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					                                     BUsINEss
                            smALL
NORTH
CAROLINA

                                                           REsOURCE




 Helping
 Small Business
 Start, Grow
 and Succeed
 PAGE
 10     Getting Started in North Carolina
 PAGE
 28     Recovery Act Loan Programs
 PAGE
 32     Government Contracting


                  WWW.SBA.GOV               •   YOU R SMALL B USI N ESS R ESOU RCE
    contents
      SMALL BUSINESS
                                                                                               PR
                                                                                                ublishing
                                                                                                           ENI          150 Third Street, S.W.
                                                                                                                        Winter Haven, FL 33880-2907
                                                                                               Publishers of Small Business Resource


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


                                                                                                Staff
                                                    2010 NORTH CAROLINA                         President/CEO
                                                                                                Joe Jensen                   jjensen@reni.net


     FEATURES                                                                                   English Small Business Resource Advertising
                                                                                                Nicky Harvey             nharvey@reni.net

      4           Introduction                        37     Disaster Recovery
                                                                                                Martha Theriault
                                                                                                John Beward
                                                                                                                      mtheriault@reni.net
                                                                                                                        jbeward@reni.net
                  • 4 Administrator’s Letter                 There are several types of
                                                             assistance available to
                  • 6 Director’s Message
                                                             qualified applicants.

      10          Getting Started                     38     Advocacy
                                                                                                SBA’s Marketing Office:
                                                                                                The Small Business Resource Guide is published
                                                             Find out about the outside         under the direction of SBA’s Office of Marketing and
                  Everything you need to know
                                                                                                Customer Service.
                  about setting up, marketing                research for the small business
                                                             owners.                            Director
                  and managing the revenue of
                                                                                                Laura Fox            laura.fox@sba.gov
                  your business.
                                                      39     Other Sources of                   Editorial Content
                                                                                                Robert Dillier    robert.dillier@sba.gov
                                                             Assistance
      16          Regulations                                Chambers of Commerce can be
                                                                                                Graphic Design
                                                                                                Gary
                  Common requirements that                   a vital resource for the small     Shellehamer gary.shellehamer@sba.gov
                                                             business owner.
                  affect small businesses.                                                      SBA’s participation in this publication is not an
                                                                                                endorsement of the views, opinions, products or
                                                      42     Lender Listing                     services of the contractor or any advertiser or other
      20          Getting Approved                                                              participant appearing herein. All SBA programs and
                                                                                                services are extended to the public on a
                  Financing Options                                                             nondiscriminatory basis.

                  to Start or Grow Your Business.                                               Printed in the United States of America

                                                                                                While every reasonable effort has been made to
                                                                                                ensure that the information contained herein was
      32          Contracting Opportunities                                                     accurate as of the date of publication, the information
                                                                                                is subject to change without notice. Neither the
                  SBA is working to ensure small                                                contractor, the federal government, or agents thereof
                  businesses obtain fair share of                                               shall be held liable for any damages arising from the
                  government contracts and                                                      use of or reliance on the information contained in this
                                                                                                publication.
                  subcontracts with a number
                  of programs.
                                                        “Everything you need to know            SBA Publication # MCS-0018

                                                                                                This publication is provided under SBA Contract
                                                           about setting up, marketing          # SBAHQ05C0014.
                                                           and managing the revenue of
                                                           your business.  ”


               5
Visit us online: www.sba.gov/nc
                                   Ways To Evaluate Your
                                   Strengths and Weaknesses
                                                                                Page 11
                                                                                                      NORTH CAROLINA Small Business Resource —            3
                                               The U.S. Small Business Administration

                                               FROM THE ADMINISTRATOR

                         hroughout our nation’s                           Overall, the SBA is committed to reinvigorating our

                              T
                         history, entrepreneurs and
                         small business owners have
                  proven that the American Dream is
                                                                          agency under the leadership of President Barack
                                                                          Obama, who is a visible and vocal advocate for
                                                                          America’s small businesses. He has spoken about
                  powerful, resilient and adaptable.                      how small businesses are born in family meetings
                  Given the right tools, small                            around kitchen tables, describing them as “the heart
                  businesses will lead the way in                         of the American economy.”
                  rebuilding our economy, creating
                  21st century jobs, and keeping                          Whether you work for a long-time Main Street shop, a
America competitive. This resource guide is one of                        start-up company or a high-tech firm, I hope you find
those tools – with a wealth of information about the                      the information in this guide to be timely and useful.
SBA and our network of partners throughout the                            Please take advantage of SBA district offices as well as
country.                                                                  thousands of SBA-affiliated counselors across the U.S.

Already, the SBA has taken bold action to help small                      Today, our nation’s small businesses – which employ
business owners lead us out of this recession. For                        more than half of working Americans – have an
example, the Recovery Act allowed us to temporarily                       opportunity to prove their potential to innovate, to
increase guarantees and reduce fees in our top two                        create jobs, and to drive the U.S. economy once again.
lending programs. This has led to increased lender
participation in SBA programs, more SBA lending                           Thank you for partnering with the SBA to help us
compared to the weeks before the Act, and reports                         achieve that critical goal for America’s future.
from borrowers that they are retaining and creating
thousands of jobs.                                                        With warm regards,

Our efforts don’t stop there. We are also working to                      Karen G. Mills
ensure that America’s small business communities                          Administrator
have access to training and mentoring, to federal                         Small Business Administration
government contracting opportunities, and to disaster
loan programs.




   About the SBA
   www.sba.gov
   Your Small Business Resource
   Every day, the U.S. Small Business Administration and its nationwide      • Growing a Business
   network of partners help millions of potential and current small          • Opportunities in Contracting
   business owners start, grow and succeed.                                  • Recovering From Disaster
                                                                             • A Voice for Small Business in Government
   Resources and programs targeting small businesses provide an
   advantage necessary to help small businesses effectively compete in    Visit SBA online at www.sba.gov for 24/7 access to small business
   the marketplace and strengthen the overall U.S. economy.               news, information and training for entrepreneurs.

   SBA offers help in the following areas:                                All SBA programs and services are provided on a nondiscriminatory
     • Starting a Business                                                basis.
     • Financing a Business


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


                                                                                   Rules For Success
                           SucceSS STORY
                           2009 SBA North
                           Carolina Small Business
                           Person of the Year

                           Lisa Anne Piñeiro, President
                                                                                   Like today’s small businesses, large corporate success stories
                           Technical Services, Inc.                                started with only an entrepreneur and a dream.
                           Durham, NC

   Lisa Piñeiro, President of Technical Services, Inc.
(TSI) in Durham, NC has been named 2009 North
Carolina Small Business Person of the Year. TSI is an
                                                                      oday more people in North         North Carolina banks and other



                                                             T
electrical training and recruiting firm.
   Piñeiro was honored for TSIís staying power,                       Carolina are following the        lenders support financial needs of
growth, innovative services, response to adversity                    dream of owning their own         small businesses. The Small Business
and contributions to the community. Under
Piñeiroís leadership, TSI has been growing steadily
                                                                      business. What is sometimes       and Technology Development
and has gone from 30 to 78 employees since she                        daunting is finding the right     Centers (SBTDC) and SCORE, both
started the business in 1998. In 2008, the company           information resources to guide the         partially funded by the SBA, assist
grossed over $3 million in sales.
   Things haven't always been highway-smooth for
                                                             effort. This issue of the North            entrepreneurs throughout the state.
Piñeiro, a former hairstylist. As a divorced, single         Carolina Small Business Resource           Both provide free counseling and
mom she searched for a good-paying job to support            Guide is designed to help fill that gap.   technical assistance. The North
her daughter. Piñeiro landed a job with a                    It provides basic start-up information     Carolina Community College system
construction staffing firm. As Piñeiro worked, she
learned. She knew she could provide a better quality         and an overview of the U.S. Small          has a number of Small Business
of service.                                                  Business Administration's programs         Centers that provide training and
   With a $45,000 loan from her parents and a solid          and services.                              make business research and reference
business plan, Piñeiro started TSI and it took off. The
loan was repaid with interest in six months. Piñeiro
                                                                                                        information available.
then invited a former co-worker to join her as a 10%         As the nation's largest single financial
partner in the company. She learned a valuable               backer of small businesses, the SBA         These are just a few examples of the
lesson when she became a victim of her partner’s             guarantees loans made by private           resources available to you as a business
fraud, embezzlement, and forgery. A criminal and
civil trial ensued and Piñeiro fought to keep her            lenders or certified development           owner.      Visit      our      website
business alive.                                              companies.        In     addition     to   www.sba.gov/nc, call us at 1-800-U-
   TSI recovered until 9/11/01. After the terrorist          guaranteeing loans, SBA provides           ASK-SBA (1-800-827-5722) or call or
attacks, building activity in the Durham area slowed
and Piñeiro looked for alternatives to generate
                                                             assistance to small businesses owned       visit one of our resource partners in
income. She opened two Edy's Ice Cream parlors to            by socially and economically               your area. Their locations and contact
help keep TSI afloat. For two years she scooped              disadvantaged individuals through its      numbers are listed on the following
desserts while raising her daughter and running TSI          Government Contracting Business            pages.
from the store room of the ice cream shop. During
this time, she began dating her husband, Frank               Development program. SBA also
Piñeiro, a project manager for an electrical                 plays a major role in the government's     Sincerely,
contractor. Frank now works for TSI.                         disaster relief efforts by making low-
   The current downturn in the U.S. economy is
slowing construction again. But Piñeiro may be
                                                             interest recovery loans to both
better insulated this time. She recently acquired a          homeowners and businesses.
company that does the electrical work for national                                                      Lee Cornelison
and international technology and pharmaceutical              Besides our own SBA staff, we have District Director of
companies in Durham's Research Triangle Park.
   Piñeiro credits SBA programs with helping her             many partners in the community. SBA's North Carolina District Office
become successful. In 2005, she got advice from
volunteer counselors at Raleigh SCORE, a resource
partner of the SBA. In 2006, TSI got a $75,000
SBAExpress Line of Credit from Wachovia Bank.
Lisa actively participates in training and counseling
offered by the Women's Business Center of North
Carolina (WBC). The WBC is a collaboration of the
SBA and the North Carolina Institute for Minority
Enterprise Development. At the WBC, Piñeiro met
with counselors who advised her on bonding

                                       continued on page 7




6 — Small Business Resource   NORTH CAROLINA                                                                                Visit us online: www.sba.gov/nc
                                                                                                                  The SBA helps business

  Doing Business in North carolina
                                                                                                                  owners grow and expand
                                                                                                                  their businesses every day.

                                                                                                                Women's Business Centers (WBC). They
                                                                                                                also conduct training events throughout
                                                                                                                the district - some require a nominal
                                                                                                                registration fee.

                                                                                                                Assistance to businesses owned and
                                                                                                                controlled by socially and economically
                                                                                                                disadvantaged individuals through the
                                                                                                                Business Development Program.

                                                                                                                A Women's Business Ownership Repre-
                                                                                                                sentative is available to assist women
                                                                                                                business owners. Please contact April
THE NORTH CAROLINA DISTRICT OFFICE                        CONTACTING THE NORTH CAROLINA                         Gonzalez at 704-344-6811 or e-mail:
The North Carolina District Office is                     DISTRICT OFFICE                                       april.gonzalez@sba.gov.
responsible for the delivery of SBA's many                For program and service information,
programs and services. The District                       please contact the Marketing Division at              A Veterans Affairs Officer is available to
Director is Lee Cornelison. The District                  704-344-6563. For information on                      assist veterans. Please contact Glenn
Office is located at 6302 Fairview Road,                  financing, contact the Financing Division             Harris at 704-344-6585 or e-mail:
Suite 300, Charlotte, NC. Office hours are                at 704-344-6810.                                      glenn.e.harris@sba.gov.
from 8:00 AM until 4:30 PM, Monday
through Friday.                                                                                                 SBA has additional field offices in the
                                                          SERVICES AVAILABLE
                                                                                                                following areas.
                                                          Financial assistance for new or existing
Last fiscal year, ending September 30,                                                                          Mike Arriola, Asheville, NC
                                                          businesses through guaranteed loans
2009, North Carolina District Office                                                                            828-225-1844
                                                          made by area bank and non-bank lenders.
approved 918 SBA loans for more than                                                                            Ivan Hankins, Cary, NC
                                                          Free counseling, advice and information
$262 million available to small businesses.                                                                     919-335-1004
                                                          on starting, better operating or expanding
Our resource partners counseled and                                                                             Don Spry, Wilmington, NC
                                                          a small business through the Service
and/or trained over 10,774 entrepreneurs.                                                                       910-815-3188
                                                          Corps of Retired Executives (SCORE),
These accomplishments have had a major
                                                          Small      Business      &     Technology
impact on the local economy and in
                                                          Development Centers (SBTDC) and
creating jobs.


SucceSS STORY
                                                          contractors solve their workforce shortages.
                                                             Meanwhile, Piñeiro works hard to attract
                                                          women and men to the construction trades. She
Lisa Anne Piñeiro, President
                                                          is a volunteer committee member for Women's
                                                                                                                 We Welcome Your
Technical Services, Inc.
Durham, NC
                                                          Business Enterprise National Council Southeast         Questions
                                  continued from page 6   Region, which describes itself as "the nation's
requirements and other contracting issues. The            leading advocate of women-owned businesses             For extra copies of this publication or
WBC also helped her secure an on-going                    as suppliers to America's corporations.”               questions please contact:
contract with United Mechanical Services. So far             In February, Piñeiro received Enterprising
the contract has a net worth $30,000 for TSI.             Women magazine's 2008 National Enterprising
   “SBA has been an integral part of TSI’s                Woman of the Year Award. She was named to the          North Carolina District Office
continued existence and growth,” said Piñeiro.            advisory board of the magazine for women               6302 Fairview Road, Suite 300
   With solid growth, came inspiration and                business owners. In June 2008 she was named            Charlotte, NC 28210-5722
innovation. One of the innovative services                the Greater Durham Business of Excellence.
offered by TSI is The Electrical Apprentice                  Locally, Piñeiro founded Southern High              Tel.: 704-344-6563 Fax: 704-344-6769
Program. In cooperation with Durham Technical             School Women @ Work, a program that
                                                                                                                 SBA Answer Desk: 800-827-5722
Community College, TSI offers specialized                 encourages girls to enroll in a traditionally male-
training for employees or people in the Durham            dominated construction “school-within-a-
community interested in pursuing a career in the          school" at Southern High. She is a member of the       Website: www.sba.gov/nc
construction industry. This certificate program is        board of the school, called the Construction and
endorsed through the North Carolina and U.S.              Architectural Design Academy. She is vice-
Departments of Labor. The program combines                president of the nonprofit Durham Careers in
paid, on-the-job training and classroom                   Construction, a group made up mostly of
instruction. An apprentice's training is paid for         construction professionals that educates young,
by TSI. Students receive regular pay increases as         at-risk kids in public schools about the wide
more complex tasks are performed and good                 array of lucrative careers in construction.
work ethic and attendance are displayed.                     The Piñeiroís live in Durham, where they raise
   Graduates are qualified journeypersons and             three daughters and a son.
have a better chance of becoming supervisors or              Piñeiro was nominated by Alton Barnes,
starting their own businesses. This program               Work-based Learning Coordinator of the
helps participants acquire skills and local               Durham Public Schools.


Visit us online: www.sba.gov/nc                                                                                       NORTH CAROLINA Small Business Resource —   7
                                               The U.S. Small Business Administration

                                                              MESSAGES
                                      Message From The                 North Carolina                     North Carolina
                                      Executive Director               East District                      West District
                                      of Small Business                Director of SCORE                  Director of SCORE
                                      and Technology
                                      Development Center
                                      (SBTDC)




                                                                       S
                                                                                CORE is proud to be part of the North Carolina SBA
                                                                                Resource Guide. This guide contains many resources
                                                                                that can be of assistance to entrepreneurs and small
                                                                                business owners. SCORE is a nonprofit association
                                                                                dedicated to the formation, growth and success of
               he SBTDC, a business development service of The




     T
                                                                       small businesses nationwide. SCORE volunteers are working and
               University of North Carolina, is now in its 25th year   retired executives and business owners who donate their time
               as a leading resource partner of the U.S. Small         and expertise to provide free and confidential business
               Business Administration in North Carolina. The          counseling.
               SBTDC provides high quality business counseling
     and management education services to existing small               SCORE is a resource partner with the U.S. Small Business
     businesses and to serious business start-ups. Included in         Administration and has 15 Chapters with over 430 experienced
     these is help with securing financing - particularly SBA          counselors located throughout North Carolina. SCORE chapters
     guaranteed loans and longer-term SBA 504 loans for                are proud to have provided assistance to 12,400 business clients
     buildings. Its services are provided through 17 offices across    in Fiscal Year 2009.
     the state and are focused on helping businesses meet
     challenges, manage change and plan for the future.                SCORE offers counseling and assistance to small businesses that
                                                                       are starting, growing or facing challenges. Please feel free to
     The North Carolina SBA Resource Guide is a great tool for         contact the SCORE chapter nearest you. A list of our chapters
     small business owners and those planning to start a business.     can be found in this guide. Visit our website at www.score.org
     Extensive business support information is provided as well as     for more information about available SCORE services.
     contact information as to resources such as the SBTDC which
     can help businesses be more successful.
                                                                       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 new    is needed from counselors with years of business experience.
     business, you can contact the SBTDC toll free at                  Good luck in your business endeavors and call your nearest
     800-258-0862 or visit our website for more information            SCORE office as your first business decision.
     about our services, www.sbtdc.org.
                                                                       Sincerely,
     Sincerely yours,
                                                                       Don Patience
                                                                       North Carolina East District

     Scott R. Daugherty                                                Dick Welch
     Executive Director of                                             North Carolina West District
     Small Business and Technology Development Center (SBTDC)
     Recently Appointed Commissioner of Small Business
     for North Carolina



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

                         GettinG Started
                   The SBA Can Help You Start And Expand Your Own Business
                                                                                                   These professionals can also help with
                                                                                                writing a formal business plan, locating
                                                                                                sources of financial assistance, managing
                                                                                                and expanding your business, finding
                                                                                                opportunities to sell your goods or services
                                                                                                to the government, and recovering from
                                                                                                disaster.

                                                                                                SBa’S reSOurce partnerS
                                                                                                ScOre
                                                                                                  SCORE, “Counselors to Americas Small
                                                                                                Businesses” is composed of 10,500-active
                                                                                                and      retired     volunteer        business
                                                                                                professionals. SCORE, with more than 40
                                                                                                years experience helping small businesses
                                                                                                succeed, matches volunteer business
                                                                                                counselors with clients in need of expert
             very day, the U.S. Small             • More than 23 free online courses and        advice. SCORE has experts in virtually



E            Business Administration and its        workshops available                         every area of business and maintains a
             nationwide network of resource       • Online, interactive assessment tools are    national skills roster to help identify the
                                                    featured and used to direct clients to
             partners help millions of                                                          best counselor for a particular client.
                                                    appropriate training.
             potential and current small                                                        Volunteer counselors, whose collective
                                                  Popular courses include a small business
business owners start, grow and succeed.                                                        experience spans the full range of
                                                primer, a financial primer keyed around
   Whether your target market is global or                                                      American       enterprise,     share      their
                                                SBA’s loan-guaranty programs, and
just your neighborhood, the SBA and its                                                         management and technical expertise with
                                                courses on preparing business plans and
resource partners can help at every stage of                                                    both current and prospective small
                                                loan packages.
turning your entrepreneurial dream into a                                                       business owners.
                                                  Find the SBTN at: www.sba.gov/training.
thriving business.                                                                                Volunteers work in or near their home
   If you’re just starting, the SBA and its                                                     communities providing management
                                                Where to Go to Get Started                      counseling and training to first-time
resources can help you with loans and              Our resources include the SBA’s district
business management skills. If you’re                                                           entrepreneurs and current small business
                                                offices serving every state and territory,
already in business, you can use the SBA’s      nearly 400 chapters of SCORE – Counselors       owners. They meet with clients at a SCORE
resources to help manage and expand your        to America’s Small Businesses, approximately    chapter office, an SBA office or at the client's
business, obtain government contracts,          900 Small Business Development Centers          place of business.
recover from disaster, find foreign markets,    approximately 110 Women’s Business                Every effort is made to match a client's
and make your voice heard in the federal        Centers and eight Veterans Business             needs with a counselor who is experienced
government.                                     Outreach Centers located across the             in a comparable line of business. All
   You can access SBA help online 24 hours      country. More information about SCORE,          individual and team counseling is free;
a day at www.sba.gov or visit one of our        SBDCs, WBCs and VBOCs is detailed at:           there may be a nominal fee for workshops
local offices for assistance.                   www.sba.gov/services.                           and seminars.

SBa’s Online training
  SBA’s Small Business Training Network                                                    • You get to be your own boss.
is an Internet-based training site. It                                                     • Hard work and long hours directly benefit you, rather
provides small businesses with free online         ON THE UPSIDE                             than increasing profits for someone else.
courses, workshops, learning tools and
                                                   It’s true, there are a lot of reasons   • A new venture is exciting.
other forms of technical assistance.
  Key Features of the SBTN:                        not to start your own business. But     • Earnings and growth potential are far less limited.
  • Training is available anytime and              for the right person, the advantages
    anywhere—all you need is a computer            of business ownership far outweigh      • Running a business will provide endless
    with Internet access.                          the risks.                                variety, challenge and opportunities to learn.



10 — Small Business Resource   NORTH CAROLINA                                                                                Visit us online: www.sba.gov/nc
                                              Through in-depth counseling and             Down East SCORE #0577
   EVALUATE                                training,    SCORE       volunteers     help
                                           prospective and established small business
                                                                                             c/o Neuse River Council of Governments
                                                                                             233 Middle St., Ste. 206/P.O. Box 790
                                                                                             New Bern, NC 28563
                                           owners and managers identify problems,
                                                                                             252-633-6688 • 252-638-1819 Fax
   Start by evaluating your                determine the causes and find solutions.
                                              Any small business can obtain help from     East Carolina SCORE #0693
   strengths and weaknesses                SCORE. Whether you are considering                1385 John Small Ave.
                                                                                             Washington, NC 27889
                                           starting your own business, have a
                                           business that is experiencing problems, are       252-974-1848 • 252-946-8700 Fax
                                           ready to expand, or need some other type
                                                                                          Greensboro SCORE #0246
                                           of advice, SCORE can help. The approach is        2007 Yanceyville St./P.O. Box 48
                                           confidential and personal. You don't need         Greensboro, NC 27405
   1. Are you a self-starter?              to be applying for or have an SBA loan to         336-333-5399 • 336-333-5111 Fax
      It will be up to you – not           participate in the program. In fact, an idea
      someone else telling you – to        is all that is necessary; consultation and     Western North Carolina SCORE #0242
                                           counseling before a business start-up is an       Federal Bldg., Rm. 108
      develop projects, organize your                                                        140 4th Ave. W.
      time and follow through on           important part of SCORE's service.                Hendersonville, NC 28792
                                              SCORE can also be found on the Internet        828-693-8702
      details.
                                           at: www.score.org.
                                              Business owners use the Web to fulfill      High Point SCORE #0329
   2. How well do you get along            their needs for information and advice.           High Point Chamber of Commerce
      with different personalities?        SCORE is primed to meet their requests for        1634 N. Main St./P.O. Box 5025
                                                                                             High Point, NC 27262
      Business owners need to develop      help by offering e-mail counseling, maps to       336-882-8625 • 336-889-9499 Fax
      working relationships with a         local SCORE chapters, hotlinks to other
                                           business resources on the Internet and         Outer Banks SCORE #0497
      variety of people including
                                           more at the click of a mouse. E-mail              Outer Banks Chamber of Commerce
      customers, vendors, staff,           counseling is provided by the Cyber-              101 Town Hall Dr.
      bankers, lawyers, accountants and    chapter, which now includes more than             Kill Devil Hills, NC 27948
      consultants. Can you deal with a                                                       252-441-8144 • 252-441-0338 Fax
                                           1,200 online members. You can choose from
      demanding client, an unreliable      almost 800 unique skills to find the           Raleigh SCORE #0096
      vendor or a cranky staff person?     cybercounselor who best suits your                Century Post Office Station
                                           individual needs, including special               300 Fayetteville St. Mall/P.O. Box 406
                                           counseling for veterans, service-disabled         Raleigh, NC 27602
   3. How good are you at making                                                             919-856-4739 • 919-856-4466 Fax
                                           veterans and Reserve component
      decisions?                           members. SCORE also offers more than 30
      Small business owners are                                                           Sandhills Area SCORE #0364
                                           online training workshops on topics for           1480 Hwy. 15-501
      required to make decisions           small businesses.                                 Southern Pines, NC 28387
      constantly, often quickly, under                                                       910-692-3926 • 910-692-0619 Fax
                                           Asheboro SCORE #0648
      pressure.                               Asheboro/Randolph Chamber of Commerce       Upper Coastal Plains SCORE #700
                                              317 E. Dixie Dr.                               Braswell Memorial Library
   4. Do you have the physical and            Asheboro, NC 27203                             727 N. Grace St.
                                              336-626-2626 • 336-626-7077 Fax                Rocky Mount, NC 27804
      emotional stamina to run a
                                                                                             252-442-1173 • 252-442-7366 Fax
      business?                            Asheville SCORE #0137
      Business ownership can be               Federal Bldg., Rm. 259                      Wilmington SCORE #0283
                                              151 Patton Ave.                                4010 Oleander Dr.
      challenging, fun and exciting. But      Asheville, NC 28801                            Wilmington, NC 28403
      it’s also a lot of hard work. Can       828-271-4786 • 828-271-4786 Fax                910-452-5395 • 910-452-5369 Fax
      you face 12-hour workdays six or
                                           Chapel Hill SCORE #0495
      seven days a week?                      Chapel Hill/Carrboro Chamber of Commerce
                                              104 S. Estes Dr./P.O. Box 2897
   5. How well do you plan and                Chapel Hill, NC 27515
                                              919-967-7075 • 919-968-6874 Fax
      organize?
      Research indicates many              Charlotte SCORE #0047
      business failures could have been       6302 Fairview Rd., Ste. 300
                                              Charlotte, NC 28210
      avoided through better planning.
      Good organization – of financials,
                                              704-344-6576 • 704-344-6769 Fax                  For ALL Your Franchising
      inventory, schedules, production     Coastal Carolina SCORE #0660                        Needs
                                              3615 Arendell St.
      – can help avoid pitfalls.              Morehead City, NC 28557
                                                                                               Go To:
                                              252-222-6126 • 252-222-6124 Fax                  www.franmarket.com


Visit us online: www.sba.gov/nc                                                               NORTH CAROLINA Small Business Resource —   11
Small BuSineSS and                              Fayetteville State University
                                                   1200 Murchison Rd./P.O. Box 1334
                                                                                                 cooperative agreement with the SBA,
                                                                                                 WBCs are located in virtually every state
technOlOGy develOpment                             Fayetteville, NC 28302-1334                   and U.S. territory.
centerS                                            910-672-1727 • 910-672-1949 Fax                  To meet the needs of women
   Small Business and Technology                North Carolina A&T State University              entrepreneurs, the WBCs offer services at
Development Centers meet the needs of              Nussbaum Center for Entrepreneurs             convenient times and locations, including
small businesses and promote economic              2007 Yanceyville St., Ste. 303                weekends. Some offer child care during
development in local communities by                Greensboro, NC 27405                          training and many provide assistance and
helping to create and retain jobs. Partially       336-334-7005 • 336-334-7073 Fax               materials in different languages, depending
funded by a cooperative agreement with                                                           on the needs of the individual communities
SBA, SBTDCs are focused on providing            North Carolina State University                  they serve. WBC services create local
long-term counseling to clients to help            5 West Hargett St.                            economic growth and vitality; in 2008, the
them grow successful businesses. The               Raleigh, NC 27606
                                                   919-715-7272 • 919-715-7777 Fax               WBC Program counseled and trained early
SBTDC network provides counseling and                                                            160,000 clients.
training to more than 550,000 existing          University of North Carolina                        WBC training courses are often free or
businesses or start-up business clients         at Chapel Hill                                   are offered at a small fee with scholarships
annually.                                          1700 Martin Luther King Jr. Blvd., Ste. 115   often available to those who need them. A
   SBTDCs assist with development of               Chapel Hill, NC 27514                         number of WBCs also provide courses and
business plans, provide manufacturing,             919-962-0389 • 919-962-3291 Fax               counseling via the Internet, mobile
financial packaging, contracting and
                                                                                                 classrooms and satellite locations.
international trade assistance. Special         University of North Carolina
emphasis areas include e-commerce,              at Charlotte                                        To find the nearest SBA WBC or to learn
technology transfer, IRS, EPA and OSHA             The Ben Craig Center                          more about SBA programs and services,
regulatory compliance, research and                8701 Mallard Creek Rd.                        visit the SBA’s website www.sba.gov.
development, Defense Economic Transition           Charlotte, NC 28262-9705
Assistance, export assistance, disaster            704-548-1090 • 704-548-9050 Fax
                                                                                                 are yOu riGht FOr Small
recovery assistance and market research.
SBTDCs also provide special assistance to
                                                University of North Carolina                     BuSineSS OWnerShip?
                                                at Wilmington                                       Most new business owners who succeed
veterans and help with energy efficiency           1612 Military Cutoff Dr., Ste. 208
under new program initiatives. Based on                                                          have planned for every phase of their
                                                   Wilmington, NC 28403
client needs, SBTDCs tailor their services to                                                    success. Thomas Edison, the great
                                                   910-962-3744 • 910-962-3014 Fax
meet the evolving needs of the local small                                                       American inventor, once said, “Genius is 1
business community.                             Western Carolina University                      percent inspiration and 99 percent
   SBTDCs deliver management and                   226 Forsyth Bldg., 2nd Fl.                    perspiration.” That same philosophy also
technical assistance to prospective and            Cullowhee, NC 28723-9646                      applies to starting a business.
existing small businesses using an effective       828-227-3459 • 828-227-7074 Fax                  First, you’ll need to generate a little bit of
business education network of 63 lead                                                            perspiration deciding whether you’re the
centers and approximately 885 service-          WCU Sub-Center at Asheville                      right type of person to start your own
center locations contracted to manage a            68 Patton Ave.                                business.
broad-based SBTDC program. SBTDCs are              Asheville, NC 28801

                                                                                                 iS entrepreneurShip FOr yOu?
                                                   828-251-6025 • 828-232-5126 Fax
located throughout the U.S., District of
Columbia, Guam, American Samoa, Puerto          Winston-Salem State University
Rico and the U.S. Virgin Islands.                                                                   In business, there are no guarantees.
                                                   301 N. Main St., Ste. 921A                    There is simply no way to eliminate all the
   In North Carolina, the following offices        Winston-Salem, NC 27101
are available to assist. For more                                                                risks associated with starting a small
                                                   336-779-7336 • 336-779-7384 Fax               business - but you can improve your
information, visit      the web site at:
www.sbtdc.org.                                  University of North Carolina                     chances of success with good planning,
                                                at Pembroke                                      preparation, and insight. Start by
Appalachian State University                       COMtech 115 Livermore Dr./P.O. Box 1510       evaluating your strengths and weaknesses
    130 Poplar Grove Rd. Connector                 Pembroke, NC 28372-1510                       as a potential owner and manager of a
    Boone, NC 28608                                910-775-4000 • 910-775-4005 Fax               small business. Carefully consider each of
    828-262-2492 • 828-262-2027 Fax                                                              the following questions:
                                                North Carolina Central University                  • Are you a self-starter? It will be entirely
ASU Sub-Center at Hickory                          School of Business                                up to you to develop projects, organize
    1990 Main Ave. S.E.                            1801 Fayetteville St.                             your time, and follow through on details.
    Hickory, NC 28602                              Durham, NC 27707
                                                                                                   • How well do you get along with
    828-345-1110 • 828-326-9117 Fax                919-530-7386 • 919-530-7680 Fax
                                                                                                     different    personalities? Business
East Carolina University
    300 E. First St., Willis Bldg.
                                                WOmen’S BuSineSS centerS                             owners need to develop working
                                                                                                     relationships with a variety of people
    Greenville, NC 27858-4353                      The SBA’s Women Business Center                   including customers, vendors, staff,
    252-737-1385 • 252-737-1382 Fax             Program is a network of 110 community-               bankers, and professionals such as
                                                based centers which provide business                 lawyers, accountants, or consultants. Can
Elizabeth City State University                 training, counseling, mentoring and other            you deal with a demanding client, an
    K.E. White Graduate Center/ECSU             assistance geared to women, particularly             unreliable vendor, or a cranky
    1704 Weeksville Rd./P.O. Box 874
                                                those who are socially and economically              receptionist if your business interests
    Elizabeth City, NC 27909-7806
    252-335-3247 • 252-335-3648 Fax             disadvantaged. Partially funded through a            demand it?


12 — Small Business Resource   NORTH CAROLINA                                                                            Visit us online: www.sba.gov/nc
   • How good are you at making                                                                              Working under the same roof where
     decisions? Small business owners are
     required to make decisions constantly -             WEBSITE                                         your family lives may not prove to be as
                                                                                                         easy as it seems. It’s important to work in a
     often quickly, independently, and under
     pressure.
                                                          Business plan help                             professional environment. One suggestion
                                                                                                         is to set up a separate office in your home to
   • Do you have the physical and                   The nearest SCORE chapter can be                     create this professional environment.
     emotional stamina to run a business?           located at: www.score.org.                               Ask yourself these questions – and
     Business ownership can be exciting, but        For business plan help at the SCORE Web              remember, there are no best or right reasons
     it's also a lot of work. Can you face six or   site, click on “Business Tools” from the left-hand   for starting a home-based business. But it is
     seven 12–hour workdays every week?             menu, then click on “Template Gallery.”              important to understand what the venture
   • How well do you plan and organize?                                                                  involves:
     Research indicates that poor planning is       You can find the           nearest   VBOC      at:     • Can I switch from home responsibilities
     responsible for most business failures.        www.sba.gov/vets.                                        to business work?
     Good organization — of financials,                                                                    • Do I have the self-discipline to maintain
     inventory, schedules, and production —         To find WBCs, click on: www.sba.gov/services/            schedules?
     can help you avoid many pitfalls.              and choose “Women’s Business Centers” from the         • Can I deal with the isolation of working
   • Is your drive strong enough? Running a         “Counseling and Assistance” heading at the               from home?
     business can wear you down emotionally.        bottom.                                                • Am I a self-starter?
     Some business owners burn out quickly
     from having to carry all the responsibility    You can also find business-plan help on the SBA’s    Finding your niche
     for the success of their business on their     Web site at:                                           Choosing a home business must be
     own shoulders. Strong motivation will          http://www.sba.gov/smallbusinessplanner/             approached carefully.
     help you survive slowdowns and periods         then choose “Writing a Business Plan” from the
     of burnout.                                    “Plan Your Business” menu along the bottom.          ask yourself:
   • How will the business affect your                                                                     • Does my home have the space for a
     family? The first few years of business        trademark and/or support system                          business?
     start-up can be hard on family life. It's                                                             • Can I identify and describe the business I
                                                    provided by the franchisor. But you operate
     important for family members to know                                                                    want to establish?
                                                    as an independent contractor with the                  • Can I identify my business product or
     what to expect and for you to be able to       ability to make a profit or sustain a loss               service?
     trust that they will support you during        commensurate with your ownership.                      • Is there a demand for that product or
     this time. There also may be financial            If you are concerned about the risk                   service?
     difficulties until the business becomes        involved in a new, independent business                • Can I successfully run the business from
     profitable, which could take months or         venture, then franchising may be an option               home?
     years. You may have to adjust to a lower       for you. Remember that hard work,
     standard of living or put family assets at     dedication and sacrifice are key elements in         legal requirements
     risk in the short-term.                                                                                A home-based business is subject to
                                                    the success of any business venture,
   Once you’ve answered those questions,                                                                 many of the same laws and regulations
                                                    including a franchise.                               affecting other businesses.
you should consider what type of business              For more information visit the SBA Web
you want to start. Businesses can include                                                                Some general areas include:
                                                    site at: http://www.sba.gov/smallbusiness              • Zoning regulations. If your business
franchises, at-home businesses, Web-based           planner/start/ and click on “Buy a                       operates in violation of them, you could
businesses or brick-and-mortar stores.              Franchise” from the menu on the right side               be fined or shut down.
                                                    or call your local SBA office.                         • Product restrictions. Certain products
FranchiSinG                                                                                                  cannot be produced in the home. Most
   There are more than 3,000 franchised             hOme-BaSed BuSineSSeS                                    states outlaw home production of
                                                                                                             fireworks, drugs, poisons, explosives,
businesses. The challenge is to decide on              Going to work used to mean traveling                  sanitary or medical products and toys.
one that both interests you and is a good                                                                    Some states also prohibit home-based
                                                    from home to a plant, store or office. Today
investment. Many franchising experts                                                                         businesses from making food, drink or
                                                    many people do some or all their work at
suggest that you comparison shop by                                                                          clothing.
                                                    home.
looking at multiple franchise opportunities                                                                 Be sure to consult an attorney and your
                                                       Garages, basements and attics are being           local and state departments of labor to find
before deciding on the one that's right for
                                                    transformed      into     the      corporate         out which laws and regulations will affect
you.
                                                    headquarters of the newest entrepreneurs –           your business. Additionally, check on
   Some of the things you should look at
                                                    home-based business owners.                          registration and accounting requirements
when evaluating a franchise: profitability,
effective financial management and other                                                                 needed to open your home-based business.
controls, a good image, integrity and
                                                    Getting Started                                      You may need a work certificate or license
                                                       Before diving headfirst into a home-              from the state. Your business name may
commitment, and a successful industry.
                                                    based business, you must know why you                need to be registered with the state. A
   In the simplest form of franchising, while                                                            separate business telephone and bank
                                                    are doing it. To succeed, your business
you own the business, its operation is                                                                   account are good business practices.
                                                    must be based on something greater than a
governed by the terms of the franchise                                                                      Also remember, if you have employees
                                                    desire to be your own boss. You must plan
agreement. For many, this is the chief                                                                   you are responsible for withholding
                                                    and make improvements and adjustments
benefit for franchising. You are able to                                                                 income and social-security taxes, and for
                                                    along the road.
capitalize on a business format, trade name,                                                             complying with minimum wage and
                                                                                                         employee health and safety laws.

Visit us online: www.sba.gov/nc                                                                              NORTH CAROLINA Small Business Resource —   13
                                                    • Identify your market, its size and             Women’s        business     ownership
                                                      locations.                                  representatives in every SBA district office
                                                    • Explain how your products and services      coordinate services for women, helping
                                                      will be advertised and marketed.            them access appropriate training,
                                                    • Explain your pricing strategy.              counseling, mentoring, federal contracting
                                                                                                  opportunities, financing, and more. They
                                                  Financial management                            can also provide information on other local
                                                    • Develop an expected return on               resources, including SBA resource partners
                                                      investment and monthly cash flow for the    and lenders.
                                                      first year.
                                                    • Provide projected income statements, and    North Carolina Center for Women
                                                      balance sheets for a two-year period.       Business Owners
                                                    • Discuss your break-even point.                 230 Hay St.
                                                    • Explain your personal balance sheet and        Fayetteville, NC 28302
                                                      method of compensation.                        910-323-3377
                                                    • Discuss who will maintain your                 www.wcof.org
                                                      accounting records and how they will be        wcofinfo@wcof.org
                                                      kept.                                          The North Carolina Center for Women
                                                    • Provide “what if” statements addressing        Business Owners is a program of the
                                                      alternative approaches to potential            Women's Center of Fayetteville to provide
                                                      problems.                                      assistance to women aspiring to be
   If you’re convinced that opening a                                                                entrepreneurs, in start-up and emerging
home-based business is for you, it’s time to      Operations                                         businesses and existing businesses ready for
                                                    • Explain how the business will be               expansion. The Center offers classes,
create your business plan. The SBA and its
                                                      managed day-to-day.                            conferences, individual consultations, and
resource partners, such as SCORE, SBDCs
                                                    • Discuss hiring and personnel procedures.       mentoring to address many aspects of small
and WBCs can help make the process                  • Discuss insurance, lease or rent               business ownership, including financing,
easier.                                               agreements, and issues pertinent to your       marketing and contracting.
                                                      business.
                                                                                                  Women's Business Center
WritinG a BuSineSS plan
                                                    • Account for the equipment necessary to
                                                      produce your goods or services.             of North Carolina
   After you’ve thought about what type of          • Account for production and delivery of         114 W. Parrish St., 4th Fl./P.O. Box 1331
business you want, the next step is to                products and services.                         Durham, NC 27701
develop a business plan. Think of the                                                                919-956-8889
business plan as a roadmap with
                                                  concluding Statement                               www.ncimed.com
                                                     Summarize your business goals and               info@ncimed.com
milestones for the business. It begins as a                                                          The Women's Business Center of North
                                                  objectives and express your commitment
pre-assessment tool to determine                                                                     Carolina was created by the N.C. Institute of
                                                  to the success of your business. Once you
profitability and market share, then                                                                 Minority Economic Development as a
                                                  have completed your business plan,
expands as an in-business assessment tool                                                            program to provide a full range of training
                                                  review it with a friend or business                and counseling services for aspiring and
to determine success, obtain financing and
                                                  associate and professional business                existing women business owners in North
determine repayment ability, among other
                                                  counselor like SCORE or SBDC                       Carolina. Additionally, the Center is a source
factors.
                                                  representatives, SBA district office               of financial consulting, loan packaging, and
   Creating a comprehensive business plan                                                            contracting assistance for small businesses.
                                                  business development specialists or
can be a long process, and you need good
                                                  Veterans      Business      Development
advice. The SBA and its resource partners,                                                        Mountain BizWorks Women’s Business
                                                  specialists.
including Small Business Development                                                              Center
                                                     Remember, the business plan is a
Center, Veterans Business Outreach                                                                   Formerly Mountain Microenterprise Fund
                                                  flexible document that should change as            153 S. Lexington Ave.
Centers, SCORE and Women’s Business
                                                  your business grows.                               Asheville, NC 28801
Centers, have the expertise to help you craft
a winning business plan.                                                                             828-253-2834
   In general, a good business plan               reachinG underServed                               www.mountainbizworks.org
                                                                                                     info@mountainbizworks.org
contains:                                         audienceS                                          The Mountain BizWorks Women’s Business
introduction                                      Women Business Owners                              Center serves current and potential women
                                                                                                     business owners in the 12-county area of
  • Give a detailed description of the               Women entrepreneurs are changing the            Western N.C. They offer a variety of services
    business and its goals.                       face of America's economy. In the 1970s,           including business plan courses, technical
  • Discuss ownership of the business and its     women owned less than five percent of the          assistance and access to loans.
    legal structure.
                                                  nation’s businesses. Today, they are at least
  • List the skills and experience you bring to
    the business.
                                                  equal owners of nearly half the nation’s
                                                  businesses and are majority owners of
                                                                                                  veteranS and reServiStS
  • Discuss the advantages you and your
    business have over competitors.               about a third of all small businesses. SBA      BuSineSS develOpment
                                                  serves women entrepreneurs nationwide             The SBA offers a variety of services to
marketing                                         through its various programs and services,      American veterans who have made or are
  • Discuss the products and services your        some of which are designed especially for       seeking to make the transition from service
    company will offer.                           women. Many of these are overseen by            member to small business owner. Each of
  • Identify customer demand for your             SBA’s Office of Women’s Business                SBA's 68 district offices has designated a
    products and services.                        Ownership.                                      veterans business development officer to

14 — Small Business Resource   NORTH CAROLINA                                                                            Visit us online: www.sba.gov/nc
help veterans prepare, plan and succeed in
entrepreneurship. The Veterans Business
                                                native american BuSineSS                     Cherokee Business Development Center
                                                                                                Ginger Lynn Welch Complex
Outreach Centers provide online and face-       develOpment                                     810 Acquoni Rd.
to-face entrepreneurial development                The SBA is also working to ensure that       Cherokee, NC 28719
services such as business training,             entrepreneurship      opportunities    are      828-497-1666 • 828-497-1665 Fax
counseling and mentoring to eligible            available for American Indians, Native          www.sequoyahfund.org
veterans owning or considering starting a                                                       kimbwinc@nc-cherokee.com
                                                Alaskans and Native Hawaiians seeking to
small business. SBDCs and SCORE also            create, develop and expand small
provide targeted management assistance to       businesses. These groups have full access
veterans who are current or prospective         to the necessary business development and
small business owners. SCORE also               expansion tools available through the
provides resources and counseling services      agency’s entrepreneurial development,
online at: www.score.org.                       lending and procurement programs. More
   The SBA offers special assistance for        information is at: http://www.sba.gov/
small businesses owned by activated             aboutsba/sbaprograms/naa.
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.
   Additionally, the SBA offers special low-
interest-rate financing to small businesses
when an owner or essential employee is
called to active duty. The Military Reservist
Economic Injury Disaster Loan Program
provides loans to eligible small businesses
to cover operating costs that cannot be met
due to the loss of an essential employee
called to active duty in the reserves or
National Guard. Small businesses may
apply for MREIDLs of up to $2 million if
they have been financially impacted by the
loss of an essential employee. The SBA has
created a special Web page specifically for
Reserve and Guard members at:
http://www.sba.gov/aboutsba/sbaprograms/
reservists/index.html.
  To ensure that veterans, service-disabled
veterans and Reserve and National Guard
member entrepreneurs receive special
consideration in all its entrepreneurial
programs and resources, the SBA has
established an Office of Veterans Business
Development. OVBD develops and
distributes various informational materials
for entrepreneurship such as the Veterans
Business Resource Guide, VETGazette,
Getting Veterans Back to Work, and various
other materials. Veterans may access these
resources and other assistance from OVBD
by     visiting   the    Web      site   at:
www.sba.gov/VETS/.
     For more information or special
assistance with government contracting,
including programs for veterans and
service-disabled veterans, please check the
Contracting Opportunities section of this
publication, and the Web site above.
  SBA’s Patriot Express Initiative has new
and enhanced programs and services for
veterans and members of the military
community wanting to establish or expand
small businesses. See the Financing section
for more information on Patriot Express.


Visit us online: www.sba.gov/nc                                                                 NORTH CAROLINA Small Business Resource —   15
                                                         REGULATIONS

               knOWinG the ruleS
                          Paying Attention to Detail Can Save Time and Money
                                                                                                 sole proprietorships, general and limited
                                                                                                 partnerships, “C” and “S” corporations and
                                                                                                 limited liability companies.
                                                                                                    Each structure offers unique tax and
                                                                                                 liability benefits. If you’re uncertain which
                                                                                                 business format is right for you, you may
                                                                                                 want to discuss options with a business
                                                                                                 counselor or attorney.

                                                                                                 Sole proprietorship
                                                                                                    One person operating a business as an
                                                                                                 individual is a sole proprietorship. It’s the
                                                                                                 most common form of business
                                                                                                 organization. Profits are taxed as income to
                                                                                                 the owner personally. The personal tax rate
                                                                                                 is usually lower than the corporate tax rate.
                                                                                                 The owner has complete control of the
                                                                                                 business, but faces unlimited liability for its
           ven if your consulting service or        “Feature Topics” focuses on common



E
                                                                                                 debts. There is very little government
           hand-knit sweater business is         business concerns. It provides context to       regulation or reporting required with this
           based from your home, it will         the compliance information provided on          business structure.
           have to comply with many of           the site and helps business owners
           the numerous local, state, and        understand in plain language the                General partnership
federal regulations. Avoid the temptation to     regulatory requirements their businesses          A partnership exists when two or more
ignore regulatory details. Doing so may          face. Additional topics are added on a          persons join together in the operation and
avert some red tape in the short term, but       regular basis in response to the most
                                                                                                 management of a business. Partnerships
could be an obstacle as your business            frequent searches on the site.
                                                                                                 are subject to relatively little regulation and
grows. Taking the time to research the                                                           are fairly easy to establish. A formal
applicable regulations is as important as        BuSineSS OrGanizatiOn                           partnership agreement is recommended to
knowing your market. Bear in mind that             There are many forms of legal structure       address potential conflicts such as: who
regulations vary by industry. If you're in the   you may choose for your business. Each          will be responsible for performing each
food-service business, for example, you          legal structure offers organizational options   task; what, if any, consultation is needed
will have to deal with the health                with different tax and liability issues. We     between partners before major decisions,
department. If you use chemical solvents,        suggest you research each legal structure       what happens when a partner dies, and so
you will have environmental compliances                                                          on. Under a general partnership each
                                                 thoroughly and consult a tax accountant
to meet. Carefully investigate the                                                               partner is liable for all debts of the business.
                                                 and/or attorney prior to making your
regulations that affect your industry. Being                                                     Profits are taxed as income to the partners
                                                 decision.
out of compliance could leave you                                                                based on their ownership percentage.
unprotected legally, lead to expensive           Secretary of State,
penalties and jeopardize your business.          Corporations Division                           limited partnership
                                                    2 S. Salisbury St.                              Like a general partnership, a limited
BuSineSS.GOv                                        Old Revenue Bldg. Complex
                                                    Raleigh, NC 27601
                                                                                                 partnership is established by an agreement
   Business.gov provides a one-stop shop            919-807-2225 or 888-246-7336
                                                                                                 between two or more persons. However,
for federal resources from the federal              www.sosnc.com                                there are two types of partners.
government agencies that regulate or serve                                                         • A general partner has greater control in
businesses.                                         Mailing address:                                 some aspects of the partnership. For
   Business.gov’s “Permit Me” feature               P.O. Box 29622                                   example, only a general partner can
provides a single source for obtaining              Raleigh, NC 27626-0622                           decide to dissolve the partnership.
federal and state permits and professional                                                           General partners have no limits on the
licenses for businesses.      While most
businesses in the United States are required
                                                 chOOSinG yOur BuSineSS                              dividends they can receive from profit so
                                                                                                     they incur unlimited liability.
to obtain a permit, professional license, or     Structure                                         • Limited partners can only receive a share
                                                                                                     of profits based on the proportional
identification number to operate, finding          You may operate your business under               amount on their investment, and the
the right license can be a major challenge       one of many organizational structures. The          liability is similarly limited in proportion
for potential business owners.                   most common organizational structures are           to their investment.


16 — Small Business Resource   NORTH CAROLINA                                                                           Visit us online: www.sba.gov/nc
“c” corporation                                     The Business Servicenter provides                    Business Interruption – While property
   A “C” corporation is a legal entity created      information to entrepreneurs and existing         insurance may pay enough to replace
under state law by the filing of articles of        business owners on services, programs,            damaged or destroyed equipment or
incorporation. A corporation is a separate          resources, licenses and regulatory
                                                    requirements relating to start up and             buildings, how will you pay costs such as
entity having its own rights, privileges and                                                          taxes, utilities and other continuing
                                                    existing businesses in North Carolina.
liabilities, apart from those of the                The center provides one-on-one telephone          expenses during the period between when
individual(s) forming the corporation. It’s         consultations, business structure forms, and      the damage occurs and when the property
the most complex form of business                   identifies local, regional and federal business
organization and is comprised of                                                                      is replaced? Business Interruption (or
                                                    resources. The center’s resources include:
shareholders, directors and officers. Since         general information on licensing                  "business income") insurance can provide
the corporation is an entity in its own right       requirements, registering trade marks,            sufficient funds to pay your fixed expenses
it can own assets, borrow money and                 business name registration, taxes and             during a period of time when your
perform business functions without                  employer requirements. In addition, the           business is not operational.
directly     involving       the      owners.       center provides assistance with “where to go         "Key Man" – If you (and/or any other
Corporations are subject to more                    for what” for new and existing businesses.
                                                                                                      individual) are so critical to the operation of
government regulation and it offers the             www.blnc.gov.
                                                                                                      your business that it cannot continue in the
owners the advantage of limited liability,
but not total protection from lawsuits.          FictitiOuS BuSineSS name                             event of your illness or death, you should
                                                                                                      consider "key man" insurance. This type of
                                                   Registering your business name, after              policy is frequently required by banks or
Subchapter “S” corporation                       doing a search to make sure that it is not           government loan programs. It also can be
  Subchapter “S” references a special part       already in use, protects you from others
of the Internal Revenue Code that permits a                                                           used to provide continuity in operations
                                                 who might want to use the same name. For
corporation to be taxed as a partnership or      more information, contact the county                 during a period of ownership transition
sole proprietorship, with profits taxed at       clerk’s office in the county where your              caused by the death, incapacitation or
the individual, rather than the corporate        business is based. If you are a corporation,         absence due to a Title 10 military activation
rate. A business must meet certain               you’ll need to check with the state.                 of an owner or other "key" employee.
requirements for Subchapter “S” status.                                                                  Automobile – It is obvious that a vehicle
Contact the IRS for more information.
                                                 BuSineSS inSurance                                   owned by your business should be insured
                                                                                                      for both liability and replacement
llcs and llps                                       Like home insurance, business insurance           purposes. What is less obvious is that you
   The limited liability company is a            protects the contents of your business               may need special insurance (called "non-
relatively new business form. It combines        against fire, theft and other losses. Contact        owned automobile coverage") if you use
selected corporate and partnership               your insurance agent or broker. It is                your personal vehicle on company
characteristics while still maintaining status   prudent for any business to purchase a               business. This policy covers the business'
as a legal entity distinct from its owners. As   number of basic types of insurance. Some
                                                                                                      liability for any damage which may result
a separate entity it can acquire assets, incur   types of coverage are required by law, other
liabilities and conduct business. It limits                                                           for such usage.
                                                 simply make good business sense. The
liability for the owners. LLC owners risk                                                                Officer and Director – Under most state
                                                 types of insurance listed below are among
only their investment, not personal assets.                                                           laws, officers and directors of a corporation
                                                 the most commonly used and are merely a
The limited liability partnership is similar                                                          may become personally liable for their
                                                 starting point for evaluating the needs of
to the LLC, but it is for professional                                                                actions on behalf of the company. This type
                                                 your business.
organizations.                                                                                        of policy covers this liability.
                                                    Liability Insurance – Businesses may
                                                 incur various forms of liability in                     Home Office – If you are establishing an
lOGiSticS OF StartinG yOur                       conducting their normal activities. One of           office in your home, it is a good idea to
BuSineSS                                         the most common types is product liability,          contact your homeowners' insurance
                                                                                                      company to update your policy to include
                                                 which may be incurred when a customer
BuSineSS licenSeS                                suffers harm from using the business
                                                 product. There are many other types of
                                                                                                      coverage for office equipment. This
                                                                                                      coverage is not automatically included in a
  There are many types of licenses, both                                                              standard homeowner's policy.
state and local as well as professional.         liability, which are frequently related to
Depending on what you do and where you           specific industries. Liability law is
plan to operate, your business may be            constantly changing. An analysis of your             emplOyer identiFicatiOn
required to have various state and/or
municipal licenses, certificates or permits.
                                                 liability insurance needs by a competent
                                                 professional is vital in determining an              numBer
  Licenses are typically administered by a       adequate and appropriate level of                       An EIN, also known as a federal tax
variety of state and local departments.          protection for your business.                        identification number, is used to identify a
Consult your state or local government for          Property – There are many different               business entity. Generally all businesses
assistance.                                      types of property insurance and levels of            need an EIN. You may apply for an EIN in
                                                 coverage available. It is important to               a variety of ways, including online, phone,
Business ServiCenter                             determine the property you need to insure            fax.     Taxpayers can obtain an EIN
     North Carolina Department of Commerce
     Business & Industry Development Division    for the continuation of your business and            immediately by calling 800-829-4933,
     301 N. Wilmington St.                       the level of insurance you need to replace           Monday through Friday, from 7:30 a.m. to
     4344 Mail Service Center                    or rebuild. You must also understand the             5:30 p.m. customer's local time.
     Raleigh, NC 27699-4344                      terms of the insurance, including any                   Taxpayers can fax EIN requests seven
     919-715-2864 or 800-228-8443                limitations or waivers of coverage.                  days a week/24 hours a day by dialing the
     www.nccommerce.com/servicenter

Visit us online: www.sba.gov/nc                                                                           NORTH CAROLINA Small Business Resource —   17
                                                 tax to your customers, which you are
                                                 responsible for remitting to the state. You
                                                                                                  Small BuSineSS videO and
                                                 will have to pay penalties if it is found that   audiO preSentatiOnS
                                                 you should have been taxing your products          A new page at http://www.irs.gov/
                                                 and now owe back taxes to the state. For         businesses/small/article/0,,id=97726,00.html
                                                 information on sales tax issues, contact         on IRS.gov features video and audio
                                                 your state’s government.                         presentations on a variety of topics for
                                                                                                  small businesses and self-employed
                                                 Federal incOme tax                               taxpayers, highlighted by an audio
                                                                                                  podcast reenactment of the May 2008 IRS
                                                   Like the state income tax, the method of
                                                                                                  National Phone Forum for first-time
                                                 paying federal income taxes depends upon
                                                                                                  Schedule C filers. Also included are:
                                                 your legal form of business. The following         • Adjusting Employment Taxes: New for
                                                 procedures must be considered:                       2009
                                                   Sole Proprietorship: You must file IRS           • Backup Withholding for Form 1099-MISC
                                                 Federal Form Schedule C along with your            • Bartering Income
                                                 personal Federal Income Tax return (Form           • Choosing a Tax Preparer
                                                                                                    • Employer Identification Numbers
                                                 1040) and any other applicable forms
                                                                                                    • Small Business Tax Workshops
                                                 pertaining to gains or losses in your              • Schedule C: Who needs to file and how to
fax number to one of three IRS campuses          business activity.                                   do it
that accept applications. The instructions         Partnership: You must file a Federal
on the newly revised Form SS-4,                  Partnership return (Form 1065). This is            In addition to these video and audio
Application for Employer ID Number,              merely informational to show gross and net       presentations, please visit the Small
indicate which IRS Campus is assigned to         earnings of profit and loss. Also, each          Business/Self-Employed Virtual Small
their specific state. Detailed information       partner must report his share of                 Business      Tax     Workshop      at:
and an electronic SS-4 can be found at the       partnership earnings on his individual           http://www.irs.gov/businesses/small/article/0,
IRS Small Business/Self Employed                 Form 1040 based on the information from          ,id=200274,00.html for instructional
Community Web site at: http://www.irs.gov/       the K-1 filed with the Form 1065.                lessons.
businesses/small/index. html, click on New         Corporation: You must file a Federal
Businesses. Faxed applications are               Corporation Income Tax return (Form              Self-Employed Individuals Tax Center
processed in four days. These IRS                1120). You will also be required to report         Small businesses and the self-employed
Campuses accept faxed applications at the        your earnings from the corporation               will also find information and resources in
following numbers:                               including salary and other income such as        the Self-Employed Individuals Tax
  Holtsville, NY               631-447-8960      dividends on your personal federal income        Center at: http://www.irs.gov/businesses/
  Cincinnati, OH               859-669-5760      tax return (Form 1040).                          small/ selfemployed/.
  Philadelphia, PA             215-516-3990
                                                                                                  e-News for Small Businesses
  EINs are also issued automatically
online.   Visit the IRS Web site,
                                                 Federal payrOll tax                                 To learn about other IRS products and
http://www.irs.gov/businesses/small/article/0,      Federal Withholding Tax: Any business         services, and to keep up with the latest IRS
,id=102767,00.html for more information.         employing a person must register with the        announcements for small businesses, start a
                                                 IRS and acquire an EIN and pay federal           free subscription to e-News for Small
                                                 withholding tax at least quarterly. File Form    Businesses; just go to IRS.gov at:
Federal                                          SS-4 with IRS to obtain number and               http://www.irs.gov/businesses/small/content/
SelF-emplOyment tax                              required tax forms. Call 800-829-3676 or
                                                 800-829-1040 if you have questions.
                                                                                                  0,,id=154826,00.html.
  Every employee must pay Social Security
and Medicare coverage. If you are self-                                                           SOcial Security cardS
employed, your contributions are made            irS WeB prOductS FOr Small                          All employees must have a social
through the self-employment tax.                 BuSineSSeS                                       security card. It must be signed by its
  The IRS has publications, counselors and                                                        owner, and you should always ask to see
                                                   To provide the most timely and up-to-
workshops available to help you sort it out.                                                      and personally record the social security
                                                 date tax information, the Small Business         number. Failure to do so may cause your
For more information, contact the IRS at         Resource Guide (SBRG), formerly a CD-            employee to lose benefits and considerable
800-829-1040.                                    ROM, is available exclusively online at          trouble for yourself in back tracking to
                                                 http://www.irs.gov/businesses/small/article/0,   uncover the error.
SaleS tax exemptiOn                              ,id=155439,00.html.                                 Each pay day, your employees must
certiFicate                                        Designed to equip small business
                                                 owners with the skills and knowledge
                                                                                                  receive a statement from you telling them
                                                                                                  what deductions were made and how
   If you plan to sell products, you will                                                         many dollars were taken out for each legal
                                                 needed to successfully start and manage a
need a Sales Tax Exemption Certificate. It                                                        purpose. This can be on the check as a
                                                 business, IRS has ensured the SBRG covers
allows you to purchase inventory, or                                                              detachable portion or in the form of an
                                                 a wide range of tax topics Web links to
materials, which will become part of the                                                          envelope with the items printed and spaces
                                                 business forms, publications, other useful       for dollar deductions to be filled in.
product you sell, from suppliers without
                                                 governmental Web sites, and much more.
paying taxes. It requires you to charge sales

18 — Small Business Resource   NORTH CAROLINA                                                                             Visit us online: www.sba.gov/nc
emplOyee cOnSideratiOnS                         safe, simple, and secure Internet-based
                                                system that electronically verifies Social
                                                                                                Patent and Trademark Office:
                                                                                                    P.O. Box 1450
taxes                                           Security number and employment                      Alexandria, VA 22313-1450
   If you have any employees, including         eligibility information reported on Form I-         800-786-9199
officers of a corporation but not the sole      9. E-Verify is voluntary in most states and         http://www.uspto.gov/
proprietor or partners, you must make           there is no charge to use it.
                                                                                                Trademark Information Hotline
periodic payments of, and/or file quarterly        If you are an employer or employee and           703-308-9000
reports about payroll taxes and other           would like more information about the
mandatory deductions. You may contact           E-Verify       program,       please  visit:    State registration of a trademark
these government agencies for information,      www.dhs.gov/E-Verify or contact our             Trademarks and service marks may be
assistance and forms.                           Customer Support staff: 1-888-464-4218          registered in a state. For filing fees or more
                                                Monday – Friday 8 am – 5 pm Local Time          information about applications for
Social Security Administration                  E-mail: e-verify@dhs.gov
     800-772-1213                                                                               registration of trademark or service mark
                                                   E-Verify is operated by the Department       contact the:
     http://www.ssa.gov
                                                of Homeland Security (DHS) in
                                                partnership with the Social Security            Trademark Division
Social Security’s Business Services Online                                                      Department of the Secretary of State
                                                Administration (SSA).
 The Social Security Administration now                                                             P.O. Box 29622
provides free electronic services online at:                                                        Raleigh, NC 27626-0622
www.socialsecurity.gov/employer/. Once          SaFety & health reGulatiOnS                         919-807-2000 • 919-807-2115 Fax
registered for Business Services Online,          All businesses with employees are                 http://www.secretary.state.nc.us/trademrk
business owners or their authorized             required to comply with state and federal       Caution: Federally registered trademarks
representative can:                             regulations regarding the protection of         may conflict with and supersede state
   • file W-2s online; and                      employees. The Occupational Safety and          registered business and product names.
   • verify Social Security Numbers through     Health Administration outlines specific
     the Social Security Number Verification
                                                health and safety standards adopted by the      patents
     Service, used for all employees prior to                                                     A patent is the grant of a property right
     preparing and submitting Forms W-2.
                                                U.S. Department of Labor.
                                                  Use of hazardous substances in                to the inventor by the U.S. Patent and
Federal Withholding                             businesses is highly regulated and there are    Trademark Office. It provides the owner
     U.S. Internal Revenue Service              heavy fines for non-compliance.                 with the right to exclude others from
     800-829-1040                                                                               making, using, offering for sale or selling
     http://www.irs.gov
                                                BuildinG cOdeS, permitS and                     the patented item in the United States.
                                                                                                  Additional information is provided in
employee insurance                              zOninG                                          the publications, General Information
  If you hire employees you may be                 It is important to consider zoning           Concerning Patents and other publications
required to provide unemployment or             regulations when choosing a site for your       distributed through the U.S. Patent and
workers’ compensation insurance.                business. You may not be permitted to           Trademark Office. For more information,
                                                conduct business out of your home or            contact the:
WOrkplace prOGram                               engage in industrial activity in a retail
                                                                                                U.S. Patent and Trademark Office
                                                district. Contact the business license office
   Americans with Disabilities (ADA): For                                                           800-786-9199 • http://www.uspto.gov
                                                in the city or town where the business is
assistance with the ADA, call 800-514-0301
                                                located.
or visit: http://www.ada.gov.                                                                   copyrights
                                                                                                   Copyrights protect original works of
u.S. citizenShip and                            Bar cOdinG                                      authorship including literary, dramatic,
immiGratiOn ServiceS                              Many stores require bar coding on
                                                packaged products. Many industrial and
                                                                                                musical and artistic, and certain other
                                                                                                intellectual works. Copyright does not
   The Federal Immigration Reform and           manufacturing companies use bar coding          protect facts, ideas and systems, although it
Control Act of 1986 requires employers to       to identify items they receive and ship.        may protect the way these things are
verify employment eligibility of new            There are several companies that can assist     expressed. For general information contact:
employees. The law obligates an employer        businesses with bar-coding needs. You may
to process Employment Eligibility               want to talk with an SBDC, SCORE or WBC         U.S. Copyright Office
Verification Form I-9. The U.S. Citizenship     counselor for more information.                     101 Independence Ave. S.E.
and Immigration Services Office of                                                                  Washington, DC 20559
                                                                                                    202-707-9100 - Order Line
Business Liaison offers a selection of          Federal registration of trademarks and              202-707-3000 - Information Line
information bulletins and live assistance       copyrights                                          http://www.copyright.gov
through the Employer Hotline. For forms           Trademarks or service markets are
call 800-870-3676, for the Employer Hotline     words, phrases, symbols, designs or
call 800-357-2099.                              combinations that identify and distinguish
                                                the source of goods. Trademarks may be
e-verify: employment eligibility verification   registered at both the state and federal
   E-Verify is the best--and quickest--way
                                                level. To register a federal trademark,
for employers to determine the
employment eligibility of new hires. It is a    contact:


Visit us online: www.sba.gov/nc                                                                     NORTH CAROLINA Small Business Resource —   19
                                                               FINANCING

                    GettinG apprOved
                               Financing Options to Start or Grow Your Business
                                                                                                           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 guaranty, a small
                                                                                                       business must meet the lender’s criteria and
                                                                                                       the 7(a) requirements. In addition the lender
   The American Recovery and Reinvestment Act       be a viable option. The three principal
   may affect some SBA loan guarantee programs.                                                        must certify that it would not provide this
                                                    players in most of these programs are —
   For the latest information, see your local SBA                                                      loan under the proposed terms and
                                                    the applicant small business, the lender and
   district office or www.sba.gov.                                                                     conditions unless it can obtain an SBA
                                                    the SBA. SBA guarantees a portion of the
                                                                                                       guaranty. If the SBA is going to provide a
                                                    loan (except for Microloans). The business




M
                  any entrepreneurs need                                                               lender with a guaranty, the applicant must
                  financial resources to            should have its business plan prepared
                                                                                                       be eligible and creditworthy and the loan
                  start or expand a small           before it applies for a loan. This plan
                                                                                                       structured under conditions acceptable to
                  business themselves and           should explain what resources will be
                                                                                                       SBA.
                  must combine what they            needed to accomplish the desired business
                                                    purpose including the cost of everything,
have with other sources of financing. These
sources can include family and friends,             the applicants’ contribution, use of loan          percentaGe OF GuarantieS and
venture-capital financing, and business             proceeds, collateral, and most important,          lOan maximumS
loans.                                              an explanation of how the business will be            The SBA only guarantees a portion of
   This section of the Small Business               able to repay the loan in a timely manner.         any particular loan so each loan will also
Resource guide discusses SBA’s primary                 The lender will analyze the application         have an unguaranteed portion giving the
business loan and equity financing                  to see if it meets the lender’s criteria as well   lender a certain amount of exposure and
programs. These are: the 7(a) Loan                  as SBA’s requirements. SBA will look to the        risk on each loan. The percentage SBA
Program, the Certified Development                  lender to do much, if not all, of the analysis     guarantees depends on either the dollar
Company or 504 Loan Program, the                    before it provides its guaranty on the             amount or the program the lender uses to
Microloan Program and the Small Business            lender’s loan or provides the microlenders         obtain its guaranty. For loans of $150,000 or
                                                                                                       less the SBA will guaranty as much as 85
Investment Company Program. The                     with funds to re-lend to the business. The
                                                                                                       percent and for loans over $150,000 the SBA
distinguishing features for these programs          SBA’s business loan programs provide a             can provide a guaranty of up to 75 percent.
are the total dollar amounts that can be            key source of financing for viable small           (NOTE: These percentages may be
borrowed, the type of lenders who can               businesses that have real potential, but           temporarily increased up to 90 percent
provide these loans, the uses for the loan          cannot qualify for loans on their own.             as part of the American Recovery and
proceeds, and the terms placed on the                                                                  Reinvestment Act of 2009 Check with
borrower.
   Note: The SBA does not offer grants
                                                    7(a) lOan prOGram                                  your local SBA district office for more
                                                                                                       information.)
to individual business owners to start or              The 7(a) Loan Program is the SBA’s
                                                                                                          The maximum loan amount is $2 million
grow a business. The only grants the                primary business loan program. It is the
                                                                                                       and the maximum guaranty amount to any
SBA is authorized to provide are for                agency’s most used non-disaster financial
                                                                                                       one business (including affiliates) is $1.5
entities    to     provide      businesses          assistance program because of its flexibility
                                                                                                       million. The one exception is when a
management technical assistance to                  in loan structure, variety of loan proceeds
                                                                                                       business needs both working capital and
other businesses.                                   uses, and availability. This program has
                                                                                                       fixed assets to promote exporting in which
   When you seek a business loan,                   broad eligibility requirements and credit
                                                                                                       case the SBA can provide a maximum
familiarize yourself with the SBA’s                 criteria to accommodate a wide range of
                                                                                                       guaranty of $1.75 million.
business loan programs to see if they may           financing needs.


20 — Small Business Resource   NORTH CAROLINA                                                                               Visit us online: www.sba.gov/nc
  Loans made under the SBAExpress               guaranty fee is generally paid by the           useful life of the assets financed. However,
program, which is discussed subsequently,       borrower and can be included in the loan        maximum loan maturities have been
have a 50 percent guaranty.                     proceeds.                                       established: 25 years for real estate; up to 10
                                                   On any loan with a maturity of one year      years for equipment (depending on the
intereSt rateS and FeeS                         or less, the fee is just 0.25 percent of the    useful life of the equipment); and generally
   The actual interest rate for a loan          guaranteed portion of the loan. On loans        up to seven years for working capital.
guaranteed by SBA is negotiated between         with maturities of more than one year, the      Short-term loans and revolving lines of
the applicant and lender and subject to SBA     normal guaranty fee is 2 percent of the SBA     credit are also available through the SBA to
maximums. Both fixed and variable               guaranteed portion on loans up to $150,000;     help small businesses meet their short-term
interest rate structures are available. The     3 percent on loans over $150,000 but not        and cyclical working capital needs.
maximum rate is comprised of two parts, a       more than $700,000; and 3.5 percent on
base rate and an allowable spread. There        loans over $700,000. There is also an           Structure
are three acceptable base rates (Wall Street    additional fee of 0.25 percent on any               Most loans are repaid with monthly
Journal Prime, London Interbank One             guaranteed portion over $1 million. * All       payments of principal and interest. For
Month Prime plus 3 percent, and an SBA          references to the prime rate refer to the       fixed-rate loans the payments stay the same
Peg Rate). Lenders are allowed to add an        base rate in effect on the first business day   whereas for variable rate loans the lender
additional spread to the base rate to arrive    of the month the loan application is            can re-establish the payment amount when
at the final rate. For loans with maturities    received by SBA.                                the interest rates change or at other
of less than seven years the maximum               (Note: These fees will be temporarily        intervals as negotiated with the borrower.
spread will be no more than 2.25 percent.       lowered for some loans as part of the           Applicants can request that the lender
For loans with maturities of seven years or     American Recovery and Reinvestment              establish the loan with interest-only
more the maximum spread will be 2.75            Act.)                                           payments during the start-up and
percent. The spread on loans under $50,000                                                      expansion phases (when eligible) to allow
and loans processed through Express             7(a) lOan maturitieS                            the business time to generate income before
procedures may be higher.                          SBA loan programs are generally              it starts making full loan payments. There
   Loans guaranteed by SBA are assessed a       intended to encourage longer term small         are no balloon payments or call provisions
guaranty fee. This fee is based on the loan’s   business financing, but actual loan             allowed on any 7(a) loan. The lender may
maturity and the dollar amount                  maturities are based on the ability to repay,   not charge a prepayment penalty if the loan
guaranteed, not the total loan amount. The      the purpose of the loan proceeds and the        is paid off before maturity, but the SBA will




Visit us online: www.sba.gov/nc                                                                     NORTH CAROLINA Small Business Resource —   21
charge the borrower a prepayment fee if the         membership on a basis other than capacity,      Common requirements include the
loan has a maturity of 15 or more years and         businesses that promote a religion,             following:
is pre-paid during the first three years.           businesses owned by individuals                   • Purpose of the loan.
                                                    incarcerated or on probation or parole,           • History of the business.

cOllateral                                          municipalities, and situations where the
                                                    business or its owners previously failed to
                                                                                                      • Financial statements for three years
                                                                                                        (existing businesses).
   The SBA expects every loan to be fully           repay a federal loan or federally assisted        • Schedule of term debts (existing
secured, but the SBA will not decline a                                                                 businesses).
                                                    financing.                                        • Aging of accounts receivable and
request to guaranty a loan if the only
unfavorable factor is insufficient collateral,                                                          payable (existing businesses).
                                                    use of proceeds                                   • Projected opening-day balance sheet
provided all available collateral is offered.
                                                      The third eligibility factor is usage of          (new businesses).
What these two policies mean is that every                                                            • Lease details.
                                                    proceeds. 7(a) proceeds can be used to:
SBA loan is to be secured by all available                                                            • Amount of investment in the business by
assets (both business and personal) until           purchase machinery, equipment, fixtures,
                                                                                                        the owner(s).
the recovery value equals the loan amount           supplies, leasehold improvements, as well
                                                                                                      • Projections of income, expenses and cash
or until all assets have been pledged to the        as land and/or buildings that will be               flow as well as the assumptions.
extent that they are reasonably available, to       occupied by the business borrower.                • Personal financial statements on the
adequately secure the loan. Personal                Proceeds can also be used to:                       principal owners.
guaranties are required from all the                  • Expand or renovate facilities;                • Resume(s) of the principal owners and
                                                      • Finance receivables and augment                 managers.
principal owners of the business. Liens on
personal assets of the principals may be                working capital;
required.                                             • Finance seasonal lines of credit;
                                                      • Construct commercial buildings; and
                                                                                                    hOW the 7(a) prOGram WOrkS
                                                      • Refinance existing debt under certain          Applicants submit their loan application
eliGiBility                                             conditions.                                 to a lender for the initial review. The lender
                                                       7(a) loan proceeds cannot be used (except    will generally review the credit merits of
   7(a) loan eligibility is based on four
                                                    for compensation for services rendered) for     the request before deciding if they will
different factors. The first is size, as all loan
                                                    floor plan financing or to have funds for the   make the loan themselves or if they will
recipients must be classified as “small” by
                                                    purpose of making investments. They also        need an SBA guaranty. If a guaranty is
SBA. The basic size standards are outlined
                                                    cannot be used to provide perks to an           needed, the lender will also review
below. A more in-depth listing of standards
                                                    owner of the business.                          eligibility, and the applicant should be
can be found at: http://www.sba.gov/
                                                                                                    prepared to complete some additional
services/contractingopportunities/index.html
select “For Government/Contracting                  miscellaneous Factors                           documents before the lender sends its
                                                       The fourth factor involves a variety of      request for guaranty to the SBA.
Officials” which then leads to a page where
                                                    requirements such as SBA’s credit                  There are eight different ways a lender
you can select “Size Standards.”                    elsewhere test and utilization of personal      can apply for a 7(a) guaranty from SBA.
SBA Size Standards:                                 assets requirements where the business and      The main differences between these
  • Manufacturing from 500 to no more than          its principal owners must use their own         methods are related to the documentation
    1,500 employees                                 resources before getting a loan guaranteed      which the lender provides, the amount of
  • Wholesaling — No more than 100                  by SBA. It also includes SBA’s anti-            review which SBA conducts, the amount of
    employees                                       discrimination rules and restrictions on        the loan and the lender responsibilities in
  • Services from $4.5 million to no more           lending to agricultural enterprises because
    than $33.5 million in average annual
                                                                                                    case the loan defaults and the business’
                                                    there are other agencies of the federal
    receipts                                                                                        assets must be liquidated. The eight
                                                    government with programs to fund such
  • Retailing from $7 million to no more than                                                       methods are:
                                                    businesses.
    $29.5 million                                                                                     • Standard 7(a) Guaranty
                                                       Generally, SBA loans must meet the             • Certified Lender Program
  • General construction from $7 million to         following:
    no more than $33.5 million                                                                        • Preferred Lender Program
                                                      • Every loan must be for a sound business       • Rural Lender Advantage
  • Agriculture from $750,000 to no more                purpose;
    than $17.5 million in average annual                                                              • SBA Express
                                                      • There must be sufficient invested equity      • Patriot Express
    receipts                                            in the business so it can operate on a        • Export Express
                                                        sound financial basis;                        • Community Express
nature of Business                                    • There must be a potential for long-term
  The second eligibility factor is based on                                                            For the Standard, Certified and Preferred
                                                        success;
the nature of the business and the process            • The owners must be of good character        methods, the applicant fills out SBA Form
by which it generates income or the                     and reputation; and                         4, and the lender completes SBA Form 4-1.
customers it serves. The SBA has general              • All loans must be so sound as to            When requests for guarantees are
prohibitions against providing financial                reasonably assure repayment.                processed using Express methods, the
assistance to businesses involved in such             For SBA’s eligibility requirements check:     applicant uses more of the regular forms of
activities as lending, speculating, passive         http://www.sba.gov/services/.                   the lender and just has a few federal forms
investment, pyramid sales, loan packaging,                                                          to complete. When SBA receives a request
presenting live performances of a prurient          What tO take tO the lender                      that is processed through Standard or CLP
                                                                                                    procedures, it either reanalyzes or reviews
sexual nature, businesses involved in                 Documentation requirements may vary;
gambling and any illegal activity.                                                                  the lender’s eligibility and credit analysis
                                                    contact your lender for the information you
  The SBA will also not support non-profit                                                          before deciding to approve or reject. For
                                                    must supply.
businesses, private clubs that limit                                                                requests processed through PLP, and any of


22 — Small Business Resource   NORTH CAROLINA                                                                             Visit us online: www.sba.gov/nc
the express programs, the lender is
delegated the authority to make the credit
                                                   patriOt expreSS
decision without SBA’s concurrences                  The Patriot Express pilot loan initiative is
which help expedite the processing time.           for veterans and members of the military
   In guaranteeing the loan, the SBA assures       community wanting to establish or expand
the lender that, in the event the borrower         a small business. Eligible military
does not repay the loan, the government            community members include:
                                                     • Veterans;
will reimburse the lending institution for a
                                                     • Service-disabled veterans;
portion of its loss. By providing this               • Active-duty servicemembers eligible for
guaranty, the SBA is able to help tens of              the military’s Transition Assistance
thousands of small businesses every year               Program;
get financing they might not otherwise               • Reservists and National Guard members;
obtain.                                              • Current spouses of any of the above,
   After SBA approval, the lender is notified          including a servicemember;
                                                     • The widowed spouse of a servicemember
that its loan has been guaranteed. The
                                                       or veteran who died during service or of
lender then will work with the applicant to            a service-connected disability.
make sure the terms and conditions are met            The Patriot Express loan is offered by
before closing the loan, disbursing the            SBA’s widest network of lenders
funds, and assuming responsibility for
                                                   nationwide and features our fastest
collection and general servicing. The
                                                   turnaround time for loan approvals. Loans
borrower makes monthly loan payments
                                                   are available up to $500,000 and qualify for
directly to the lender. As with any loan, the
                                                   SBA’s maximum guaranty of 85 percent for
borrower is responsible for repaying the
                                                   loans of $150,000 or less and 75 percent for
full amount of the loan in a timely manner.
                                                   loans over $150,000 up to $500,000. For
                                                   loans above $350,000, lenders are required
What the SBa looks for:
   • Ability to repay the loan on time from the    to take all available collateral.
     projected operating cash flow.                   The Patriot Express loan can be used for
   • Owners and operators who are of good          most business purposes, including start-up,
     character.                                    expansion, equipment purchases, working
   • Feasible business plan.                       capital, inventory or business-occupied
   • Management expertise and commitment           real-estate purchases.
     necessary for success.
   • Sufficient funds, including the SBA
                                                      Patriot Express loans feature SBA’s
     guaranteed loan, to operate the business      lowest interest rates for business loans,
     on a sound financial basis (for new           generally 2.25 percent to 4.75 percent over
     businesses, this includes the resources to    prime depending upon the size and
     meet start-up expenses and the initial        maturity of the loan. Your local SBA district
     operating phase).                             office will have a listing of Patriot Express
   • Adequate equity invested in the business.
                                                   lenders in your area. More information is
   • Sufficient collateral to secure the loan or
     all available collateral if the loan cannot   at: http://www.sba.gov/patriotexpress.
     be fully secured.
                                                   cOmmunityexpreSS pilOt lOan
SBaexpreSS                                         prOGram
   SBAExpress is available to lenders as a            The CommunityExpress Pilot Loan
way to obtain a guaranty on smaller loans          Program provides streamlined business
up to $350,000. The program authorizes             financing and management and technical
selected experienced lenders to use mostly         assistance to small businesses located in
their own forms, analysis and procedures           distressed or underserved markets. The
to process, service and liquidate SBA-             CommunityExpress program is offered
guaranteed loans. The SBA guarantees up            through hundreds of selected SBA lenders
                                                   throughout       the     nation.     Under
to 50 percent of an SBAExpress loan. Loans
                                                   CommunityExpress, approved lenders
under $25,000 do not require collateral.
                                                   may use streamlined and expedited loan
Like most 7(a) loans, maturities are usually
                                                   review and approval procedures to process
five to seven years for working capital and
                                                   SBA-guaranteed loans. These lenders may
up to 25 years for real estate or equipment.
                                                   thus use, to the maximum extent possible,
Revolving lines of credit are allowed for a
                                                   their own loan analysis, loan procedures,
maximum of seven years. For a list of
                                                   and loan documentation to process SBA
lenders in your area, contact your local SBA
                                                   loans to $250,000. However, borrowers
office at:
                                                   must receive technical assistance to qualify
www.sba.gov/localresources/index.html
                                                   for this program.


Visit us online: www.sba.gov/nc                                                                     NORTH CAROLINA Small Business Resource —   23
Special purpOSe 7(a) lOan                                be extended up to five years if necessary
                                                         to facilitate sale of the property. Proceeds
                                                                                                        enables U.S. exporters to obtain loans to
                                                                                                        fund their direct export costs. The EWCP
prOGramS                                                 are used solely for direct expenses of
                                                         acquisition, immediate construction
                                                                                                        supports single transactions or revolving
   The 7(a) program is the most flexible of              and/or significant rehabilitation of the
                                                                                                        lines. The maximum dollar amount of an
SBA’s lending programs. The agency has                   residential or commercial structures. The      export line of credit under this program is
created several variations to the basic 7(a)             purchase of the land can be included if it     $2 million. SBA guarantees up to 90% of a
program to address the particular financing              does not exceed 20 percent of the loan         loan amount or $1.5 million, whichever is
need of certain small businesses. These                  proceeds. Up to 5 percent of the               less. Loan maturities are generally for a
special purpose programs are not                         proceeds can be used for physical              term of 12 months. The guaranty can be
necessarily for all businesses but may be                improvements that benefit the property.
                                                                                                        reissued for an additional 12 months
                                                       • The Small Asset-Based Line is a
very applicable to some small businesses.                                                               through a new application process. The
                                                         revolving line of credit (up to $200,000)
They are generally governed by the same                  that provides short term working               guaranty fee the SBA charges is 0.25 percent
rules, regulations, fees, interest rates, etc. as        capital. These lines are generally used        of the guaranteed amount of the loan for
the regular 7(a) loan guaranty. Lenders can              by businesses that provide credit to their     the initial 12 months. The borrower
advise you of any variations.                            customers. Disbursements are based on          negotiates the interest rate and all other fees
                                                         the size of a borrower’s accounts
                                                                                                        with the lender. The program offers flexible
caplines                                                 receivable and/or inventory. Repayment
                                                         comes from the collection of accounts          terms, low fees and a quick pro-
   The CAPLines program is designed to                   receivable or sale of inventory. It does       cessing time. For information, visit
help small businesses meet their short-term              require      periodic      servicing     and   http://www.sba.gov/financialassistance/borro
and cyclical working capital needs. There                monitoring of the collateral for which         wers/guaranteed/index.html then choose
are five loan programs under the CAPLines                the lender can charge up to two percent        “Export Loan Programs” under the “7(a)
umbrella. The programs can be used to                    annually to the borrower.                      Loan Program” heading.
finance seasonal working capital needs;                • The Standard Asset-Based Line is
                                                         similar to the Small Asset-Based Line,
finance the direct costs of performing                                                                  Eligibility of Exporter
                                                         but for loan amounts over $200,000. It
certain construction, service and supply                 does require stricter servicing and              You must have an operating history of at
contracts; finance the direct cost associated            monitoring and the lender may pass             least one year – not necessarily in
with      commercial      and     residential            these costs along to the borrower.             exporting. The SBA may waive this
construction; finance operating capital by                                                              requirement if you have sufficient export
obtaining advances against existing
inventory and accounts receivable; and              expOrt aSSiStance                                   trade experience or other managerial
consolidate short-term debt. SBA provides           trade Financing                                     experience.
up to an 85 percent guarantee. There are               The SBA has help for existing small
five distinct programs under the CAPLine            businesses wanting to export goods and              Eligible Buyers
                                                    services.                                              The foreign buyer must be a
umbrella:
   • The Contract Loan Program is used to
                                                                                                        creditworthy entity located in an acceptable
     finance material and labor needs for a         u.S. expOrt aSSiStance center                       foreign country, to both the lender and
                                                                                                        SBA.
                                                    (uSeac)
     specific contract or contracts. Proceeds
     can be disbursed before the work begins.
     If used for one contract, it is generally         U.S. Export Assistance Centers, a                use of eWcp proceeds:
     not revolving; if used for more than one       partnership between SBA, U.S. Department              • To acquire inventory for export or to be
     contract at a time, it can be revolving.       of Commerce and the Export-Import Bank                  used to manufacture goods for export.
     The loan maturity is usually based on          of the U.S. to provide trade promotion and            • To pay the manufacturing costs of goods
     the length of the contract, but no more                                                                for export.
                                                    export-finance assistance for small
     than five years. Contract payment must                                                               • To purchase goods or services for export.
                                                    businesses in a single location. The
     be sent directly to the lender.                                                                      • To support standby letters of credit
                                                    USEACs also work closely with other                     related to export transactions.
   • The Seasonal Line of Credit Program
                                                    federal, state and local international trade          • For pre-shipment working capital
     is used to support buildup of inventory,
                                                    organizations. To find the nearest USEAC,               directly related to export orders.
     accounts receivable or labor and
     materials above normal usage for
                                                    go to:                                                • For post-shipment foreign accounts
     seasonal inventory. The business must          http://www.sba.gov/aboutsba/sbaprograms/                receivable financing.
     have been in business for a period of 12       internationaltrade/useac/index.html.
     months and must have a definite
                                                    Dan Holt                                            ineligible use of proceeds
     established seasonal pattern. The loan                                                               • To support the applicant’s domestic sales.
                                                       USEAC
     may be used over again after a “clean-                                                               • To acquire fixed assets or capital goods
                                                       521 E. Morehead St., Ste. 435
     up” period of 30 days to finance activity                                                              for the applicant’s business.
                                                       Charlotte, NC 28202
     for a new season. These also may have a                                                              • To support a sale where the exporter is
                                                       704-333-4886
     maturity of up to five years. The                                                                      not taking title to the goods.
     business may not have another seasonal
     line of credit outstanding but may have        expOrt WOrkinG capital                                • To acquire, equip, or rent commercial
                                                                                                            space overseas.
     other lines for non-seasonal working
     capital needs.
                                                    prOGram                                               • To serve as a warranty letter of credit.

   • The Builders Line Program provides               The SBA’s Export Working Capital                  collateral requirements
     financing for small contractors or             Program assists lenders in meeting the                • Collateral for the manufacturing sector
     developers to construct or rehabilitate        needs of exporters seeking short-term                   typically consists of a first lien on all
     residential or commercial property. Loan       export working capital. This program                    export-related inventory and export
     maturity is generally three years but can                                                              related accounts receivable.


24 — Small Business Resource   NORTH CAROLINA                                                                                   Visit us online: www.sba.gov/nc
   • Collateral for the service sector typically   how to apply                                  or line of credit. The international trade
     consists of assignment of proceeds of           A small business exporter seeking a co-     loan provides an SBA guarantee up to $1.5
     export-related contracts or purchase                                                        million of a term loan used for the
                                                   guaranteed loan must apply to a lender
     orders and a first lien on export-related                                                   acquisition, construction, renovation,
     accounts receivable.                          that is a participant in SBA’s 7(a) Loan
                                                   Guaranty Program. PLP and SBAExpress          modernization, improvement or expansion
   • Other collateral may be required.
                                                   processing are not permitted. The lender      of long-term fixed assets or the refinancing
                                                                                                 of an existing loan used for these same
how to apply                                       must submit a completed Joint Application
                                                                                                 purposes. In addition a borrower may
   A small business exporter seeking a             for Working Capital Guarantee and loan
                                                                                                 have a separate working capital loan (term
guaranteed EWCP loan must apply to a               package to SBA. SBA evaluates and
                                                                                                 or line of credit) with a maximum SBA
lender.                                            processes the application in accordance
                                                                                                 guaranty of $1.25 million. When combined,
                                                   with SBA rules for its Export Working         the maximum SBA guaranty outstanding
SBa ex-im Bank co-Guarantee                        Capital Program.                              to any one business is $1.75 million. The
   This is designed to provide small                                                             SBA guaranty fee and interest rates are the
business exporters the ability to obtain           internatiOnal trade lOan                      same as for any standard 7(a) loans.
larger export working capital loans through
the Export Working Capital Program than
                                                   prOGram                                       eligibility of exporter
SBA could support alone. This program                 The program helps small businesses           • Applicants must meet the same eligibility
enables U.S. exporters to obtain loans that        engaged or preparing to engage in                 requirements for a 7(a) loan.
facilitate the export of goods or services.        international trade as well as small            • Applicant must establish the loan will
                                                   businesses      adversely    affected    by       significantly expand or develop an export
Under this program, the total export
                                                   competition from imports. This program            market, or the applicant has been
working capital line, with a 90 percent                                                              adversely affected by import competition,
                                                   allows for an increased maximum dollar
guarantee, cannot exceed $2 million. Loan                                                            and, in addition the applicant must show
                                                   amount of SBA guaranty outstanding to
maturities are generally for a term of 12          any one business (and affiliates) from $1.5       that upgrading equipment or facilities
months. At the end of the 12-month                 million to $1.75 million. In order to reach       will improve its competitive position.
maturity, a borrower may reapply for a                                                             • If eligibility is based on entering or
                                                   the $1.75 million SBA guaranty ceiling, the
new guarantee. The SBA guarantee fee is                                                              expanding export sales, the applicant
                                                   borrower must have an international trade         must submit a one or two page
0.25 percent of the guaranteed amount of           loan as well as an SBA working capital loan       international business plan, including
the loan for the initial 12 months. The
guarantee fee that Ex-Im Bank charges is
0.25 percent on the loan amount that is
guaranteed by them. The borrower
negotiates the interest rate and all other fees
with the lender.

eligibility of exporter
   The same as for the SBA EWCP Program.

eligible Buyers
  The foreign buyer must be a
creditworthy entity located in an acceptable
country in conformity with the Ex-Im
Bank’s Country Limitation Schedule.

use of proceeds
   Same as the SBA EWCP.

ineligible use of proceeds
   • Goods or services with less than 50
     percent U.S. content.
   • To support the export of any Defense
     Articles or Defense Services.
   • To support the applicant’s domestic sales.
   • To acquire fixed assets or capital goods
     for the applicant’s business.
   • To acquire, equip, or rent commercial
     space overseas.
   • To serve as a Warranty Letter of Credit.

collateral requirements
   Same as the SBA EWCP.




Visit us online: www.sba.gov/nc                                                                       NORTH CAROLINA Small Business Resource —   25
     sufficient information to reasonably            • Provide term loans and other financing to    from 7(a) loans (listed previously) are also
     support the likelihood of expanded                enable small business concerns, including    excluded from the 504 loan program.
     export sales.                                     small business export trading companies         Loans are provided through Certified
                                                       to develop foreign markets; and
                                                                                                    Development Companies. CDCs work
use of proceeds                                      • Acquire, construct, renovate, modernize,
                                                                                                    with banks and other lenders to make loans
  • For facilities or equipment, including             improve or expand production facilities
    purchasing land and building(s);                   or equipment to be used in the U.S. in the   in first position on reasonable terms,
    building new facilities; renovating,               production of goods or services to be        helping lenders retain growing customers
    improving, or expanding existing                   exported from the U.S.                       and provide Community Redevelopment
    facilities; purchasing or reconditioning                                                        Act credit.
    machinery, equipment and fixtures; and         ineligible use of proceeds                          The SBA 504 loan is distinguished from
    making other improvements that will be            Proceeds may not be used to finance           the SBA 7(a) loan program in these ways:
    used within the United States for              overseas operations, other than those            The maximum debenture, or long-term
    producing goods or services.                   strictly associated with the marketing           loan, is:
Collateral Requirements - Collateral               and/or distribution of products/services           • $1.5 million for businesses that create a
requirements are the same as for regular           exported from the U.S.                                certain number of jobs or improve the
7(a) loans.                                                                                              economy of the locality;
  How to Apply - A small business
                                                   how to apply                                       • $2 million for businesses that meet a
exporter seeking a guaranteed loan must                                                                  specific public policy goal, including
                                                      The application process is the same for
apply to an SBA participating lender. Call                                                               veterans; and
                                                   the SBAExpress, except the applicant must
your local SBA District Office for a list of                                                          • $4 million for manufacturers.
                                                   demonstrate that loan proceeds will enable
participating lenders.                                                                                Recent additions to the program allow $4
                                                   it to enter a new export market or expand
                                                                                                    million for each project that reduces the
                                                   an existing export market. The applicant
expOrt expreSS                                     must submit to the lender a plan that
                                                                                                    borrower’s energy consumption by at least
                                                                                                    10 percent; and $4 million for each project
   The Export Express program is designed          includes projected export sales for the
                                                                                                    that generates renewable energy fuels, such
to help SBA meet the export financing              upcoming year as well as the dollar volume
                                                                                                    as biodiesel or ethanol production. Projects
needs of small businesses. It is a                 of export sales for the previous year.
                                                                                                    eligible for up to $4 million under one of
subprogram of SBAExpress and is therefore
                                                                                                    these two requirements do not have to meet
subject to the same loan processing,
making, closing, servicing, and liquidation        cOmmunity adjuStment and                         the job creation or retention requirement, so
requirements as well as the same maturity          inveStment prOGram                               long as the CDC portfolio average is at least
                                                                                                    $50,000.
terms, interest rates, and applicable fees as         The Community Adjustment &                      • Eligible project costs are limited to long-
for other SBA loans except as noted below.         Investment Program helps communities                 term, fixed assets such as land and
The total Export Express loan cannot               that suffered job losses due to changing             building (occupied by the borrower) and
exceed $250,000. SBA guarantees 85                 trade patterns following the North                   substantial machinery and equipment.
percent for loans of $150,000 and under and        American Free Trade Agreement. The                   Working capital is not an eligible use of
75 percent for loans over $150,000 to              North American Development Bank has                  proceeds.
$250,000. SBA allows participating lenders         partnered with the SBA and the U.S.                • Most borrowers are required to make an
to make their own credit decisions. SBA            Departments of Agriculture and the                   injection (borrower contribution) of just
provides a quick processing time, less than        Treasury to make credit available to                 10 percent which allows the business to
36 hours.                                                                                               conserve valuable operating capital. A
                                                   businesses in affected communities to help
                                                                                                        further injection of 5 percent is needed if
Eligible Buyers – The foreign buyer must           create or retain jobs.                               the business is a start-up or new (less
be a creditworthy entity located in an                                                                  than 2 years old) and a further injection of
acceptable country.                                SBa’S nOn-7(a) lOan prOGramS                         5 percent is also required if the primary
                                                                                                        collateral will be a single purpose
                                                     In addition to the 7(a) Loan Program SBA
use of proceeds                                    has four other non-disaster assistance
                                                                                                        building.
  • Finance standby letters of credit used for                                                        • Two-tiered project financing: a lender
                                                   programs which can help small businesses             finances approximately 50 percent of the
    either bid or performance bonds;
  • Finance export development activities
                                                   gain access to capital and bonding.                  project cost and receives a first lien on the
    such as export marketing and                                                                        project assets (but no SBA guaranty); A
    promotional activities, participation in       certiFied develOpment                                CDC (backed by a 100% SBA-guaranteed
                                                                                                        debenture) finances up to 40% of the
    foreign trade shows, translation of
    product literature for foreign markets,        cOmpany lOan prOGram                                 project costs secured with a junior lien.
    and other activities designed to initiate or
    expand the applicant’s export of its
                                                   (504 lOanS)                                          The borrower provides the balance of the
                                                                                                        project costs.
    products/services from the U.S.;                 The 504 Loan Program is an economic              • Fixed interest rate on SBA loan. SBA
  • Provide transaction-specific financing for     development program that supports                    guarantees the debenture 100 percent.
    overseas orders;                               American small business growth and helps             Debentures are sold in pools monthly to
  • Provide revolving lines of credit for          communities through business expansion               private investors. This low, fixed rate is
    export purposes, the term of which must                                                             then passed on to the borrower and
                                                   and job creation. This SBA program
                                                                                                        establishes the basis for the loan rate. A
    not exceed seven years. In some                provides long-term, fixed-rate, subordinate          recent history of debenture rates may be
    instances, as a normal course of business,     mortgage financing for acquisition and/or            found at www.nadco.org.
    the borrower may use portions of
                                                   renovation of capital assets including land,       • All project-related costs can be financed,
    revolving lines of credit for domestic
    purposes, but no less than 70 percent of
                                                   buildings and equipment. Most for-profit             including acquisition (land and building,
                                                   small businesses are eligible for this               land and construction of building,
    the revolver to be used for export related
                                                   program. The types of businesses excluded            renovations, machinery and equipment)
    purposes;


26 — Small Business Resource   NORTH CAROLINA                                                                              Visit us online: www.sba.gov/nc
     and soft costs, such as title insurance and   Region D Development Corporation   Self-Help Northeastern NC Region
     appraisals. Some closing costs may be            Phil Trew                          Adelcio Lugo
     financed.                                        P.O. Box 1820                      301 W. Evans St., Ste. 306
   • Collateral is typically a subordinate lien       Boone, NC 28607                    Greenville, NC 27858
     on the assets financed; allows other assets      828-265-5437                       800-893-9669 or 252-752-8866 ext. 2201
     to be free of liens and available to secure      ptrew@regiond.org                  adelcio.lugo@self-help.org
     other needed financing.                          www.regiond.org
   • Long-term real estate loans are up to 20-                                        Self-Help Triad NC Region
     year term, heavy equipment 10 or 20-year      Region E Development Corporation      Dale Harrold
     term and are self-amortizing.                    James Chandler
                                                                                         122 N. Elm St., Ste. 1015
                                                      736 4th St. S.W.
Businesses that receive 504 loans are:                                                   Greensboro, NC 27401
                                                      Hickory, NC 28602
   • Small — net worth under $8.5 million, net                                           800-269-7426 or 336-478-2611
                                                      828-322-9191
     profit after taxes under $3 million, or                                             dale.harrold@self-help.org
                                                      jim.chandler@wpcog.org
     meet other SBA size standards.                   www.wpcog.org                      Dale Harrold
   • Organized for-profit.
                                                   Self-Help                             500 W. Fourth St., Ste. 200-B
   • Most types of business — retail, service,                                           Winston-Salem, NC 27701
     wholesale or manufacturing.                      Charles Cleary
                                                      301 W. Main St./P.O. Box 3619      800-269-7426 or 336-722-1743
   The SBA’s 504 certified development                                                   dale.harrold@self-help.org
companies serve their communities by                  Durham, NC 27701
financing business expansion needs. Their             800-476-7428 or 919-956-4629    Self-Help Central NC Region
                                                      Charlie.cleary@self-help.org       Charlie Cleary
professional staffs works directly with               www.self-help.org/504loans
borrowers to tailor a financing package that                                             301 W. Main St./P.O. Box 3619
                                                                                         Durham, NC 27702-3619
meets program guidelines and the credit            Self-Help Charlotte NC Region         800-476-7428 or 919-956-4629
capacity of the borrower’s business. For              Dale Harrold and Paul Frost
                                                                                         charlie.cleary@self-help.org
information, visit http://www.sba.gov/                926 Elizabeth Ave., Ste. 302
financialassistance/borrowers/guaranteed/             Charlotte, NC 28204             Self-Help Western NC Region
index.html, then choose CDC/504 Loan                  800-394-7428                       Tom Byers
                                                      Dale 704-409-5915                  34 Wall St., Ste. 704
Program under                 “Guaranteed   Loan
                                                      Paul 704-409-5914                  Asheville, NC 28801
Programs.”                                            dale.harrold @self-help.org        800-229-7428 or 828-253-5251
                                                      paul.frost@self-help.org           tom.byers@self-help.org
Avista Business Development Corporation
     Bob Kendrick
     P.O. Box 7032
     Asheville, NC 28802
     828-645-0439
     bob.kendrick@charter.net
BEFCOR
     Richard Bargoil
     5970 Fairview Rd., Ste. 218
     Charlotte, NC 28210
     704-442-8145
     rbargoil@befcor.com
     www.befcor.com
Centralina Development Corporation
     Richard Vitolo
     P.O. Box 34218
     Charlotte, NC 28234-4218
     704-373-1233
     rvitolo@cdccapital.com
     www.centralinacapital.com
Neuse River Development Authority
     Guy Williams
     P.O. Box 1111
     New Bern, NC 28563
     252-638-6724
     gwilliams@nrda.org
     www.nrda.org
Northwest Piedmont Development
Corporation
     Charles Malone
     400 W. Fourth St., Ste. 400
     Winston-Salem, NC 27101
     336-761-2108
     cmalone@nwpcog.org
     www.nwpcog.org




Visit us online: www.sba.gov/nc                                                          NORTH CAROLINA Small Business Resource —   27
Self-Help Southeastern NC Region
    Ken Jernigan
                                                  Small BuSineSS inveStment                         Oberlin Capital, L.P.
                                                                                                       1330 Sunday Dr., Ste. 105
    272 N. Front St., Ste. 215                    cOmpany prOGram                                      Raleigh, NC 27607
    Wilmington, NC 28401                              There are a variety of alternatives to bank      919-861-2908 • 919-861-2901 Fax
    877-559-4284 or 910-442-1022                  financing for small businesses. The Small
    kenneth.jernigan@self-help.org                Business Investment Company Program               Plexus Fund, L.P.
                                                                                                       4601 Six Forks Rd., Ste. 528
Smoky Mountain Development                        fills the gap between the availability of
                                                                                                       Raleigh, NC 27609
Corporation                                       private capital and the needs of small               919-256-6341 • 919-253-3650 Fax
    Allen Steinberg                               businesses. Licensed and regulated by the
    144 Industrial Park Dr.                       SBA, SBICs are privately owned and                Plexus Fund, L.P.
    Waynesville, NC 28786                         managed investment funds that make                   200 Providence Rd., Ste. 210
    828-452-1967                                  capital available to qualifying U.S. small           Charlotte, NC 28207
    arsteinberg@msn.com                           businesses through investments or loans.             704-927-6246 • 704-927-6255 Fax
    www.smdc.info                                 They use their own funds plus funds
                                                  obtained at favorable rates through SBA-
Wilmington Industrial Development                 guaranteed leverage. SBICs are for-profit
Corporation                                       firms whose incentive is to share in the
    Susie Parker                                  success of a small business. In addition to
    1739 Hewlett Dr.                              equity and debt investments, SBICs
    Wilmington, NC 28405
                                                  provide managerial, operational and
    910-763-8414
    susieparker@wilmingtonindustry.com            technical assistance. The SBIC Program
    www.wilmingtonindustry.com                    provides funding for a broad range of
                                                  industries and stage of investment, in areas
                                                  across the country. Some SBICs invest in a
micrOlOan prOGram                                 particular field or industry while others
   The Microloan Program provides small           invest more generally. For more
loans ranging from under $500 to $35,000.         information visit: http://www.sba.gov/inv.
Under this program, the SBA makes funds
                                                  BancAmerica Capital Investors SBIC, L.P.
available to nonprofit intermediaries that,           NC1-007-25-02
in turn, make the loans directly to                   100 N. Tryon St., 25th Fl.
entrepreneurs,    including      veterans.            Charlotte, NC 28255
Proceeds can be used for typical business             704-386-1792 • 704-386-6432 Fax
purposes such as working capital,
machinery and equipment, inventory and            BancBoston Ventures, Incorporated
                                                      Bank of America Corporate Center
leasehold improvements. Interest rates are            NC1-007-22-32
negotiated between the borrower and the               100 N. Tryon St.
intermediary.                                         Charlotte NC 28255
   For information, visit http://sba.gov/             704-683-5741 • 704-388-2746 Fax
financialassistance/borrowers/guaranteed/
                                                  BB&T Capital Partners, LLC
index.html, then choose “Microloan                    101 N. Cherry St., Ste. 700
Program” under          “Guaranteed        Loan       Winston-Salem, NC 27101
Programs.”                                            336-733-0355 • 336-733-0349 Fax

W.A.M.Y. Community Action Inc.                    CapitalSouth Partners Fund, L.P.
    225 Birch St., Ste. 2/P.O. Box 2688               1011 E. Morehead St., Ste. 150
    Boone, NC 28607                                   Charlotte, NC 28204
    828-264-2421 • 828-264-0952 Fax                   704-376-5502 • 704-376-5877 Fax
    wamyloan@bellsouth.net
    Area: Avery, Mitchell, Watauga and Yancey     CaptialSouth Partners Fund, L.P.
    Counties                                          2530 Meridian Pkwy., Ste. 200
                                                      Research Triangle Park
Self-Help                                             Durham, NC 27713
    301 W. Main St.                                   919-806-4590 • 866-801-6581 Fax
    Durham, NC 27701
    800-476-7428 • 919-956-4600 Fax               Frontier Fund, L. P.
    Statewide Service                                 1111 Metropolitan Ave., Ste. 1050
                                                      Charlotte, NC 28204
Mountain BizCapital
                                                      704-414-2880 • 704-414-2881 Fax
    153 South Lexington Ave.
    Asheville, NC 28801
                                                  North Carolina
    828-253-2834 • 828-255-7953 Fax
                                                  Economic Opportunities Fund
    Area: Western North Carolina
                                                      316 W. Edenton St., Ste. 110
                                                      Raleigh, NC 27603
                                                      919-256-5007 • 919-256-5015 Fax




28 — Small Business Resource   NORTH CAROLINA                                                                               Visit us online: www.sba.gov/nc
Salem Capital Partners, L.P.                    For more information on the Surety Bond      Edwards, Church & Muse, Inc.
     112 Cambridge Plaza Dr., Ste. 201         Guarantee Program, visit SBA’s Web site at:      4000 Park Rd.
     Winston-Salem, NC 27104                   www.sba.gov/osg                                  Charlotte, NC 28209
     Mail: P.O. Box 24785,                                                                      704-227-3131 • 704-227-1356 Fax
     Winston-Salem, NC 27114                   Barbour Group, LLC                               medlin@ecmins.com
     336-768-9343 • 336-768-6471 Fax              (Licensed In NC)
                                                  20 Liberty St., Ste. 2D                    The Surety Group Agency, LLC
Triangle Mezzanine Fund LLLP                      Westminster, MD 21157                         (Licensed In NC)
     3700 Glenwood Ave., Ste. 530                 410-876-9610 • 410-876-9954 Fax               1900 Emery St., Ste. 120
     Raleigh, NC 27612                            info@thebarbourgroup.com                      Atlanta, GA 30318
     919-719-4788 • 919-719-4777 Fax                                                            404-352-8211 • 404-351-3237 Fax
                                               CBIC - Charlotte, NC                             kelly@suretygroup.com
the Surety BOnd Guarantee                         706-1 Northeast Dr.
                                                                                             Viking Bond Service, Inc.
prOGram                                           Davidson, NC 28036
                                                  704-655-9114 • 704-655-9313 Fax               (Licensed In NC)
                                                                                                22601 North 19th Ave., Ste. 210
  The Surety Bond Guarantee Program is a          Terryt@cbic.com
                                                                                                Phoenix, AZ 85027
public-private partnership between the                                                          623-933-9334 • 623-933-9376 Fax
                                               Construction Bonds Inc.
federal government and surety companies           (Licensed In NC)                              cynthiab@vbsbond.com
that provides small businesses with the           9401 Lee Hwy., Ste. 208
bonding assistance necessary for them to          Fairfax, VA 22031                          Wells Fargo Insurance Services USA, Inc.
compete for government and private                703-934-1000 • 703-934-1009 Fax               (Licensed In NC)
                                                  nfo@sbabonds.com                              5755 Mark Dabling Blvd., Ste. 300
contracting opportunities. The guarantee                                                        Colorado Springs, CO 80919
provides the necessary incentive for                                                            719-592-1177 • 719-592-0799 Fax
                                               Delmarva Surety Associates, Inc.
sureties to bond small businesses that            (Licensed In NC)                              christina.schulman@wellsfargo.com
would otherwise be unable to obtain               2345 York Rd., Ste. 302
bonding. The program is aimed at small            Timonium, MD 21093
businesses that lack the combination of           410-561-3593 • 410-561-3727 Fax
working capital and performance track             lscholze@delmarvasurety.com
record necessary to secure bonding on a
reasonable      basis   through      regular
commercial channels.
  Through this program, the SBA
guarantees bid, payment, performance and
necessary ancillary bonds issued by surety
companies for individual contracts of up to
$2 million. Under the American Recovery
and Reinvestment Act, SBA can guarantee
up to $5 million, and up to $10 million on a
federal contract, if the contracting officer
certifies that the guarantee is in the best
interest of the government. The SBA
reimburses sureties a predetermined
percentage of losses sustained if a
contractor breaches the terms of the
contract.
  The SBA has two program options
available, the Prior Approval Program
(Plan A) and the Preferred Surety Bond
Program (Plan B). In the Prior Approval
Program, SBA guarantees 90 percent of a
surety’s paid losses and expenses on
bonded contracts up to $100,000, and on
bonds for socially and economically
disadvantaged and HUBZone contractors
and veterans and service-disabled veterans.
All other bonds guaranteed in the Plan A
Program receive an 80 percent guarantee.
Sureties must obtain SBA’s prior approval
for each bond guarantee issued. Under the
PSB Program, SBA guarantees 70 percent,
but sureties may issue, monitor and service
bonds without SBA’s prior approval.


Visit us online: www.sba.gov/nc                                                                  NORTH CAROLINA Small Business Resource —   29
30 — Small Business Resource   NORTH CAROLINA   Visit us online: www.sba.gov/nc
                                          CONTRACTING OPPORTUNITIES

           Federal prOcurement
               OppOrtunitieS           How to Apply for Government Contracts
    The federal government is
    the largest purchaser of
    goods and services in the
    world. However, small businesses
    face challenges when trying to win
    federal contracts. The SBA can help
    small businesses work through these
    challenges. Working closely with
    federal agencies and the nation’s
    leading large contractors, the SBA
    works to ensure that small
    businesses obtain a fair share of
    government         contracts    and
    subcontracts. The SBA has a number
    of programs to help small firms do
    business     with     the    federal
    government.
    For more information, visit:
    www.sba.gov/gc

the prime                                       large businesses comply with small               demonstrates the ability to perform, the
cOntractS prOGram                               business subcontracting requirements.            SBA issues a certificate of competency to
   Through the Prime Contracts Program,         They also provide guidance to assist small       the contracting officer, requiring award of
the SBA helps to ensure small businesses        businesses in identifying subcontracting         that contract to the small business.
get fair opportunities to share federal         opportunities and marketing their products
government prime contracts. SBA                 and services to these large contractors.         Small BuSineSS
procurement center representatives work
to expand contracting opportunities for
                                                   CMRs also work with agencies to ensure
                                                subcontracting with small and small,             Size StandardS
small businesses. PCRs review contracting       disadvantaged businesses, women-owned               The Small Business Act states that a
strategies and actions, to identify contracts   small businesses, HUBZone firms and              small business concern is “one that is
for which small businesses can compete.         small businesses owned by service-               independently owned and operated and
   Visit the SBA’s Office of Government         disabled veterans through inclusion of           which is not dominant in its field of
Contracting home page at: www.sba.gov/gc        subcontracting evaluation factors and sub-       operation.” The law also states that in
for a listing of PCRs and buying                factors.                                         determining what constitutes a small
installations nationwide.                                                                        business, the definition will vary from
                                                                                                 industry to industry to reflect industry
the SuBcOntractinG                              the certiFicate OF cOmpetency                    differences accurately. The SBA’s Small

aSSiStance prOGram                              prOGram                                          Business Size Regulations (13 CFR Part 121,
                                                                                                 www.sba.gov/size/indextableofsize.html)
                                                   The Certificate of Competency program
   The Subcontracting Assistance Program                                                         implement the Small Business Act’s
                                                allows a small business to appeal a
promotes maximum use of small                                                                    mandate to the SBA.
                                                contracting officer's determination that it is
businesses by the nation’s large prime                                                              The SBA has also established a table of
                                                unable to fulfill the requirements of a
contractors. The SBA’s commercial market                                                         size standards, matched to North American
                                                specific government contract on which it is
representatives work with large businesses                                                       Industry Classification System industries,
                                                the apparent successful offeror. The SBA
to identify and expand subcontracting                                                            used to determine eligibility for SBA
                                                will conduct a detailed review of the firm’s
                                                                                                 programs and small business preferences
opportunities for small businesses. CMRs        technical and financial capabilities to
                                                                                                 for federal government contracts.
conduct compliance reviews to ensure that       perform on the contract. If the business

32 — Small Business Resource   NORTH CAROLINA                                                                         Visit us online: www.sba.gov/nc
     A more in-depth listing of standards can
be      found     at:    http://www.sba.gov/
services/contractingopportunities/index.html
select “For Government/Contracting
Officials” which then leads to a page where
you can select “Size Standards.”

Size determination
  The Size Determination Program,
administered by SBA’s six government
contracting area offices, ensures that only
small firms receive contracts and other
benefits reserved exclusively for small
businesses. When a firm’s claim that it is
small is challenged, the SBA determines if            To search the DSBS for small businesses,         • At least 35 percent of its employees must
the firm, including all of its affiliates, meets   click on: http://dsbs.sba.gov/dsbs/search/            reside in a HUBZone.
established SBA size standards. Size               dspdsbs.cfm or select the “Dynamic Small             Existing businesses that choose to move
determinations may also be made when               Business Search” at the CCR Web site at:          to qualified areas are eligible. To fulfill the
requested in connection with other federal         http://www.ccr.gov.                               requirement that 35 percent of a HUBZone
small business programs.                              Registration in the DSBS is through the        firm’s employees reside in a HUBZone,
  Additional information is available at the       CCR. For more information on CCR, or to           employees must live in a primary residence
above “Size Standards” site.                       register, click the CCR Web site. Before          within that area for at least 180 days or be a
                                                   registering in CCR, go to the top of the Web      currently registered voter in that area.
Small BuSineSS vendOr                              page and download the handbook which
                                                   contains data for a successful registration.
                                                                                                        For additional information regarding
                                                                                                     the HUBZone Program, please visit:
dataBaSe                                                                                             http://www.sba.gov/hubzone.
    The SBA works with the integrated
                                                   huBzOne prOGram
acquisition community to provide a
database of vendors, including small                  The Historically Underutilized Business        aSSiStance FOr Small and
businesses. The Central Contractor                 Zone Program stimulates economic                  diSadvantaGed BuSineSSeS
                                                   development and creates jobs in urban and
Registration System is the primary gateway
vendor and grantee database for the federal        rural communities by providing federal            8(a) Business development
government. CCR collects, stores and               contracting assistance to small businesses.       program
disseminates data to support agency                   The HUBZone program establishes                   The SBA’s Section 8(a) Business
acquisition and grants missions. Both              preferences for award of federal contracts
                                                                                                     Development Program provides various
current and potential federal government           to small businesses located in historically
                                                                                                     forms of assistance (management and
vendors and grantees are required to               underutilized business zones.
                                                      In general, small businesses may obtain        technical assistance, financial assistance,
register in CCR to receive federal contracts                                                         government contracting assistance and
or grants. Vendors are required to complete        HUBZone certification by employing staff
                                                   who live in a HUBZone and maintaining a           advocacy support) to foster the growth and
a one-time registration to provide basic                                                             development of businesses owned and
information relevant to procurement, grant         “principal office” in one of these specially
                                                   designated areas.                                 controlled by one or more socially and
and financial transactions.                                                                          economically disadvantaged individuals.
    Vendors must update or renew their             SBA is responsible for:
                                                     • Determining whether or not individual         SBA assists these businesses, (during a
registration at least once a year to maintain
                                                       concerns are qualified HUBZone small          nine-year tenure in the 8(a) Business
an active status. The SBA provides the CCR
with authoritative source information                  business concerns, and therefore eligible     Development Program), to gain access to
                                                       to receive HUBZone contracts;                 the resources necessary to develop their
regarding certifications under 8(a) Business
                                                     • Maintaining a list of qualified HUBZone       businesses and improve their ability to
Development and HUBZone programs and                   small business concerns for use by
provides the small business size status                                                              compete in the mainstream of the
                                                       acquisition agencies in awarding
against each North American Industry                                                                 American economy.
                                                       contracts under the program; and
Classification code listed in a registrant’s         • Adjudicating protests and appeals of
                                                                                                        Business    development       assistance
profile.                                               eligibility to receive HUBZone contracts.     includes one-to-one counseling, training
    SBA maintains the Dynamic Small                To qualify for the program, a business            workshops, and other management and
Business Search function of the CCR.               must meet the following criteria:                 technical guidance required to expand into
Businesses profiled on the DSBS can be               • It must qualify as a small business under     the federal government contracting arena.
searched by NAICS codes, keywords,                     SBA size standards, corresponding to its         The SBA enters into contracts with other
location, quality certification, bonding level         primary industry classification;              federal agencies and subcontracts the
business type, ownership, SBA certification,         • Its principal office must be located within   performance of such contracts to eligible
and by women, minority, veteran and                    a HUBZone, which includes lands on            8(a) program participants.
service-disabled veteran ownership. The                federally recognized Indian reservations
DSBS serves as a marketing tool for small              and covered by the phrase “Indian             eligibility criteria:
businesses because the business profiles in            Country”;
                                                                                                     To participate in the 8(a) program, a
the DSBS include information from SBA’s              • It must be owned (at least 51 percent) by
                                                                                                     business must be:
files and other available databases plus               one or more U.S. citizens, Community
                                                       Development           Corporation,       an     • a small business concern
additional business and marketing                                                                      • owned by one or more U.S. citizens
information on individual firms.                       agricultural cooperative, an Indian tribe;
                                                       and                                             • at least 51 percent unconditionally owned


Visit us online: www.sba.gov/nc                                                                           NORTH CAROLINA Small Business Resource —   33
    and controlled by one or more an
    individual(s) who qualify as socially and
    economically disadvantaged
  • established for two full years before
    applying (or qualifying for a waiver of
    the two-year rule)

Social disadvantage:
   Socially disadvantaged is defined as
individuals who have been subjected to
racial or ethnic prejudice or cultural bias
because of their identity as a member of a
group without regard to their individual
capabilities. The following individuals are
presumed to be socially disadvantaged:
Black Americans, Native Americans,
Hispanic Americans, Asian Pacific                individuals who are members of certain             to help you at this time. If you would still
Americans and Subcontinent Asian                 ethnic groups are presumed to be                   prefer at this time to apply using the
Americans. An individual who is not a            disadvantaged. Other persons, including            electronic system, please send an e-mail to
member of one of the groups presumed to          women and persons of any race, can also            BDMIS@sba.gov for further guidance and
be socially disadvantaged must establish         qualify by establishing their disadvantaged        assistance. The average processing time for
individual social disadvantage by a              status.                                            an electronic application is ninety days.
preponderance of the evidence. Anyone               Firms seeking to be SDB-certified may
may apply for 8(a) Program certification.        certify themselves for federal prime               paper applications for 8(a) Bd program
   For additional information regarding
evidence of social disadvantage, please
                                                 contracts and federal subcontracts without         certification
                                                 submitting any application to SBA for SDB           For a paper application, simply send a
visit:    http://www.sba.gov/aboutsba/sba        certification.
programs/8abd/index.html.                                                                           written request to:
                                                    To self-represent as small disadvan-            U.S. Small Business Administration
                                                 taged businesses, firms should:
economic disadvantage:                             1) Update their Central Contractor
                                                                                                        Associate Administrator for Business
   Economically disadvantaged individ-                                                                  Development
                                                      Registration (CCR) profile, ensuring they
uals are socially disadvantaged individuals                                                             Office of Business Development
                                                      select they are a self-certified Small
                                                                                                        409 Third St., S.W., 8th Fl.
whose ability to compete in the free-                 Disdavantaged Business; and
                                                                                                        Washington, DC 20416
enterprise system has been impaired due to         2) Update      their   company's        Online
diminished capital and credit opportunities           Representation       and      Certification      A paper application will be forwarded to
as compared to others in the same or                  Application - specifically, the Federal       you. Please complete the paper application
similar line of business who are not socially         Acquisition Regulation clause at 52.219-      and return it to the above address. Data in
                                                      1(b)(2), entitled “Small disadvantaged        your application will be retyped in the
disadvantaged.                                        business concern,” and check the box
                                                      indicating they are a self-certified SDB.     electronic system, printed out, and sent
net worth:                                          Other than its list of certified 8(a) firms,    back to you for verification. If any errors are
   For initial 8(a) Program certification, the                                                      found, you must return the application to
                                                 SBA will no longer maintain a list of
net worth of an individual claiming
                                                 certified SDB firms. The 8(a) Business             the SBA with the corrections. They will be
disadvantage, must be less than $250,000.
                                                 Development Program is not affected by             entered into the on-line application, and
For continued 8(a) Program eligibility after
                                                 this rule. Firms may continue to apply on-         another paper copy will be sent to you for
admission, net worth must be less than
                                                 line for 8(a) Certification.                       verification. This process will continue until
$750,000. In determining such net worth,
SBA will exclude the ownership interest in                                                          the application contains no errors. At that
the applicant business and the equity in the     applying Online For 8(a) program certification     time, please sign and return the completed
primary residence.                                  Prior to applying for the 8(a) Program,
                                                                                                    application to the SBA for processing
                                                 each firm is urged to take an on-line
                                                                                                    within the 90-day timeframe.                We
day-to-day management:                           training and self-evaluation course. To get
                                                                                                    recommend that you submit your
  • Management and daily business                to      the      course,      click     on
    operations must be controlled by the         http://www.sba.gov/localresources/district/dc/     application electronically to avoid delays.
    disadvantaged individual(s) upon whom        DC_8ABRIEFINGRT.html. Then from the
    eligibility is based.                        center area, click on 8(a) Business                the mentor-protégé program for 8(a)
  • The       individual(s)  must      have      Development Suitability Tool in the center         participants
    management or technical expertise.
                                                 section of text. The first part explains 8(a)          Through the SBA’s Mentor-Protégé
  For additional information on the 8(a)         Program in detail, ending in an eligibility        Program, 8(a) Program participants can
Business Development Program, visit:             self-assessment test. The test consists of a       receive in-depth business advice to assist
http://www.sba.gov/aboutsba/sbaprograms/         series of simple yes or no questions that          them in becoming more competitive in
8abd/index.html.                                 evaluate the degree to which your firm             obtaining federal government contracts.
                                                 meets the basic qualifications for the 8(a)        The SBA’s Mentor-Protégé Program
Small disadvantaged Business certifications      Program. If you meet the basic eligibility         encourages private-sector relationships and
   To qualify as a small disadvantaged           criteria, you will be allowed to apply             broadens efforts to address the needs of
business, a firm must be owned and               immediately for the 8(a) Program via the           clients in the 8(a) Program.
controlled by one or more individuals who        electronic on-line system. If key eligibility          If you are an 8(a) participant, mentors
are     socially     and     economically        criteria are not met, you will be directed to      can provide you with technical and
disadvantaged. Congress has directed that        the SBA resource deemed most appropriate           management           assistance,   financial


34 — Small Business Resource   NORTH CAROLINA                                                                              Visit us online: www.sba.gov/nc
assistance in the form of equity investments       • The requirement is determined to be            • $5.5    million      for    manufacturing
or loans, subcontract support, and                   excluded from fulfillment through award          requirements
assistance in performing prime contracts             to Federal prison industries, Javits           • $3.5 million for all other requirements
through joint-venture arrangements with              Wagner-O’Day, Orders under Indefinite          • The SDVO small business is a responsible
8(a) businesses.                                     Delivery Contracts, Orders against               contractor able to perform the contract
   For      more      information,      visit:       Federal Supply Schedules, requirents           • The award can be made at a fair and
http://www.sba.gov/aboutsba/sbaprograms/             currently being performed by 8(a)                reasonable price
                                                     participants, and Requirements for
8abd/mentorprogram/index.html.
                                                     commissary or exchange resale items.         SdvO Simplified acquisition contracts
                                                   • The requirement is not currently being           If a requirement is at or below the
manaGement and technical                             performed by an 8(a) participant, and        simplified acquisition threshold, a
aSSiStance                                           unless SBA has consented to release of the
                                                     requirement from the Section 8(a)
                                                                                                  contracting officer may set-aside the
   SBA’s Section 7(j) Management and                                                              requirement for consideration among
                                                     Program.
Technical Assistance Program authorizes                                                           SDVO small businesses using simplified
                                                   • SBA has not accepted the requirement for
the SBA to enter into grants, cooperative                                                         acquisition procedures, or may award a
                                                     performance under the 8(a) authority,
agreements and contracts with public or              unless SBA has consented to release of the
                                                                                                  sole source contract to a SDVO small
private organizations to pay all or part of          requirement from the Section 8(a)            business. More information is at:
the cost of technical or management                  Program.                                     www.sba.gov/gc/indexprograms-vets.html.
assistance for individuals or concerns             • There is a reasonable expectation that at      Veterans and service-disabled veterans
eligible for assistance under sections: 7(a)         least two responsible SDVO businesses        may participate in all SBA procurement
(11), 7(j) (10), or 8(a) of the Small Business       will submit offers                           programs. To determine your eligibility,
Act. Specifically, the following are eligible      • The award can be made at a fair market       contact your local veterans business
to receive management and technical                  price.                                       development officer in your nearest SBA
assistance including businesses which                                                             district office, visit the various program
qualify as small under 13 CFR part 121 of        SdvO Sole Source contracts                       Web sites or contact the SBA’s Office of
this title: concerns located in urban or rural        A contracting officer may award a sole      Veterans Business Development at:
areas with high proportions of                   source contract to a SDVO small business if      www.sba.gov/vets.
unemployed or low-income individuals, or         the officer determines that none of the set-
which are owned by such low-income               aside exemptions or provisions apply and
individuals; and businesses eligible to          the anticipated award price of the contract,
receive 8(a) contracts.                          including options, will not exceed:
   The types of assistance available to
eligible      individuals      through     the
Management and Technical Assistance
Program include counseling and training in
the areas of:
  •   Finance
  •   Management
  •   Accounting
  •   Bookkeeping
  •   Marketing and presentation analysis
  •   Advertising
  •   Loan packaging
  •   Proposal bid preparation
  •   Feasibility studies
  •   Industry specific technical assistance
  •   The identification and development of
      new business opportunities
   More information is at:
http://www.sba.gov/aboutsba/sbaprograms/
8abd/grantinfo/index.html.

Service-diSaBled,
veteran-OWned Small
BuSineSS
   In May 2004, the Small Business Act
established procurement vehicles for small
businesses owned and controlled by
service-disabled veterans to assist agencies
in achieving the 3 percent governmentwide
goal for procurement from service-
disabled, veteran-owned small businesses..
   Contracting officers may award a sole-
source or set-aside contract to a small
business owned by a service-disabled
veteran if:

Visit us online: www.sba.gov/nc                                                                       NORTH CAROLINA Small Business Resource —   35
Small BuSineSS innOvatiOn                                                                             business/nonprofit research institution
                                                                                                      partnerships: Department of Defense;
reSearch prOGram                                                                                      Department of Energy; Department of
   The SBIR Program encourages small                                                                  Health and Human Services; National
businesses to explore their technological                                                             Aeronautics and Space Administration;
potential by reserving a specific percentage                                                          and National Science Foundation.
of federal research and development funds
for small businesses. The program serves
to fund the critical startup and
                                                                                                      tech-net
                                                                                                         TECH-Net is an Internet-based database
development stages for a technology and
                                                                                                      of information containing Small Business
encourages commercialization of the
                                                                                                      Innovation Research awards and Small
technology, product or service. In turn, this
                                                                                                      Business Technology Transfer awards.
stimulates the U.S. economy.
                                                                                                         It is a search engine and electronic
SBIR Requirements:                                                                                    gateway of technology information and
   Small businesses must meet the                                                                     resources for and about small high-tech
following eligibility criteria to participate in                                                      businesses. It is a tool for researchers,
the SBIR program.                                                                                     scientists, state, federal and local
  • Be 51 percent owned and controlled by                                                             government officials, a marketing tool for
    one or more individuals who are U.S.                                                              small firms and a potential “link” to
    citizens or permanent resident aliens in                                                          investment opportunities for investors and
    the U.S. or be a for-profit business
    concern that is at least 51 percent owned
                                                                                                      other sources of capital.
    and controlled by another for-profit                                                                 TECH-Net is a free service for those
    business concern that is at least 51 percent                                                      seeking small business partners, small
    owned and controlled by one or more                                                               business contractors and subcontractors,
    individuals who are citizens of, or                                                               leading edge technology research, research
    permanent resident aliens in, the U.S.                                                            partners,     (e.g.   small    businesses,
  • Be organized for profit.                                                                          universities, federal labs and non-profit
  • Principal researcher must be employed                                                             organizations), manufacturing centers and
    by small business.                                                                                investment opportunities.
  • Company size cannot exceed 500
    employees.
                                                                                                         TECH-Net is available at:
  For more information on the SBIR                                                                    http://tech-net.sba.gov/index.cfm.
Program visit: www.sba.gov/aboutsba/               transferred from the laboratory to the
sbaprograms/sbir/index.html.                       marketplace. The small business profits
                                                   from the commercialization, which, in turn,
                                                                                                      NORTH CAROLINA
participating agencies:                            stimulates the U.S. economy.                       PROCUREMENT PROGRAMS
   Each year, the following eleven federal
departments and agencies are required to           Sttr requirements:                                 NC Procurement Technical
reserve a portion of their R&D funds for              Small businesses must meet the                  Assistance Center
award to small business: Departments of            following eligibility criteria to participate in        Located in various locations in NC, the
Agriculture;     Commerce;       Defense;          the STTR Program.                                  PTAC counselors help businesses obtain
Education; Energy; Health and Human                  • Be 51 percent owned and controlled by          contracts by providing no-fee, confidential
Services;       Homeland         Security;             one or more individuals who are U.S.
                                                                                                      and comprehensive assistance in selling
Transportation; Environmental Protection               citizens or permanent resident aliens in
Agency; National Aeronautics and Space                 the U.S.                                       products and services to local, state and
Administration; and National Science                 • Be organized for profit.                       federal government entities. Seminars,
Foundation.                                          • Principal researchers need not be              workshops and trade fairs are held
                                                       employed by small business.                    throughout the state. For more information
                                                     • Small business must conduct at least 40
Small BuSineSS technOlOGy                              percent of the work.                           and locations, contact the PTAC program at
                                                                                                      the SBTDC at 919-715-7272 or go to
tranSFer prOGram                                     • Company size cannot exceed 500
                                                       employees. (No size limit for nonprofit        www.sbtdc.org.
   This STTR program reserves a specific               research institution).
percentage of federal R&D funding for              The nonprofit research institution partner         The NC Military Business Center
award to small business and nonprofit              must also meet certain eligibility criteria:        The NCMBC is a state-funded program of
research institution partners. Small                 • Be located in the United States and be one
                                                       of the following:                              the NC Community College system.
business has long been where innovation
and innovators thrive. But the risk and              • Nonprofit college or university.               Located throughout NC, counselors help
expense of conducting serious R&D efforts            • Domestic         nonprofit        research     companies identify and bid on federal
                                                       organization.                                  contracts. Their program, matchforce.org,
can be beyond the means of many small                • Federally funded R&D center.
businesses. Conversely, nonprofit research           • The research institution must conduct at
                                                                                                      matches     NC     firms   to   contract
laboratories are instrumental in developing            least 30 percent of the work.                  opportunities.    Call 910-323-4824 or
high-tech innovations. But frequently,                                                                www.ncmbc.us for more information.
innovation is confined to the theoretical,         participating agencies:
not the practical. STTR combines the                 Each year the following five Federal
strengths of both entities by introducing          departments and agencies are required by
entrepreneurial skills to high-tech research       STTR to reserve a portion of their R&D
efforts. The technologies and products are         funds    for     award      to     small

36 — Small Business Resource   NORTH CAROLINA                                                                               Visit us online: www.sba.gov/nc
                                                DISASTER RECOVERY &

           diSaSter aSSiStance
                             Knowing the Types of Assistance Available for Recovery
                                                                                                available elsewhere (the ability to borrow
                                                                                                or use their own resources to overcome the
                                                                                                disaster).
                                                                                                   More information on all of SBA’s
                                                                                                disaster assistance programs is at:
                                                                                                http://www.sba.gov/services/disasterassistan
                                                                                                ce/index.html. Information for military
                                                                                                reservists called to active duty is at:
                                                                                                www.sba.gov/reservists.

                                                                                                disaster preparedness
                                                                                                   For small businesses, surviving a
            he disaster program is SBA’s        resume. The law restricts economic injury       disaster doesn’t begin with clearing the



T           largest direct loan program, and    disaster loans to small businesses, small       debris and returning to work.
            the only SBA program for            agricultural cooperatives and private              Surviving begins long before the disaster
            entities other than small           nonprofit organizations of all sizes. The       strikes, or before active-duty orders are
            businesses. SBA is responsible      loan limit for economic injury, as a direct     received – with proper planning. Your
for providing affordable, timely and            result of the disaster event, is $2 million.    planning should include insurance
accessible     financial     assistance    to   These working capital loans are intended to     coverage, emergency power, protection of
homeowners, renters, businesses of all sizes    be made to entities without credit              company records, fire safety, medical
and private, non-profit organizations           elsewhere, as determined by SBA, to help        emergencies, taking care of your employees
following declared disasters. By law,           pay ordinary and necessary operating            and continuity planning – how your
governmental units and agricultural             expenses that would have been payable           business will continue during and after the
enterprises are ineligible.                     barring the disaster event. The limit for       emergency or disaster.
     The SBA is authorized by the Small         physical and EIDL loans combined is $2             Starting is as easy as clicking on the
Business Act to make two types of disaster      million.                                        SBA’s Disaster Preparedness Web site at:
loans:                                                                                          http://www.sba.gov/services/disasterassistan
                                                                                                ce/disasterpreparedness/index.html. The site
                                                military reservist economic injury
physical disaster loans                            Military Reservists Economic Injury
                                                                                                includes a wealth of information on the
    Physical Disaster Loans are the primary                                                     SBA’s disaster recovery programs for
                                                Disaster Loans, a type of economic injury
source of funding for permanent rebuilding                                                      homeowners and renters, and businesses of
                                                loan, are available for up to $2 million to
and replacement of uninsured or                                                                 all sizes. There are articles on emergency
                                                assist eligible small businesses meet their
underinsured disaster damages to                                                                planning for disasters, descriptions of
                                                ordinary and necessary operating expenses
privately-owned real and/or personal                                                            SBA’s programs, and links to government
                                                that they could have met, but are unable to
property. SBA’s physical disaster loans are                                                     and industry Web sites with great planning
                                                meet, because an essential employee was
available to homeowners, renters,                                                               information.
                                                “called up” to active duty in his/her role as
businesses of all sizes and private nonprofit                                                      There is also a link to www.ready.gov, the
                                                a military reservist. These loans are
organizations of all sizes. A homeowner                                                         Department of Homeland Security’s Web
                                                intended to provide only the amount of
may apply for a loan of up to $200,000 to                                                       site for home and business disaster
                                                working capital needed by a small business
                                                                                                planning.
repair or replace the primary residence to      to pay its necessary obligations as they
                                                                                                   Small- to medium-sized businesses are
its pre-disaster condition. Homeowners or       mature until operations return to normal
                                                                                                the most vulnerable in an emergency. A
renters may apply for a loan up to $40,000      after the essential employee is released
                                                                                                plan can help protect your company and
to help repair or replace personal property,    from active military duty.
                                                                                                enhance its potential to recover after an
such as clothing, furniture, automobiles,          For all disaster loans, SBA can only
                                                                                                emergency.
lost in the disaster. Businesses and private,   approve loans to applicants having a credit
                                                                                                   The       ready.gov      site     contains
nonprofit organizations of any size may         history acceptable to SBA and who also
                                                                                                downloadable publications detailing the
apply for a loan up to $2 million (actual       show the ability to repay all loans. The
                                                                                                planning you’ll need to stay in business
loan amounts are based on the amount of         terms of each loan are established in
                                                                                                after a disaster strikes. One publication, the
uncompensated damage) to repair or              accordance with each borrower’s ability to
                                                                                                Ready Business Mentoring Guide – User
replace     real     property,    machinery,    repay. The law gives SBA several powerful
                                                                                                Edition, contains worksheets, checklists,
equipment, fixtures, inventory and              tools to make disaster loans affordable:
                                                                                                testimonials and a sample emergency plan
leasehold improvements.                         low-interest rates (around 4 percent), long-
                                                                                                to use for study. You can order the
                                                terms (up to 30 years), and refinancing of
                                                                                                publication or download it free.
economic injury disaster loans                  prior liens (in some cases). As required by
                                                                                                   Planning for a disaster is the best way of
  Economic injury disaster loans provide        law, the interest rate for each loan is based
                                                                                                limiting its effects.
the necessary working capital after a           on SBA’s determination of whether each
declared disaster until normal operations       applicant does or does not have credit


Visit us online: www.sba.gov/nc                                                                     NORTH CAROLINA Small Business Resource —   37
                                                           ADVOCACY

               WatchinG Out FOr yOu       The SBA is Your Voice in Washington




OFFice OF advOcacy                              nonprofit organizations), and consider
                                                regulatory alternatives that minimize the
                                                                                               from small business owners, nonprofit
                                                                                               organizations and small government
   The SBA’s Office of Advocacy, the “small
                                                economic burden on small entities.             entities. Comments are forwarded to
business watchdog” of the government,
                                                   Advocacy’s mission is enhanced by a         federal agencies for review, and in some
examines the role and status of small
                                                team of regional advocates, located in the     cases fines may be lowered or eliminated
business     in    the    economy      and
                                                SBA’s 10 regions. They are Advocacy’s          and decisions changed in favor of the small
independently represents the views of
                                                direct link to small business owners, state    business owners. Each year the National
small business to federal agencies,
                                                and local government entities, and             Ombudsman files a report with the U.S.
Congress, the President and federal
                                                organizations that support the interests of    Congress on the responsiveness of federal
appellate courts as friends of the court.
                                                small entities. The regional advocates help    agencies regarding their actions of
Advocacy compiles and interprets statistics
                                                identify regulatory concerns of small          regulatory and compliance enforcement on
on small business and is the primary entity
                                                business by monitoring the impact of           small businesses.
within the federal government to
                                                federal and state policies at the grassroots      To request help, send the National
disseminate small business data.
                                                level.                                         Ombudsman a complete Federal Agency
   Headed by the Chief Counsel for
                                                   Learn more about the Office of Advocacy     Comment Form. You may do this by fax at
Advocacy, the office also funds outside
                                                at: www.sba.gov/advo.                          202-481-5719; online at the Ombudsman’s
research of small business issues and
                                                                                               Web page: http://www.sba.gov/aboutsba/
produces numerous publications to inform
policy makers about the important role of       OFFice OF the natiOnal                         sbaprograms/ombudsman/index.html; or by
small business in the economy and the           OmBudSman                                      mail at 409 Third Street S.W., Mail Code
                                                                                               2120, Washington, DC 20416.
impact of government policies on small             If excessive fines, penalties or unfair        The Ombudsman also coordinates 10
business. In addition, the office monitors      regulatory enforcement by federal agencies     regional regulatory fairness boards which
federal agency compliance with the              are problems for your small business, you      meet regularly to receive comments about
Regulatory Flexibility Act – the law that       have a voice in Washington, D.C., through      federal regulations affecting small
requires agencies to analyze the impact of      the SBA’s Office of the National               businesses.
their proposed regulations on small entities    Ombudsman.                                        Learn more about the National
(including small businesses, small                 The Ombudsman receives comments             Ombudsman from the Web site above or
governmental jurisdictions and small            regarding federal regulatory enforcement       call 888-REG-FAIR.


38 — Small Business Resource   NORTH CAROLINA                                                                       Visit us online: www.sba.gov/nc
Other aSSiStance
 OTHER SOURCES OF                                   BLUE RIDGE CC SMALL BUSINESS CENTER
                                                      100 W. Campus Dr.
                                                                                                CRAVEN CC SMALL BUSINESS CENTER
                                                                                                  800 College Ct.
                                                                                                                                         JOHNSTON CC SMALL BUSINESS CENTER
                                                                                                                                           135 Bestwood Dr.
 ASSISTANCE                                           Flat Rock, NC 28731
                                                      828-694-1766
                                                                                                  New Bern, NC 28562
                                                                                                  252-638-7353
                                                                                                                                           Clayton, NC 27520
                                                                                                                                           919-209-2015

 N.C. Rural Economic                                BRUNSWICK CC SMALL BUSINESS CENTER          DAVIDSON COUNTY CC SMALL BUSINESS        LENOIR CC SMALL BUSINESS CENTER
 Development Center                                   P.O. Box 30                               CENTER                                     327 N Queen St.
    4021 Carya Dr.                                    Supply, NC 28462                            297 DCCC Rd.                             Kinston, NC 28501
    Raleigh, NC 27610                                 910-755-7306                                Thomasville, NC 27360                    252-522-4676
    919-250-4314 • 919-250-4325 Fax                                                               336-224-4557
    www.ncruralcenter.org                           CALDWELL CC & TECH INST. SMALL                                                       MARTIN CC SMALL BUSINESS CENTER
    North Carolina Rural Economic                   BUSINESS CENTER                             DURHAM TECHNICAL CC SMALL                 1161 Kehukee Park Rd.
    Development Center is a private, non-profit       2855 Hickory Blvd.                        BUSINESS CENTER                           Williamston, NC 27892
    organization whose mission is to develop,         Hudson, NC 28401                            400 W. Main St.                         252-792-1521
    promote, and implement sound economic             828-726-2383                                Durham, NC 27701
                                                                                                  919-536-7421                           MAYLAND CC SMALL BUSINESS CENTER
    strategies to improve the quality of life of
                                                    CAPE FEAR CC SMALL BUSINESS CENTER                                                    200 Mayland Dr.
    rural North Carolinians. The center serves
                                                      411 N. Front St.                          EDGECOMBE CC SMALL BUSINESS               Spruce Pine, NC 28777
    the state's 85 rural counties, with a special
                                                      Wilmington, NC 28429                      CENTER                                    828-765-7351
    focus on individuals with low to moderate
    incomes and communities with limited              910-362-7469                                2009 W. Wilson St.
                                                                                                  Tarboro, NC 27886                      MCDOWELL TECHNICAL CC
    resources.
                                                    CARTERET CC SMALL BUSINESS CENTER             252-823-5166                           SMALL BUSINESS CENTER
    The Center operates a multi-faceted
                                                      3505 Arendell St.                                                                    54 College Dr.
    program that includes conducting research
                                                      Morehead City, NC 28557                   FAYETTEVILLE TCC SMALL BUSINESS            Marion, NC 28752
    into rural issues; advocating for policy and
                                                      252-222-6127                              CENTER                                     828-652-0633
    program innovations; and building the
    productive capacity of rural leaders,                                                         2723 Ft. Bragg Blvd.
                                                    CATAWBA VALLEY CC SMALL BUSINESS              Fayetteville, NC 28303                 MITCHELL CC SMALL BUSINESS CENTER
    entrepreneurs and community
                                                    CENTER                                        910-678-8462                             701 W. Front St.
    organizations. Their NC Business Resources
                                                      2550 Hwy. 70 S.E.                                                                    Statesville, NC 28677
    Directory lists most all programs available
                                                      Hickory, NC 28602                         FORSYTH TECHNICAL CC SMALL                 704-878-3227
    to entrepreneurs.
                                                      828-327-7000                              BUSINESS CENTER
                                                                                                  601 W. Fourth St.                      MONTGOMERY CC SMALL BUSINESS
 Small Business Center                              CENTRAL CAROLINA CC SMALL BUSINESS            Winston-Salem, NC 27101                CENTER
 Network                                            CENTER                                        336-631-1320                             1011 Page St.
    The Small Business Center Network of the          1801 Nash St.                                                                        Troy, NC 27371
    North Carolina Community College System           Sanford, NC 27330                         GASTON COLLEGE SMALL BUSINESS              910-576-6222
    exists to increase the success rate and the       919-774-6442                              CENTER
    number of profitable businesses in North                                                      201 Hwy. 321 S.                        NASH CC SMALL BUSINESS CENTER
    Carolina by providing high quality, readily     CCCC TRIANGLE SOUTH ENTERPRISE                Dallas, NC 28034                         522 N. Old Carriage Rd.
    accessible assistance to prospective and        CENTER                                        704-922-6449                             Rocky Mount, NC 27804
    existing small business owners and their          600 S. Magnolia Ave.                                                                 252-451-8233
    employees. Each Small Business Center             Dunn, NC 28334                            GUILFORD TECHNICAL CC SMALL
    (SBC) is a community-based provider of            910-892-2884                              BUSINESS CENTER                          PAMLICO CC SMALL BUSINESS CENTER
    education and training, counseling,                                                           2007 Yanceyville St., Ste. 129           5049 Hwy. 306 S.
    information, and referral. SBCs offer           CCCC PITTSBORO CAMPUS                         Greensboro, NC 27405                     Grantsboro, NC 28529
    seminars, workshops, counseling, resources,       764 West St.                                336-334-4822                             252-745-7348
    and a network of linkages. www.sbcn.nc.gov        Pittsboro, NC 27312
                                                      919-542-6495                              HALIFAX CC SMALL BUSINESS CENTER         PIEDMONT CC SMALL BUSINESS CENTER
 ALAMANCE CC SMALL BUSINESS CENTER                                                                200 College Dr.                           105 N. Main St.
   1304 Plaza Dr.                                   CENTRAL PIEDMONT CC SMALL BUSINESS                                                      Roxboro, NC 27573
                                                    CENTER                                        Weldon, NC 27890
   Burlington, NC 27215                                                                           252-536-7274                              336-599-0032
   336-506-4312                                       124 E. Independence Blvd./Charlottetown
                                                      Blvd.                                                                              PITT CC SMALL BUSINESS CENTER
                                                      Charlotte, NC 28204                       HAYWOOD CC SMALL BUSINESS CENTER
 ASHEVILLE-BUNCOMBE TCC SMALL                                                                     185 Freedlander Dr.                       3107 S. Memorial Dr.
 BUSINESS CENTER                                      704-330-6736                                                                          Greenville, NC 27835
                                                                                                  Clyde, NC 28721
   1465 Sandhill Rd., Ste. 1060                                                                   828-627-4512                              252-493-7541
                                                    CLEVELAND CC SMALL BUSINESS CENTER
   Candler, NC 28715
                                                      137 S. Post Rd.
   828-254-1921                                                                                 ISOTHERMAL CC SMALL BUSINESS             RANDOLPH CC SMALL BUSINESS CENTER
                                                      Shelby, NC 28152
                                                                                                CENTER                                     629 Industrial Park Ave.
                                                      704-484-4146
 BEAUFORT COUNTY CC SMALL BUSINESS                                                                286 ICC Loop Rd.                         Asheboro, NC 27203
 CENTER                                             COASTAL CAROLINA CC SMALL BUSINESS            Spindale, NC 28160                       336-633-0228
   5337 Hwy. 264 E.                                 CENTER                                        828-286-3636
   Washington, NC 27889                               444 Western Blvd.                                                                  RICHMOND CC SMALL BUSINESS CENTER
   252-940-6306                                       Jacksonville, NC 28546                                                               1042 W. Hamlet Ave.
                                                                                                JAMES SPRUNT CC SMALL BUSINESS
                                                      910-938-6319                                                                         Hamlet, NC 28345
                                                                                                CENTER
 BLADEN CC SMALL BUSINESS CENTER                                                                                                           910-410-1687
                                                                                                  133 James Sprunt Dr.
   7418 NC Hwy. 41 W.                               COLLEGE OF THE ALBEMARLE                      Kenansville, NC 28349
   Duplin, NC 28332                                 SMALL BUSINESS CENTER                                                                ROANOKE-CHOWAN CC SMALL BUSINESS
                                                                                                  910-296-2430
   910-879-5500                                       1208 North Rd.                                                                     CENTER
                                                      Elizabeth City, NC 27909                                                             109 Community College Rd.
                                                      252-335-0821                                                                         Ahoskie, NC 27910
                                                                                                                                           252-862-1279


Visit us online: www.sba.gov/nc                                                                                                    NORTH CAROLINA Small Business Resource —   39
Other aSSiStance
 ROBESON CC SMALL BUSINESS CENTER               SOUTHEASTERN CC SMALL BUSINESS                TRI-COUNTY CC SMALL BUSINESS CENTER      WESTERN PIEDMONT CC
   5160 Fayetteville Rd.                        CENTER                                          Cherokee County Center for Applied     SMALL BUSINESS CENTER
   Lumberton, NC 28358                            4564 Chadbourn Hwy.                           Technology                               228 South Sterling St.
   910-272-3631                                   Whiteville, NC 28472                          2415 Airport Rd.                         Morganton, NC 28655
                                                  910-642-7141                                  Marble, NC 28905                         828-448-6719
 ROCKINGHAM CC SMALL BUSINESS                                                                   828-835-9564
 CENTER                                         SOUTHERN PIEDMONT CC                                                                   WILKES CC SMALL BUSINESS CENTER
   Hwy. 65/P.O. Box 38                          SMALL BUSINESS CENTER                         VANCE-GRANVILLE CC SMALL BUSINESS          1328 S. Collegiate Dr.
   Wentworth, NC 27375                            4209 Old Charlotte Hwy.                     CENTER                                     Wilkesboro, NC 28697
   336-342-4261                                   Monroe, NC 28110                              200 Community College Rd.                336-838-6166
                                                  704-290-5222                                  Henderson, NC 27536
 ROWAN-CABARRUS CC SMALL BUSINESS                                                               252-738-3240                           WILSON CC SMALL BUSINESS CENTER
 CENTER                                         SOUTHWESTERN CC SMALL BUSINESS                                                           902 Herring Ave.
   1333 Jake Alexander Blvd. S.                 CENTER                                        WAKE TECHNICAL CC SMALL BUSINESS           Wilson, NC 27893
   Salisbury, NC 28146                            447 College Dr.                             CENTER                                     252-246-1232
   704-216-3534                                   Sylva, NC 28779                               3434 Kildare Farms Rd., Ste. 207
                                                  828-488-6413                                  Cary, NC 27511
 SAMPSON CC SMALL BUSINESS CENTER                                                               919-335-1007
   1801 Sunset Ave.                             STANLY CC SMALL BUSINESS CENTER
   Clinton, NC 28329                              141 College Dr.                             WAYNE CC SMALL BUSINESS CENTER
   910-592-7176                                   Albemarle, NC 28001                          3000 N. Wayne Memorial Dr.
                                                  704-991-0200                                 Goldsboro, NC 27530
 SANDHILLS CC SMALL BUSINESS CENTER                                                            919-739-6941
   3395 Airport Rd.                             SURRY CC SMALL BUSINESS CENTER
   Pinehurst, NC 28374                            630 S. Main St.
   910-695-3938                                   Dobson, NC 27017
                                                  336-386-3309


Chambers of Commerce                                            Name                         County       Phone           Name                          County       Phone
 Chambers of Commerce serve as a central location where the     Kings Mountain Chamber       Cleveland    704-739-4755    Lillington Area Chamber       Harnett      910-893-3751
 local small business community may obtain information,         Chadbourn Chamber            Columbus     910-654-3445    Greater Haywood
 publications and contact information. For more information     Fair Bluff Chamber           Columbus     910-649-7521       County Chamber             Haywood      828-456-3021
 please see the list below:                                     Greater Tabor City Chamber   Columbus     910-653-2031    Maggie Valley Chamber         Haywood      828-926-1686
                                                                Greater Whiteville Chamber   Columbus     910-642-3171    Hendersonville Chamber        Henderson    828-692-1413
 Name                        County       Phone                 Havelock Chamber             Craven       252-447-1101    Ahoskie Chamber               Hertford     252-332-2042
 Alamance County Chamber     Alamance     336-228-1338          New Bern Chamber             Craven       252-637-3111    Murfreesboro Chamber          Hertford     252-398-5922
 Alexander County Chamber    Alexander    828-632-8141          Fayetteville-Cumberland                                   Raeford/Hoke Chamber          Hoke         910-875-5929
 Alleghany County Chamber    Alleghany    336-372-5473            County Chamber             Cumberland   910-483-8133    Hyde County Chamber           Hyde         252-926-9171
 Anson County Chamber        Anson        704-694-4181          Hope Mills Area Chamber      Cumberland   910-423-4314    Greater Statesville Chamber   Iredell      704-873-2892
 Ashe County Chamber         Ashe         336-846-9550          Spring Lake Chamber          Cumberland   910-497-8821    Mooresville/South Iredell
 Avery/Banner Elk Chamber    Avery        828-898-5605          Currituck County Chamber     Currituck    252-453-9497       Chamber                    Iredell      704-664-3898
 Beech Mountain Chamber      Avery        800-468-5506          Outer Banks Chamber          Dare         252-441-8144    Jackson County Chamber        Jackson      800-962-1911
 Belhaven                                                       Denton Chamber               Davidson     336-859-5922    Cashiers Chamber              Jackson      828-743-5941
    Chamber of Commerce      Beaufort     252-943-3770          Lexington Area Chamber       Davidson     336-248-5929    Clayton Chamber               Johnston     919-553-6352
 Washington-Beaufort                                            Thomasville Area Chamber     Davidson     336-475-6134    Four Oaks Chamber             Johnston     919-963-4004
    Chamber                  Beaufort     252-946-9168          Davie County Chamber         Davie        336-751-3304    Kenly Chamber                 Johnston     919-284-5510
 Windsor                                                        Wallace Chamber              Duplin       910-285-4044    Smithfield-Selma Area
    Chamber of Commerce      Bertie       252-794-4277          Warsaw Chamber               Duplin       910-293-7804       Chamber                    Johnston     919-934-9166
 Elizabethtown Chamber       Bladen       910-862-4368          Durham Chamber               Durham       919-682-2133    Benson Area Chamber           Johnston     919-894-3825
 South Brunswick                                                Tarboro-Edgecombe                                         Jones County Economic
    Island Chamber           Brunswick    800-426-6644            Chamber                    Edgecombe    252-823-7241       Development Commission     Jones        252-448-1315
 Southport-Oak Island                                           Kernersville Chamber         Forsyth      336-993-4521    Sanford Chamber               Lee          919-775-7341
    Area Chamber             Brunswick    910-457-6964          Latin American Chamber       Forsyth      336-714-2777    Kinston-Lenoir County
 Asheville Chamber           Buncombe     828-258-6101          Winston-Salem Chamber        Forsyth      336-728-9200       Chamber                    Lenoir       252-523-2500
 Black Mountain/Swannanoa                                       Franklin County Chamber      Franklin     919-496-3056    Lincolnton/Lincoln County
    Valley Chamber           Buncombe     828-669-2300          Greater Franklin                                             Chamber                    Lincoln      704-735-3096
 Burke County Chamber        Burke        828-437-3021            County Chamber             Franklin     919-496-3056    Franklin Area Chamber         Macon        828-524-3161
 Cabarrus Regional Chamber   Cabarrus     704-260-8101          Belmont Chamber              Gaston       704-825-5307    Highlands Chamber             Macon        828-526-5841
 Carteret County Chamber     Carteret     252-726-6350          Bessemer City Chamber        Gaston       704-629-3900    Madison County Chamber        Madison      828-689-9351
 Caswell County Chamber      Caswell      336-694-6106          Cherryville Chamber          Gaston       704-435-3451    Martin County Chamber         Martin       252-792-4131
 Catawba Chamber             Catawba      828-328-6111          Gaston County Chamber        Granville    704-864-2621    McDowell Chamber              McDowell     828-652-4240
 Chatham County                                                 Granville County Chamber     Granville    919-693-6125    Carolina Asian American
    United Chamber           Chatham      919-742-3333          Greensboro Chamber           Guilford     336-387-8322       Chamber                    Mecklenburg 704-588-4288
 Andrews Chamber             Cherokee     877-558-0005          High Point Chamber           Guilford     336-882-5000    Charlotte Chamber             Mecklenburg 704-378-1319
 Cherokee County Chamber     Cherokee     828-837-2242          Roanoke Valley Chamber       Halifax      252-537-3513    Lake Norman Chamber           Mecklenburg 704-892-1922
 Edenton / Chowan Chamber    Chowan       252-482-3400          Angier Chamber               Harnett      919-639-2500    Latin American
 Clay County Chamber         Clay         828-389-3704          Dunn Chamber                 Harnett      910-892-4113       Chamber of Charlotte       Mecklenburg 704-343-2525
 Cleveland County Chamber    Cleveland    704-487-8521          Erwin Chamber                Harnett      910-897-7300    Matthews Chamber              Mecklenburg 704-847-3649


40 — Small Business Resource      NORTH CAROLINA                                                                                                        Visit us online: www.sba.gov/nc
Other aSSiStance
  Name                         County      Phone          Name                        County         Phone           Name                         County    Phone
  Mint Hill Chamber            Mecklenburg 704-573-8282   Asheboro/Randolph Chamber Randolph         336-626-2626    American Indian
  Mitchell County Chamber      Mitchell    828-765-9033   Liberty Chamber             Randolph       336-622-4937      Chamber of NC              Wake      919-247-4946
  Montgomery County                                       Randleman Chamber           Randolph       336-495-1100    Apex Chamber                 Wake      919-362-6456
     Chamber                   Montgomery 910-572-4300    Richmond County Chamber Richmond            910-895-9058   Cary Chamber                 Wake      919-467-1016
  Moore County Chamber         Moore       910-692-3926   Fairmont Chamber            Robeson        910-770-1967    Fuquay Varina Area Chamber   Wake      919-552-4947
  Rocky Mount Chamber          Nash        252-973-1212   Lumberton Area Chamber      Robeson        910-739-4750    Garner Chamber               Wake      919-772-6440
  Kure Beach Chamber           New Hanover910-458-8434    Maxton Chamber              Robeson        910-318-2786    Hispanic Chamber             Wake      919-782-8764
  Pleasure Island Chamber      New Hanover910-458-8434    Pembroke Area Chamber       Robeson        910-522-5790    Holly Springs Chamber        Wake      919-567-1796
  Wilmington Chamber           New Hanover910-762-2611    Red Springs Chamber         Robeson        910-843-5241    Knightdale Chamber           Wake      919-266-4603
  Wrightsville Chamber         New Hanover910-256-8116    Eden Chamber                Rockingham     336-623-3336    Morrisville Chamber          Wake      919-463-7150
  Northampton County                                      Reidsville Chamber          Rockingham     336-349-8481    Raleigh Chamber              Wake      919-664-7031
     Chamber                   Northampton252-534-1383    Western Rockingham                                         Raleigh Chamber              Wake      919-664-7000
  Jacksonville-Onslow Chamber Onslow       910-347-3141     Chamber                   Rockingham     336-548-6248    Rolesville Chamber           Wake      919-562-7069
  Topsail Chamber              Onslow      910-329-4446   Rowan County Chamber        Rowan          704-633-4221    Wake Forest Area Chamber     Wake      919-556-1519
  Chapel Hill/Carrboro Chamber Orange      919-967-7075   Hickory Nut Gorge Chamber Rutherford       828-625-2725    Wendell Chamber              Wake      919-365-6318
  Hillsborough/Orange ChamberOrange        919-732-8156   Rutherfordton/Spindale                                     Zebulon Chamber              Wake      919-269-6320
  Pamlico County Chamber       Pamlico     252-745-3008     Chamber                   Rutherford     828-287-3090    The Lake Gaston Chamber      Warren    252-586-5711
  Elizabeth City Area Chamber Pasquotank 252-335-4365     Clinton-Sampson Chamber Sampson            910-592-6177    Warren County Chamber        Warren    252-257-2657
  Burgaw Chamber               Pender      910-259-9817   Laurinburg/Scotland Chamber Scotland       910-276-7420    Blowing Rock Chamber         Watauga   800-295-7851
  Greater Topsail Area Chamber Pender      910-329-4446   Stanly County Chamber       Stanly         704-699-9227    Boone Area Chamber           Watauga   828-264-2225
  Hampstead Chamber            Pender      910-270-4000   King Chamber                Stokes         336-983-9308    Mount Olive Area Chamber     Wayne     919-658-3113
  Perquimans County Chamber Perquimans 252-426-5657       Mount Airy Chamber          Surry          336-786-6116    Wayne County Chamber         Wayne     919-734-2241
  Roxboro Area Chamber         Person      336-599-8333   Yadkin Valley Chamber       Surry          336-526-1111    Wilkes Chamber               Wilkes    336-838-8662
  Ayden Chamber                Pitt        252-746-2266   Swain County Chamber        Swain          800-867-9246    Wilkes Economic
  Farmville Chamber            Pitt        252-753-4670   Brevard-Transylvania                                         Development Corp.          Wilkes    336-838-1402
  Greenville-Pitt County                                    Chamber                   Transylvania   828-883-3700    Wilson County Chamber        Wilson    252-237-0165
     Chamber                   Pitt        252-752-4101   Tyrell County Chamber       Tyrell         252-796-1996    Yadkin County Chamber        Yadkin    336-679-2200
  Carolina Foot Hills Chamber Polk         828-859-6236   Union County Chamber        Union          704-289-4567    Yancey County-Burnsville
  Archdale Trinity Chamber     Randolph 336-434-2073      Henderson/Vance County
                                                                                                                       Chamber                    Yancey    828-682-7413
                                                            Chamber                   Vance          252-438-8414




Visit us online: www.sba.gov/nc                                                                                          NORTH CAROLINA Small Business Resource —      41
active lenderS
  North Carolina SBA                         COMMUNITYONE BANK                    NEW CENTURY BANK                   STATE BANK & TRUST
                                               www.myyesbank.com                    www.newcenturybanknc.com           www.buckheadcommunitybank.com
  Lenders in 2009
                                             CRESCENT STATE BANK (CARY)*          NEWTEK SMALL BUS FIN (NY)          THE EAST CAROLINA BANK
  AMERICAN COMMUNITY BANK
                                               www.crescentstatebank.com            www.newtekbusinessservices.com     www.ecbbancorp.com
    www.americancommunitybank.com
                                             FIFTH THIRD BANK (OH) *              PNC BANK (PA)*                     THE FIDELITY BANK
   AQUESTA BANK
                                                www.53.com                          www.pnc.com                        www.fidelitybanknc.com
    www.aquestabank.com
                                             FIRST CAROLINA STATE BANK*           PROVIDENCE BANK                    TRULIANT FCU
  ASHEVILLE SAVINGS BANK*
                                                www.firstcarolinastatebank.com      www.providencebanknc.com           www.truliantfcu.org
    www.ashevillesavingsbank.com
                                             FIRST CITIZENS BANK & TRUST*         RANDOLPH BANK                      VANTAGE SOUTH BANK
  BANK OF AMERICA*
                                                www.firstcitizens.com               www.randolphbank.com               www.vantagesouth.com
    www.bankofamerica.com
                                             FIRST NATIONAL BANK OF SHELBY*       RBC BANK*                          WACCAMAW BANK
  BANK OF CURRITUCK
                                                www.ibankatfnb.com                  www.rbcbankusa.com                www.waccamawbank.com
    www.bankofcurrituck.com
                                             FIRST NAT'L BANK OF THE SOUTH (SC)   SELF-HELP CREDIT UNION*            WACHOVIA BANK*
  BANK OF GRANITE
                                                www.firstnational-online.com        www.self-help.org                 www.wachovia.com
    www.bankofgranite.com
                                             FIRST SOUTH BANK                     SMALL BUSINESS LOAN SOURCE (TX)*   WELLS FARGO BANK (CA)*
  BANK OF OAK RIDGE
                                                www.firstsouthnc.com                www.sbls.com                      www.wellsfargo.com
    www.bankofoakridge.com
                                             FIRST TRUST BANK                     SOUND BANKING COMPANY*             YADKIN VALLEY BANK
  BANK OF STANLY*
                                                www.firsttrustnc.com                www.soundbanking.net               www.yadkinvalleybank.com
    www.bankofstanly.com
                                             FOUR OAKS BANK & TRUST*              SOUTHERN BANK & TRUST*               * SBAExpress Lenders
  BANK OF THE CAROLINAS*
                                               www.fouroaksbank.com                 www.southernbank.com
    www.bankofthecarolinas.com
                                                                                                                     NC CommunityExpress
                                             GATEWAY BANK & TRUST                 SOUTHERN COMMUNITY B&T*
  BANK OF THE COMMONWEALTH (VA)
                                               www.gatewaybankandtrust.com          www.smallenoughtocare.com
                                                                                                                     Lenders in 2009
    www.bankofthecommonwealth.com
                                                                                                                     BORREGO SPRINGS BANK
                                             HOME LOAN INVEST. BANK (RI)*         SUNTRUST BANK (VA)*
  BORREGO SPRINGS BANK (CA)                                                                                            www.borregospringsbank.com
                                               www.homeloanbank.com                 www.suntrust.com
    www.borregospringsbank.com
                                                                                                                     INNOVATIVE BANK
                                             INNOVATIVE BANK (CA)*                SUPERIOR FINANCIAL GROUP (CA)
  BRANCH BANKING & TRUST*                                                                                              www.innovativebank.com
                                               www.innovativebank.com               www.superiorfg.com
    www.bbandt.com
                                                                                                                     SELF-HELP
                                             LIVE OAK BANKING CO                  SURREY BANK & TRUST*
  BCI LENDING                                                                                                          www.self-help.org
                                                www.liveoakbank.com                 www.surreybank.com
    www.bcilending.com
                                                                                                                     SUPERIOR FINANCIAL
                                             MECHANICS & FARMERS BANK             TD BANK (ME) *
  BUSINESS LENDERS LLC (CT)                                                                                            www.superiorfg.com
                                              www.mfbonline.com                     www.tdbanknorth.com
    www.businesslenders.com
                                                                                                                     SURREY BANK & TRUST
                                             MOUNTAIN 1ST BANK & TRUST*           THE BANK OF ASHEVILLE
  CABARRUS BANK & TRUST*                                                                                               www.surreybank.com
                                              www.mountain1st.com                   www.bankofasheville.com
    www.cabarrusbankandtrust.com

  CAPITAL BANK*
    www.capitalbank-nc.com

  CAROLINA FIRST BANK
    www.carolinafirst.com

  CAROLINA PREMIER BANK
    www.carolinapremierbank.com

  CIT SMALL BUS. LENDING (NJ)
     www.cit.com

  COASTAL FCU*
    www.coastalfcu.org

  COMMUNITY BANK OF ROWAN*
    www.communitybankofrowan.com

  COMMUNITY SOUTH BANK (TN)*
    www.communitysouth.com

  COMMUNITY WEST BANK (CA)*
    www.communitywestbank.com


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

				
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