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North Carolina Small Business Resource Guide - SBA


  • pg 1

    Building on SBA’s
    Record Year
    page 28

                                                                PAGE   Counseling

                                                                PAGE   Capital

                                                                PAGE   Contracting

www.SBA.gov • connect with us @   facebook.com/SBAgov   twitter.com/sbagov           youtube.com/sba
                                                                                                  P R

                                                                                                  Publishers of Small Business Resource

                                                                                                   Phone: 863-294-2812 • 800-274-2812
                                                                                                   Fax: 863-299-3909 • www.sbaguides.com

                                                                                                   Joe Jensen                   jjensen@reni.net
                                                        2012 NORTH CAROLINA

     FEATURES                                                                                      English Small Business Resource Advertising
                                                                                                   Nicky Harvey
                                                                                                   Martha Theriault

     3         Introduction                            28    Building on SBA’s
                                                                                                   Kenna Rogers            krogers@reni.net

               3    Administrator’s Letter                   Record Year                           Production
               4    Director’s Message                                                             Diane Traylor               dtraylor@reni.net
                                                       29    Contracting
     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        paula.panissidi@sba.gov
               13    Are You Right for Small                 Knowing the types of assistance       Editorial Content
                     Business Ownership?                     available for recovery.               marketinghq@sba.gov
               14    Writing a Business Plan
                                                       34    Advocacy and Ombudsman                Graphic Design

     15        Capital
                                                             Watching out for small business
                                                                                                   Shellehamer gary.shellehamer@sba.gov
               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
                    Research Program
               23 Small Business Technology
                                                       39    Other Assistance
                                                                                                   Printed in the United States of America

                                                                                                   While every reasonable effort has been made
                    Transfer Program
               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
                                                                                                   # SBAHQ11C0005.
                                                            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.
    	 •	 Counseling
    	 •	 Capital

Visit us online: www.sba.gov/nc                                                                          NORTH CAROLINA Small Business Resource —   3
                                                         Message From The District Director

                                                                                  Rules For Success
                              SUCCESS STORY
                              Mind Your Business, Inc.
                              Karen Caruso
                              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
                                                                                             Website: www.sba.gov/nc
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.                                april.gonzalez@sba.gov.

                                              A Veterans Affairs Representative is
                                              available to assist veterans. Please contact
DISTRICT OFFICE                               April Gonzalez at 704-344-6811 or e-mail:
For program and service information,          april.gonzalez@sba.gov.
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:
at 704-344-6810.
                                              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
lenders.                                      910-815-3188

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
                                       Development Center

                                                                               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.
      Sincerely yours,

                                                                      Jerry Lustig
      Scott R. Daugherty                                              North Carolina SCORE District #460
                                                                      North Carolina State Director
      Executive Director of                                           919-460-2501 • jerry1109@aol.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
                                                                                                                 business mentor
                                                                                                               • 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

             SBA’S RESOURCE
             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
                                                                                            DEVELOPMENT CENTERS
     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
                                                                                            small businesses.
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
                                                                                                       business ownership.
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.             info@ncimed.com
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
                                                                                                    NEIGHBORHOOD PARTNERSHIPS
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
                                                                                                           NATIVE AMERICAN
                                                                                                           BUSINESS DEVELOPMENT

             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                kimbwinc@nc-cherokee.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
     Most new business owners who
  succeed have planned for every phase
                                                       own shoulders. Strong motivation
                                                       will help you survive slowdowns and
                                                                                                 HOME-BASED BUSINESSES
                                                       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
                                                                                                 the road.
  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
       demand it?
                                                   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

                  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
                                                                                                          your business.
                                                                                                        • Account for the equipment necessary
                                                                                                          to produce your goods or services.
                                                                                                        • Account for production and delivery
                                                                                                          of products and services.

                                                                                                       Concluding Statement
                                                                                                          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
                                                                                            financing needs.
                                                                                               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.
                 principal owners
               • 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
general ranges:
  • 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
    the borrower.

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.

Guaranty Coverage
    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
          Collateral Requirements
            • 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
              be appropriate.

          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.
                                                          Exporter Eligibility
              the business’ competitive position.                                                          • Export working capital during long
                                                            Any business that has been in
                                                                                                             payment cycles.
                                                          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
local USEAC.

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.

Dan Holt
     521 E. Morehead St., Ste. 435
     Charlotte, NC 28202

(504 LOANS)
  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)                gwilliams@nrda.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           cmalone@ptrc.org                         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           ptrew@regiond.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                                                         wamyloan@charter.net
              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               arsteinberg@msn.com                      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
                                                                                                        SMALL BUSINESS
                                                               P.O. Box 1698
          and the credit capacity of the borrower’s            Wilmington, NC 28402

                                                                                                        INVESTMENT COMPANY
          business. For information, visit                     910-763-8414
          Avista Business Development Corporation
              Bob Kendrick
              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
              bob.kendrick@charter.net                      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
              shilaire@befcor.com                           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
              rvitolo@cdccapital.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.

                                                                                           SMALL BUSINESS
     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

North Carolina
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            info@sbabonds.com
          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          cjreynolds@creativeic.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            medlin@ecmins.com
            • 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        markcongdon@freedombondinginc.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           marke@theinsurancesource.com
          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)                           kelly@suretygroup.com
                                                             20 Liberty St., Ste. 2D
                                                             Westminster, MD 21157                   Viking Bond Service, Inc.
                                                             410-876-9610 • 410-876-9954 Fax            (Licensed In NC)
                                                             info@thebarbourgroup.com                   22601 North 19th Ave., Ste. 210
                                                                                                        Phoenix, AZ 85027
                                                          Blair Insurance Services, Inc.                623-933-9334 • 623-933-9376 Fax
                                                             (Licensed in NC)                           underwriting@vbsbond.com
                                                             1201 Logan Blvd.
                                                             Altoona, PA 16602                       Wells Fargo Insurance Services USA, Inc.
                                                             814-946-9486 • 888-553-0057 Fax            (Licensed In NC)
                                                             blairbonding@protectionadvantage.com       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
                                                                                                                                                        otherwise available
 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
                                                                                                                                                        business needs.
 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%
 served areas
 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
                                                                                                                                                                                                            development activities
                                                                                                                                                                                                            of small businesses.
                                                                                                                                                                                                            Standby Letters
                                                                                                                                                                                                            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.
                                                                                                                                                                                       military, reservist
                                                                                                                                                                                       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
                                                                                                                                                                                       service connected
          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
  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
                                                                                                     Tweet this:
        basic questions:
        • 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
                                             negotiated procurements.
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
                                                                                                                  year term.
                                                                                                                • 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.

    The Service-Disabled Veteran-
Owned Small Business (SDVOSB)
program has a federal government-wide
                                                       YOUR BUSINESS
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.

                  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
                             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

                                                                         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
                                                                                                                                                        ADDITIONAL RESOURCES
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
                       Center: www.irs.gov/businesses/small/
                       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: e-verify@dhs.gov
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
                                              Federal Withholding
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

                                                                                                                                                ADDITIONAL RESOURCES
                                                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

                       BUSINESS ORGANIZATION:
                       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
                                                  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.
 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

                                                                                                                                                                                       OTHER ASSISTANCE
                                                    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
   828-327-7000                                                                                       704-878-3227

Visit us online: www.sba.gov/nc                                                                                                        NORTH CAROLINA Small Business Resource —   39
                    OT H E R A SSISTANCE
                    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
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

                                                                                                                                                                                     OTHER ASSISTANCE
  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
   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
     www.americancommunitybank.com                                        www.randolphbank.com
                                     FIFTH THIRD BANK (OH) *
   ALLEGACY BANK FCU*                  www.53.com                       RBC BANK*
     www.allegacyfcu.org                                                  www.rbcbankusa.com
                                     FIRST BANK*
   ASHEVILLE SAVINGS BANK*             www.firstbancorp.com             REGIONS BANK (AL)*
     www.ashevillesavingsbank.com                                         www.regions.com
                                     FIRST CHATHAM
   BANK OF AMERICA*                    www.firstchatham.com             SELECT BANK & TRUST*
     www.bankofamerica.com                                                www.selectbankandtrust.com
                                     FIRST CITIZENS BANK & TRUST*
   BANK OF NORTH CAROLINA              www.firstcitizens.com            SELF-HELP CREDIT UNION*
     www.bankofnc.com                                                     www.self-help.org
                                     FIRST COMMERCIAL BANK
   BANK OF OAK RIDGE*                  www.firstcommercialbank.com      SOUND BANKING COMPANY*
     www.bankofoakridge.com                                               www.soundbanking.net
                                     FIRST COMMUNITY BANK
   BANK OF STANLY*                     www.fcbresource.com              SOUTHERN BANK & TRUST*
     www.bankofstanly.com                                                 www.southernbank.com
                                     FIRST NATIONAL BANK OF SHELBY*
   BANK OF THE CAROLINAS*              www.ibankatfnb.com               SOUTHERN COMMUNITY B&T*
     www.bankofthecarolinas.com                                           www.smallenoughtocare.com
                                     FIRST SOUTH BANK
   BLUE HARBOR BANK                    www.firstsouthnc.com             SUNTRUST BANK (VA)*
     www.blueharborbank.com                                               www.suntrust.com
                                     FOREST COMMERCIAL BANK
   BORREGO SPRINGS BANK (CA)*          www.forestcommercialbank.com     SUPERIOR FINANCIAL GROUP (CA)*
     www.borregospringsbank.com                                           www.superiorfg.com
                                     FOUR OAKS BANK & TRUST
   BRANCH BANKING & TRUST*             www.fouroaksbank.com             SURREY BANK & TRUST*
     www.bbandt.com                                                       www.surreybank.com
                                     HARRINGTON BANK, FSB
   BCI LENDING*                        www.bankatharrington.com         TD BANK (ME)*
     www.bcilending.com                                                   www.tdbank.com
                                     HIGH COUNTRY BANK
   CABARRUS BANK & TRUST*              www.yadkinvalleybank.com         THE BANK OF CURRITUCK
     www.cabarrusbankandtrust.com                                         www.bankofcurrituck.com
                                     HIGH POINT BANK & TRUST
   CAPITAL BANK*                       www.highpointbank.com/           THE EAST CAROLINA BANK*
     www.capitalbank-nc.com                                               www.ecbbancorp.com
                                     HOME LOAN INVEST. BANK (RI)*
   CAROLINA BANK                       www.homeloanbank.com             THE FIDELITY BANK*
     www.carolinabank.com                                                 www.fidelitybanknc.com
                                     HOMETRUST BANK
   CAROLINA PREMIER BANK*              www.hometrustbanking.com         TRULIANT FCU*
     www.carolinapremierbank.com                                          www.truliantfcu.org
                                     KEYSOURCE COMMERCE BANK
   CAROLINA TRUST BANK                 www.keysourcebank.com            TRUST ATLANTIC BANK
     www.carolinatrust.com                                                www.trustatlantic.com
                                     LIVE OAK BANKING CO
   CIT SMALL BUS. LENDING (NJ)*        www.liveoakbank.com              VANTAGE SOUTH BANK*
     www.cit.com                                                          www.vantagesouth.com
                                     LUMBEE GUARANTY BANK
   CITIZENS SOUTH BANK*                www.lumbeeguarantybank.com       WACCAMAW BANK
     www.citizenssouth.com                                                www.waccamawbank.com
                                     MOUNTAIN 1ST BANK & TRUST
   COASTAL FCU*                        www.mountain1st.com              WELLS FARGO BANK (CA)*
     www.coastalfcu.org                                                   www.wellsfargo.com
                                     NEW BRIDGE BANK*
   COMMUNITY BANK OF ROWAN*            www.newbridgebank.com            YADKIN VALLEY BANK*
     www.communitybankofrowan.com                                         www.yadkinvalleybank.com
                                     NEWTEK SMALL BUS FIN (NY)
   COMMUNITY SOUTH BANK (TN)*          www.newtekbusinessservices.com     * SBAExpress Lenders & Patriot Express
                                     PIEDMONT BANK*
   COMPASS BANK (AL)                   www.piedmontbankonline.com

Visit us online: www.sba.gov/nc                                                NORTH CAROLINA Small Business Resource —   43

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