Small Business Financing in North Carolina

North Carolina has been experiencing strong economic growth over the past decade. Business has been thriving due to the skilled population, low tax rates, and emergence as a technology research hub.

The state has many financing opportunities available to small business owners, depending on what the business offers and the type of funding they need.

Keep reading to see what options you have in North Carolina.

If you’re looking to fund your small business in North Carolina using a bank loan, there are many banks in the state where you can shop for the best rate and terms.

Check with the bank to see if you might be eligible for a loan. If so, gather the proper documents and information they require, and have everything ready for the application process.

It might also be challenging to get a loan if your business is new, with no business credit or a limited track record to show a lender. In those cases, the lender looks to the owner’s personal finances for assurance that the loan will be repaid. In the eyes of the lender, the small business owner’s personal ability to pay is just as important as the business’s financial projections.

But a business loan can help you avoid cash flow issues or give you room to grow when you need it. Here’s a look at the banks that offer small business loans in North Carolina.

Self-Help Credit Union – This credit union provides small business loans up to $250,000. The bank analyzes the business’s cash flow projections, financial statements, debt-to-income, creditworthiness, and management experience.

First Bank – Small business owners can get a business financial consultation with one of the bank experts to find out what funding alternative would best meet their needs. The bank offers construction loans, business lines of credit, and lump-sum small business loans.

Live Oak Bank – The bank started with a focus on lending to veterinary practices and eventually moved into other industries. Its focus is on small business financing, and the bank has experts in a number of industries to provide financial advice for clients. Small business loans are available for up to $7.5 million with flexible loan terms that can extend as long as 25 years.

Select Bank and Trust – This bank offers commercial loans for businesses to purchase equipment and real estate. It also administers Small Business Association (SBA) loans for small business needs such as equipment, working capital, and other investment needs.

Coastal Credit Union – Coastal Credit Union serves the needs of small business owners in North Carolina, South Carolina, and Virginia by providing loans at competitive rates. Small business owners with a good financial track record are eligible for loans up to $50,000.

Other Small Business Loans in North Carolina – Banks aren’t the only places that can loan you money for your small business. Plenty of community organizations also offer loans for small businesses. Here’s a look at other funding opportunities in North Carolina.

Carolina Small Business Development Fund – This organization provides loans up to $250,000 for businesses in a variety of industries. The interest rates vary from 8% to 11%, and business owners must submit a package with financial statements, business plan, and management resumes.

#BLKTECHCLT – This is a loan fund created to provide loans up to $10,000 to support African-American entrepreneurs from any industry in the Charlotte metropolitan area. Applicants should have a strong business plan and cash projections as well as good personal credit.

North Carolina Rural Center – This initiative provides small business funding to rural areas not served by traditional lenders. Small business owners in rural areas can get funding up to $50,000 for borrowers with strong business plans and financial projections.

Center for Economic Empowerment Development – The center supports access to capital for inexperienced and less qualified small business borrowers. It provides funding in amounts between $2,500 and $200,000.

City of Winston-Salem – The city government provides small business loans in North Carolina to owners who place their business in a strategic neighborhood revitalization area. The city matches funding provided through bank loans or other means, and the average loan amount is for $35,000. Business net worth cannot exceed $6 million, and net profit after taxes must be less than $2 million over the past two years.

Getting a small business grant is an ideal way to fund your business since it’s money that you don’t need to pay back. Grants also do not require you to give up any equity in your company. However, qualifying for a grant can be challenging as there are often strict guidelines for eligibility – or it can simply be very competitive.

Keeping that in mind, take a look at some of the top small business grants in North Carolina.

WomensNet – This organization awards grants of $1,000 every month to help fund women-owned small businesses. At the end of the year, winners are also eligible for the annual Amber Grant of $9,000.


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