The 7(a) program is the most flexible obtain all collateral or enough collateral Preferred Lenders Program can contact
so the value is equal to the loan amount, their local district office to apply.
of SBA’s lending programs. The agency
The Community Advantage pilot
has created several variations to the whichever comes first.
program opens up 7(a) lending to
basic 7(a) program to address the The Patriot Express loan can mission-focused, community-based
particular financing need of certain be used for most business purposes, lenders – such as Community
small businesses. These special purpose including start-up, expansion, Development Financial Institutions
programs are not necessarily for all equipment purchases, working capital, (CDFIs), Certified Development
businesses but may be very useful and inventory or business-occupied real- Companies (CDCs), and microlenders
to some small businesses. They are estate purchases. – who provide technical assistance
generally governed by the same rules, Patriot Express loans feature SBA’s and economic development support in
regulations, fees, interest rates, etc. as lowest interest rates for business loans, underserved markets.
the regular 7(a) loan guaranty. Lenders generally 2.25 percent to 4.75 percent More information on both programs is
can advise you of any variations. over prime depending upon the size available at www.sba.gov/advantage.
and maturity of the loan. Your local
SBAExpress SBA district office will have a listing of
The SBAExpress guaranty is available The CAPLines program is designed
Patriot Express lenders in your area. to help small businesses meet their
to lenders as a way to obtain a guaranty
on smaller loans up to $350,000. More information is available at short-term and cyclical working capital
The program authorizes selected, www.sba.gov/patriotexpress. needs. The programs can be used to
experienced lenders to use mostly their Self-employed Reserve or Guard finance seasonal working capital needs;
own forms, analysis and procedures members with an existing SBA loan can finance the direct costs of performing
to process, service and liquidate SBA- request from their SBA lender or SBA certain construction, service and supply
guaranteed loans. The SBA guarantees district office, loan payment deferrals, contracts, subcontracts, or purchase
up to 50 percent of an SBAExpress loan. interest rate reductions and other relief orders; finance the direct cost associated
Loans under $25,000 do not require after they receive their activation orders. with commercial and residential
construction; or provide general working
collateral. The use of loan proceeds is The SBA also offers special low-interest-
capital lines of credit. SBA provides up
the same as for any basic 7(a) loan. Like rate financing of up to $2 million when to an 85 percent guarantee. There are
most 7(a) loans, maturities are usually an owner or essential employee is called four distinct loan programs under the
five to seven years for working capital to active duty through the Military CAPLine umbrella:
and up to 25 years for real estate or Reservist Economic Injury Disaster • The Contract Loan Program is used
equipment. Revolving lines of credit are Loan program (MREIDL) to help cover to finance the cost associated with
allowed for a maximum of seven years. operating costs due to the loss of an contracts, subcontracts, or purchase
orders. Proceeds can be disbursed
essential employee called to active duty.
before the work begins. If used for one
Patriot Express and Other contract or subcontract, it is generally
Lending Programs For Veterans Rural Lender Advantage not revolving; if used for more than
The Patriot Express pilot loan The Small/Rural Lender Advantage one contract or subcontract at a time,
initiative is for veterans and members (S/RLA) initiative is designed to it can be revolving. The loan maturity
of the military community wanting to accommodate the unique loan processing is usually based on the length of the
establish or expand a small business. needs of small community/rural-based contract, but no more than ten years.
lenders by simplifying and streamlining Contract payments are generally sent
Eligible military community members
directly to the lender but alternative
include: loan application process and procedures, structures are available.
• Veterans; particularly for smaller SBA loans. It • The Seasonal Line of Credit Program
• Service-disabled veterans; is part of a broader SBA initiative to is used to support buildup of inventory,
promote the economic development of accounts receivable or labor and
18 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
materials above normal usage for the guaranteed portion of other SBA • Maturities of up to 25 years are
seasonal inventory. The business loans outstanding to the borrower. The available for real estate.
must have been in business for a maximum guaranty for any working • Loans with a mixed use of fixed-asset
period of 12 months and must have a capital component of an ITL is $4 and working-capital financing will have
definite established seasonal pattern. million. Additionally, any other working a blended-average maturity.
The loan may be used over again
capital SBA loans the borrower has are
after a “clean-up” period of 30 days Interest Rates
to finance activity for a new season.
counted against the $4 million guaranty
limit. Lenders may charge between 2.25
These also may have a maturity of up
to 2.75 percent above the prime rate (as
to five years. The business may not
have another seasonal line of credit Use of Proceeds published in the Wall Street Journal)
outstanding but may have other lines • For the facilities and equipment portion depending upon the maturity of the
for non-seasonal working capital needs. of the loan, proceeds may be used to loan. Interest rates on loans of $50,000
• The Builders Line Program provides acquire, construct, renovate, modernize, and less can be slightly higher.
financing for small contractors or improve or expand facilities or equipment
developers to construct or rehabilitate in the U.S. to produce goods or services Exporter Eligibility
residential or commercial property. involved in international trade. • Applicants must meet the same
Loan maturity is generally three • Working capital is an allowable use of eligibility requirements as for the SBA’s
years but can be extended up to proceeds under the ITL. standard 7(a) Loan Program.
five years, if necessary, to facilitate • Proceeds may be used for the refinancing • Applicants must also establish that
sale of the property. Proceeds are of debt structured with unreasonable the loan will allow the business to
used solely for direct expenses of terms and conditions, including any debt expand or develop an export market or,
acquisition, immediate construction that qualifies for refinancing under the demonstrate that the business has been
and/or significant rehabilitation standard SBA 7(a) Loan Program. adversely affected by import competition
of the residential or commercial and that the ITL will allow the business
to improve its competitive position.
structures. The purchase of the land Loan Term
can be included if it does not exceed 20 • Maturities on the working capital
percent of the loan proceeds. Up to 5 portion of the ITL are typically limited
Foreign Buyer Eligibility
percent of the proceeds can be used for to 10 years. Foreign buyers must be located in
physical improvements that benefit the • Maturities of up to 10 years on those countries wherein the Export-
property. equipment unless the useful life exceeds Import Bank of the U.S. is not
• The Working Capital Line is 10 years. prohibited from providing financial
a revolving line of credit (up to assistance.
$5,000,000) that provides short term
working capital. These lines are
generally used by businesses that
provide credit to their customers.
Disbursements are generally
based on the size of a borrower’s
accounts receivable and/or inventory.
Repayment comes from the collection
of accounts receivable or sale of
inventory. The specific structure is
negotiated with the lender. There may
be extra servicing and monitoring of
the collateral for which the lender can
charge up to two percent annually to
International Trade Loan Program
The SBA’s International Trade Loan
(ITL) provides small businesses with
enhanced export financing options for
their export transactions. It is designed
to help small businesses enter and
expand into international markets
and, when adversely affected by import
competition, make the investments
necessary to better compete. The ITL
offers a combination of fixed asset,
working capital financing and debt
refinancing with the SBA’s maximum
guaranty--- 90 percent --- on the total
loan amount. The maximum loan
amount is $5 million in total financing.
The SBA can guaranty up to 90
percent of an ITL up to a maximum
of $4.5 million, less the amount of
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 19
• Only collateral located in the
U.S. (including its territories and
possessions) is acceptable.
• First lien on property or equipment
financed by the ITL or on other assets
of the business is required. However,
an ITL can be secured by a second lien
position if the SBA determines there is
adequate assurance of loan payment.
• Additional collateral, including
personal guaranties and those assets
not financed with ITL proceeds, may
How to Apply
• A small business seeking an ITL must
apply to an SBA-participating lender.
The lender will submit a completed
Application for Business Loan (SBA
Form 4), including all exhibits, to the
SBA. Visit www.sba.gov to find your
local SBA district office for a list of Ineligible Use of Proceeds flexibility in negotiating export payment
participating lenders. Proceeds may not be used to finance terms — secure in the assurance that
• A small business exporter wanting to overseas operations other than those adequate financing will be in place when
qualify as adversely impacted from strictly associated with the marketing the export order is won.
import competition must submit
and/or distribution of products/services
supporting documentation that explains Benefits of the EWCP
that impact, and a plan with projections
exported from the U.S.
• Financing for suppliers, inventory or
that explains how the loan will improve production of export goods.
the business’ competitive position. • Export working capital during long
Any business that has been in
operation, although not necessarily in
Export Express exporting, for at least 12 full months and
• Financing for stand-by letters of credit
SBA Export Express offers flexibility used as bid or performance bonds or
can demonstrate that the loan proceeds down payment guarantees.
and ease of use to both borrowers and
lenders. It is the simplest export loan will support its export activity is eligible • Reserves domestic working capital for
product offered by the SBA and allows for Export Express. the company’s sales within the U.S.
participating lenders to use their own • Permits increased global competitiveness
forms, procedures and analyses. The Foreign Buyer Eligibility by allowing the exporter to extend more
The exporter’s foreign buyer must be liberal sales terms.
SBA provides the lender with a response
a creditworthy entity and the methods of • Increases sales prospects in under-
within 36 hours. developed markets which have high
This loan is subject to the same payment must be acceptable to the SBA
capital costs for importers.
loan processing, closing, servicing and and the SBA lender.
• Low fees and quick processing times.
liquidation requirements as well as the
same maturity terms, interest rates and How to Apply
Interested businesses should contact Guaranty Coverage
applicable fees as for other SBA loans • Maximum loan amount is $5,000,000.
(except as noted below). their existing lender to determine if they • 90 percent of principal and accrued
are an SBA Express lender. Lenders interest up to 120 days.
Guaranty Coverage that participate in SBA’s Express • Low guaranty fee of one-quarter of one
The SBA provides lenders with a program are also able to make Export percent of the guaranteed portion for
90 percent guaranty on loans up to Express loans. Application is made loans with maturities of 12 months or
$350,000 and a 75 percent guaranty directly to the lender. Lenders use their less.
on loans more than $350,000 up to the own application material in addition • Loan maturities are generally for 12
maximum of $500,000. to SBA’s Borrower Information Form. months or less.
Lenders’ approved requests are then
Use of Proceeds submitted with a limited amount of Use of Proceeds
Loan proceeds may be used for eligibility information to SBA’s National • To pay for the manufacturing costs of
business purposes that will enhance a goods for export.
Loan Processing Center for review.
company’s export development. Export • To purchase goods or services for export.
Express can take the form of a term • To support standby letters of credit to
Export Working Capital Program act as bid or performance bonds.
loan or a revolving line of credit. As The SBA’s Export Working Capital
an example, proceeds can be used to • To finance foreign accounts receivable.
Program (EWCP) assists lenders in
fund participation in a foreign trade
meeting the needs of exporters seeking Interest Rates
show, finance standby letters of credit,
short-term export working capital. The SBA does not establish or
translate product literature for use in
foreign markets, finance specific export Exporters can apply for EWCP loans subsidize interest rates on loans. The
orders, as well as to finance expansions, in advance of finalizing an export sale interest rate can be fixed or variable and
equipment purchases, and inventory or or contract. With an approved EWCP is negotiated between the borrower and
real estate acquisitions, etc. loan in place, exporters have greater
the participating lender.
20 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
Advance Rates rate, subordinate mortgage financing Recent additions to the program allow
• Up to 90 percent on purchase orders. for acquisition and/or renovation of $5.5 million for each project that reduces
• Up to 90 percent on documentary letters capital assets including land, buildings the borrower’s energy consumption by
of credit. and equipment. Some refinancing is at least 10 percent; and $5.5 million for
• Up to 90 percent on foreign accounts also permitted. Most for-profit small each project that generates renewable
receivable. businesses are eligible for this program.
• Up to 75 percent on eligible foreign energy fuels, such as biodiesel or ethanol
The types of businesses excluded from
inventory located within the U.S. production. Projects eligible for up to
7(a) loans (listed previously) are also
• In all cases, not to exceed the exporter’s $5.5 million under one of these two
excluded from the 504 loan program.
Loans are provided through Certified requirements do not have to meet the
Development Companies. CDCs work job creation or retention requirement, so
Collateral Requirements with banks and other lenders to make long as the CDC portfolio average is at
The export-related inventory and the loans in first position on reasonable least $65,000.
receivables generated by the export terms, helping lenders retain growing • Eligible project costs are limited
sales financed with EWCP funds will customers and provide Community to long-term, fixed assets such as
be considered adequate collateral. The Redevelopment Act credit. land and building (occupied by the
SBA requires the personal guarantee borrower) and substantial machinery
The SBA 504 loan is distinguished
of owners with 20 percent or more and equipment. Working capital is not
from the SBA 7(a) loan program in these
ownership. an eligible use of proceeds, except in a
ways: temporary program which is scheduled
The maximum debenture, or long-term to expire on September 27, 2012.
How to apply loan, is: • Most borrowers are required to make
Application is made directly to SBA- • $5 million for businesses that create a an injection (borrower contribution)
participating lenders. Businesses are certain number of jobs or improve the of just 10 percent which allows
encouraged to contact SBA staff at their local economy; the business to conserve valuable
local U.S. Export Assistance Center • $5 million for businesses that meet a operating capital. A further injection
(USEAC) to discuss whether they are specific public policy goal, including of 5 percent is needed if the business
eligible for the EWCP and whether it is veterans; and is a start-up or new (less than 2
the appropriate tool to meet their export • $5.5 million for manufacturers and years old), and a further injection of 5
financing needs. Participating lenders energy public policy projects. percent is also required if the primary
collateral will be a single purpose
review/approve the application and building (such as a hotel).
submit the request to SBA staff at the
U.S. Export Assistance Center
There are 20 U.S. Export Assistance
Centers located throughout the
U.S. They are staffed by SBA, U.S.
Department of Commerce and Export-
Import Bank of the U.S. personnel,
and provide trade promotion and
export-finance assistance in a single
location. The USEACs also work closely
with other federal, state and local
international trade organizations to
provide assistance to small businesses.
To find your nearest USEAC, visit:
centers. You can find additional export
training and counseling opportunities by
contacting your local SBA office.
521 E. Morehead St., Ste. 435
Charlotte, NC 28202
COMPANY LOAN PROGRAM
The 504 Loan program is an economic
development program that supports
American small business growth and
helps communities through business
expansion and job creation. This SBA
program provides long-term, fixed-
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 21
• Two-tiered project financing: A lender Neuse River Development Authority between the borrower and the
finances approximately 50 percent of Guy Williams intermediary. The maximum term for a
the project cost and receives a first P.O. Box 1111
lien on the project assets (but no SBA
microloan is 7 years.
New Bern, NC 28563
guaranty); A CDC (backed by a 100 The program also provides business-
percent SBA-guaranteed debenture) firstname.lastname@example.org based training and technical assistance
finances up to 40 percent of the project www.nrda.org to microborrowers and potential
costs secured with a junior lien. The microborrowers to help them be
borrower provides the balance of the Piedmont Triad Regional Council
project costs. successful at starting or growing their
Charles Malone businesses. Such training and technical
• Fixed interest rate on SBA loan. SBA
400 W. Fourth St., Ste. 400
guarantees the debenture 100 percent.
Winston-Salem, NC 27101 assistance may include general business
Debentures are sold in pools monthly education, assistance with business
to private investors. This low, fixed 336-761-2111 ext. 3158
rate is then passed on to the borrower email@example.com planning industry-specific training,
and establishes the basis for the loan www.ptrc.org and other types of training support.
rate. Entrepreneurs and small business
• All project-related costs can be Region D Development Corporation owners interested in small amounts
financed, including acquisition (land Phil Trew
468 New Market Blvd. of business financing should contact
and building, land and construction of
building, renovations, machinery and Boone, NC 28607 the nearest SBA District Office for
equipment) and soft costs, such as title 828-265-5434 ext. 121 information about the nearest Microloan
insurance and appraisals. Some closing firstname.lastname@example.org Program Intermediary Lender or go to
costs may be financed. www.regiond.org www.sba.gov/microloans.
• Collateral is typically a subordinate
lien on the assets financed; allows Self-Help Ventures Fund W.A.M.Y. Community Action Inc.
other assets to be free of liens and Charles Cleary
225 Birch St., Ste. 2
available to secure other needed 301 W. Main St./P.O. Box 3619
Boone, NC 28607
financing. Durham, NC 27701
• Long-term real estate loans are up to
828-264-2421 • 828-264-0952 Fax
919-956-4400 or 704-409-5915
20-year term, heavy equipment 10- or email@example.com
20-year term and are self-amortizing. Area: Avery, Mitchell, Watauga and Yancey
Businesses that receive 504 loans are:
• Small — net worth under $15 million, Smoky Mountain Development Self-Help
net profit after taxes under $5 million, or Corporation 301 W. Main St.
meet other SBA size standards. Allan Steinberg Durham, NC 27701
• Organized for-profit. 144 Industrial Park Dr. 800-476-7428 • 919-956-4600 Fax
• Most types of business — retail, service, Waynesville, NC 28786 Statewide Service
wholesale or manufacturing. 828-452-1967
The SBA’s 504 certified development firstname.lastname@example.org Mountain BizCapital
companies serve their communities by www.smdcnc.org 153 South Lexington Ave.
financing business expansion needs. Asheville, NC 28801
Wilmington Industrial Development 828-253-2834 • 828-255-7953 Fax
Their professional staffs work directly Corporation Area: Western North Carolina
with borrowers to tailor a financing Susie Parker
package that meets program guidelines
P.O. Box 1698
and the credit capacity of the borrower’s Wilmington, NC 28402
business. For information, visit 910-763-8414
Avista Business Development Corporation
P.O. Box 7032
MICROLOAN PROGRAM There are a variety of alternatives to
bank financing for small businesses. The
Asheville, NC 28802 The Microloan program provides Small Business Investment Company
828-645-0439 small loans ranging from under $500 (SBIC) program fills the gap between
email@example.com to $50,000 to women, low-income, what owners can fund directly and the
minority, veteran, and other small needs of the small business for growth
Sheldon Hilaire business owners through a network capital. Licensed and regulated by the
5970 Fairview Rd., Ste. 218 of approximately 160 intermediaries SBA, SBICs are privately owned and
Charlotte, NC 28210 nationwide. Under this program, the managed investment funds that make
704-414-3000 SBA makes funds available to nonprofit capital available to qualifying U.S. small
firstname.lastname@example.org intermediaries that, in turn, make the businesses. The funds raise private
small loans directly to entrepreneurs, capital and can receive SBA-guaranteed
Centralina Development Corporation including veterans. Proceeds can be leverage up to 3x private capital, with
Richard Vitolo used for typical business purposes such a leverage ceiling of $150 million per
P.O. Box 34218 as working capital, or the purchase of SBIC and $225 million for two or more
Charlotte, NC 28234 furniture, fixtures, machinery, supplies, licenses under common control. Licensed
704-373-1233 SBICs are for-profit investment firms
equipment, and inventory. Microloans
email@example.com whose incentive is to share in the
www.centralinacapital.com may not be used for the purchase of real
estate. Interest rates are negotiated success of a small business. The SBIC
22 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
program provides funding for a broad encourages commercialization of the small businesses through the SBIR
range of industries. Some SBICs invest technology, product or service. In turn, program: Departments of Agriculture;
in a particular field or industry while this stimulates the U.S. economy. Commerce; Defense; Education; Energy;
others invest more generally. For more Health and Human Services; Homeland
information, visit www.sba.gov/inv. SBIR Requirements Security; Transportation; Environmental
Small businesses must meet the
following eligibility criteria to participate Protection Agency; National Aeronautics
BancAmerica Capital Investors SBIC, L.P. and Space Administration; and National
NC1-007-25-02 in the SBIR program.
150 N. College St., Ste. 2500 • Be 51 percent owned and controlled by Science Foundation.
Charlotte, NC 28255 one or more individuals who are U.S.
704-944-0966 • 704-944-0973 Fax citizens or permanent resident aliens
in the U.S. or be a for-profit business
BancBoston Ventures, Incorporated concern that is at least 51 percent
owned and controlled by another TECHNOLOGY TRANSFER
Bank of America Corporate Center
for-profit business concern that is at
NC1-007-22-32 least 51 percent owned and controlled
100 N. Tryon St. by one or more individuals who are The Small Business Technology
Charlotte NC 28255 citizens of, or permanent resident
704-683-5741 • 704-388-2746 Fax Transfer (STTR) program reserves
aliens in, the U.S.
• Be for-profit.
a specific percentage of federal R&D
BB&T Capital Partners, LLC • Principal researcher must be employed funding for award to small business and
101 N. Cherry St., Ste. 700 by the small business. non-profit research institution partners.
Winston-Salem, NC 27101 • Company size cannot exceed 500 Central to the program is expansion of
336-733-0355 • 336-733-0349 Fax employees. the public/private sector partnership to
For more information on the SBIR include the joint venture opportunities
CapitalSouth Partners Fund, L.P. program visit www.sba.gov/sbir.
4201 Contress St., Ste. 360 for small business and the nation’s
Charlotte, NC 28209 premier nonprofit research institutions.
704-376-5502 • 704-376-5877 Fax Participating Agencies
Small business has long been where
Each year, the following eleven
Frontier Fund, L.P. innovation and innovators thrive, but
federal departments and agencies are
1111 Metropolitan Ave., Ste. 1050 the risk and expense of conducting
required to reserve 2.5 percent of their
Charlotte, NC 28204 serious R&D efforts can be beyond
extramural R&D funds for award to
704-414-2880 • 704-414-2881 Fax
Economic Opportunities Fund
4101 Lake Boone Tr.
Raleigh, NC 27607
919-256-5007 • 919-256-5015 Fax
Plexus Fund, L.P.
200 Providence Rd., Ste. 210
Charlotte, NC 28207
704-927-6246 • 704-927-6255 Fax
Salem Halifax Capital Partners, L.P.
112 Cambridge Plaza Dr., Ste. 201
Winston-Salem, NC 27104
336-768-9343 • 336-768-6471 Fax
Triangle Mezzanine Fund LLLP
3700 Glenwood Ave., Ste. 530
Raleigh, NC 27612
919-719-4788 • 919-719-4777 Fax
The Small Business Innovation
Research (SBIR) program encourages
small businesses to advance their
technical potential from funds
committed by federal agencies with large
extramural research and development
budgets. The SBIR program serves
to fund the critical startup and
development stages for a technology and
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 23
the means of many small businesses.
Non-profit research laboratories
SURETY BOND CB Insurance, LLC
(Licensed in NC)
are also instrumental in developing GUARANTEE PROGRAM 1 S. Nevada Ave., Ste. 105
Colorado Springs, CO 80903
high-tech innovations, but frequently The Surety Bond Guarantee program 719-477-4278 • 719-228-1071 Fax
innovation is confined to the theoretical. is a public-private partnership between Jason.yezek@centralbancorp,com
STTR combines the strengths of both the federal government and surety
entities by introducing entrepreneurial companies to provide small businesses CBIC - Charlotte, NC
skills to high-tech research efforts. 706-1 Northeast Dr.
with the bonding assistance necessary Davidson, NC 28036
The technologies and products are for them to compete for public and 704-655-9114 • 704-655-9313 Fax
transferred from the laboratory to the private contracting and subcontracting Terryt@cbic.com
marketplace. The small business profits opportunities. The guarantee provides
from the commercialization, which, in all incentive for sureties to bond small
Construction Bonds Inc.
turn, stimulates the U.S. economy. (Licensed In NC)
businesses that would otherwise be 1110 Herndon Pkwy., Ste. 307
unable to obtain bonding. The program Herndon, VA 20170
STTR Requirements is aimed at small businesses that lack 703-934-1000 • 703-934-1009 Fax
Small businesses must meet the the working capital or performance firstname.lastname@example.org
following eligibility criteria to participate track record necessary to secure bonding
in the STTR program. Creative Insurance Concepts, Inc.
on a reasonable basis through regular (Licensed In NC)
• Be 51 percent owned and controlled by
one or more individuals who are U.S.
commercial channels. 7206 Hull Street Rd., Ste. 200
citizens or permanent resident aliens Through this program, the SBA Richmond, VA 23235
in the U.S. guarantees bid, payment, performance 804-674-8330 • 800-594-4522 Fax
• Be for-profit. and ancillary bonds issued by surety email@example.com
• Principal researcher need not be companies for individual contracts and Delmarva Surety Associates, Inc.
employed by the small business. subcontracts up to $2 million. The (Licensed In NC)
• Company size cannot exceed 500 2345 York Rd., Ste. 302
SBA reimburses sureties between 70
employees. (No size limit for nonprofit Timonium, MD 21093
research institution). and 90 percent of losses sustained if a
410-561-3593 • 410-561-3727 Fax
The nonprofit research institution contractor defaults on the contract.
partner must also meet certain The SBA has two program options
eligibility criteria: available, the Prior Approval Program Edwards, Church & Muse, Inc.
• Be located in the United States (Plan A) and the Preferred Surety Bond 4000 Park Rd.
and be one of the following: Program (Plan B). In the Prior Approval Charlotte, NC 28209
• Nonprofit college or university. 704-227-3131 • 704-227-1356 Fax
Program, SBA guarantees 90 percent firstname.lastname@example.org
• Domestic nonprofit research of surety’s paid losses and expenses on
• Federally funded R&D center. bonded contracts up to $100,000, and on Freedom Bonding, Inc.
bonded contracts greater than $100,000 (Licensed In NC)
that are awarded to socially and 5420 Klee Mill Rd., Ste. 2
Participating Agencies Sykesville, MD 21784
Each year the following five Federal economically disadvantaged concerns, 410-922-2221 • 410-922-9992 Fax
departments and agencies are required HUBZone contractors, and veterans, and email@example.com
by STTR to reserve 0.3 percent of their service-disabled veteran owned small
extramural R&D funds for award to businesses. All other bonds guaranteed Insurance Source, Inc.
(Licensed In NC)
small business/nonprofit research in the Plan A Program receive an 80
4111 Telegraph Rd.
institution partnerships: Department percent guarantee. Sureties must obtain St. Louis, MO 63129
of Defense; Department of Energy; SBA’s prior approval for each bond 314-416-2602 • 314-416-1011 Fax
Department of Health and Human guarantee issued. Under Plan B, SBA firstname.lastname@example.org
Services; National Aeronautics and guarantees 70 percent, but sureties may
The Surety Group Agency, LLC
Space Administration; and National issue, monitor and service bonds without (Licensed In NC)
Science Foundation. SBA’s prior approval. 1900 Emery St., Ste. 120
Atlanta, GA 30318
Barbour Group, LLC 404-352-8211 • 404-351-3237 Fax
(Licensed In NC) email@example.com
20 Liberty St., Ste. 2D
Westminster, MD 21157 Viking Bond Service, Inc.
410-876-9610 • 410-876-9954 Fax (Licensed In NC)
firstname.lastname@example.org 22601 North 19th Ave., Ste. 210
Phoenix, AZ 85027
Blair Insurance Services, Inc. 623-933-9334 • 623-933-9376 Fax
(Licensed in NC) email@example.com
1201 Logan Blvd.
Altoona, PA 16602 Wells Fargo Insurance Services USA, Inc.
814-946-9486 • 888-553-0057 Fax (Licensed In NC)
firstname.lastname@example.org 5755 Mark Dabling Blvd., Ste. 300
Colorado Springs, CO 80919
719-592-1177 • 719-592-0799 Fax
24 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
U.S. Small Business Administration Loan Programs, Page A
Information accurate as of 2/23/2012 • All SBA programs and services are provided on a nondiscriminatory basis.
7(a) Loan Program
Program Maximum Use of Maturity Maximum Structure Who Qualifies Benefit to
Amount Proceeds Interest Rate Borrowers
Standard 7(a): $5 million to any Expansion/renovation; Depends on use of SBA sets a Must be for-profit
Term loan with one Business able to
Applicant applies one business, new construction, proceeds and ability maximum rate and meet SBA size
payment of principal obtain financing which
for business loan including affiliates purchase land or to repay. Generally for both variable standards; show
and interest (P&I) otherwise would not be
to lender; Lender buildings; purchase working capital and and fixed rates good character,
each month. Interest provided due to term,
applies to SBA equipment, fixtures, machinery & loans (discuss variable or fixedcredit, management, collateral, equity, and/or
for guaranty of lease-hold improve- equipment loans with lender or and ability to repay;
as negotiated with time in business. Fixed
their proposed ments; working capital; have 5-10 years; must be an eligible maturity; No balloons;
local SBA District lender. Cannot betype of business, No prepayment penalty
loan if they inventory, business real estate is up Office for current revolving. SBA use proceeds for if maturity under 15
determine it is acquisition, startups to 25 years. Term information). charges a Guaranty
eligible purpose, and years. Establish or
necessary. Loan and refinancing under negotiated with Fee ** demonstrate that re-affirm business
from lender, not certain conditions lender. credit is not otherwise relationship with a
SBA. (discuss with lender). available. lender.
International Same as Acquire, renovate, Same as Same as Same as Standard Same as Standard Same as Standard
Trade: Long term Standard 7(a). modernize facilities Standard 7(a). Standard 7(a). 7(a). Maximum SBA 7(a) plus businesses 7(a) plus long-term
financing to help or equipment used in guaranty amount for must be engaged or financing for fixed
businesses making products or working capital is $4 preparing to engage assets used
engaged in services to be exported, million. in international to produce products
exporting or plus permanent working trade or adversely or services for export.
adversely capital and refinance affected by
impacted by debt not structured with competition from
imports. reasonable terms. imports.
Export Working Same as Short-term, Generally one year, Established Short term revolving Same as Standard Same as Standard
Capital Program: Standard 7(a). working-capital for but can be up to by lender. No line of credit based 7(a) plus must 7(a) plus provides
Single transaction exporters. Can be 3 years to match SBA established on borrowing have been in working capital to
base or export American Exporters
or Revolving single transaction or a single transaction maximums. business for at to perform on export
Working Capital revolving. Standby cycle. purchase orders. least one year and
Monthly interest transactions and/
lines of credit for Letters of Credit for payments; principal preparing to engage or finance export
exporters. export purposes. payments based on in or increase receivables. Ability
collection of foreign international trade. to financing standby
letters of credit for
receivables. export purposes.
CAPLines: Same as Finances: seasonal Up to 10 years. Same as Revolving line of Same as Standard Same as Standard 7(a)
Four different Standard 7(a). working capital needs, Standard 7(a). credit with monthly 7(a) plus a plus provides revolving
Revolving Lines direct cost to interest and business that needs working capital not
of Credit, perform assignable principal payments the specialized to perform on an
a/k/a Seasonal, contracts, construction based on when the proceeds this assignable contract, to
Contract Builders, costs of structure for business receives program offers. cover seasonal needs,
Working Capital resale, or advances the cash for doing to build or renovate
against existing the activity the loan personal or commercial
inventory and proceeds financed. space, and to obtain
funds against existing
receivables. current assets. Also
structured to meet
SBAExpress: $350,000. Same as a Standard Same as Standard Loans $50,000 Same as Standard Same as Same as Standard
Lender approves 7(a) or may be used 7(a) for term loans, or less: 7(a) except lender Standard 7(a). 7(a) plus Streamlined
Prime + 6.5%. process; Easy-to-use
the loan. for a revolving working Revolving lines of has more leeway to line of credit and allows
capital line of credit. credit up to 7 years. Loans over structure repayment for a revolving feature
$50,000: under their own which Standard 7(a)
Prime + 4.5%. rules. does not.
Small Loan $250,000. Same as Same as Loans up to Same as Underserved Stream-lined application
Advantage: Standard 7(a). Standard 7(a). $150,000: 85% Standard 7(a). markets.
lower-dollar Loans above
loans to under- $150,000: 75%
Rural Loan $350,000. Same as Same as Loans up to Same as Rural and small Stream-lined application
Advantage: Standard 7(a). Standard 7(a). $150,000: 85% Standard 7(a). community markets
Rural-based or Loans above impacted by
small community $150,000: 75% population loss,
lender high unemployment
** The SBA charges the lender a guaranty fee based on the loan’s maturity and the dollar amount which is initially guaranteed.
The lender can pass this expense to the borrower and loan proceeds can be used to reimburse the lender.
The 7(a) Guaranty Fee Reference Chart (on next page) explains the Agency’s guaranty fee charges.
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 25
U.S. Small Business Administration Loan Programs, Page B Information accurate as of 2/23/2012
7(a) Loans, continued
Maximum Use of Maximum Benefit to
Program Amount Proceeds Maturity Interest Rate Structure Who Qualifies Borrowers
Export Express: $500,000. Same as SBA Express Same as Same as Same as Same as SBA Same as SBA
Lender approves plus can be used SBA Express. SBA Express. SBA Express. express plus loan Express plus provides
the loan. for Standby Letters proceeds must be lenders with a higher
of Credit for Export used to support percentage guaranty
Purposes. Debt export development which can encourage
Refinance is not activity. them to make more
allowed. loans to finance export
of small businesses.
of Credit are also
Patriot Express: $500,000. Same as Same as Same as Same as Same as Standard Same as SBA
Lender approves Standard 7(a). Standard 7(a). Standard 7(a). SBA Express. 7(a) plus must be Express plus provides
the loan. owned & controlled lenders with a higher
by one or more of percentage of guaranty
the following groups which can encourage
equaling at least them to make more
51% total ownership: loans to qualified
veteran, active-duty businesses.
or National Guard
member or spouse of
any of these groups,
or widowed spouse
of service member
or veteran who died
during service or of
Community $250,000. Same as Standard 7(a) Same as Same as Allows mission- Loan eligibility Borrowers in
Advantage: except cannot be used Standard 7(a). Standard 7(a) oriented lenders requirements are underserved markets
Alternative to refinance loans except allowable focused on same as for get more choices on
Lenders assisting made by or guaranteed “Spread” is + 4% economic Standard 7(a) loans, the types of lenders
businesses by the Dept. of over the base development but the business who can provide
located in areas Agriculture or loans rate. in underserved should be located them financing if their
with high needs. by SBA Micro-Lenders markets to apply for in an underserved financing needs an
using their SBA 7(a) guaranty on market . SBA guaranty and the
intermediary loan. loan they propose to technical assistance
make to an eligible needs of the applicant
small business. are assessed by the
Non 7(a) Loans
504 Loans: SBA portion up to For the acquisition of Either 10 or 20 year Check with local Financing from For profit businesses Fees under 3 percent;
Fixed Asset $5.0 million. long-term fixed-assets, term on the SBA/ SBA District 1. The CDC that do not exceed long-term fixed rate;
Project Financing refinancing long term CDC portion. Office for current Certified $15.0 million in low down payment;
provided from fixed asset debt under information. Development tangible net worth full amortization; no
three sources. certain conditions, and Company and do not have an balloons.
working capital on a 2. Third Party average net income
limited basis. Lenders over $5 million for the
3. Applicant past 2 years.
Micro-Loans $50,000 total Furniture, fixtures, Shortest term Check with local Loans through Same as 7(a) – plus Direct loans from
to one small supplies, inventory, possible, not to SBA District Office non- profit lending loans can be made nonprofit intermediary
business equipment, and exceed 6 years. for locations of organizations; to non-profit day lenders; Fixed-rate
borrower. working capital. locally available technical assistance care businesses. financing; Very
intermediary also provided. small loan amounts;
lenders and then Technical assistance
check with them. available.
Gross Size of Loan Fees Notes
7(a) Guaranty Loans of $150,000 or less (See Note 1)........................ ........2% of guaranteed portion, Lender is authorized to retain..............Maturities that exceed 12 months
$150,001 to $700,000 ...................................................... ......3% of guaranteed portion.................................................................Maturities that exceed 12 months
Fee Reference $700,001 to $5,000,000 (See Note 2) ............................ ......3.5% of guaranteed portion up to $1,000,000 PLUS 3.75% of.....Maturities that exceed 12 months
Chart the guaranteed portion over $1,000,000
Short Term Loans – up to $5 million ......................................0.25% of the guaranteed portion .....................................................Maturities of 12 months or less
NOTE 1: The guaranty fee on a $100,000 loan with an 85% guaranty would be 2% of $85,000 or $1,700, of which the lender would retain $425.
NOTE 2: The guaranty fee on a $2,000,000 loan with a 75% guaranty ($1.5 million guaranteed portion) would be, 3.5% of $1,000,000 ($35,000) PLUS 3.75% of $500,000 ($18,750), for a total of $53,750.
26 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
TIPS FOR INTERACTING WITH YOUR CUSTOMERS
SOCIAL MEDIA b. Next, make sure your target audience
is on Twitter, Facebook or whatever
AN ESSENTIAL PART OF YOUR social network you are considering,
MARKETING TOOLKIT or you may spend a lot of time on a
channel that won’t reach your target.
You can do this in several ways:
Social media marketing is a great tool • Survey your customers.
for engaging with customers, building • Assess what your competition is
your company’s brand, and increasing doing.
your business reach. However, many • Get involved with social networks
small business owners make the on a personal level by exploring
mistake of using social media tools communities and Facebook fan
such as Twitter and Facebook for
• Research trends in Twitter topics c. Don’t be afraid to Tweet often.
simply pushing their messages out. and try to build a picture of what Anywhere between 5-10 Tweets
They miss a key communications and your target market is doing and a day is your target. Also
marketing opportunity by not listening sharing on social networks. remember to shake your
to or joining in the conversations that message up. As every good
are going on. In other words, they c. And don’t forget that while these tools marketer knows, tone and style
ignore the fundamental point of social are free, your investment in them isn’t. are a huge factor in ensuring
media - being SOCIAL! It takes staff time and resources to use that your message stands
social media successfully. out, resonates, and promotes
Just being on Twitter or Facebook is action. Tweeting is like
not enough. It takes time and effort to 2. Use Twitter to Engage and conversation, putting out static
Entice updates or statements will fall
build a strong social media presence.
on flat ears, but engaging,
When it comes to growing your social teasing, querying, and showing
media presence and seeing a return on a. Instead of simply Tweeting for
Tweeting’s sake, focus on interest will promote action. So
your investment it is easier said than shake your message up, use the
making your Twitter strategy
done. a rich and interactive words your audience uses,
experience. For example, use sprinkle in some hashtags and
Here’s are three hands-on tactics Tweets to start discussions go on and tease a little.
that you can use. on your products, special offers
and events. Engage with So, instead of saying:
1. Determine Where Your followers by responding to
Customers are Online and mentions about your business; • We’re giving away 2 bagels
How you Can Reach Them addressing their questions and for the price of one at
inviting them to check out your BagelFest on Nov 25, 4-8
a. When considering social media as part website and so on. PM <LINK>
of your overall marketing strategy,
always start with asking the most b. You can track mentions of
your company or products
• What is it you want to achieve? in other Tweets using a
Twitter application such as • We know you love them! Get
• Where is your audience and will they
Tweetdeck or Hootsuite. 2 bagels for the price of one
on 11/25. Find out where
3. Use Facebook to its Fullest
As with Twitter, Facebook is a great
way for engaging with people who
like your brand, want to interact
with your business, stay abreast of
latest developments, and take advantage
of giveaways, contests, surveys, etc.
It is also invaluable for brand exposure.
While having a Facebook presence doesn’t
guarantee a huge uptick in visitors
to your website, using it strategically to
link back to online blogs, menus, event or
newsletter registration landing pages and
special offers, can improve site traffic.
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 27
Building on SBA’s Record Year
The SBA actively supports the wide diversity of small on women entrepreneurs, the faith-based community,
businesses that are driving our economy forward in 2012, and veterans. The SBA’s Council on Underserved
from Main Street shops, to high-growth startups, and Communities held its first meeting last summer, and the
everything in between. No matter what your business, council is already developing ideas for how the SBA can
you can get help from the SBA. Whether you are a small expand its reach into these communities.
business owner who has worked with us before or an
entrepreneur who knows nothing about what the agency The Small Business Jobs Act created an independent
has to offer, there’s never been a better time to link up Office of International Trade (OIT) within the SBA
with your local SBA. to support small business exporting. OIT set to work
implementing the State Trade and Export Promotion
Like the tools in this Resource Guide, the SBA’s (STEP) grants – also part of the Small Business Jobs
accomplishments in 2011 reflect the diversity of the small Act – that gave state-based export promotion programs
businesses we serve. $30 million to support small business exporting. For
example, in Idaho, the grants will support a program to
For example, in Fiscal Year 2011, the SBA put a record help a cluster of agricultural equipment manufacturers
amount of SBA loan dollars in the hands of small business find international buyers. In Virginia, the money will go
owners. The agency provided over $30 billion in lending to help advanced manufacturers and IT companies enter
support to over 60,000 small businesses through its top the global supply chain. Meanwhile, North Carolina is
two lending programs – 7(a) and 504. Now, SBA lending using the grant money to connect firms with trade shows,
is back to where it was before the recession. That’s good trade missions, and overseas marketing opportunities and
news for small businesses that need access to capital to to provide translation services for small businesses that
grow and hire new workers. need a website in a different language. Exporting is an
important way for small businesses to expand, and the
For high-growth small businesses looking for investment SBA can help. Look for resources in this guide to learn
capital, the Small Business Investment Company (SBIC) more about how you can sell your product overseas.
program had a record year, as well. SBICs are privately
owned and managed investment funds that use their Finally, the SBA also aids business owners, homeowners
own capital, plus funds borrowed with an SBA guarantee, and other victims of natural disasters. The SBA offers long
to invest in small businesses. The SBA does not invest term, low interest loans to help disaster victims rebuild.
directly into small businesses, but it provides funding to Last year, the Office of Disaster Assistance supported
investment management firms with expertise in certain victims of countless disasters, including Hurricane Irene.
sectors or industries. “In Fiscal Year 2011, the SBA issued The SBA approved over 13,000 disaster loans worth nearly
a record $1.83 billion in new commitments to SBICs. $740 million. Of course, no small business owner wants
SBICs provided $2.83 billion in financing dollars to over to be caught unprepared when disaster strikes. The SBA
1,300 small businesses, helping create or retain over 60,000 can help you get your business ready for whatever comes
jobs —all at zero cost to taxpayers.” your way.
At the same time, more small businesses are competing As you can see from this article and the rest of this
for and winning government contracts. Last year, guide, the SBA has a wide variety of tools no matter
the SBA’s most recent “Score Card” showed that the what your business needs. In the following pages, you
federal government awarded 22.7% of contracts to small can read about how the SBA has helped businesses
businesses in 2010. This is the second year of increase through access to capital, opportunities in government
after four years of decline. While this is good news, contracting, counseling, and more. You can also find
the SBA will not rest until the government meets its contact information for our 68 district offices on the inside
goal of awarding 23% of contracts to small businesses. back cover, where trained professionals can walk you
Government contracts are the oxygen that many small through getting a loan, competing for contracts, or finding
businesses need to survive, and the SBA is committed to a business counselor.
helping more small businesses win more contracts in 2012.
If you don’t find what you’re looking for here, there is
The SBA worked hard last year to put more tools in the even more information on the agency’s newly redesigned
hands of entrepreneurs in underserved markets. For website, www.SBA.gov. While you’re there, check out
example, the Young Entrepreneurs Series visited five cities SBA Direct, which presents a customized list of resources
where young people are starting businesses and creating in your area based on information you enter about your
the jobs of the future. The SBA also held forums focused business.
28 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
Applying for Government Contracts
The U.S. government is the largest The first method, sealed bidding, Some contracts do not fit neatly
single purchaser of goods and services involves issuing an invitation for bid by into these two categories, such as
in the world, buying everything from a procuring agency. Under the sealed time and material contracts (prices for
armored tanks to paper clips. Every bidding method, a contract is awarded to hourly wages are fixed but the hours
year, the federal government awards a responsible bidder who bid, conforming are estimated) and letter contracts
more than $500 billion in contracts, and to the invitation for bids, will be most (authorizes a contractor to begin work
a significant share of those contracts are advantageous to the Government, on an urgent requirement).
specifically allotted to small businesses. considering only price and the price
The Small Business Administration related factors included in the invitation Small Business Set-Asides
works with agencies to award at least for bid. The second method, negotiation, A “set-aside” for small businesses
23 percent of all prime government involves issuing a request for proposal reserves an acquisition exclusively for
contracts to small businesses, with (RFP) or request for quotation (RFQ). small business participation. There
specific statutory goals for small The business with the best proposal in are two ways in which set-asides can
terms of technical content, best value, be determined. First, if an acquisition
disadvantaged businesses (SDV),
price and other factors generally wins of goods or services has an anticipated
businesses that are women-owned
the contract. dollar value of at least $3,000 but not
(WO) or service-disabled veteran-owned
exceeding $150,000, it is automatically
(SDVOSB), or businesses that are reserved for small businesses. The
located in historically underutilized Types of Contracts
Firm fixed price contracts place the acquisition will be set aside only if the
business zones (HUBZone). contracting officer determines there
The agency ensures that small full responsibility for the costs and risk
of loss on the contractor. Firm fixed price are two or more responsible small
businesses have access to long-lasting businesses that are competitive in
development opportunities, which contracts do not permit any adjustment
on the basis of the contractor’s costs terms of market prices, quality and
means working with small businesses delivery. Second, if an acquisition of
to help them stay competitive, as during the performance of the contract.
It provides maximum incentive for the goods or services is more than $150,000,
well as encouraging federal agencies and if it’s likely offers will be obtained
to award more contracts to small contractor to control costs and perform
effectively and imposes a minimum from at least two responsible small
businesses. The SBA features outreach businesses, and if awards will be made
administrative burden upon the
programs, matchmaking events, and at fair market prices, the acquisition
contracting parties. This type of contract
online training opportunities; and helps is reserved for exclusively for small
is used in all sealed bid and some
agencies identify opportunities for small business. Reasonable expectations of
businesses. Cost reimbursement contracts provide small business competition may be
for the payment of allowable costs evaluated using past acquisition history
HOW GOVERNMENT incurred by the contractor, to the extent of an item or similar items.
There are several exceptions and
stated in the contract. The contract
establishes a ceiling price, above which unique rules for specific kinds of small
businesses and industries. For Rearch
Sealed bidding vs. Negotiation a contractor may not exceed without the
and Development (R&D) small business
There are two methods the approval of the contracting officer. Cost
reimbursement contracts are used in set-asides, there must be reasonable
government uses to purchase goods and expectation of obtaining from small
services, sealed bidding and negotiation. research and development contracts.
businesses the best scientific and
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 29
technological sources consistent with the HUBZone program also establishes • It must be a small business by SBA
demands of the proposed acquisition. preference for award of federal contracts size standards;
For small business set-asides other to small businesses in these areas. To • It must be owned (at least 51 percent)
than for construction services, any qualify for the program, a business by one or more individuals who
business proposing to furnish a product (except those that are tribally-owned) qualify as socially and economically
that it did not manufacture must must meet the following criteria: disadvantaged, and who are US
furnish the product of a small business • It must be a small business by SBA size citizens of good character;
manufacturer unless the SBA has standards • It must be controlled, managed, and
granted either a waiver or exception to • It must be owned and controlled at operated by one or more individuals
this requirement. In industries where least 51 percent by U.S. citizens, or a who qualify as disadvantaged, and;
the SBA finds that there are no small Community Development Corporation • It must demonstrate potential for
success (generally by being in business
business manufacturers, it may issue (CDC), an agricultural cooperative, or an
Indian tribe for at least two full years) before
a waiver to the non-manufacturer rule.
• Its principal office must be located applying.
Waivers permit small businesses to
provide any domestic firm’s product. within a “Historically Underutilized Socially disadvantaged individuals
Business Zone,” which includes lands are those who have been subjected to
Subcontracting considered “Indian Country” and racial or ethnic prejudice or cultural
Subcontracting opportunities are military facilities closed by the Base bias because of their identity as a
a great resource for small businesses, Realignment and Closure Act member of a group without regard
especially to those not ready to bid as • At least 35 percent of its employees to their individual capabilities. The
prime contractors. Experience gained must reside in a HUBZone. following individuals are presumed
from subcontracting with a federal Existing businesses that choose to to be socially disadvantaged: Black
prime contractor can better prepare move to qualified areas are eligible Americans, Native Americans, Alaska
businesses to bid for prime contracts. to apply for certification. To fulfill Natives or Native Hawaiians, Hispanic
Current regulations stipulate for the requirement that 35 percent of a Americans, Asian Pacific Americans,
contracts offering subcontracting and Subcontinent Asian Americans. An
HUBZone firm’s employees reside in
opportunities over $650,000 for goods individual who is not a member of one of
a HUBZone, employees must live in a these groups must establish individual
and services, or $1.5 million for primary residence at a place for at least
construction, large business prime social disadvantage by a preponderance
180 days, or as a currently registered of evidence. Economically disadvantaged
contractors must offer maximum
voter, and with intent to live there individuals are socially disadvantaged
practicable subcontracting opportunities
to small businesses. Large business indefinitely. individuals whose ability to compete
prime contractors must submit a SBA is responsible for: in the free-enterprise system has been
subcontracting plan describing how they • Determining whether or not individual impaired due to diminished capital
will successfully subcontract to small concerns are qualified HUBZone small and credit opportunities as compared
business concerns; to others in the same or similar
• Maintaining a list of qualified HUBZone line of business who are not socially
To find subcontracting opportunities,
small business concerns for use by disadvantaged.
a list of Federal prime solicitations are acquisition agencies in awarding
listed under the U.S. Small Business Firms owned by Alaska Native
contracts under the program; Corporations, Indian Tribes, Native
Administration Subcontracting Network • Adjudicating protests and appeals of
(SUBNET) http://web.sba.gov/subnet/ Hawaiian Organizations, and
eligibility to receive HUBZone contracts.
Community Development Corporations
search/index.cfm and www.gsa.gov/ For additional information, visit can also apply to the SBA for 8(a)
portal/content/101195 General Services www.sba.gov/hubzone. business development assistance.
Administration (GSA). Research the So that approved firms can obtain
list of prime contractors and determine
which are best suited for your business. 8(a) BUSINESS DEVELOPMENT training, counseling, and business
development assistance, SBA designates
Develop a marketing strategy, and then PROGRAM a staff person at a local SBA District
contact the Small Business Liaison Office, geographically near the business.
The 8(a) Business Development
Officer (SBLO) listed for each prime to SBA is responsible for:
program is a nine year program
schedule an appointment. • Determining whether a business
established to assist eligible socially and
economically disadvantaged individuals qualifies for the 8(a) Business
SBA CONTRACTING develop and grow their businesses. Development program
• Determining whether a business
Business development assistance
includes one-to-one counseling, training continues to qualify, during the nine-
HUBZONE workshops, and other management and
technical guidance. There is a statutory
• Approving Mentor/Protégé agreements
The Historically Underutilized between 8(a) firms and large businesses.
requirement that small disadvantaged
Business Zones (HUBZone) program For additional information, visit
business concerns be awarded not less
helps small businesses located in www.sba.gov/8a.
than 5 percent of the total value of all
distressed urban and rural communities,
prime contract awards. All firms that
gain access to federal set-aside contracts
and sole source contracts, as well as a
become eligible for SBA’s 8(a) business SMALL DISADVANTAGED
price evaluation preference in full and
development assistance are also
considered small disadvantaged business
open contract competitions. There is a A Small Disadvantaged Business
concerns for federal contracting.
statutory requirement that HUBZone (SDB) is defined as a small business
To be eligible for the 8(a) Business
small business concerns be awarded not that is at least 51 percent owned and
Development program, a business must
less than 3 percent of the total value controlled by one or more individuals
meet the following criteria:
of all prime contract awards. The
30 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
who are socially and economically federal contracts for eligible women- contracting-opportunities-women-owned-
disadvantaged. owned businesses and economically small-businesses.
There is a federal government-wide disadvantaged women-owned small Large prime contractors must also
goal of awarding at least 5 percent of businesses. establish a subcontracting goal for
prime contracting dollars to SDBs each To be eligible, a firm must be at least Woman-Owned Small Businesses in
year. Large prime contractors must also 51 percent owned or controlled by one their Subcontracting Plans. These
establish a subcontracting goal for SDBs or more women. The women must be subcontracting goals are reviewed at
in their Subcontracting Plans. U.S. citizens. The firm must be “small” time of proposal by both the contracting
Firms self-certify as SDB without in its primary industry in accordance officer and SBA prior to the award of a
submitting any application to SBA; with SBA’s size standards for that contract.
however, firms approved by SBA into industry. To be deemed “economically
the 8(a) Business Development program disadvantaged” its owners must
are automatically certified as an SDB. demonstrate economic disadvantage in
To self-certify, firms should update their accordance with the requirements set
CCR profiles and update their ORCA forth in the final rule. For additional
profiles, making sure that both profiles information, visit www.sba.gov/content/
reflect their SDB status.
OWNED SMALL BUSINESS WHAT YOU SHOULD KNOW ABOUT
The Service-Disabled Veteran-
Owned Small Business (SDVOSB)
program has a federal government-wide
goal of awarding at least 3 percent To be eligible to bid on a federal 3. Do you fall under a specific
of prime and subcontracting dollars contract, you must know your certification?
to Service-Disabled Veteran-Owned business. Answer the following three Under the umbrella of “small
Small Businesses each year. Large questions: business,” SBA has outlined several
prime contractors must also establish a specific certifications that businesses
subcontracting goal for Veteran- 1. Are you a small business? may fall under. These certifications are
Owned Small Businesses in their Is your small business: divided into two categories:
• Organized for profit?
Subcontracting Plans. These
• Located in the U.S.? SBA-Certified and Self-Certified.
subcontracting goals are reviewed at • Operated primarily within the U.S. or
time of proposal by both the contracting The SBA-Certified Programs were
making a significant contribution to created to assist specific businesses
officer and SBA prior to the award of a the U.S. economy through payment
contract. in securing federal contracts and
of taxes or use of American products,
The SDVOSB Protest is administered materials, or labor?
therefore can only be issued by SBA
by SBA to ensure that only businesses • Independently owned and operated? administrators. For the Self-Certified
• Not dominant in the field of operation Programs, you can determine for
owned by service-disabled veterans
in which it is bidding for government yourself if your business meets the
receive contracts reserved exclusively
contracts? requirements by referring to the
for them. When a business’s SDVOSB
• A sole proprietorship, partnership, Federal Acquisition Regulations (FAR).
self-certification is challenged, SBA corporation, or any other legal form? Just as Congress has given
determines if the business meets If the first six criteria apply to your federal agencies a goal of procuring
the status, ownership, and control business, ask yourself the second 23 percent of federal contracts from
requirements. important question to find out if small businesses, so too must federal
To determine your eligibility, your business meets size standard agencies meet specific contracting
contact your local veterans’ business requirements. goals for other categories of small
development officer, visit the
firms. These goals are:
various program websites, or contact 2. What is the size standard for your • 23 percent of contracts from Small
SBA’s Office of Veterans Business business? Businesses
Development at www.sba.gov/about- Size standards are used to • 5 percent of contracts go to Small
offices-content/1/2985. determine whether a business is small Disadvantaged Businesses
or “other than small.” Size standards • 5 percent go to Women-Owned Small
vary depending upon the industry. To Businesses
WOMEN-OWNED determine the size standard for your • 3 percent go to Service-Disabled
SMALL BUSINESS business, you will need a NAICS code. Veteran-Owned Small Businesses
• 3 percent go to HUBZone Small
FEDERAL CONTRACT PROGRAM Every federal agency uses these codes
when considering your business. To
On October 7, 2010, the SBA Federal agencies have a strong
determine your NAICS code, go to
published a final rule effective February incentive to fulfill these contracting
www.census.gov/eos/www/naics/. Some goals. You should apply for those
4, 2011, aimed at expanding federal
SBA programs require their own SBA-Certified and Self-Certified
contracting opportunities for women-
unique size standards. To find out programs for which you qualify to take
owned small businesses. The Women-
Owned Small Business (WOSB) more about these requirements and advantage of contracting opportunities.
Federal Contract program authorizes other size standard information, go to
contracting officers to set aside certain www.sba.gov/size.
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 31
GETTING STARTED IN CONTRACTING
Once you have identified the the database for prospective vendors. The of government. Businesses interested in
important information regarding your CCR is at www.ccr.gov. becoming GSA schedule contractors
business, it is time to start the process of After completing registration, you will should review the information available
procuring a government contract. be asked to enter your small business at www.gsa.gov/schedules.
1. Identify your DUNS (Data Universal profile information through the SBA 8. Make Sure Your Business is
Numbering System) Number Supplemental Page. The information Financially Sound
To register your business, obtain a will be displayed in the Dynamic Small This critical step is absolutely necessary
DUNS number used to identify and track Business Search. to make sure that your business is
millions of businesses. You can Creating a profile in CCR and keeping financially prepared for the journey
ahead. Even if you are able to obtain a
obtain your free DUNS number when it current ensures your firm has access
registering with the CCR (Central government contract, you will not be
to federal contracting opportunities.
Contractor Registration) at www.ccr.gov receiving all of the money at once. It
Entering your small business profile, helps to have a clear plan of how your
or by contacting Dun & Bradstreet at including your business information and
www.dnb.com. business will stage the benefits of the
key word description, allows contracting contract.
2. Identify your EIN officers, prime contractors, and buyers
(Employer Identification Number) 9. Search Federal Business Opportunities
from state and local governments to (FedBizOpps) for Contracting
An EIN, otherwise known as a federal tax
learn about your company. Opportunities
identification number, is generally
6. Use ORCA (Online Representations FedBizOpps, is an online service operated
required of all businesses. For more
and Certifications Application) by the federal government that
information, go to www.irs.gov. Prospective contractors must complete
3. Identify your NAICS (North American announces available business
(electronically or through submission of opportunities. FedBizOpps helps identify
Industry Classification) codes paperwork) representations and
The NAICS codes are used to classify the the needs of federal agencies and
certifications for small business size and available contracting opportunities.
industry a particular business occupies. program status as part of the process
You will need at least one NAICS code to To begin searching for contracting
that registers the business for federal opportunities, go to www.fbo.gov.
complete your registration, but be sure to contracting opportunities. To make this
list as many as apply. You may also add 10. Marketing Your Business
process easier for everyone involved, the Registering your business is not enough
or change NAICS codes at any time. Visit government developed ORCA, where
www.census.gov/eos/www/naics/ to find to obtain a federal contract; you will need
generally, businesses can complete all of to market your business to attract federal
NAICS codes. the paperwork online. To begin this
4. Identify your SIC (Standard Industrial agencies. Tips for good marketing are:
process, first register your firm in CCR, • Determine which federal agencies
Classification) codes then go to www.orca.bpn.gov.
The SIC codes are four-digit numbers buy your product or service, and
7. Register with the GSA Schedule get to know them;
that are used to classify the industry a The GSA (General Services
particular business occupies. While • Identify the contracting
Administration) Multiple Award Schedule procedures of those agencies;
NAICS codes have largely replaced SIC (aka Federal Supply Schedule) is used by
codes, you will still need to provide your • Focus on opportunities in your
GSA to establish long-term, government niche and prioritize them.
SIC code. SIC codes can be found at wide contracts with commercial firms.
www.osha.gov/pls/imis/sicsearch.html. Although not required, you may
Once these contracts are established,
5. Register with the CCR (Central want to obtain a PSC (Product Services
government agencies can order the
Contractor Registration) supplies and services they need directly
Code) and/or a FSC (Federal Supply
The CCR is an online federal from the firms through the use of an Classification). These codes provide
government maintained database of online shopping tool. Becoming a GSA additional information about the
companies wanting to do business with schedule contractor increases your services and products your business
the federal government. Agencies search opportunity for contracts across all levels offers.
ADDITIONAL PROCUREMENT RESOURCES
The following federal procurement • Procurement Center Representatives • Department of Defense (The DoD is
resources may also be of assistance: (PCR) and Commercial Marketing the largest purchaser of goods from
• The Certificates of Competency (CoC) Representatives (CMR): PCRs work small businesses):
program allows a small business, to increase the small business share www.acq.osd.mil/osbp/
which is the apparent successful of federal procurement awards. • Office of Federal Procurement Policy:
offeror, to appeal a contracting officer’s CMRs offer many services to small www.whitehouse.gov/omb/procurement_
businesses, including counseling on default
non-responsibility determination that
how to obtain subcontracts. To find a • Acquisition Forecast:
it is unable to fulfill the requirements
PCR or CMR near you, go to
of a specific government contract. The www.acquisition.gov/comp/procurement
SBA will conduct a detailed review _forecasts/index.html
of the firm’s technical and financial • Federal Supply Schedule (FSS):
• PTACs (Procurement Technical
capabilities to perform on the contract. Assistance Centers): PTACs provide www.gsa.gov
If the business demonstrates the assistance to businesses that want to • GSA Center for Acquisition Excellence:
capability to perform, the SBA issues sell products and services to federal, www.gsa.gov/portal/content/103487
a Certificate of Competency to the state, and/or local government. To
contracting officer, requiring award of find a PTAC in your state, go to
that contract to the small business. www.dla.mil/SmallBusiness/Pages/ptap.aspx.
32 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
SBA DISASTER ASSISTANCE
Knowing the Types of Assistance Available for Recovery
he Disaster Assistance Military Reservist Economic Injury The page provides links to resources
Program is SBA’s largest Disaster Loans (MREIDLs) are working to help you put together your own
direct loan program, and capital loans for small businesses emergency plan, preparedness tips,
the only form of SBA adversely affected when an essential and fact sheets about SBA recovery
assistance not limited to employee is called up to active duty assistance for homeowners, renters,
small businesses. SBA is responsible by the National Guard or Reserves. businesses of all sizes and private,
for providing affordable, timely and An “essential employee” is defined nonprofit organizations.
accessible financial assistance to as an individual (whether or not the Additionally, to help small businesses
homeowners, renters, businesses of all owner of the small business) whose with their preparedness planning, SBA
sizes and private, nonprofit organizations managerial or technical skill is critical has teamed up with Agility Recovery
following declared disasters. By law, to the successfully daily operation Solutions to offer business continuity
governmental units and agricultural of the business. The loan limit is $2 strategies for entrepreneurs via their
enterprises are ineligible. million, and the funds may be used to “PrepareMyBusiness” website. In
The SBA offers two types of disaster pay necessary operating expenses as addition to offering practical disaster
loans — Physical and Economic Injury they mature until operations return to preparedness tips, Agility is the co-host
Disaster Loans. normal after the essential employee is (with SBA) of a monthly disaster
Home Physical Disaster Loans up released from active military duty. The planning webinar for business owners.
to $200,000 are available to eligible MREIDLs cannot be used to replace lost Previous webinar topics have included
homeowners to repair or replace to profits. discussions on crisis communications,
its pre-disaster condition damaged or For all disaster loans, SBA can only testing your recovery plan, and using
destroyed real estate not fully covered approve loans to applicants having a social media to enhance business
by insurance. Renters and homeowners credit history acceptable to SBA and
recovery. Visit www.preparemybusiness.org
alike may borrow up to $40,000 to repair who also show the ability to repay the
to get the schedule for future webinars,
or replace clothing, furniture, cars, loans. The loan terms are established
view archived webinars, and for more
appliances, etc., that was damaged or in accordance with the borrower’s
repayment ability. The law gives SBA disaster planning tips.
destroyed in the disaster. As small businesses are leading
several powerful tools to make disaster
Business Physical Disaster Loans up America’s economic recovery, many of
loans affordable: low-interest rates
to $2 million are available to qualified them are investing time and money
(around 4 percent), long-terms (up to
businesses or private, nonprofit into their plans to grow and create
30 years), and refinancing of prior liens
organizations of any size to help (in some cases). As required by law, jobs. Developing a strong disaster
restore or replace damaged real estate, the interest rate for each loan is based preparedness plan should be a critical
inventory, machinery, equipment and on SBA’s determination of whether the and integral piece of those efforts.
other business assets to its pre-disaster applicant has credit available elsewhere Planning for a disaster is the best way of
condition. (the ability to borrow or use their own limiting its effects.
The SBA can also lend additional resources to recover after the disaster).
funds to homeowners and businesses More information on all of SBA’s Additional Resources
to help with the cost of making disaster assistance programs, including The SBA has partnered with the
improvements that protect, prevent information for military reservists, is American Red Cross to increase
or minimize the same type of disaster available at www.sba.gov/disaster. awareness in the business community
damage from occurring again. about the Red Cross Ready Rating™
Economic Injury Disaster Loans Disaster Preparedness program. Ready Rating™ is a free,
(EIDLs) are working capital loans For small businesses, surviving a self-paced, web-based membership
available to qualified small businesses, disaster doesn’t begin with clearing the program that helps a business measure
private nonprofit organizations of all debris and returning to work. its ability to deal with emergencies, and
sizes and small agricultural cooperatives With proper planning, surviving gives customized feedback on how to
that suffered financial losses because begins long before the disaster strikes— improve those efforts. Visit
of the disaster, regardless of physical or before active-duty orders are received. www.readyrating.org.
damage. The SBA can loan up to $2 Your planning should include insurance Additional information on developing
million to provide the necessary working coverage, emergency power, protection an emergency plan is available at the
capital to help small businesses pay fixed of company records, fire safety, medical federal government’s preparedness
debts, payroll, accounts payable and emergencies, taking care of your website www.ready.gov.
other bills that could have been covered employees and continuity planning – The Institute for Business and Home
had the disaster not occurred. The loan how your business will continue during Safety (www.disastersafety.org ) has useful
is not intended to replace lost sales or and after the emergency or disaster. tips on protecting your home or business.
profits. The combined limit for economic Starting is as easy as clicking on the
injury and physical damage assistance disaster preparedness page of SBA’s
for businesses is $2 million. website at www.sba.gov/content/disaster-
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 33
ADVOCACY AND OMBUDSMAN Watching out for small business interests
OFFICE OF ADVOCACY
ADVOCACY AND OMBUDSMAN
nonprofit organizations), and consider owners, nonprofit organizations and
regulatory alternatives that minimize small government entities. Comments
The SBA’s Office of Advocacy, the the economic burden on small entities. are forwarded to federal agencies for
“small business watchdog” of the Advocacy’s mission is enhanced by review, and in some cases fines may
government, examines the role and a team of regional advocates, located be lowered or eliminated and decisions
status of small business in the economy in the SBA’s 10 regions. They are changed in favor of the small business
and independently represents the Advocacy’s direct link to small business owners. Each year the National
views of small business to federal owners, state and local government
agencies, Congress, the President and Ombudsman files a report with the
entities, and organizations that U.S. Congress on the responsiveness
federal appellate courts as friends support the interests of small entities.
of the court. Advocacy compiles and of federal agencies regarding their
The regional advocates help identify
interprets statistics on small business actions of regulatory and compliance
regulatory concerns of small business
and is the primary entity within the enforcement on small businesses.
by monitoring the impact of federal and
federal government to disseminate small state policies at the grassroots level. To request help, send the National
business data. Learn more about the Office of Ombudsman a complete Federal Agency
Headed by the Chief Counsel for Advocacy at www.sba.gov/advocacy. Comment Form. You may do this
Advocacy, the office also funds outside online at www.sba.gov/ombudsman; by
OFFICE OF THE NATIONAL
research of small business issues fax at 202-481-5719; or by mail at 409
and produces numerous publications Third Street S.W., Mail Code 2120,
to inform policy makers about the
important role of small business
OMBUDSMAN Washington, DC 20416.
If excessive fines, penalties or The Ombudsman also coordinates
in the economy and the impact of 10 Regional Regulatory Fairness
government policies on small business. unfair regulatory enforcement by
federal agencies are problems for your Boards which meet regularly to receive
In addition, the office monitors federal comments about federal regulations
agency compliance with the Regulatory small business, you have a voice in
Washington, D.C., through the SBA’s affecting small businesses.
Flexibility Act – the law that requires Learn more about the National
agencies to analyze the impact of their Office of the National Ombudsman.
The Ombudsman receives Ombudsman at www.sba.gov/ombudsman
proposed regulations on small entities
(including small businesses, small comments regarding federal regulatory or call 888-REG-FAIR.
governmental jurisdictions and small enforcement from small business
34 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
ADDITIONAL RESOURCES Taking care of start up logistics
of the most common types is product
liability, which may be incurred
when a customer suffers harm from
using the business product. There are
many other types of liability, which
are frequently related to specific
industries. Liability law is constantly
changing. An analysis of your liability
insurance needs by a competent
professional is vital in determining
an adequate and appropriate level of
protection for your business.
Property – There are many different
types of property insurance and levels
of coverage available. It is important
to determine the property you need
to insure for the continuation of your
ven if you are running a The Business Servicenter provides
business and the level of insurance
small home-based business, information to entrepreneurs and existing
business owners on services, programs, you need to replace or rebuild. You
you will have to comply with
resources, licenses and regulatory must also understand the terms of the
many of the local, state, and
requirements relating to start up and insurance, including any limitations or
federal regulations. Avoid
existing businesses in North Carolina. waivers of coverage.
the temptation to ignore regulatory
The center provides one-on-one telephone Business Interruption – While
details. Doing so may avert some red
consultations, business structure forms, and property insurance may pay enough
tape in the short term, but could be identifies local, regional and federal business to replace damaged or destroyed
an obstacle as your business grows. resources. The center’s resources include: equipment or buildings, how will you
Taking the time to research the general information on licensing pay costs such as taxes, utilities and
applicable regulations is as important requirements, registering trade marks, other continuing expenses during the
as knowing your market. Bear in mind business name registration, taxes and period between when the damage
that regulations vary by industry. If employer requirements. In addition, the
occurs and when the property is
you’re in the food-service business, for center provides assistance with “where to go
replaced? Business Interruption (or
example, you will have to deal with the for what” for new and existing businesses.
“business income”) insurance can
health department. If you use chemical www.blnc.gov.
provide sufficient funds to pay your
solvents, you will have environmental
FICTITIOUS BUSINESS NAME
fixed expenses during a period of time
compliances to meet. Carefully
when your business is not operational.
investigate the regulations that affect Registering your business name, “Key Man” – If you (and/or any
your industry. Being out of compliance after doing a search to make sure that other individual) are so critical to
could leave you unprotected legally, it is not already in use, protects you the operation of your business that it
lead to expensive penalties and from others who might want to use cannot continue in the event of your
jeopardize your business. the same name. For more information, illness or death, you should consider
contact the county clerk’s office in the “key man” insurance. This type of
BUSINESS LICENSES county where your business is based. policy is frequently required by banks
There are many types of licenses, If you are a corporation, you’ll need to or government loan programs. It also
both state and local as well as check with the state. can be used to provide continuity
in operations during a period of
professional. Depending on what you
do and where you plan to operate, BUSINESS INSURANCE ownership transition caused by the
your business may be required to Like home insurance, business death, incapacitation or absence due
have various state and/or municipal insurance protects your business against to a Title 10 military activation of an
licenses, certificates or permits. fire, theft and other losses. Contact your owner or other “key” employee.
Licenses are typically administered insurance agent or broker. It is prudent Automobile – It is obvious that
by a variety of state and local for any business to purchase a number a vehicle owned by your business
departments. Consult your state or of basic types of insurance. Some types should be insured for both liability
local government for assistance. of coverage are required by law, other and replacement purposes. What is
Business Link North Carolina simply make good business sense. The less obvious is that you may need
North Carolina Department of Commerce types of insurance listed below are special insurance (called “non-owned
301 N. Wilmington St. among the most commonly used and are automobile coverage”) if you use your
4344 Mail Service Center merely a starting point for evaluating personal vehicle on company business.
Raleigh, NC 27699-4344
the needs of your business. This policy covers the business’
919-807-4280 or 800-228-8443 liability for any damage which may
www.blnc.gov Liability Insurance – Businesses
may incur various forms of liability in result for such usage.
conducting their normal activities. One
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 35
It requires you to charge sales tax
to your customers, which you are
responsible for remitting to the
state. You will have to pay penalties
if it is found that you should have
been taxing your products and now
owe back taxes to the state. For
information on sales tax issues, contact
your state’s government.
FEDERAL INCOME TAX
Like the state income tax, the method
of paying federal income taxes depends
upon your legal form of business.
Sole Proprietorship: You must file
IRS Federal Form Schedule C along
with your personal Federal Income
Tax return (Form 1040) and any other
applicable forms pertaining to gains or
losses in your business activity.
Partnership: You must file a Federal
Partnership return (Form 1065). This
is merely informational to show gross
and net earnings of profit and loss. Also,
Officer and Director – Under most
state laws, officers and directors of a
FEDERAL PAYROLL TAX each partner must report his share of
corporation may become personally (EIN NUMBERS) partnership earnings on his individual
Form 1040 based on the information
liable for their actions on behalf of the An Employer Identification Number from the K-1 filed with the Form 1065.
company. This type of policy covers (EIN), also known as a Federal Corporation: You must file a Federal
this liability. Employer Identification Number
Corporation Income Tax return (Form
Home Office – If you are (FEIN), is used to identify a business
1120). You will also be required to report
establishing an office in your home, entity. Generally, businesses need an
it is a good idea to contact your EIN to pay federal withholding tax. your earnings from the corporation
homeowners’ insurance company to You may apply for an EIN in various including salary and other income such
update your policy to include coverage ways, one of which is to apply online. as dividends on your personal federal
for office equipment. This coverage www.irs.gov/businesses/small/article/0,,id= income tax return (Form 1040).
is not automatically included in a 102767,00.html. This is a free service
standard homeowner’s policy. offered by the Internal Revenue Service. FEDERAL PAYROLL TAX
Call 800-829-1040 if you have Federal Withholding Tax: Any
TAXES questions. You must check with your
state to determine if you need a state
business employing a person must
Taxes are an important and complex register with the IRS and acquire an
number or charter.
aspect of owning and operating a EIN and pay federal withholding tax at
successful business. Your accountant, least quarterly. File Form SS-4 with the
payroll person, or tax advisor may be FEDERAL IRS to obtain your number and required
very knowledgeable, but there are still
many facets of tax law that you should
SELF-EMPLOYMENT TAX tax forms. Call 800-829-3676 or
800-829-1040 if you have questions.
know. The Internal Revenue Service is Every employee must pay Social
Security and Medicare coverage. If you
a great source for tax information.
Small Business/Self-Employed Tax are self-employed, your contributions IRS WEB PRODUCTS
FOR SMALL BUSINESSES
are made through the self-employment
index.html. For the most timely and up-to-date
The IRS has publications, counselors
When you are running a business, and workshops available to help you tax information, go to www.irs.gov/
you don’t need to be a tax expert. sort it out. For more information, businesses/small/index.html.
However, you do need some tax basics. contact the IRS at 800-829-1040 or
IRS Small Business/Self-Employed
Tax Center gives you the information
www.irs.gov. VIRTUAL SMALL BUSINESS
you need to stay tax compliant so your WORKSHOP
business can thrive. SALES TAX EXEMPTION www.tax.gov/virtualworkshop/
Small Business Forms and CERTIFICATE The Virtual Small Business Tax
Publications www.irs.gov/businesses/small If you plan to sell products, you Workshop is the first of a series of
/article/0,,id= 99200,00.html will need a Sales Tax Exemption video products designed exclusively
Download multiple small business Certificate. It allows you to purchase for small business taxpayers. This
and self-employed forms and inventory, or materials, which will workshop helps business owners
publications. become part of the product you sell, understand federal tax obligations.
from suppliers without paying taxes. The Virtual Small Business Workshop
36 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
is available on CD www.irs.gov/ on the check as a detachable portion live assistance through the Employer
businesses/small/article/0,,id= or in the form of an envelope with the Hotline. For forms call 800-870-3676, for
101169,00.htm and online items printed and spaces for dollar the Employer Hotline call 800-357-2099.
www.irsvideos.gov/virtualworkshop/ if you deductions to be filled in.
are unable to attend a workshop in E-Verify: Employment Eligibility
person. Small business workshops are
designed to help the small business
EMPLOYEE CONSIDERATIONS Verification
E-Verify, operated by the Department
owner understand and fulfill their Taxes of Homeland Security in partnership
federal tax responsibilities. Workshops If you have any employees, including with the Social Security Administration,
are sponsored and presented by officers of a corporation but not the sole is the best--and quickest--way for
IRS partners who are federal tax proprietor or partners, you must make employers to determine the employment
specialists. periodic payments towards, and/or file eligibility of new hires. It is a safe,
Workshop topics vary from a quarterly reports about payroll taxes simple, and secure Internet-based
general overview of taxes to more and other mandatory deductions. You system that electronically verifies the
specific topics such as recordkeeping may contact these government agencies Social Security number and employment
and retirement plans. Although for information, assistance and forms. eligibility information reported on Form
most are free, some workshops have Social Security Administration I-9. E-Verify is voluntary in most states
fees associated with them. Fees 800-772-1213
www.ssa.gov and there is no charge to use it.
for a workshop are charged by the If you are an employer or employee
sponsoring organization, not the IRS. and would like more information about
The IRS’s Virtual Small Business Social Security’s Business Services
the E-Verify program, please visit
Tax Workshop is an interactive Online www.dhs.gov/E-Verify or contact our
resource to help small business owners The Social Security Administration
now provides free electronic services Customer Support staff: 1-888-464-4218
learn about their federal tax rights Monday – Friday 8 am – 5 pm.
and responsibilities. This educational online at www.socialsecurity.gov/employer/.
Once registered for Business Services E-mail: email@example.com
product, available online and on CD
Online, business owners or their
consists of nine stand-alone lessons
that can be selected and viewed in
authorized representative can: SAFETY AND HEALTH
any sequence. A bookmark feature
• file W-2s online; and
• verify Social Security Numbers REGULATIONS
makes it possible to leave and return through the Social Security Number All businesses with employees
to a specific point within the lesson. Verification Service, used for all are required to comply with state
Users also have access to a list of employees prior to preparing and and federal regulations regarding
submitting Forms W-2.
useful online references that enhance the protection of employees. The
the learning experience by allowing U.S. Internal Revenue Service Occupational Safety and Health
them to view references and the video 800-829-1040 Administration outlines specific health
lessons simultaneously. www.irs.gov and safety standards adopted by the
Tax Calendar for Small Businesses U.S. Department of Labor.
and Self-Employed (Publication 1518) Health Insurance
Compare plans in your area at
www.healthcare.gov. BUILDING CODES,
The Tax Calendar for Small PERMITS AND ZONING
Businesses and Self-Employed Employee Insurance It is important to consider zoning
contains useful information on general If you hire employees you may be regulations when choosing a site for your
required to provide unemployment or
business taxes, IRS and SSA customer business. You may not be permitted to
workers’ compensation insurance.
assistance, electronic filing and paying conduct business out of your home or
options, retirement plans, business engage in industrial activity in a retail
publications and forms, common tax WORKPLACE DISABILITY district. Contact the business license
filing dates, and federal legal holidays. PROGRAMS office in the city or town where the
Americans with Disabilities Act business is located.
SOCIAL SECURITY CARDS (ADA): For assistance with the ADA, call
All employees must have a social
800-669-3362 or visit www.ada.gov. BAR CODING
security card. It must be signed by its
U.S. CITIZENSHIP AND
Many stores require bar coding on
owner, and you should always ask to packaged products. Many industrial
see and personally record the social IMMIGRATION SERVICES and manufacturing companies use bar
security number. Failure to do so may The Federal Immigration Reform and coding to identify items they receive and
cause your employee to lose benefits and Control Act of 1986 requires employers ship. There are several companies that
considerable trouble for yourself in back to verify employment eligibility of can assist businesses with bar-coding
tracking to uncover the error. new employees. The law obligates needs. You may want to talk with an
Each payday, your employees must an employer to process Employment SBDC, SCORE or WBC counselor for
receive a statement from you telling Eligibility Verification Form I-9. The more information.
them what deductions were made U.S. Citizenship and Immigration
and how many dollars were taken out Services Office of Business Liaison offers
for each legal purpose. This can be a selection of information bulletins and
presented in a variety of ways, including
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 37
Federal Registration of Trademarks STATE REGISTRATION publications distributed through the
U.S. Patent and Trademark Office. For
and Copyrights OF A TRADEMARK more information, contact the:
Trademarks or service marks are U.S. Patent and Trademark Office
Trademarks and service marks may
words, phrases, symbols, designs or 800-786-9199 • www.uspto.gov
be registered in a state.
combinations thereof that identify Caution: Federally registered
and distinguish the source of goods. trademarks may conflict with and Copyrights
Trademarks may be registered at both supersede state registered business and Copyrights protect original works of
the state and federal level. To register a product names. authorship including literary, dramatic,
federal trademark, contact: musical and artistic, and certain other
U.S. Patent and Trademark Office: Patents intellectual works. Copyrights do
P.O. Box 1450 A patent is the grant of a property not protect facts, ideas and systems,
Alexandria, VA 22313-1450
right to the inventor by the U.S. Patent although it may protect the way these
800-786-9199 things are expressed. For general
www.uspto.gov/ and Trademark Office. It provides the
owner with the right to exclude others information contact:
U.S. Copyright Office
Trademark Information Hotline from making, using, offering for sale or U.S. Library of Congress
703-308-9000 selling the patented item in the United James Madison Memorial Building
States. Washington, DC 20559
Additional information is provided in 202-707-9100 - Order Line
the publications, General Information 202-707-3000 - Information Line
Concerning Patents and other www.copyright.gov
Choosing Your Business Structure
There are many forms of legal relatively little regulation and are fairly from those of the individual(s) forming
structure you may choose for your easy to establish. A formal partnership the corporation. It’s the most complex
business. Each legal structure offers agreement is recommended to address form of business organization and is
organizational options with different potential conflicts such as: who will be comprised of shareholders, directors
tax and liability issues. We suggest you responsible for performing each task; and officers. Since the corporation
research each legal structure thoroughly what, if any, consultation is needed is a separate legal entity in its own
and consult a tax accountant and/or between partners before major decisions, right it can own assets, borrow money
attorney prior to making your decision. and what happens when a partner and perform business functions
The most common organizational dies. Under a general partnership each without directly involving the owners.
structures are sole proprietorships, partner is liable for all debts of the Corporations are subject to more
general and limited partnerships, “C” business. Profits are taxed as income to government regulation and offer the
and “S” corporations and limited liability the partners based on their ownership owners the advantage of limited liability,
companies. percentage. but not total protection from lawsuits.
Each structure offers unique tax and
liability benefits. If you’re uncertain Subchapter “S” Corporation
Limited Partnership Subchapter “S” references a special
which business format is right for you, Like a general partnership, a
you may want to discuss options with a part of the Internal Revenue Code that
limited partnership is established by permits a corporation to be taxed as a
business counselor or attorney. an agreement between two or more partnership or sole proprietorship, with
persons. However, there are two types profits taxed at the individual, rather
Sole Proprietorship of partners. than the corporate rate. A business
One person operating a business as • A general partner has greater control
must meet certain requirements for
an individual is a sole proprietorship. in some aspects of the partnership.
For example, only a general partner Subchapter “S” status. Contact the IRS
It’s the most common form of business
can decide to dissolve the partnership. for more information.
organization. Profits are taxed as
General partners have no limits on the
income to the owner personally. The dividends they can receive from profit LLCs and LLPs
personal tax rate is usually lower than so they incur unlimited liability. The limited liability company is
the corporate tax rate. The owner • Limited partners can only receive a relatively new business form. It
has complete control of the business, a share of profits based on the combines selected corporate and
but faces unlimited liability for its proportional amount on their
partnership characteristics while
debts. There is very little government investment, and liability is similarly
limited in proportion to their still maintaining status as a legal
regulation or reporting required with entity distinct from its owners. As a
this business structure. separate entity it can acquire assets,
“C” Corporation incur liabilities and conduct business.
General Partnership A “C” corporation is a legal entity It limits liability for the owners. The
A partnership exists when two created under state law by the filing of limited liability partnership is similar
or more persons join together in articles of incorporation. A corporation to the LLC, but it is for professional
the operation and management of a is a separate entity having its own organizations.
business. Partnerships are subject to rights, privileges and liabilities, apart
38 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
O T H ER A SSISTANCE
Small Business Center CENTRAL CAROLINA CC SMALL BUSINESS FORSYTH TECHNICAL CC SMALL BUSINESS MONTGOMERY CC SMALL BUSINESS
CENTER CENTER CENTER
Network 1801 Nash St. 601 W. Fourth St. 1011 Page St.
The Small Business Center Network of the Sanford, NC 27330 Winston-Salem, NC 27101 Troy, NC 27371
North Carolina Community College System 919-774-6442 336-631-1320 910-576-6222
exists to increase the success rate and the
number of profitable businesses in North CCCC TRIANGLE SOUTH ENTERPRISE GASTON COLLEGE SMALL BUSINESS NASH CC SMALL BUSINESS CENTER
Carolina by providing high quality, readily CENTER CENTER 522 N. Old Carriage Rd.
accessible assistance to prospective and 600 S. Magnolia Ave. 201 Hwy. 321 S. Rocky Mount, NC 27804
existing small business owners and their Dunn, NC 28334 Dallas, NC 28034 252-451-8233
employees. Each Small Business Center 910-892-2884 704-922-6449
(SBC) is a community-based provider PAMLICO CC SMALL BUSINESS CENTER
of education and training, counseling, CCCC PITTSBORO CAMPUS GUILFORD TECHNICAL CC SMALL 705 Main St
information, and referral. SBCs offer 764 West St. BUSINESS CENTER Bayboro, NC 28515
seminars, workshops, counseling, resources, Pittsboro, NC 27312 2007 Yanceyville St., Ste. 129 252-745-7348
and a network of linkages. www.sbcn.nc.gov 919-545-0813 Greensboro, NC 27405
336-334-4822 PIEDMONT CC SMALL BUSINESS CENTER
ALAMANCE CC SMALL BUSINESS CENTER CENTRAL PIEDMONT CC SMALL BUSINESS 105 N. Main St.
1304 Plaza Dr. CENTER HALIFAX CC SMALL BUSINESS CENTER Roxboro, NC 27573
Burlington, NC 27215 124 E. Independence Blvd./Charlottetown Blvd. 200 College Dr. 336-599-0032
336-506-4312 Charlotte, NC 28204 Weldon, NC 27890
704-330-4223 252-536-7274 PITT CC SMALL BUSINESS CENTER
ASHEVILLE-BUNCOMBE TCC SMALL 3107 S. Memorial Dr.
BUSINESS CENTER CLEVELAND CC SMALL BUSINESS CENTER HAYWOOD CC SMALL BUSINESS CENTER Greenville, NC 27835
1465 Sandhill Rd., Ste. 1060 137 S. Post Rd. 185 Freedlander Dr. 252-493-7541
Candler, NC 28715 Shelby, NC 28152 Clyde, NC 28721
828-254-1921 704-484-4146 828-627-4512 RANDOLPH CC SMALL BUSINESS CENTER
629 Industrial Park Ave.
BEAUFORT COUNTY CC SMALL BUSINESS COASTAL CAROLINA CC SMALL BUSINESS ISOTHERMAL CC SMALL BUSINESS Asheboro, NC 27203
CENTER CENTER CENTER 336-633-0240
5337 Hwy. 264 E. 444 Western Blvd. 286 ICC Loop Rd.
Washington, NC 27889 Jacksonville, NC 28546 Spindale, NC 28160 RICHMOND CC SMALL BUSINESS CENTER
252-940-6306 910-938-6319 828-286-3636 1042 W. Hamlet Ave.
Hamlet, NC 28345
BLADEN CC SMALL BUSINESS CENTER COLLEGE OF THE ALBEMARLE JAMES SPRUNT CC SMALL BUSINESS 910-410-1687
7418 NC Hwy. 41 W. SMALL BUSINESS CENTER CENTER
Duplin, NC 28332
1208 North Rd. 133 James Sprunt Dr. ROANOKE-CHOWAN CC SMALL BUSINESS
910-879-5500 Elizabeth City, NC 27909 Kenansville, NC 28349 CENTER
252-335-0821 910-296-2430 109 Community College Rd.
BLUE RIDGE CC SMALL BUSINESS CENTER Ahoskie, NC 27910
100 W. Campus Dr. CRAVEN CC SMALL BUSINESS CENTER JOHNSTON CC SMALL BUSINESS CENTER 252-862-1279
Flat Rock, NC 28731 800 College Ct. 135 Bestwood Dr.
828-694-1779 New Bern, NC 28562 Clayton, NC 27520 ROBESON CC SMALL BUSINESS CENTER
252-638-7353 919-209-2015 5160 Fayetteville Rd.
BRUNSWICK CC SMALL BUSINESS CENTER Lumberton, NC 28358
P.O. Box 30 DAVIDSON COUNTY CC SMALL BUSINESS LENOIR CC SMALL BUSINESS CENTER 910-272-3631
Supply, NC 28462 CENTER 327 N. Queen St.
910-755-7306 297 DCCC Rd. Kinston, NC 28501 ROCKINGHAM CC SMALL BUSINESS
Thomasville, NC 27360 252-522-4676 CENTER
CALDWELL CC & TECH INST. SMALL 336-224-4557 Hwy. 65/P.O. Box 38
BUSINESS CENTER MARTIN CC SMALL BUSINESS CENTER Wentworth, NC 27375
2855 Hickory Blvd. DURHAM TECHNICAL CC SMALL 1161 Kehukee Park Rd. 336-342-4261
Hudson, NC 28401 BUSINESS CENTER Williamston, NC 27892
828-726-2383 400 W. Main St. 252-792-1521 ROWAN-CABARRUS CC SMALL BUSINESS
Durham, NC 27701 CENTER
CAPE FEAR CC SMALL BUSINESS CENTER 919-536-7241 MAYLAND CC SMALL BUSINESS CENTER 1333 Jake Alexander Blvd. S.
411 N. Front St. 200 Mayland Dr. Salisbury, NC 28146
Wilmington, NC 28429 EDGECOMBE CC SMALL BUSINESS Spruce Pine, NC 28777 704-216-3534
910-362-7469 CENTER 828-765-7351
2009 W. Wilson St. SAMPSON CC SMALL BUSINESS CENTER
CARTERET CC SMALL BUSINESS CENTER Tarboro, NC 27886 MCDOWELL TECHNICAL CC 1801 Sunset Ave.
3505 Arendell St. 252-823-5166 SMALL BUSINESS CENTER Clinton, NC 28329
Morehead City, NC 28557 54 College Dr. 910-592-7176
252-222-6127 FAYETTEVILLE TCC SMALL BUSINESS Marion, NC 28752
CENTER 828-652-0634 SANDHILLS CC SMALL BUSINESS CENTER
CATAWBA VALLEY CC SMALL BUSINESS 2723 Ft. Bragg Blvd. 3395 Airport Rd.
CENTER Fayetteville, NC 28303 MITCHELL CC SMALL BUSINESS CENTER Pinehurst, NC 28374
2550 Hwy. 70 S.E. 910-678-8462 701 W. Front St. 910-695-3938
Hickory, NC 28602 Statesville, NC 28677
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 39
OT H E R A SSISTANCE
SOUTHEASTERN CC SMALL BUSINESS STANLY CC SMALL BUSINESS CENTER VANCE-GRANVILLE CC SMALL BUSINESS WESTERN PIEDMONT CC
CENTER 143 N. Second St. CENTER SMALL BUSINESS CENTER
4564 Chadbourn Hwy. Albemarle, NC 28001 200 Community College Rd. 228 South Sterling St.
Whiteville, NC 28472 704-991-0182 Henderson, NC 27536 Morganton, NC 28655
910-642-7141 252-738-3240 828-448-6719
SURRY CC SMALL BUSINESS CENTER
SOUTHERN PIEDMONT CC 630 S. Main St. WAKE TECHNICAL CC SMALL BUSINESS WILKES CC SMALL BUSINESS CENTER
SMALL BUSINESS CENTER Dobson, NC 27017 CENTER 1328 S. Collegiate Dr.
4209 Old Charlotte Hwy. 336-386-3309 3434 Kildare Farms Rd., Ste. 207 Wilkesboro, NC 28697
Monroe, NC 28110 Cary, NC 27511 336-838-6166
704-290-5222 TRI-COUNTY CC SMALL BUSINESS CENTER 919-335-1007
Cherokee County Center for Applied WILSON CC SMALL BUSINESS CENTER
SOUTHWESTERN CC SMALL BUSINESS Technology WAYNE CC SMALL BUSINESS CENTER 902 Herring Ave.
CENTER 2415 Airport Rd. 3000 N. Wayne Memorial Dr. Wilson, NC 27893
447 College Dr. Marble, NC 28905 Goldsboro, NC 27530 252-246-1232
Sylva, NC 28779 828-835-9564 919-739-6941
40 — Small Business Resource NORTH CAROLINA Visit us online: www.sba.gov/nc
O T H E R A SSISTANCE
Chambers of Commerce Name County Phone Name County Phone
Chambers of Commerce serve as a central location where Granville County Chamber Granville 919-693-6125 Hampstead Chamber Pender 910-270-4000
the local small business community may obtain information, Greene County Chamber Greene 252-747-8090 Perquimans County Chamber Perquimans 252-426-5657
publications and contact information. For more information Greensboro Chamber Guilford 336-387-8322 Roxboro Area Chamber Person 336-599-8333
please see the list below: High Point Chamber Guilford 336-882-5000 Ayden Chamber Pitt 252-746-2266
Lake Gaston Chamber Halifax 252-586-5711 Farmville Chamber Pitt 252-753-4670
Name County Phone Roanoke Valley Chamber Halifax 252-537-3513 Greenville-Pitt County
Alamance County Chamber Alamance 336-228-1338 Angier Chamber Harnett 919-639-2500 Chamber Pitt 252-752-4101
Alexander County Chamber Alexander 828-632-8141 Dunn Chamber Harnett 910-892-4113 Carolina Foot Hills Chamber Polk 828-859-6236
Alleghany County Chamber Alleghany 336-372-5473 Erwin Chamber Harnett 910-897-7300 Archdale Trinity Chamber Randolph 336-434-2073
Anson County Chamber Anson 704-694-4181 Lillington Area Chamber Harnett 910-893-3751 Asheboro/Randolph
Ashe County Chamber Ashe 336-846-9550 Greater Haywood Chamber Randolph 336-626-2626
Avery/Banner Elk Chamber Avery 828-898-5605 County Chamber Haywood 828-456-3021 Liberty Chamber Randolph 336-622-4937
Beech Mountain Chamber Avery 800-468-5506 Maggie Valley Chamber Haywood 828-926-1686 Randleman Chamber Randolph 336-495-1100
Belhaven Hendersonville Chamber Henderson 828-692-1413 Richmond County Chamber Richmond 910-895-9058
Chamber of Commerce Beaufort 252-943-3770 Ahoskie Chamber Hertford 252-332-2042 Fairmont Chamber Robeson 910-770-1967
Washington-Beaufort Murfreesboro Chamber Hertford 252-398-4886 Lumberton Area Chamber Robeson 910-739-4750
Chamber Beaufort 252-946-9168 Raeford/Hoke Chamber Hoke 910-875-5929 Maxton Chamber Robeson 910-844-1060
Windsor Hyde County Chamber Hyde 252-926-9171 Pembroke Area Chamber Robeson 910-522-5790
Chamber of Commerce Bertie 252-794-4277 Greater Statesville Chamber Iredell 704-873-2892 Red Springs Chamber Robeson 910-843-5241
Elizabethtown Chamber Bladen 910-862-4368 Mooresville/South Eden Chamber Rockingham 336-623-3336
North Brunswick Chamber Brunswick 910-383-0553 Iredell Chamber Iredell 704-664-3898 Reidsville Chamber Rockingham 336-349-8481
Brunswick County Chamber Brunswick 910-754-6644 Jackson County Chamber Jackson 800-962-1911 Western Rockingham
Southport-Oak Island Cashiers Chamber Jackson 828-743-5941 Chamber Rockingham 336-548-6248
Area Chamber Brunswick 910-457-6964 Clayton Chamber Johnston 919-553-6352 Rowan County Chamber Rowan 704-633-4221
Asheville Chamber Buncombe 828-258-6101 Four Oaks Chamber Johnston 919-963-4004 Hickory Nut Gorge Chamber Rutherford 828-625-2725
Black Mountain/Swannanoa Kenly Chamber Johnston 919-284-5510 Rutherfordton/Spindale
Valley Chamber Buncombe 828-669-2300 Smithfield-Selma Chamber Rutherford 828-287-3090
Burke County Chamber Burke 828-437-3021 Area Chamber Johnston 919-934-9166 Clinton-Sampson Chamber Sampson 910-592-6177
Cabarrus Regional Chamber Cabarrus 704-260-8101 Benson Area Chamber Johnston 919-894-3825 Laurinburg/Scotland Chamber Scotland 910-276-7420
Caldwell County Chamber Caldwell 828-726-0616 Jones County Economic Stanly County Chamber Stanly 704-699-9227
Carteret County Chamber Carteret 252-726-6350 Development Commission Jones 252-448-1315 King Chamber Stokes 336-983-9308
Caswell County Chamber Caswell 336-694-6106 Sanford Chamber Lee 919-775-7341 Mount Airy Chamber Surry 336-786-6116
Catawba Chamber Catawba 828-328-6111 Kinston-Lenoir Yadkin Valley Chamber Surry 336-526-1111
Chatham County County Chamber Lenoir 252-523-2500 Swain County Chamber Swain 800-867-9246
United Chamber Chatham 919-742-3333 Lincolnton/Lincoln Brevard-Transylvania
Andrews Chamber Cherokee 877-558-0005 County Chamber Lincoln 704-735-3096 Chamber Transylvania 828-883-3700
Cherokee County Chamber Cherokee 828-837-2242 Franklin Area Chamber Macon 828-524-3161 Tyrell County Chamber Tyrell 252-796-1996
Edenton / Chowan Chamber Chowan 252-482-3400 Highlands Chamber Macon 828-526-5841 Union County Chamber Union 704-289-4567
Clay County Chamber Clay 828-389-3704 Madison County Chamber Madison 828-689-9351 Henderson/Vance County
Cleveland County Chamber Cleveland 704-487-8521 Martin County Chamber Martin 252-792-4131 Chamber Vance 252-438-8414
Kings Mountain Chamber Cleveland 704-739-4755 McDowell Chamber McDowell 828-652-4240 American Indian
Fair Bluff Chamber Columbus 910-649-7521 Old Fort Chamber McDowell 828-668-7223 Chamber of NC Wake 919-247-4946
Greater Tabor City Chamber Columbus 910-653-2031 Carolina Asian Apex Chamber Wake 919-362-6456
Greater Whiteville Chamber Columbus 910-642-3171 American Chamber Mecklenburg 866-YES-ASIA Cary Chamber Wake 919-467-1016
Havelock Chamber Craven 252-447-1101 Charlotte Chamber Mecklenburg 704-378-1319 Fuquay Varina Area Chamber Wake 919-552-4947
New Bern Chamber Craven 252-637-3111 Lake Norman Chamber Mecklenburg 704-892-1922 Garner Chamber Wake 919-772-6440
Fayetteville-Cumberland Latin American Chamber Hispanic Chamber Wake 919-782-8764
County Chamber Cumberland 910-483-8133 of Charlotte Mecklenburg 704-343-2525 Holly Springs Chamber Wake 919-567-1796
Hope Mills Area Chamber Cumberland 910-423-4314 Matthews Chamber Mecklenburg 704-847-3649 Knightdale Chamber Wake 919-266-4603
Spring Lake Chamber Cumberland 910-497-8821 Mint Hill Chamber Mecklenburg 704-573-8282 Morrisville Chamber Wake 919-463-7150
Currituck County Chamber Currituck 252-453-9497 Mitchell County Chamber Mitchell 828-765-9033 Raleigh Chamber Wake 919-664-7000
Outer Banks Chamber Dare 252-441-8144 Montgomery County Rolesville Chamber Wake 919-562-7069
Denton Chamber Davidson 336-859-5922 Chamber Montgomery 910-572-4300 Wake Forest Area Chamber Wake 919-556-1519
Lexington Area Chamber Davidson 336-248-5929 Moore County Chamber Moore 910-692-3926 Wendell Chamber Wake 919-365-6318
Thomasville Area Chamber Davidson 336-475-6134 Rocky Mount Chamber Nash 252-973-1212 Zebulon Chamber Wake 919-269-6320
Davie County Chamber Davie 336-751-3304 Pleasure Island Chamber New Hanover 910-458-8434 The Lake Gaston Chamber Warren 252-586-5711
Wallace Chamber Duplin 910-285-4044 Wilmington Chamber New Hanover 910-762-2611 Warren County Chamber Warren 252-257-2657
Warsaw Chamber Duplin 910-293-7804 Wrightsville Beach Chamber New Hanover 910-256-8116 Washington County Chamber Washington 252-793-7638
Durham Chamber Durham 919-682-2133 Northampton County Blowing Rock Chamber Watauga 800-295-7851
Tarboro-Edgecombe Chamber Edgecombe 252-823-7241 Chamber Northampton 252-534-1383 Boone Area Chamber Watauga 828-264-2225
Kernersville Chamber Forsyth 336-993-4521 Jacksonville-Onslow Chamber Onslow 910-347-3141 Mount Olive Area Chamber Wayne 919-658-3113
Lewisville Clemmons Chamber Forsyth 336-970-5100 Swansboro Area Chamber Onslow 910-326-1174 Wayne County Chamber Wayne 919-734-2241
Winston-Salem Chamber Forsyth 336-728-9200 Chapel Hill/Carrboro Chamber Orange 919-967-7075 Wilkes Chamber Wilkes 336-838-8662
Franklin County Chamber Franklin 919-496-3056 Hillsborough/Orange Chamber Orange 919-732-8156 Wilkes Economic
Montcross Area Chamber Gaston 704-825-5307 Pamlico County Chamber Pamlico 252-745-3008 Development Corp. Wilkes 336-838-1402
Bessemer City Chamber Gaston 704-629-3900 Elizabeth City Area Chamber Pasquotank 252-335-4365 Wilson County Chamber Wilson 252-237-0165
Cherryville Chamber Gaston 704-435-3451 Burgaw Chamber Pender 910-259-9817 Yadkin County Chamber Yadkin 336-679-2200
Gaston County Chamber Gaston 704-864-2621 Greater Topsail Area Yancey County-Burnsville
Graham County Chamber Graham 828-479-8400 Chamber Pender 910-329-4446 Chamber Yancey 828-682-7413
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 41
S BA T OP LEND ER S
North Carolina SBA CORNERSTONE BANK
www.cornerstonebankga.com PNC BANK (PA)*
Lenders in 2011 www.pnc.com
SBA TOP LENDERS
CRESCENT STATE BANK (CARY)*
AMERICAN COMMUNITY BANK* www.crescentstatebank.com RANDOLPH BANK & TRUST
FIFTH THIRD BANK (OH) *
ALLEGACY BANK FCU* www.53.com RBC BANK*
ASHEVILLE SAVINGS BANK* www.firstbancorp.com REGIONS BANK (AL)*
BANK OF AMERICA* www.firstchatham.com SELECT BANK & TRUST*
FIRST CITIZENS BANK & TRUST*
BANK OF NORTH CAROLINA www.firstcitizens.com SELF-HELP CREDIT UNION*
FIRST COMMERCIAL BANK
BANK OF OAK RIDGE* www.firstcommercialbank.com SOUND BANKING COMPANY*
FIRST COMMUNITY BANK
BANK OF STANLY* www.fcbresource.com SOUTHERN BANK & TRUST*
FIRST NATIONAL BANK OF SHELBY*
BANK OF THE CAROLINAS* www.ibankatfnb.com SOUTHERN COMMUNITY B&T*
FIRST SOUTH BANK
BLUE HARBOR BANK www.firstsouthnc.com SUNTRUST BANK (VA)*
FOREST COMMERCIAL BANK
BORREGO SPRINGS BANK (CA)* www.forestcommercialbank.com SUPERIOR FINANCIAL GROUP (CA)*
FOUR OAKS BANK & TRUST
BRANCH BANKING & TRUST* www.fouroaksbank.com SURREY BANK & TRUST*
HARRINGTON BANK, FSB
BCI LENDING* www.bankatharrington.com TD BANK (ME)*
HIGH COUNTRY BANK
CABARRUS BANK & TRUST* www.yadkinvalleybank.com THE BANK OF CURRITUCK
HIGH POINT BANK & TRUST
CAPITAL BANK* www.highpointbank.com/ THE EAST CAROLINA BANK*
HOME LOAN INVEST. BANK (RI)*
CAROLINA BANK www.homeloanbank.com THE FIDELITY BANK*
CAROLINA PREMIER BANK* www.hometrustbanking.com TRULIANT FCU*
KEYSOURCE COMMERCE BANK
CAROLINA TRUST BANK www.keysourcebank.com TRUST ATLANTIC BANK
LIVE OAK BANKING CO
CIT SMALL BUS. LENDING (NJ)* www.liveoakbank.com VANTAGE SOUTH BANK*
LUMBEE GUARANTY BANK
CITIZENS SOUTH BANK* www.lumbeeguarantybank.com WACCAMAW BANK
MOUNTAIN 1ST BANK & TRUST
COASTAL FCU* www.mountain1st.com WELLS FARGO BANK (CA)*
NEW BRIDGE BANK*
COMMUNITY BANK OF ROWAN* www.newbridgebank.com YADKIN VALLEY BANK*
NEWTEK SMALL BUS FIN (NY)
COMMUNITY SOUTH BANK (TN)* www.newtekbusinessservices.com * SBAExpress Lenders & Patriot Express
COMPASS BANK (AL) www.piedmontbankonline.com
Visit us online: www.sba.gov/nc NORTH CAROLINA Small Business Resource — 43