CLAYTON, N.C. — For close to a year, Dave Brown and his company, NUVO Solutions, have conducted business out of a building they call their own.
What You Need to Know
The State Small Business Credit Initiative began 11 years ago
The N.C. Rural Center works with banks to provide loans to small businesses
The center covers part of the loan
As a small business owner, owning his own spot with room to grow and invest in the community has made a huge difference for the Clayton resident.
“Our staff has expanded drastically over the last few months. So we have grown exponentially, and the trouble with that in a rental building is either — A. You have to find a way to move out of that building and find another building,” Brown said. “In this particular one we’ve actually be able to expand without having to ask the owners, because we are the owners.”
Brown was able to purchase the building with a loan from his local bank, funded in part by the N.C. Rural Center.
The State Small Business Credit Initiative began in 2010, and the N.C. Rural Center runs the program.
They work directly with banks and fund 15% of the loan, covering the borrower gap.
“These loans wouldn’t get done because they don’t have the down payment, the equity to bring to the table. So the bank would have to say no. So instead of the bank saying no to a small business owner, they can say yes. So we’re really helping to spur lending across the state, which is really exciting,” Armeer Kenchen of the N.C. Rural Center said.
There could also be additional funding coming to the program from the state budget. Both the state House and Senate’s proposals include $120,000,000 for the program.
Brown says this would be huge for businesses like his, investing in communities outside city centers.
“I feel that small businesses have taken a really huge hit here as of recently, and I also feel that any time that you can go out and actually own a building as opposed to renting, and bringing in your own, kind of your own, net worth if you will as a small business owner and as a small business, it contributes greatly.”