Frequently Asked Questions

What does NCIF stand for?

NCIF stands for the Nature Capital Investment Fund. NCIF is a business loan fund that provides debt and equity financing to small and emerging businesses located in our four-state service area. NCIF is certified as a “community development financial institution fund” (CDFI) by the U.S. Department of the Treasury’s CDFI Fund. CDFIs are private, specialized financial institutions that are targeted to borrowers who cannot meet the credit standards of traditional financial institutions because of perceived credit risk. NCIF, like other CDFIs operating around the country, provides a wide range of flexible financial services to businesses located in economically distressed urban and rural communities. NCIF is also certified as a Community Development Entity (CDE) by the U.S. Department of the Treasury, having met the eligibility requirements set forth in the New Markets Tax Credit (NMTC) Program statute.

Is NCIF non-profit or for-profit?

NCIF is a 501(c)(3) non-profit organization and is a wholly owned affiliate of The Conservation Fund, a 501(c)(3), who has a dual-purpose mission to promote economic development and environmental protection. The Conservation Fund (www.conservationfund.org) launched NCIF in 2000 to increase access to financial resources by rural West Virginia businesses, and to hasten the rate of enterprise formation and business development.

Where does NCIF obtain the funds to loan?

NCIF obtains operating capital, technical assistance funding, and loan funds from a variety of state and federal agencies, private foundations, and financial institutions. For a complete list of our funders, please visit the Funding and Community Partners page under the Who We Are section of our web site.

What is NCIF’s lending and investment focus?

The NCIF provides flexible financing and investments and targeted technical assistance to a variety of natural resources-based businesses. They range from small crafts enterprises and specialty food manufacturers to multi-million dollar forest products enterprises. We also finance and invest in businesses involved with Environmental & Green Products / Services.

NCIF is dedicated to making investments in companies and projects that promote sustainable development and have a positive impact on human health and the natural environment. Sectors of particular interest include: heritage and recreation-based tourism; value-added and sustainable agriculture; water/wastewater treatment; sustainable forestry and forest products; integrated waste management; and technology that promotes improved efficiency and safety in industrial processing. Read more about our triple bottom-line investment approach.

Who can borrow from the NCIF?

The investment fund is designed to provide flexible financing and investment capital to new and expanding, locally owned businesses in that meet our triple bottom line investment criteria within our four-state service area, including West Virginia, North Carolina, Virginia and Tennessee. NCIF is particularly interested in projects in rural North Carolina, southwest and southside Virginia, and northeast Tennessee.

How can the funds be used?

Funds can be used for a variety of purposes, including:

Funds for start-up companies, especially for new or low-income entrepreneurs with little credit history or poor credit
Equity and equity-like financing that leverage traditional debt from banks
Working capital for established companies so owners can grow sales more rapidly through increased inventory, marketing campaigns, or broker contracts
Fixed asset investments in technology, plant, and equipment for emerging and established businesses

What is the average range of NCIF loans and investments?

NCIF will consider loans in the range of $15,000 to $250,000. NCIF equity investments range from $50,000 to $250,000.

How do equity investments work?

NCIF invests in companies that meet our underwriting criteria and that fit our social and environmental objectives. NCIF’s equity investments are customized to the particular transaction and may include features such as convertible preferred stock, stock warrants, convertible debt, or royalty payments. Investment amounts range from $50,000 to $250,000; all other terms are negotiable.

What is the typical term and rate of a NCIF loan?

Terms and rates will vary depending on the use of funds; up to 7 years for working capital, inventory, and machinery and equipment loans, and up to 15 years for real estate loans. Interest rates will vary based on the use and term of repayment and are tied to the prime rate.

Are there any fees?

Yes, There is a 1% loan origination fee based on the amount of the loan. For example, a loan of $80,000 will have a loan origination fee of $800. The borrower is required to pay all loan closing costs. The origination fee and loan closing costs can be financed, at the option of the borrower, as part of the loan.

How do you apply for a loan?

Loan applications are available online from the Getting Started section of this web site. We recommend that you contact us prior to filling out the application so that you can review your proposed project with the appropriate NCIF staff member for your state.

What is the loan process once I submit the application and business plan?

After an initial review, the NCIF will arrange for a site visit and meeting with the applicant. The staff of NCIF will complete the due diligence of underwriting the loan request that then is presented to the Investment Committee and Board of Directors. This process is dependent upon the completeness of the information provided by the borrower.

Does NCIF provide grants?

No, NCIF offers debt financing and equity investments to business. In some cases NCIF does underwrite the cost of technical assistance provided to our customers.