Flexible capital

NCIF lends to small to mid-sized businesses, agricultural enterprises and nonprofits that have positive community, economic and environmental impacts, but can't access traditional financing because of perceived risks. We offer flexible financing, and we use careful underwriting and a range of credit enhancement programs to make good loans.  We maintain a low loss rate and are AERIS rated.

We're not a below-market or low cost lender.  We're not here to compete with banks. Instead, our mission is to provide access to capital for businesses, farms or non-profits who can't use traditional sources. That means we take more risk, and so our interest rates are usually higher than traditional lenders. We always encourage entrepreneurs to obtain the lowest cost capital they can, from a traditional lending institution if possible.   

Lending Guidelines

STRUCTURE:  Senior or subordinated debt. To leverage traditional debt from banks and other collateral-based lenders, NCIF can provide the "equity-like" capital that's hardest to find.

INTEREST RATE:  We price our loans based on risk. We determine risk by examining the business' past profitability and cash flow, the loan purpose, strength of collateral, and the borrower’s credit history. Short term loans can have a fixed rate; longer term loan rates are usually variable, tied to the Prime Rate.  

AMOUNT: 
 $5,000 to $750,000.  Our financing is frequently part of larger total financial package.  As a USDA Business & Industry Guarantee Lender, NCIF can lend up to $2.5 Million.

USES:
  • Fixed assets, such as equipment, real estate, and technology.
  • Working capital to grow sales through increased inventory, hiring, or marketing.
  • Energy efficiency upgrades or renewable energy installations, through our Energy Efficient Enterprises Initiative.

TERMS:  
  • Working capital loans: 1-3 years.
  • Equipment loans: 3-7 years.
  • Real estate loans: up to 15 years.

CREDIT ENHANCEMENTS AND GUARANTEES:
 NCIF is an SBA 7(a) Community Advantage Lender and is certified by the USDA as a Business & Industry Guarantee (B&I), Intermediary Relending Program (IRP), and Rural Microenterprise Assistance Program (RMAP) lender. 

NCIF charges an origination fee of 1%- 2% of the loan amount, depending on the type of project.  Borrowers pay all loan closing costs, including filing fees and attorney’s fees.  The origination fee and loan closing costs can be financed, at the option of the borrower, as part of the loan.

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